Document:

Exhibit 10.1

 

EXECUTION VERSION

 

U.S. $2,032,000,000

 

CREDIT AGREEMENT

 

Dated as of April 19, 2018

 

Among

 

DOLLAR TREE, INC.
  as Borrower

 

and

 

THE INITIAL LENDERS NAMED HEREIN
 as Initial Lenders

 

and

 

JPMORGAN CHASE BANK, N.A.
  as Administrative Agent

 

WELLS FARGO BANK, NATIONAL ASSOCIATION
 as Syndication Agent

 

JPMORGAN CHASE BANK, N.A.,
  WELLS FARGO SECURITIES, LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

FIFTH THIRD BANK,

RBC CAPITAL MARKETS(1)

and

U.S. BANK NATIONAL ASSOCIATION
  as Joint Lead Arrangers and Joint Bookrunners

 

PNC CAPITAL MARKETS LLC

and

SUNTRUST ROBINSON HUMPHREY, INC.

as Joint Lead Arrangers

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

FIFTH THIRD BANK,

RBC CAPITAL MARKETS,

U.S. BANK NATIONAL ASSOCIATION,

PNC CAPITAL MARKETS LLC,

SUNTRUST ROBINSON HUMPHREY, INC.,

CITIZENS BANK, N.A.,

HSBC SECURITIES (USA) INC.,

REGIONS BANK

and

TD BANK, N.A.
  as Co-Documentation Agents

 

(1)                                 RBC Capital Markets is a marketing name for the investment banking activities of Royal Bank of Canada and its affiliates.

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    
	
 
    
	
DEFINITIONS AND ACCOUNTING TERMS
    
	
 
    	
 
    	
 
    
	
SECTION 1.01.
    	
Certain Defined Terms
    	
1
    
	
SECTION 1.02.
    	
Computation of Time   Periods
    	
19
    
	
SECTION 1.03.
    	
Accounting Terms
    	
20
    
	
SECTION 1.04.
    	
Terms Generally
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
 
    
	
AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF   CREDIT
    
	
 
    	
 
    	
 
    
	
SECTION 2.01.
    	
The Advances and   Letters of Credit
    	
20
    
	
SECTION 2.02.
    	
Making the Advances
    	
22
    
	
SECTION 2.03.
    	
Issuance of and   Drawings and Reimbursement Under Letters of Credit
    	
24
    
	
SECTION 2.04.
    	
Fees
    	
27
    
	
SECTION 2.05.
    	
Termination or   Reduction of the Commitments
    	
27
    
	
SECTION 2.06.
    	
Repayment of Advances   and Letter of Credit Drawings
    	
28
    
	
SECTION 2.07.
    	
Interest on Advances
    	
29
    
	
SECTION 2.08.
    	
Interest Rate   Determination
    	
30
    
	
SECTION 2.09.
    	
Optional Conversion of   Advances
    	
31
    
	
SECTION 2.10.
    	
Optional Prepayments of   Advances
    	
31
    
	
SECTION 2.11.
    	
Increased Costs
    	
31
    
	
SECTION 2.12.
    	
Illegality
    	
32
    
	
SECTION 2.13.
    	
Payments and   Computations
    	
32
    
	
SECTION 2.14.
    	
Taxes
    	
33
    
	
SECTION 2.15.
    	
Sharing of Payments,   Etc.
    	
37
    
	
SECTION 2.16.
    	
Evidence of Debt
    	
37
    
	
SECTION 2.17.
    	
Use of Proceeds
    	
38
    
	
SECTION 2.18.
    	
Mitigation Obligations;   Replacement of Lenders
    	
38
    
	
SECTION 2.19.
    	
Cash Collateral
    	
39
    
	
SECTION 2.20.
    	
Defaulting Lenders
    	
39
    
	
SECTION 2.21.
    	
Increase in the   Aggregate Commitments
    	
41
    
	
SECTION 2.22.
    	
Extension of Commitment   Termination Date
    	
43
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
 
    
	
CONDITIONS TO EFFECTIVENESS AND LENDING
    
	
 
    	
 
    	
 
    
	
SECTION 3.01.
    	
Conditions Precedent to   Effectiveness
    	
44
    
	
SECTION 3.02.
    	
Conditions Precedent to   Each Borrowing and Issuance
    	
45
    
	
SECTION 3.03.
    	
Determinations Under   Section 3.01
    	
46
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
 
    
	
REPRESENTATIONS AND WARRANTIES
    
	
 
    	
 
    	
 
    
	
SECTION 4.01.
    	
Representations and   Warranties of the Borrower
    	
46
    

 

ii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
 
    
	
COVENANTS OF THE BORROWER
    
	
 
    	
 
    	
 
    
	
SECTION 5.01.
    	
Affirmative Covenants
    	
49
    
	
SECTION 5.02.
    	
Negative Covenants
    	
51
    
	
SECTION 5.03.
    	
Financial Covenants
    	
53
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    
	
 
    
	
EVENTS OF DEFAULT
    
	
 
    	
 
    	
 
    
	
SECTION 6.01.
    	
Events of Default
    	
53
    
	
SECTION 6.02.
    	
Actions in Respect of   the Letters of Credit upon Default
    	
55
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
 
    
	
THE AGENT
    
	
 
    	
 
    	
 
    
	
SECTION 7.01.
    	
Appointment and Authority
    	
56
    
	
SECTION 7.02.
    	
Rights as a Lender
    	
56
    
	
SECTION 7.03.
    	
Exculpatory Provisions
    	
56
    
	
SECTION 7.04.
    	
Reliance by Agent
    	
57
    
	
SECTION 7.05.
    	
Delegation of Duties
    	
57
    
	
SECTION 7.06.
    	
Resignation of Agent
    	
57
    
	
SECTION 7.07.
    	
Non-Reliance on Agent   and Other Lenders
    	
58
    
	
SECTION 7.08.
    	
No Other Duties, Etc.
    	
58
    
	
SECTION 7.09.
    	
Notice of Default
    	
59
    
	
SECTION 7.10.
    	
Withholding Tax
    	
59
    
	
SECTION 7.11.
    	
Certain ERISA Matters
    	
59
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    
	
 
    
	
MISCELLANEOUS
    
	
 
    	
 
    	
 
    
	
SECTION 8.01.
    	
Amendments, Etc.
    	
60
    
	
SECTION 8.02.
    	
Notices, Etc.
    	
61
    
	
SECTION 8.03.
    	
No Waiver; Remedies
    	
62
    
	
SECTION 8.04.
    	
Costs and Expenses
    	
62
    
	
SECTION 8.05.
    	
Right of Set-off
    	
64
    
	
SECTION 8.06.
    	
Binding Effect
    	
65
    
	
SECTION 8.07.
    	
Assignments and   Participations
    	
65
    
	
SECTION 8.08.
    	
Confidentiality
    	
68
    
	
SECTION 8.09.
    	
Governing Law
    	
69
    
	
SECTION 8.10.
    	
Execution in   Counterparts
    	
69
    
	
SECTION 8.11.
    	
Jurisdiction, Etc.
    	
69
    
	
SECTION 8.12.
    	
No Liability of the   Issuing Banks
    	
70
    
	
SECTION 8.13.
    	
Patriot Act Notice
    	
70
    
	
SECTION 8.14.
    	
Other Relationships; No   Fiduciary Relationships
    	
70
    
	
SECTION 8.15.
    	
Acknowledgement and   Consent to Bail-In of EEA Financial Institutions
    	
70
    
	
SECTION 8.16.
    	
Waiver of Jury Trial
    	
71
    

 

iii

 

 

	
 
    	
 
    	
 
    	
Page
    

 

Schedules

	
 
    	
 
    	
 
    
	
Schedule I
    	
-
    	
Commitments
    
	
Schedule 2.01(c)
    	
-
    	
Existing Letter of Credit
    
	
Schedule 4.01(e) 
    	
-
    	
Financial Statements
    
	
Schedule 4.01(f)
    	
-
    	
Disclosed Litigation
    
	
Schedule 5.02(a)
    	
-
    	
Existing Liens
    
	
Schedule 5.02(d)
    	
-
    	
Existing Subsidiary Debt
    
	
 
    	
 
    	
 
    
	
Exhibits
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A-1
    	
-
    	
Form of Revolving Credit Note
    
	
Exhibit A-2
    	
-
    	
Form of Term Note
    
	
Exhibit B
    	
-
    	
Form of Notice of Borrowing
    
	
Exhibit C
    	
-
    	
Form of Assignment and Assumption
    
	
Exhibit D
    	
-
    	
Form of Tax Compliance Certificates
    

 

iv

 

CREDIT AGREEMENT, dated as of April 19, 2018 (this “Agreement”), among DOLLAR TREE, INC., a Virginia corporation (the “Borrower”), the banks, financial institutions and other institutional lenders (the “Initial Lenders”) and issuers of letters of credit (“Initial Issuing Banks”) listed on Schedule I - Commitments hereto, and JPMORGAN CHASE BANK, N.A. (“JPMorgan”), as agent (the “Agent”) for the Lenders (as hereinafter defined).

 

PRELIMINARY STATEMENT

 

The Borrower has requested the Lenders and the Issuing Banks (as defined below) to extend credit to the Borrower from time to time on the terms and subject to the conditions set forth herein.  Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

SECTION 1.01.                              Certain Defined Terms.  As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary).

 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Rate Advance for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the Eurodollar Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent.

 

“Advance” means a Revolving Credit Advance, a Swing Line Advance or a Term Advance, as the context may require.

 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Agent’s Account” means the account of the Agent maintained by the Agent at JPMorgan at its office at 500 Stanton Christiana Road, JPM Loan & Agency Services, NCC 5, 1st Floor, Newark, Delaware 19713-2107, Attention:  Jacob.s.iati@jpmorgan.com or such other account of the Agent as is designated in writing from time to time by the Agent to the Borrower and the Lenders for such purpose.

 

“AML Laws” means all laws, rules, and regulations of the United States applicable to the Borrower or the Borrower’s Subsidiaries from time to time concerning or relating to anti-money laundering.

 

“Anniversary Date” has the meaning specified in Section 2.22(a).

 

“Anti-Corruption Laws” means the Foreign Corrupt Practices Act of 1977 and any similar laws, rules, and regulations applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

“Applicable Commitment Fee” means, (i) for the period from the Effective Date to and including the last Business Day of the first full fiscal quarter after the Effective Date, 0.15% per annum and (ii) thereafter, a

 

 

percentage per annum determined by reference to the more favorable to the Borrower of the (x) Public Debt Rating and (y) Leverage Ratio, each in effect on such date, as set forth below and subject to the Pricing Level Adjustments:

 

	
Pricing Level
    	
 
    	
Public Debt
   Rating
    	
 
    	
Leverage Ratio
    	
 
    	
Applicable
   Commitment
   Fee
    	
 
    
	
I
    	
 
    	
>   BBB+ / Baa1
    	
 
    	
<   2.5 to 1.0
    	
 
    	
0.09%
    	
 
    
	
II
    	
 
    	
BBB / Baa2
    	
 
    	
<   3.0 to 1.0
    	
 
    	
0.11%
    	
 
    
	
III
    	
 
    	
BBB- / Baa3
    	
 
    	
<   3.5 to 1.0
    	
 
    	
0.15%
    	
 
    
	
IV
    	
 
    	
<   BB+ / Ba1
    	
 
    	
> 3.5 to 1.0
    	
 
    	
0.175%
    	
 
    

 

“Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate Advance.

 

“Applicable Margin” means,

 

(a)                                 with respect to the Term Facility, (i) from the Effective Date to the date on which the Agent receives a compliance certificate pursuant to Section 5.01(h) for the first full fiscal quarter ending after the Effective Date, (x) 0.00% per annum, with respect to Base Rate Advances and (y) 1.00% per annum with respect to Eurodollar Rate Advances and (ii) thereafter, a percentage per annum determined by reference to the more favorable to the Borrower of the (x) Public Debt Rating and (y) Leverage Ratio, each in effect on such date, as set forth below and subject to the Pricing Level Adjustment:

 

	
Pricing Level
    	
 
    	
Public Debt
   Rating
    	
 
    	
Leverage
   Ratio
    	
 
    	
Applicable Margin
   for Base Rate Term
   Advances
    	
 
    	
Applicable Margin
   for Eurodollar Rate
   Term Advances
    	
 
    
	
I
    	
 
    	
>   BBB+ / Baa1
    	
 
    	
<   2.5 to 1.0
    	
 
    	
0.00%
    	
 
    	
0.875%
    	
 
    
	
II
    	
 
    	
BBB / Baa2
    	
 
    	
<   3.0 to 1.0
    	
 
    	
0.00%
    	
 
    	
0.95%
    	
 
    
	
III
    	
 
    	
BBB- / Baa3
    	
 
    	
<   3.5 to 1.0
    	
 
    	
0.00%
    	
 
    	
1.00%
    	
 
    
	
IV
    	
 
    	
<   BB+ / Ba1
    	
 
    	
> 3.5 to 1.0
    	
 
    	
0.25%
    	
 
    	
1.25%
    	
 
    

 

(b)                                 with respect to the Revolving Credit Facility, (i) from the Effective Date to the date on which the Agent receives a compliance certificate pursuant to Section 5.01(h) for the first full fiscal quarter ending after the Effective Date, (x) 0.25% per annum, with respect to Base Rate Advances and (y) 1.25% per annum with respect to Eurodollar Rate Advances and (ii) thereafter,  a percentage per annum determined by reference to the more favorable to the Borrower of the (x) Public Debt Rating and (y) Leverage Ratio, each in effect on such date, as set forth below and subject to the Pricing Level Adjustment:

 

	
Pricing Level
    	
 
    	
Public Debt
   Rating
    	
 
    	
Leverage
   Ratio
    	
 
    	
Applicable
   Margin for Base
   Rate Revolving
   Credit Advances
    	
 
    	
Applicable Margin
   for Eurodollar Rate
   Revolving Credit
   Advances
    	
 
    
	
I
    	
 
    	
>   BBB+ / Baa1
    	
 
    	
<   2.5 to 1.0
    	
 
    	
0.00%
    	
 
    	
1.00%
    	
 
    
	
II
    	
 
    	
BBB / Baa2
    	
 
    	
<   3.0 to 1.0
    	
 
    	
0.125%
    	
 
    	
1.125%
    	
 
    
	
III
    	
 
    	
BBB- / Baa3
    	
 
    	
<   3.5 to 1.0
    	
 
    	
0.25%
    	
 
    	
1.25%
    	
 
    
	
IV
    	
 
    	
<   BB+ / Ba1
    	
 
    	
> 3.5 to 1.0
    	
 
    	
0.50%
    	
 
    	
1.50%
    	
 
    

 

2

 

“Appropriate Lender” means, at any time, (a) with respect to any of the Term Facility or the Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility or holds a Term Advance or a Revolving Credit Advance, respectively, at such time, (b) with respect to the Letter of Credit Facility, (i) the Issuing Banks and (ii) if any Letters of Credit have been issued hereunder, the Revolving Credit Lenders and (c) with respect to the Swing Line Commitments, (i) the Swing Line Bank and (ii) if any Swing Line Advances are outstanding hereunder, the Revolving Credit Lenders.

 

“Approved Fund” means any Fund that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arrangers” means (i) JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Fifth Third Bank, RBC Capital Markets and U.S. Bank National Association, each in its capacity as joint bookrunner and joint lead arranger hereunder and (ii) PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc., each in its capacity as joint lead arranger hereunder.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 8.07), and accepted by the Agent, in substantially the form of Exhibit C or any other form approved by the Agent.

 

“Assuming Lender” has the meaning specified in Section 2.21(d).

 

“Assumption Agreement” has the meaning specified in Section 2.21(e)(i)(B).

 

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Termination Date and the date of termination of the Commitments.

 

“Available Amount” of a Letter of Credit at any time means the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any L/C Related Document, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

 

“Bail-in Action” has the meaning specified in Section 8.15.

 

“Bail-in Legislation” has the meaning specified in Section 8.15.

 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, and any successor thereto.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this definition, the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London time on such day.  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the Base Rate is being used as an alternate rate of interest pursuant to Section 2.08 hereof, then the Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Base Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Base Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(i).

 

3

 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Securities Exchange Act of 1934, as amended from time to time.

 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

 

“Borrowing” means a Revolving Credit Borrowing, a Swing Line Borrowing or a Term Borrowing, as applicable.

 

“Borrowing Minimum” means (a) in the case of Eurodollar Rate Advances, $1,000,000, (b) in the case of Base Rate Advances, $1,000,000 and (c) in the case of Swing Line Advances, $500,000.

 

“Borrowing Multiple” means (a) in the case of Eurodollar Rate Advances, $500,000, (b) in the case of Base Rate Advances, $250,000 and (c) in the case of Swing Line Advances, $100,000.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Rate Advance, the term “Business Day” shall also exclude any day on which banks are not open for dealings in deposits in Dollars in the London interbank market.

 

“Capital Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases.

 

“Capitalized Lease Obligations” means, as applied to any Person, all obligations under Capital Leases of such Person or any of its Subsidiaries, in each case taken at the amount thereof accounted for as liabilities in accordance with GAAP.

 

“Cash Collateralize” means, to pledge and deposit with or deliver to the Agent, for the benefit of one or more of the Issuing Banks or Lenders, as collateral for L/C Obligations or obligations of Lenders to fund participations in respect of L/C Obligations, cash or deposit account balances or, if the Agent and each applicable Issuing Bank shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Agent and each applicable Issuing Bank.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, all interpretations and applications thereof and any compliance by a Lender with any request or directive relating thereto and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued, but only to the extent it is the general policy of a Lender to impose applicable increased costs or costs in connection with capital adequacy requirements similar to those described in clauses (a) and (b) of Section 2.11 generally on other similarly situated borrowers under similar circumstances under agreements permitting such impositions.

 

“Change of Control” means (a) any person or group (within the meaning of the Securities Exchange Act of 1934, as amended, and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) becomes the Beneficial Owner, directly or indirectly, of more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Borrower; or (b) occupation of a majority of the

 

4

 

seats (other than vacant seats) on the Board of Directors of the Borrower by persons who (i) were not members of the Board of Directors of the Borrower on the Effective Date and (ii) whose election to the Board of Directors of the Borrower or whose nomination for election by the stockholders of the Borrower was not approved by a majority of the members of the Board of Directors of the Borrower then still in office who were either members of the Board of Directors on the Effective Date or whose election or nomination for election was previously so approved.

 

“Chesapeake Development Project” means any business engaged or proposed to be engaged in by the Borrower or any of its Subsidiaries relating to the development of real property located in Chesapeake, Virginia and any business or other activities that are similar, ancillary, complementary, incidental or related thereto.

 

“Code” means the Internal Revenue Code of 1986.

 

“Commitment” means a Revolving Credit Commitment, a Letter of Credit Commitment, a Swing Line Commitment or a Term Commitment, as the context may require.

 

“Commitment Date” has the meaning specified in Section 2.21(b).

 

“Commitment Fee” has the meaning specified in Section 2.4(a).

 

“Commitment Increase” has the meaning specified in Section 2.21(a).

 

“Consolidated” refers to the consolidation of accounts in accordance with GAAP.

 

“Consolidated EBITDAR” means, for any period, Consolidated Net Income for such period plus the following, to the extent deducted in calculating such Consolidated Net Income and without duplication:  (i) Consolidated Interest Expense for such period, (ii) the provision for Federal, State, local and foreign income taxes for such period, (iii) depreciation and amortization expense, (iv) all non-cash charges and items, including for share-based compensation ((x) other than in respect of any non-recurring provision for doubtful accounts or any non-recurring provision for obsolescence and (y) excluding any such non-cash item to the extent that it represents an accrual or reserve for potential cash items in any future period), (v) non-recurring items not exceeding $100,000,000 in the aggregate within any 12-month period, and (vi) Consolidated Rental Expense, in each case determined in accordance with GAAP for such period.

 

“Consolidated Interest Expense” means, with respect to any period, without duplication, the net interest expense on a Consolidated basis as determined in accordance with GAAP and applied consistently; provided that obligations in respect of Debt incurred by a Person in advance of, and the proceeds of which are to be applied in connection with, the consummation of a transaction shall be excluded from Consolidated Interest Expense solely to the extent the proceeds of such Debt are and continue to be held in an escrow, trust, collateral or similar account or arrangement and are not otherwise made available to such Person.

 

“Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries on a Consolidated basis, the net income of the Borrower and its Subsidiaries (excluding extraordinary gains and extraordinary losses) for that period.

 

“Consolidated Net Tangible Assets” means the total assets of the Borrower and its Subsidiaries on a Consolidated basis, less goodwill, trade names, trademarks, patents, unamortized debt discount and related expense and other like intangibles, all as described on the most recent Consolidated balance sheet of the Borrower and its Subsidiaries, and calculated based on positions as reported in the Borrower’s Consolidated financial statements determined in conformity with GAAP.

 

“Consolidated Rental Expense” means, for any period, the aggregate rental expense (including any contingent or percentage rental expense) of the Borrower and its Subsidiaries on a Consolidated basis for such period (excluding real estate taxes and common area maintenance charges) in respect of all rent obligations under all operating leases for real or personal property minus any rental income of the Borrower and its Subsidiaries on a Consolidated basis for such period, all as determined in conformity with GAAP.

 

5

 

“Consolidated Total Debt” means, as of any date of determination, (a) (i) all indebtedness of the Borrower and its Subsidiaries for borrowed money, (ii) the face amount of all Standby Letters of Credit issued for the account of the Borrower and its Subsidiaries, and (iii) the principal component of all Capitalized Lease Obligations of the Borrower and its Subsidiaries, in each case actually owing on such date and to the extent appearing on the balance sheet of the Borrower determined on a Consolidated basis in accordance with GAAP; provided that such Debt incurred by a Person in advance of, and the proceeds of which are to be applied in connection with, the consummation of a transaction shall be excluded from Consolidated Total Debt solely to the extent the proceeds of such Debt are and continue to be held in an escrow, trust, collateral or similar account or arrangement and are not otherwise made available to such Person.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Convert,” “Conversion” and “Converted” each refers to a conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.08 or 2.09.

 

“Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than trade accounts payable and other accrued liabilities incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments (other than performance, surety and appeal bonds arising in the ordinary course of business), (d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (e) all Capitalized Lease Obligations, (f) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, letters of credit or similar extensions of credit, (g) all net obligations of such Person in respect of Hedge Agreements, (h) all Debt of others referred to in clauses (a) through (g) above or clause (i) below and other payment obligations (collectively, “Guaranteed Debt”) guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement (1) to pay or purchase such Guaranteed Debt or to advance or supply funds for the payment or purchase of such Guaranteed Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Guaranteed Debt or to assure the holder of such Guaranteed Debt against loss, (3) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such property is received or such services are rendered) or (4) otherwise to assure a creditor against loss, and (i) all Debt referred to in clauses (a) through (h) above (including Guaranteed Debt) secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt; provided that “Debt,” for purposes of this definition, shall not include obligations in respect of Trade Letters of Credit incurred in connection with the acquisition of inventory in the ordinary course of business; provided, further, that for purposes of calculating the Leverage Covenant, obligations in respect of Debt incurred by a Person in advance of, and the proceeds of which are to be applied in connection with, the consummation of a transaction shall be excluded from the Leverage Ratio solely to the extent the proceeds of such Debt are and continue to be held in an escrow, trust, collateral or similar account or arrangement and are not otherwise made available to such Person.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

 

“Default” means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both.

 

“Default Interest” has the meaning specified in Section 2.07(b).

 

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“Defaulting Lender” means at any time, subject to Section 2.20(b), (i) any Lender that has failed for two or more Business Days to comply with its obligations under this Agreement to make an Advance or make any other payment due hereunder (each, a “funding obligation”), unless such failure is the result of such Lender’s good faith determination that one or more conditions precedent to funding have not been satisfied and such Lender has notified the Agent and the Borrower in writing thereof (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing), (ii) any Lender that has notified the Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding obligations hereunder, unless such intention is the result of such Lender’s good faith determination that one or more conditions precedent to funding cannot be satisfied (which conditions precedent, together with the applicable default, if any, will be specifically identified in such writing or public statement), (iii) any Lender that has defaulted on its funding obligations under other loan agreements or credit agreements generally under which it has commitments to extend credit or that has notified, or whose Parent Company has notified, the Agent or the Borrower in writing, or has stated publicly, that it does not intend to comply with its funding obligations under loan agreements or credit agreements generally, (iv) any Lender that has, for three or more Business Days after written request of the Agent or the Borrower, failed to confirm in writing to the Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender will cease to be a Defaulting Lender pursuant to this clause (iv) upon the Agent’s and the Borrower’s receipt of such written confirmation), (v) any Lender with respect to which a Lender Insolvency Event has occurred with respect to such Lender or its Parent Company; provided that a Lender Insolvency Event shall not be deemed to occur with respect to a Lender or its Parent Company solely as a result of the acquisition or maintenance of an ownership interest in such Lender or Parent Company by a Governmental Authority or instrumentality thereof where such action does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender, or (vi) any Lender that has become the subject of a Bail-In Action.  Any determination by the Agent that a Lender is a Defaulting Lender under any of clauses (i) through (vi) above will be conclusive and binding absent manifest error, and such Lender will be deemed to be a Defaulting Lender (subject to Section 2.20(b)) upon notification of such determination by the Agent to the Borrower and the Lenders.

 

“Dollars” and the “$” sign each mean lawful currency of the United States of America.

 

“Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic Lending Office” in its Administrative Questionnaire delivered to the Agent, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Agent.

 

“EEA Financial Institution” has the meaning specified in Section 8.15.

 

“EEA Member Country” has the meaning specified in Section 8.15.

 

“EEA Resolution Authority” has the meaning specified in Section 8.15.

 

“Effective Date” has the meaning specified in Section 3.01.

 

“Effective Date Refinancing” means (i) the termination of the Existing Credit Agreement and the repayment in full of all obligations outstanding thereunder and (ii) that the 5.750% Senior Notes due 2023 issued under the Indenture dated as of February 23, 2015 between the Borrower (as successor by merger to Family Tree Escrow, LLC) and U.S. Bank National Association, as trustee, shall have been redeemed or called for redemption.

 

“Effective Date Transactions” means, collectively the (a) entering into of this Agreement; (b) Effective Date Refinancing; (c) the consummation of the Senior Notes Offering; (d) the other transactions to occur pursuant to or in connection with the Loan Documents; and (e) the payment of all fees and expenses to be paid and owing in connection with the foregoing.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Sections 8.07(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 8.07(b)(iii)).

 

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“Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, Environmental Permit or Hazardous Materials, including, without limitation, (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or any third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief.

 

“Environmental Law” means any federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, judgment, decree or legally enforceable judicial or agency requirement relating to pollution or protection of the environment, health and safety (as affected by exposure to Hazardous Materials) or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.  Section references to ERISA are to ERISA as in effect at the Effective Date and any subsequent provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor.

 

“ERISA Affiliate” means each person (as defined in Section 3(9) of ERISA) that together with the Borrower would be deemed to be a “single employer” within the meaning of Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

 

“EU Bail-In Legislation Schedule” has the meaning specified in Section 8.15.

 

“Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Eurodollar Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurodollar Lending Office” in its Administrative Questionnaire delivered to the Agent, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Agent.

 

“Eurodollar Rate” means, with respect to any Eurodollar Rate Advance for any Interest Period, the LIBO Screen Rate at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate shall not be available at such time for such interest period (an “Impacted Interest Period”) then the Eurodollar Rate shall be the Interpolated Rate.

 

“Eurodollar Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(ii).

 

“Events of Default” has the meaning specified in Section 6.01.

 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated) or overall gross income, franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its Applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Advance or Commitment pursuant to a law in effect on the date on which (x) such Lender acquires such interest in the applicable Commitment (or, in the case of an Advance not funded pursuant to a Commitment, the applicable Advance), in each case, other than pursuant to an assignment request by the Borrower under Section 2.18(b) or (y) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.14, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the

 

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applicable interest in such Commitment or Advance or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.14(f) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

“Existing Credit Agreement” means the Credit Agreement, dated as of March 9, 2015, as amended by Amendment No. 1, dated as of June 11, 2015, Amendment No. 2, dated as of December 1, 2015, Amendment No. 3, dated as of August 30, 2016 and as amended by Amendment No. 4, dated as of September 22, 2016, by and among the Borrower (as successor by merger to Family Tree Escrow, LLC), the several banks and other financial institutions or entities from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent (as defined therein) and the various other parties thereto (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time).

 

“Existing Subsidiary Debt” has the meaning specified in Section 5.02(d).

 

“Extending Lender” has the meaning specified in Section 2.22(b).

 

“Facility” means the Revolving Credit Facility, the Letter of Credit Facility or the Term Facility, as the context may require.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to current Section 1471(b)(1) of the Code (or any amended or successor version described above), any intergovernmental agreement implementing such Sections of the Code and any fiscal or regulatory legislation, rules or official administrative guidance adopted pursuant to such intergovernmental agreement.

 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate, provided that if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of calculating such rate.

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Financial Officer” means the chief executive officer, the chief financial officer, the treasurer or the assistant treasurer of the Borrower.

 

“Foreign Lender” means a Lender that is not a U.S. Person.

 

“Foreign Plan” means any employee benefit plan, program, policy, arrangement or agreement maintained or contributed to by the Borrower or any of its Subsidiaries with respect to employees employed outside the United States.

 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to any Issuing Bank, such Defaulting Lender’s Ratable Share of the outstanding L/C Obligations with respect to Letters of Credit issued by such Issuing Bank other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing Line Bank, such Defaulting Lender’s Ratable Share of outstanding Swing Line Advances made by the Swing Line Bank other than Swing Line Advances as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders.

 

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

 

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“GAAP” means generally accepted accounting principles in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state, local or otherwise, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

“Hazardous Materials” means (a) petroleum and petroleum products, byproducts or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law.

 

“Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other similar agreements.

 

“Impacted Interest Period” has the meaning assigned to it in the definition of “Eurodollar Rate.”

 

“Increase Date” has the meaning specified in Section 2.21(a).

 

“Increasing Lender” has the meaning specified in Section 2.21(b).

 

“Indemnified Taxes” means all (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Information” has the meaning specified in Section 8.08.

 

“Interest Period” means, as to any Eurodollar Rate Advance, the period commencing on the date of such Borrowing or on the last day of the immediately preceding Interest Period applicable to such Borrowing, as applicable, and ending on the numerically corresponding day (or, if there is no numerically corresponding day, on the last day) in the calendar month that is 1, 2, 3 or 6 months thereafter (or, to the extent agreed to by all Lenders with commitments or Loans under the applicable Facility, 12 months or periods shorter than 1 month as are satisfactory to the Agent), as the Borrower may elect; provided, however, that if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day.  Interest shall accrue from and including the first day of an Interest Period to but excluding the last day of such Interest Period.

 

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period for which the LIBO Screen Rate is available that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

 

“IRS” means the United States Internal Revenue Service.

 

“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the time of issuance).

 

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“Issuance” with respect to any Letter of Credit means the issuance, amendment, renewal or extension of such Letter of Credit.  “Issue” has a corresponding meaning.

 

“Issuing Bank” means an Initial Issuing Bank or any Eligible Assignee to which a portion of the Letter of Credit Commitment hereunder has been assigned pursuant to Section 8.07 or any other Lender so long as such Eligible Assignee or Lender expressly agrees to perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as an Issuing Bank and notifies the Agent of its Applicable Lending Office (which information shall be recorded by the Agent in the Register), for so long as such Initial Issuing Bank, Eligible Assignee or Lender, as the case may be, shall have a Letter of Credit Commitment.

 

“JPMorgan” has the meaning set forth in the preamble hereto.

 

“L/C Cash Deposit Account” means an interest bearing cash deposit account to be established and maintained by the Agent, over which the Agent shall have sole dominion and control, upon terms as may be reasonably satisfactory to the Agent.

 

“L/C Obligations” means, as of any date, the aggregate Available Amount of outstanding Letters of Credit and Revolving Credit Advances made by an Issuing Bank in accordance with Section 2.03 that have not been funded by the Lenders.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“L/C Related Documents” has the meaning specified in Section 2.06(c)(i).

 

“Lender Insolvency Event” means that (a) a Lender or its Parent Company is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, (b) such Lender or its Parent Company has become the subject of a proceeding under any Debtor Relief Law, or a receiver, trustee, conservator, intervener or sequestrator or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment or (c) a Lender or its Parent Company is the subject of a Bail-in Action.

 

“Lenders” means each Initial Lender, each Issuing Bank, the Swing Line Bank, each Assuming Lender that shall become a party hereto pursuant to Section 2.21 or 2.22 and each Person that shall become a party hereto pursuant to Section 8.07.

 

“Letter of Credit” has the meaning specified in Section 2.01(c).

 

“Letter of Credit Agreement” has the meaning specified in Section 2.03(a).

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the relevant Issuing Bank.

 

“Letter of Credit Commitment” means, with respect to each Issuing Bank, the obligation of such Issuing Bank to Issue Letters of Credit for the account of the Borrower and its specified Subsidiaries in (a) the Dollar amount set forth opposite the Issuing Bank’s name on Schedule I - Commitments hereto under the caption “Letter of Credit Commitment” or (b) if such Issuing Bank has entered into one or more Assignment and Assumptions, or if such Person became an Issuing Bank after the date hereof, the Dollar amount set forth for such Issuing Bank in the Register maintained by the Agent pursuant to Section 8.07(c) as such Issuing Bank’s “Letter of Credit Commitment,” in each case as such amount may be reduced prior to such time pursuant to Section 2.05.

 

“Letter of Credit Facility” means, at any time, an amount equal to the least of (a) the aggregate amount of the Issuing Banks’ Letter of Credit Commitments at such time, (b) $350,000,000 and (c) the aggregate amount of the Revolving Credit Commitments, as such amount may be reduced at or prior to such time pursuant to Section 2.05.

 

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“Leverage Covenant” has the meaning set forth in Section 5.03(a).

 

“Leverage Ratio” has the meaning set forth in Section 5.03(a).

 

“LIBO Screen Rate”  means, for any day and time, with respect to any Eurodollar Rate Advance for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. Dollars) for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

 

“Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property.

 

“Loan Documents” means this Agreement, each L/C Related Document, if any, and the Notes, if any.

 

“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

 

“Material Adverse Change” means any material adverse change in the business, financial condition or operations of the Borrower and its Subsidiaries taken as a whole.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, financial condition or operations of the Borrower and its Subsidiaries taken as a whole, (b) the rights and remedies of the Agent or any Lender under this Agreement or any other Loan Document or (c) the ability of the Borrower to perform its obligations under this Agreement or any other Loan Document.

 

“Material Subsidiary” means, at any time, any Subsidiary of the Borrower (i) whose total assets at such time, less net goodwill and other intangible assets, less total current liabilities, all determined in conformity with GAAP, are equal to or greater than 5% of Consolidated Net Tangible Assets or (ii) whose revenue is equal to or greater than 5% of Consolidated revenue of the Borrower and its Subsidiaries.

 

“Minimum Collateral Amount” means, at any time, (i) with respect to Cash Collateral consisting of cash or deposit account balances, an amount equal to 102% of the Fronting Exposure of all Issuing Banks with respect to Letters of Credit issued and outstanding at such time and (ii) otherwise, an amount determined by the Agent and the Issuing Banks in their sole discretion.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA Affiliate and at least one Person other than the Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Non-Approving Lender” means any Lender that does not approve any consent, waiver or amendment that requires the approval of all affected Lenders in accordance with the terms of Section 8.01 and has been approved by the Required Lenders.

 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

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“Non-Extending Lender” has the meaning specified in Section 2.22(b).

 

“Note” means a Revolving Credit Note or Term Note, as the context may require.

 

“Notice of Borrowing” has the meaning specified in Section 2.02(a).

 

“Notice of Issuance” has the meaning specified in Section 2.03(a).

 

“Notice of Swing Line Borrowing” has the meaning specified in Section 2.02(b).

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day; provided, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for the purposes of calculating such rate.

 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement, or sold or assigned an interest in any Advance).

 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under any Loan Document, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.18(b)).

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar Rate Advances by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

 

“Parent Company” means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, or if such Lender does not have a bank holding company, then any corporation, association, partnership or other business entity owning, beneficially or of record, directly or indirectly, a majority of the Voting Stock of such Lender.

 

“Participant” has the meaning specified in Section 8.07(d).

 

“Participant Register” has the meaning specified in Section 8.07(d).

 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26, 2001.

 

“PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

 

“Permitted Liens” means:

 

(a)                                 Liens granted by any Subsidiary of the Borrower in favor of the Borrower or any other Subsidiary of the Borrower;

 

(b)                                 Liens (other than Liens created or imposed under ERISA) for taxes, assessments or governmental charges or levies not overdue for a period of more than 30 days or Liens for taxes being

 

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contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established;

 

(c)                                  Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and suppliers and other Liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business;

 

(d)                                 Liens (other than Liens created or imposed under ERISA) incurred or deposits made by the Borrower and its Subsidiaries in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, bids, leases, government contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money);

 

(e)                                  Liens in connection with judgment bonds so long as the enforcement of such Liens is effectively stayed and the claims secured thereby are being contested in good faith by appropriate proceedings and as to which appropriate reserves are being maintained in accordance with generally accepted accounting practices;

 

(f)                                   zoning restrictions, easements, rights of way and other encumbrances on title to real property that do not render title to the property encumbered thereby unmarketable or materially adversely affect the use of such property for its present purposes;

 

(g)                                  leases or subleases granted to others not interfering in any material respect with the business of the Borrower and its Subsidiaries taken as a whole and any interest of title of any lessor under any lease;

 

(h)                                 Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

 

(i)                                     normal and customary rights of setoff upon deposits of cash in favor of banks or other depository institutions and Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection;

 

(j)                                    Liens on any inventory of the Borrower or any of its Subsidiaries in favor of a vendor of such inventory, arising in the normal course of business upon its sale to the Borrower or any such Subsidiary;

 

(k)                                 Liens in respect of licensing of intellectual property in the ordinary course of business;

 

(l)                                     protective Uniform Commercial Code filings with respect to any leased or consigned personal property;

 

(m)                             Liens on insurance policies and the proceeds thereof securing the financing or payment of premiums with respect thereto in the ordinary course of business, to the extent not exceeding the amount of such premiums;

 

(n)                                 Liens incurred in the ordinary course of business on the proceeds of prepaid cards or stored value cards; and

 

(o)                                 Liens on cash or cash equivalents that are the proceeds of any Debt issued in escrow or that have been deposited pursuant to discharge, redemption or defeasance provisions under the indenture or similar instrument governing any Debt.

 

“Person” means any natural Person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

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“Plan” means any (a) Single Employer Plan that is or was within any of the preceding six plan years maintained or contributed to by the Borrower or any ERISA Affiliate (or to which the Borrower or any ERISA Affiliate has or had an obligation to contribute or to make payments) and is subject to Title IV of ERISA or the minimum funding standards under Section 412 of the Code or (b) Multiple Employer Plan.

 

“Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

 

“Pricing Level Adjustment” means, for purposes of determining the Applicable Commitment Fee and the Applicable Margin, (a) if the Public Debt Rating shall fall within a different pricing level than the Leverage Ratio, the Applicable Commitment Fee and the Applicable Margin shall be based upon the lower pricing level unless such Public Debt Rating and Leverage Ratio differ by two or more pricing levels, in which case the applicable pricing level will be deemed to be one pricing level below the higher of such pricing levels, (b) if only one of S&P and Moody’s shall have in effect a Public Debt Rating, the Applicable Commitment Fee and the Applicable Margin shall be determined by reference to the available rating, (c) if neither S&P nor Moody’s shall have in effect a Public Debt Rating, the Applicable Margin and the Applicable Commitment Fee shall be set in accordance with pricing level IV under the charts set forth in the definition of “Applicable Margin” and “Applicable Commitment Fee”, (d) if the ratings established by S&P and Moody’s shall fall within different pricing levels, the Applicable Commitment Fee and the Applicable Margin shall be based upon the higher rating unless such ratings differ by two or more pricing levels, in which case the applicable pricing level will be deemed to be one pricing level below the higher of such pricing levels, (e) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change, (f) if S&P or Moody’s shall change the basis on which ratings are established, each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be, (g) the Leverage Ratio shall be determined as of the end of the fiscal quarter for the Borrower for which financial statements have most recently been delivered pursuant to Section 5.01(h), and (h) if the Borrower fails to deliver the financial statements required to be delivered pursuant to Section 5.01(h) within the time period specified for such delivery then, during the period from the date such financial statements were required to have been delivered until delivery, the Applicable Commitment Fee and the Applicable Margin shall be set in accordance with pricing level IV under the charts set forth in the definition of “Applicable Commitment Fee” and “Applicable Margin”.

 

“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Agent) or any similar release by the Federal Reserve Board (as determined by the Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Public Debt Rating” means, as of any date, the rating that has been most recently announced by either S&P or Moody’s, as the case may be, for any class of non-credit enhanced long-term senior unsecured debt issued by the Borrower or, if any such rating agency shall have issued more than one such rating, the lowest such rating issued by such rating agency.

 

“Ratable Share” of any amount means (a) with respect to any Term Lender at any time, the percentage of the Term Facility represented by the principal amount of such Term Lender’s Term Advances at such time and (b) with respect to any Revolving Credit Lender at any time, the percentage of the Revolving Credit Facility represented by such Revolving Credit Lender’s Revolving Credit Commitment at such time.  If the commitment of each Revolving Credit Lender to make Revolving Credit Advances and the obligation of the Issuing Banks to Issue Letters of Credit have been terminated pursuant to Section 6.01, or if the Revolving Credit Commitments have expired, then the Ratable Share of each Revolving Credit Lender in respect of the Revolving Credit Facility shall be

 

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determined based on the Ratable Share of such Revolving Credit Lender in respect of the Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments.

 

“Recipient” means (a) the Agent and (b) any Lender, as applicable.

 

“Register” has the meaning specified in Section 8.07(c).

 

“Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

 

“Related Parties” means, with respect to any Person, such Person’s controlled and controlling Affiliates and the respective partners, directors, officers, employees, agents, advisors and members of such Person and of such Person’s controlled and controlling Affiliates.

 

“Reportable Event” means an event described in Section 4043(c) of ERISA or the regulations thereunder, other than any event as to which the thirty day notice period has been waived.

 

“Required Lenders” means at any time Lenders holding more than 50% of the sum of the (a) aggregate principal amount of all Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in Letters of Credit and Swing Line Advances being deemed “held” by such Revolving Credit Lender for purposes of this definition), (b) the aggregate principal amount of the Term Facility and (c) the aggregate unused amount of the Commitments; provided, that the Total Revolving Credit Outstandings of, the Advances owed to or Commitments held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Required Revolving Lenders” means, as of any date of determination, Revolving Credit Lenders holding more than 50% of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in Letters of Credit and Swing Line Advances being deemed “held” by such Revolving Credit Lender for purposes of this definition) and (b) aggregate Unused Revolving Credit Commitments; provided that the Unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders.

 

“Required Term Lenders” means, as of any date of determination, Term Lenders holding more than 50% of the Term Facility on such date; provided, that the portion of the Term Facility held by any Defaulting Lender shall in each case be excluded for purposes of making a determination of Required Term Lenders.

 

“Revolving Credit Advance” means an advance by a Revolving Credit Lender to the Borrower as part of a Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a “Type” of Revolving Credit Advance).

 

“Revolving Credit Borrowing” means a Borrowing consisting of simultaneous Revolving Credit Advances of the same Type made by each of the Revolving Credit Lenders.

 

“Revolving Credit Commitment” means as to any Lender (a) the Dollar amount set forth opposite such Lender’s name on Schedule I - Commitments hereto as such Lender’s “Revolving Credit Commitment,” (b) if such Lender has become a Revolving Credit Lender hereunder pursuant to an Assumption Agreement, the Dollar amount set forth in such Assumption Agreement as such Lender’s “Revolving Credit Commitment” or (c) if such Lender has entered into an Assignment and Assumption, the Dollar amount set forth for such Lender in the Register maintained by the Agent pursuant to Section 8.07(c) as such Lender’s “Revolving Credit Commitment,” as such amount may be reduced pursuant to Section 2.05 or increased pursuant to Section 2.21.  The initial aggregate amount of the Lenders’ Revolving Credit Commitments is $1,250,000,000.

 

“Revolving Credit Facility” means, at any time, (a) on or prior to the latest Termination Date, the aggregate amount of the Revolving Credit Commitments at such time and (b) thereafter, the sum of the aggregate principal

 

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amount of the Revolving Credit Advances and Swing Line Advances outstanding at such time plus the Available Amount of all Letters of Credit outstanding at such time.

 

“Revolving Credit Lender” means, at any time, any Lender that has a Revolving Credit Commitment at such time.

 

“Revolving Credit Note” means a promissory note of the Borrower payable to any Lender, delivered pursuant to a request made under Section 2.16 in substantially the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the Revolving Credit Advances made by such Lender to the Borrower.

 

“S&P” means Standard & Poor’s, a Standard & Poor’s Financial Services LLC business.

 

“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, the Crimea region of Ukraine, Cuba, Iran, North Korea and Syria).

 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the Office of the Superintendent of Financial Institutions, the European Union or Her Majesty’s Treasury of the United Kingdom, and (b) any Person majority-owned or controlled by any such Person or Persons described in the foregoing clause (a).

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, (b) the European Union or Her Majesty’s Treasury of the United Kingdom or (c) the Office of the Superintendent of Financial Institutions.

 

“Senior Notes Offering” means the issuance and sale by the Borrower of (i) $750,000,000 Senior Floating Notes Due 2020, (ii) $1,000,000,000 3.700% Senior Notes Due 2023, (iii) $1,000,000,000 4.000% Senior Notes Due 2025 and (iv) $1,250,000,000 4.200% Senior Notes Due 2028, in each case on the Effective Date pursuant to the Indenture between the Borrower and U.S. Bank National Association, as trustee, dated as of April 2, 2018, as supplemented by the First Supplemental Indenture, dated as of April 19, 2018, between the Borrower and U.S. Bank National Association, as trustee.

 

“Significant Acquisition” means any Acquisition involving the payment of consideration by the Borrower and its Subsidiaries in excess of $750,000,000.

 

“Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA Affiliate and no Person other than the Borrower or any ERISA Affiliate or (b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Solvent” means, with respect to any Person, (i) the sum of such Person’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Person’s present assets; (ii) such Person’s capital is not unreasonably small in relation to its business as contemplated on the Effective Date; and (iii) such Person has not incurred and does not intend to incur, or believe that it will incur, debts including current obligations beyond its ability to pay such debts as they become due (whether at maturity or otherwise).  For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the

 

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Federal Reserve Board to which the Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D).  Such reserve percentage shall include those imposed pursuant to Regulation D.  Eurodollar Rate Advances shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such limited liability company, partnership or joint venture or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries.

 

“Swing Line Advance” means an advance made by the Swing Line Bank pursuant to Section 2.01(d) or any Lender pursuant to Section 2.02(b).

 

“Swing Line Bank” means JPMorgan Chase Bank, N.A.

 

“Swing Line Borrowing” means a borrowing consisting of a Swing Line Advance made by the Swing Line Bank.

 

“Swing Line Commitment” means with respect to the Swing Line Bank at any time the amount set forth opposite the Swing Line Bank’s name on Schedule I - Commitments hereto, as such amount may be reduced pursuant to Section 2.05.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Advance” means an advance by a Term Lender to the Borrower under the Term Facility and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a “Type” of Term Advance).

 

“Term Borrowing” means, initially, the Term Advances made by the Term Lenders to the Borrower pursuant to Section 2.01.  After the initial funding, “Term Borrowing” means a portion of the Term Advances (as to which each Term Lender has a ratable part) that (a) bears interest by reference to the Base Rate or (b) bears interest by reference to the Adjusted LIBO Rate and has a single Interest Period.

 

“Term Commitment” means as to any Lender (a) the Dollar amount set forth opposite such Lender’s name on Schedule I - Commitments hereto as such Lender’s “Term Commitment,” (b) if such Lender has become a Term Lender hereunder pursuant to an Assumption Agreement, the Dollar amount set forth in such Assumption Agreement as such Lender’s “Term Commitment” or (c) if such Lender has entered into an Assignment and Assumption, the Dollar amount set forth for such Lender in the Register maintained by the Agent pursuant to Section 8.07(c) as such Lender’s “Term Commitment,” as such amount may be reduced pursuant to Section 2.05 or increased pursuant to Section 2.21.  On the Effective Date, the aggregate amount of the Term Commitments is $782,000,000.

 

“Term Facility” means, at any time, the aggregate principal amount of the Term Advances outstanding at such time.

 

“Term Lender” means, at any time, any Lender that has an outstanding Term Advance at such time.

 

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“Term Loan Maturity Date” means April 19, 2020.

 

“Term Note” means a promissory note of the Borrower payable to any Lender, delivered pursuant to a request made under Section 2.16 in substantially the form of Exhibit A-2 hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the Term Advances made by such Lender to the Borrower.

 

“Termination Date” means the earlier of (a) April 19, 2023, subject to the extension thereof pursuant to Section 2.22 and (b) the date of termination in whole of the Commitments pursuant to Section 2.05 or 6.01; provided, however, that the Termination Date of any Revolving Credit Lender, Issuing Bank or Swing Line Bank that is a Non-Extending Lender to any requested extension pursuant to Section 2.22 shall be the Termination Date of such Revolving Credit Lender, Issuing Bank or Swing Line Bank in effect immediately prior to the applicable Anniversary Date for all purposes of this Agreement.

 

“Total Revolving Credit Outstandings” means the aggregate outstanding amount of all Revolving Credit Advances, Swing Line Advances and Letters of Credit.

 

“Type” when used in reference to any Advance or Borrowing, refers to whether the rate of interest on such Advance, or on the Advances comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Base Rate.

 

“UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600 (or such later version thereof as may be in effect at the time of issuance).

 

“Unfunded Current Liability” of any Plan means the amount, if any, by which the Accumulated Benefit Obligation (as defined under Statement of Financial Accounting Standards Board (FASB) Accounting Standard Codification No. 715:  Compensation-Retirement Benefits (“ASC 715”)) under the Plan as of the close of its most recent plan year, determined in accordance with ASC 715 as in effect on the Effective Date, exceeds the fair market value of the assets allocable thereto.

 

“Unissued Letter of Credit Commitment” means, with respect to any Issuing Bank, the obligation of such Issuing Bank to Issue Letters of Credit for the account of the Borrower or its specified Subsidiaries in an amount equal to the excess of (a) the amount of its Letter of Credit Commitment over (b) the aggregate Available Amount of all Letters of Credit issued by such Issuing Bank.

 

“Unused Revolving Credit Commitment” means, with respect to each Lender at any time, (a) such Lender’s Revolving Credit Commitment at such time minus (b) the sum of (i) the aggregate principal amount of all Revolving Credit Advances made by such Lender (in its capacity as a Lender) and outstanding at such time, plus (ii) such Lender’s Ratable Share of (A) the aggregate Available Amount of all the Letters of Credit outstanding at such time, (B) the aggregate principal amount of all Advances made by each Issuing Bank pursuant to Section 2.03(c) that have not been ratably funded by such Lender and outstanding at such time and (C) the aggregate principal amount of all Swing Line Advances then outstanding.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.14(f).

 

“Voting Stock” means capital stock issued by a corporation, or equivalent interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a contingency.

 

“Write-Down and Conversion Powers” has the meaning specified in Section 8.15.

 

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SECTION 1.02.                              Computation of Time Periods.  In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.”

 

SECTION 1.03.                              Accounting Terms.

 

(a)                                 Generally.  All accounting terms not specifically or completely defined herein shall be construed in conformity with GAAP applied on a consistent basis, as in effect from time to time, except as otherwise specifically prescribed herein.  For purposes of determining compliance with this Agreement, all leases of the Borrower and its Subsidiaries shall be accounted for in accordance with GAAP as in effect on the date of this Agreement and any determination whether a lease is an operating lease or a Capital Lease shall be made without giving effect to any change in GAAP (including any required adoption of International Financial Reporting Standards).  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, the effects of FASB ASC 825 on financial liabilities and FASB ASC 842 on capital lease or debt obligations shall be disregarded.

 

(b)                                 Changes in GAAP.  If at any time any change in GAAP (including any required adoption of International Financial Reporting Standards) would affect the computation of any financial ratio or requirement set forth herein, and either the Borrower or the Required Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided, that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Agent a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

 

SECTION 1.04.                              Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

ARTICLE II

 

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

 

SECTION 2.01.                              The Advances and Letters of Credit.

 

(a)                                 The Term Advances.  Each Term Lender agrees, severally and not jointly, to make Term Advances in Dollars to the Borrower on the Effective Date in an aggregate principal amount not to exceed its Term Commitment. The Term Lenders shall not have any obligation to make any Term Advances to the Borrower after the Effective Date, except to the extent a Term Lender’s Term Commitments are increased pursuant to Section 2.21.

 

(b)                                 The Revolving Credit Advances.  Each Revolving Credit Lender severally agrees, on the terms and conditions hereinafter set forth, to make Revolving Credit Advances denominated in Dollars to the Borrower from time to time on any Business Day during the period from the Effective Date until the Termination Date

 

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applicable to such Revolving Credit Lender in an amount not to exceed such Lender’s Unused Revolving Credit Commitment.  Each Revolving Credit Borrowing shall be in an amount not less than the Borrowing Minimum or the Borrowing Multiple in excess thereof and shall consist of Revolving Credit Advances of the same Type made on the same day by the Revolving Credit Lenders ratably according to their respective Revolving Credit Commitments (it being understood that multiple Revolving Credit Borrowings may be requested on any Business Day).  Within the limits of each Lender’s Revolving Credit Commitment, the Borrower may borrow under this Section 2.01(b), prepay pursuant to Section 2.10 and reborrow under this Section 2.01(b).

 

(c)                                  Letters of Credit.

 

(i)                                Each Issuing Bank agrees, on the terms and conditions hereinafter set forth, in reliance upon the agreements of the Revolving Credit Lenders set forth in this Agreement, to issue one or more letters of credit denominated in Dollars in the form of (x) trade letters of credit in support of trade obligations of the Borrower and its Subsidiaries incurred in the ordinary course of business (such letters of credit issued for such purposes, “Trade Letters of Credit”) and (y) standby letters of credit issued for any other lawful purposes of the Borrower and its Subsidiaries (such letters of credit issued for such purposes, “Standby Letters of Credit”; each such letter of credit issued hereunder, a “Letter of Credit” and collectively, the “Letters of Credit”) for its own account or for the account of any Subsidiary (in which case such Letter of Credit shall be deemed issued for the joint and several account of the Borrower and such Subsidiary) in a form reasonably acceptable to the applicable Issuing Bank, at any time and from time to time during the applicable Availability Period and prior to the date that is five (5) days prior to the latest Termination Date in an aggregate Available Amount (i) for all Letters of Credit issued by each Issuing Bank not to exceed at any time the lesser of (A) the Letter of Credit Facility at such time and (B) such Issuing Bank’s Letter of Credit Commitment at such time and (ii) for each such Letter of Credit not to exceed an amount equal to the Unused Revolving Credit Commitments of the Revolving Credit Lenders; provided that if (i) the Termination Date has been extended as to some but not all Revolving Credit Lenders pursuant to Section 2.22 and (ii) the Borrower requests the issuance of a Letter of Credit which expires later than the Termination Date of any Revolving Credit Lender in effect prior to such extension, then compliance with clause (B) above shall be determined solely with reference to the Revolving Credit Lenders whose Revolving Credit Commitments have been so extended; provided further, that Royal Bank of Canada and its affiliates shall not be obligated to issue Trade Letters of Credit.  If requested by an Issuing Bank, the Borrower shall also submit a Letter of Credit Application on such Issuing Bank’s standard form in connection with any request for a Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of Letter of Credit Application or other agreement submitted by the Borrower to, or entered into by the Borrower with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. Notwithstanding anything herein to the contrary, each Issuing Bank shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit the proceeds of which would be made available to any person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject of any Sanctions or (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement. Notwithstanding anything to the contrary provided in this Agreement, each letter of credit listed on Schedule 2.01(c) (each, an “Existing Letter of Credit”) shall be deemed issued under this Agreement from and after the Effective Date.

 

(ii)                             No Letter of Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to require renewal) later than the earlier of (x) 5 days before the latest Termination Date and (y) one year after the date of Issuance thereof (or such longer period agreed to by the applicable Issuing Bank in its sole discretion); provided, that any Letter of Credit may provide for automatic renewal or extension thereof for an additional period of up to 12 months (which, in no event, shall extend beyond the date referred to in clause (x) of this Section 2.01(c)(ii), except to the extent Cash Collateralized or backstopped pursuant to an arrangement reasonably acceptable to the relevant Issuing Bank) so long as such Letter of Credit (any such Letter of Credit, an “Auto-Extension Letter of Credit”) permits the applicable Issuing Bank to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof within a time period during such twelve-month period to be agreed upon at the time such Auto-Extension Letter of Credit is issued (the “Non-Extension Notice Date”); provided, further, that if the Issuing Bank consents in its sole discretion, the expiration date on any Letter of Credit may extend beyond the date referred to in clause (x) of this Section 2.01(c)(ii) but the participations of the Lenders with Revolving Credit Commitments shall terminate on the applicable Termination Date.  If any such Letter of Credit is outstanding or is issued under the Revolving Credit Commitments after the date that is three (3) Business Days prior to the latest Termination Date the

 

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Borrower shall provide Cash Collateral pursuant to documentation reasonably satisfactory to the Agent and the relevant Issuing Bank in an amount equal to the face amount of each such Letter of Credit on or prior to the date that is three (3) Business Days prior to such Termination Date or, if later, such date of issuance.  Unless otherwise directed by the applicable Issuing Bank, the Borrower shall not be required to make a specific request to such Issuing Bank for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the applicable Issuing Bank to permit the extension of such Letter of Credit at any time to an expiry date not later than such Termination Date (except as otherwise provided in the second proviso to the first sentence of this paragraph (ii)); provided, however, that such Issuing Bank shall not permit any such extension if (A) such Issuing Bank has reasonably determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit (as extended) under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date from the Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 3.02 is not then satisfied, and in each such case directing such Issuing Bank not to permit such extension.

 

(d)                                 The Swing Line Advances.  The Swing Line Bank agrees, on the terms and conditions hereinafter set forth, to make Swing Line Advances denominated in Dollars to the Borrower from time to time on any Business Day during the applicable Availability Period (i) in an aggregate amount not to exceed at any time outstanding $50,000,000 (the “Swing Line Facility”) and (ii) in an amount for each such Advance not to exceed the lesser of (x) the Unused Revolving Credit Commitments of the Lenders on such Business Day and (y) the amount by which the Revolving Credit Commitment of the Lender acting as the Swing Line Bank on such Business Day exceeds (1) the aggregate principal amount of all Revolving Credit Advances and Swing Line Advances made by such Lender and outstanding at such time, plus (2) such Lender’s Ratable Share of (A) the aggregate Available Amount of all the Letters of Credit outstanding at such time and (B) the aggregate principal amount of all Advances made by each Issuing Bank pursuant to Section 2.03(c) that have not been ratably funded by such Lender and outstanding at such time; provided, that no Swing Line Bank shall be required to make a Swing Line Advance to refinance an outstanding Swing Line Borrowing.  No Swing Line Advance shall be used for the purpose of funding the payment of principal of any other Swing Line Advance.  Each Swing Line Borrowing shall be in an amount of $500,000 or an integral multiple of $100,000 in excess thereof and shall consist of a Base Rate Advance.

 

SECTION 2.02.                              Making the Advances.

 

(a)                                 Except as otherwise provided in Section 2.02(b) or Section 2.03(c), each Borrowing shall be made on notice, given not later than (x) 12:00 p.m. (New York City time) on the third Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate Advances or (y) 10:00 a.m.  (New York City time) on the date of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the Borrower to the Agent.  Each such notice of a Borrowing (a “Notice of Borrowing”) shall be authorized by a Financial Officer of the Borrower and shall be by electronic delivery, or telecopier in substantially the form of Exhibit B hereto, specifying therein (in addition to specifying whether such Borrowing as a Revolving Credit Borrowing or Term Borrowing) the requested (i) date and Facility of such Borrowing, (ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, (iv) in the case of a Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for each such Advance, which shall be a period contemplated by the definition of the term “Interest Period” and (v) the location and number of the Borrower’s account to which funds are to be disbursed.  Each Appropriate Lender shall, before 12:00 P.M. (New York City time) on the date of such Borrowing, make available for the account of its Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such Lender’s ratable portion of such Borrowing; provided, that Swing Line Advances shall be made as provided in Section 2.02(b).  After the Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Agent will make such funds available to the Borrower consistent with the instructions set forth in the Notice of Borrowing; provided, however, that, in the case of a Revolving Credit Borrowing, the Agent shall first make a portion of such funds equal to the aggregate principal amount of any Swing Line Advances made by the Swing Line Bank and by any Revolving Credit Lender and outstanding on the date of such Borrowing, plus interest accrued and unpaid thereon to and as of such date, available to the Swing Line Bank and such other Lenders for repayment of such Swing Line Advances. If no election as to the Type of Advance is specified, then the requested Borrowing shall be a Base Rate Advance.  If no Interest Period is specified with respect to any requested Eurodollar Rate Advance then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Notice of Borrowing in accordance with this Section 2.02,

 

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the Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

(b)                                 Each Swing Line Borrowing shall be made on notice, given not later than 2:00 P.M. (New York City time) on the date of the proposed Swing Line Borrowing by the Borrower to the Swing Line Bank and the Agent.  Each such notice of a Swing Line Borrowing (a “Notice of Swing Line Borrowing”) shall be authorized by a Financial Officer of the Borrower and shall be by electronic delivery, or telecopier, specifying therein the requested (i) date of such Borrowing, (ii) amount of such Borrowing and (iii) maturity of such Borrowing (which maturity shall be no later than the tenth Business Day after the requested date of such Borrowing).  After the Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Agent will make such funds available to the Borrower consistent with the instructions set forth in the Notice of Borrowing.  Upon written demand by the Swing Line Bank, with a copy of such demand to the Agent not later than 12:00 P.M. (New York City time), each Revolving Credit Lender will purchase from the Swing Line Bank, and the Swing Line Bank shall sell to each such other Lender, a participation representing such other Lender’s Ratable Share of such outstanding Swing Line Advance, by making available for the account of its Applicable Lending Office to the Agent for the account of the Swing Line Bank, by deposit to the Agent’s Account, in same day funds, an amount equal to the portion of the outstanding principal amount of the participation in such Swing Line Advance to be purchased by such Lender.  The Borrower hereby agrees to each such sale and assignment.  Each Revolving Credit Lender agrees to purchase a participation representing its Ratable Share of an outstanding Swing Line Advance (i) by 5:00 P.M. (New York City time) on the Business Day on which demand therefor is made by the Swing Line Bank, provided that notice of such demand is given not later than 12:00 P.M. (New York City time) on such Business Day or (ii) by 10.00 A.M. (New York City time) the first Business Day next succeeding such demand if notice of such demand is given after such time.  The Agent shall notify the Borrower of any participation in any Swing Line Advance acquired pursuant to this paragraph (b), and thereafter payments in respect of such Swing Line Advance shall be made to the Agent and not to such Swing Line Bank.  Any amounts received by such Swing Line Bank from a Borrower (or other party on behalf of such Borrower) in respect of a Swing Line Advance after receipt by such Swing Line Bank of the proceeds of a sale of participation therein shall be promptly remitted to the Agent; any such amounts received by the Agent shall be promptly remitted by the Agent to the Revolving Credit Lenders that shall have made their payments pursuant to this paragraph and to such Swing Line Bank, as their interests may appear; provided, that any such payment so remitted shall be repaid to such Swing Line Bank or to the Agent, as applicable, if and to the extent such payment is required to be refunded to the Borrower for any reason.  The purchase of participations in a Swing Line Advance pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof. Upon any such assignment by the Swing Line Bank to any Revolving Credit Lender of a portion of a Swing Line Advance, the Swing Line Bank represents and warrants to such other Lender that the Swing Line Bank is the legal and beneficial owner of such interest being assigned by it, but makes no other representation or warranty and assumes no responsibility with respect to the Swing Line Advance, this Agreement, the other Loan Documents or the Borrower.  If and to the extent that any Revolving Credit Lender shall not have so made the amount of such Swing Line Advance available to the Agent, such Lender agrees to pay to the Agent forthwith on demand such amount together with interest thereon, for each day from the date such Lender is required to have made such amount available to the Agent until the date such amount is paid to the Agent, at the greater of the NYFRB Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation.  If such Lender shall pay to the Agent such amount for the account of the Swing Line Bank on any Business Day, such amount so paid in respect of principal shall constitute a Swing Line Advance made by such Lender (with interest on such Swing Line Advance payable to such Lender) on such Business Day for purposes of this Agreement, and the outstanding principal amount of the Swing Line Advance made by the Swing Line Bank shall be reduced by such amount on such Business Day.

 

(c)                                  Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less than the Borrowing Minimum or if the obligation of the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurodollar Rate Advances may not be outstanding as part of more than six separate Term Borrowings and ten separate Revolving Credit Borrowings.

 

(d)                                 Each Notice of Borrowing and Notice of Swing Line Borrowing shall be irrevocable and binding on the Borrower (other than any notice in respect of the Effective Date, which may be conditioned upon the occurrence of the Effective Date). In the case of any Borrowing that the related Notice of Borrowing specifies is to

 

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be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each Appropriate Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

 

(e)                                  Unless the Agent shall have received notice from an Appropriate Lender prior to the time of any Borrowing that such Lender will not make available to the Agent such Lender’s ratable portion of such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02, and the Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such ratable portion available to the Agent, such Lender and the Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Agent, at (i) in the case of the Borrower, the interest rate applicable to Base Rate Advances and (ii) in the case of such Lender or Swing Line Bank, the greater of the NYFRB Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation.  If such Lender shall repay to the Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement. The foregoing shall be without prejudice to any claim such Borrower may have against a Lender that shall have failed to make such payment to the Agent.

 

(f)                                   The obligations of the Lenders hereunder to make Advances and to make payment pursuant to Section 8.04(c) are several and not joint.  The failure of any Appropriate Lender to make any Advance or to make any payment under Section 8.04(c) on any date required hereunder shall not relieve any other Appropriate Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Advance or to make its payment under Section 8.04(c).

 

(g)                                  The Borrower may, at any time and from time to time, designate as additional Swing Line Banks one or more Revolving Credit Lenders that agree to serve in such capacity as provided below.  The acceptance by a Revolving Credit Lender of an appointment as a Swing Line Bank hereunder shall be evidenced by an agreement, which shall be in form and substance reasonably satisfactory to the Agent and the Borrower, executed by the Borrower, the Agent and such designated Swing Line Bank, and, from and after the effective date of such agreement, (i) such Revolving Credit Lender shall have all the rights and obligations of a Swing Line Bank under this Agreement and (ii) references herein to the term “Swing Line Bank” shall be deemed to include such Revolving Credit Lender in its capacity as a lender of Swing Line Advances hereunder.

 

SECTION 2.03.                              Issuance of and Drawings and Reimbursement Under Letters of Credit.

 

(a)                                 Request for Issuance.  Each Letter of Credit shall be issued upon notice, given not later than three Business Days prior to the date of the proposed Issuance of such Letter of Credit (or on such shorter notice as the applicable Issuing Bank may agree), by the Borrower to any Issuing Bank, and such Issuing Bank shall give the Agent, prompt notice thereof.  Each such notice by the Borrower of Issuance of a Letter of Credit (a “Notice of Issuance”) shall be by telephone, confirmed immediately in writing, electronic delivery or telecopier specifying therein the requested (i) date of such Issuance (which shall be a Business Day), (ii) Available Amount of such Letter of Credit, (iii) expiration date of such Letter of Credit, (iv) name and address of the beneficiary of such Letter of Credit and (v) form of such Letter of Credit.  Each Letter of Credit shall be issued pursuant to such application and agreement for letter of credit as such Issuing Bank and the Borrower shall agree for use in connection with such requested Letter of Credit (a “Letter of Credit Agreement”).  If the requested form of such Letter of Credit is acceptable to such Issuing Bank in its reasonable discretion (it being understood that any such form shall have only explicit documentary conditions to draw and shall not include discretionary conditions), such Issuing Bank shall, unless such Issuing Bank has received written notice from any Lender or the Agent, at least one Business Day prior to the requested date of Issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Section 3.02 shall not then be satisfied, then, subject to the terms and conditions hereof, on the requested date, issue a Letter of Credit for the account of the Borrower or the applicable Subsidiary or enter into the applicable amendment, as the case may be, in each case in accordance with such Issuing Bank’s usual and

 

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customary business practices.  Additionally, the Borrower shall furnish to the applicable Issuing Bank and the Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, as such Issuing Bank or the Agent may reasonably require.  In the event and to the extent that the provisions of any Letter of Credit Agreement shall conflict with this Agreement, the provisions of this Agreement shall govern.  Notwithstanding anything to the contrary in this Agreement, the Issuing Banks may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

 

(b)                                 Participations.  By the Issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing or decreasing the amount thereof) and without any further action on the part of the applicable Issuing Bank or the Revolving Credit Lenders, such Issuing Bank hereby grants to each Revolving Credit Lender, and each Revolving Credit Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Ratable Share of the Available Amount of such Letter of Credit.  The Borrower hereby agrees to each such participation.  In consideration and in furtherance of the foregoing, each Revolving Credit Lender hereby absolutely and unconditionally agrees to pay to the Agent, for the account of such Issuing Bank, such Lender’s Ratable Share of each drawing made under a Letter of Credit funded by such Issuing Bank and not reimbursed by the Borrower on the date made, or of any reimbursement payment required to be refunded to the Borrower for any reason, which amount will be advanced, and deemed to be an Advance to the Borrower hereunder, regardless of the satisfaction of the conditions set forth in Section 3.02.  Each Revolving Credit Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Revolving Credit Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Revolving Credit Lender further acknowledges and agrees that its participation in each Letter of Credit will be automatically adjusted to reflect such Lender’s Ratable Share of the Available Amount of such Letter of Credit at each time such Lender’s Revolving Credit Commitment is amended pursuant to a Commitment Increase in accordance with Section 2.21, an assignment in accordance with Section 8.07 or otherwise pursuant to this Agreement.

 

(c)                                  Drawing and Reimbursement.  The payment by an Issuing Bank in respect of a drawing under any Letter of Credit which is not reimbursed by the Borrower on the date made shall constitute for all purposes of this Agreement the making by any such Issuing Bank of a Revolving Credit Advance, which shall be a Base Rate Advance, in the amount of such draft, without regard to whether the making of such an Advance would exceed such Issuing Bank’s Unused Revolving Credit Commitment.  Each Issuing Bank shall give prompt notice of each drawing under any Letter of Credit issued by it to the Borrower and the Agent.  The Borrower shall reimburse such Issuing Bank (which, in the case of any Standby Letter of Credit, shall be through the Agent) in an amount equal to such drawing not later than 4:00 P.M. (New York City Time) on the day that is one Business Day after notice is given.  If the Borrower fails to so reimburse the applicable Issuing Bank by such time, the Agent shall promptly notify each Lender the amount of the unreimbursed drawing, and the amount of such Lender’s Ratable Share thereof.  Each Revolving Credit Lender acknowledges and agrees that its obligation to make Advances pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Revolving Credit Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Promptly after receipt thereof, the Agent shall transfer such funds to such Issuing Bank.  Each Revolving Credit Lender agrees to fund its Ratable Share of an outstanding Advance on (i) the Business Day on which demand therefor is made by such Issuing Bank, provided that notice of such demand is given not later than 12:00 P.M. (New York City time) on such Business Day, or (ii) the first Business Day next succeeding such demand if notice of such demand is given after such time.  If and to the extent that any Revolving Credit Lender shall not have so made the amount of such Advance available to the Agent, such Lender agrees to pay to the Issuing Bank forthwith on demand such amount together with interest thereon, for each day from the date of demand by any such Issuing Bank until the date such amount is paid to the Agent, at the higher of the NYFRB Rate and a rate determined by the Issuing Bank in accordance with banking industry rules on interbank compensation.  A certificate of an Issuing Bank submitted to any Lender (through the Agent) with respect to any amounts owing under this Section 2.03(c) shall be conclusive absent manifest error.  If such Lender shall pay to the Agent such amount for the account of any such Issuing Bank

 

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on any Business Day, such amount so paid in respect of principal shall constitute an Advance made by such Lender on such Business Day for purposes of this Agreement, and the outstanding principal amount of the Advance made by such Issuing Bank shall be reduced by such amount on such Business Day.

 

(d)                                 Letter of Credit Reports.  Each Issuing Bank shall furnish (i) to the Agent (with a copy to the Borrower), on the first Business Day of each week a written report summarizing Issuance and expiration dates of Trade Letters of Credit issued by such Issuing Bank during the preceding week and drawings during such week under all Trade Letters of Credit issued by such Issuing Bank, (ii) to the Agent (with a copy to the Borrower), on the first Business Day of each month a written report summarizing Issuance and expiration dates of Letters of Credit issued by such Issuing Bank during the preceding month and drawings during such month under all Letters of Credit issued by such Issuing Bank and (iii) to the Agent (with a copy to the Borrower), on the first Business Day of each calendar quarter a written report setting forth (A) the average daily aggregate Available Amount and (B) the amount available to be drawn, in each case, during the preceding calendar quarter of all Letters of Credit issued by such Issuing Bank.  The Agent shall give to each Revolving Credit Lender prompt notice of each report delivered to it pursuant to this Section.

 

(e)                                  Failure to Make Advances.  The failure of any Revolving Credit Lender to make the Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Revolving Credit Lender of its obligation hereunder to make its Advance on such date, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on such date.

 

(f)                                   Applicability of ISP and UCP; Limitation of Liability.  Unless otherwise expressly agreed by the Issuing Banks and the Borrower when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each Standby Letter of Credit, and (ii) the rules of the UCP shall apply to each Trade Letter of Credit.  Notwithstanding the foregoing, no Issuing Bank shall be responsible to the Borrower for, and no Issuing Bank’s rights and remedies against the Borrower shall be impaired by, any action or inaction of such Issuing Bank required or permitted under any law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including any order of a jurisdiction where such Issuing Bank or the beneficiary is located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements or official commentary of the ICC Banking Commission, the Bankers Association for Finance and Trade - International Financial Services Association (BAFT-IFSA), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such law or practice.

 

(g)                                  Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse the applicable Issuing Bank hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

 

(h)                                 Replacement of an Issuing Bank.  An Issuing Bank may be replaced at any time by written agreement among the Borrower, the Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Agent shall notify the Revolving Credit Lenders of any such replacement of an Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.04.  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the replaced Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of such Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement but shall not be required to issue additional Letters of Credit.

 

(i)                                     Additional Issuing Banks.  From time to time, the Borrower may by notice to the Agent designate any Lender (in addition to the Initial Issuing Bank) which agrees (in its sole discretion) to act in such capacity and is reasonably satisfactory to the Agent as an Issuing Bank.  Each such additional Issuing Bank shall execute a

 

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counterpart of this Agreement upon the approval of the Agent (which approval shall not be unreasonably withheld) and shall thereafter be an Issuing Bank hereunder for all purposes.

 

SECTION 2.04.                              Fees.

 

(a)                                 Commitment Fee.  The Borrower agrees to pay to the Agent for the account of each Lender, on the date that is five Business Days after the last Business Day of each fiscal quarter of the Borrower (as in effect on the Effective Date) (commencing on the last Business Day of the first full fiscal quarter after the Effective Date) and on the date on which the Revolving Credit Commitments of all the Lenders shall be terminated as provided herein, a commitment fee (a “Commitment Fee”) in Dollars on the daily amount of the applicable Unused Revolving Credit Commitment (with Swing Line Advances not counting as utilization for such purpose) of such Lender during the preceding quarter (or other period commencing with the Effective Date or ending with the date on which the last of the Commitments of such Lender shall be terminated) at a rate equal to the Applicable Commitment Fee.  All Commitment Fees shall be computed on the basis of the actual number of days elapsed (including the first day but excluding the last) in a year of 360 days.  The Commitment Fee due to each Lender shall commence to accrue on the Effective Date and shall cease to accrue on the date on which the last of the Commitments of such Lender shall be terminated as provided herein.

 

(b)                                 Letter of Credit Fees.

 

(i)                               The Borrower shall pay to the Agent for the account of each Revolving Credit Lender a commission on such Lender’s Ratable Share of the average daily Available Amount of all Letters of Credit issued for the account of the Borrower and outstanding from time to time at a rate per annum equal to the sum of, (x) for Standby Letters of Credit, the Applicable Margin for Eurodollar Rate Revolving Credit Advances for Standby Letters of Credit in effect from time to time during such calendar quarter and (y) for Trade Letters of Credit, the Applicable Margin for Eurodollar Rate Revolving Credit Advances for Trade Letters of Credit in effect from time to time during such calendar quarter, in each case, payable in arrears quarterly on the date that is five Business Days after the last Business Day of each fiscal quarter of the Borrower (as in effect on the Effective Date) commencing with the quarter ended May 5, 2018, and on the latest Termination Date (or such later date on which the participations in Letters of Credit of such Lender have terminated).

 

(ii)                                The Borrower shall pay to each Issuing Bank, for its own account, a fronting fee in Dollars in respect of each Letter of Credit issued by such Issuing Bank for the period from and including the date of issuance of such Letter of Credit to and including the termination of such Letter of Credit, computed at a rate equal to 0.125% per annum of the daily stated amount of such Letter of Credit and such other commissions, issuance fees, transfer fees and other customary documentary and processing fees and charges in connection with the Issuance or administration of each Letter of Credit as the Borrower and such Issuing Bank shall agree.  The fronting fees described in this clause (ii) shall be due and payable (A) in the case of Trade Letters of Credit, on the date of Issuance thereof and (B) in the case of Standby Letters of Credit, in arrears quarterly on the date that is five Business Days after the last Business Day of each fiscal quarter of the Borrower (as in effect on the Effective Date), and on the latest Termination Date (or such later date on which such Standby Letter of Credit has been terminated).

 

(c)                                  Agent’s Fees.  The Borrower shall pay to the Agent for its own account such fees as may from time to time be agreed between the Borrower and the Agent.

 

SECTION 2.05.                              Termination or Reduction of the Commitments.  The Borrower shall have the right, upon at least three Business Days’ notice to the Agent, to terminate in whole or permanently reduce ratably in part the Unused Revolving Credit Commitments or the Unissued Letter of Credit Commitments of the Lenders, provided, that each reduction of the Revolving Credit Commitments shall be in an amount that is an integral multiple of $5,000,000 and not less than $10,000,000 (or, if less, the remaining amount of the Revolving Credit Commitments). Promptly following receipt of any notice, the Agent shall advise the applicable Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section 2.05 shall be irrevocable; provided, that a notice of termination or reduction of the Revolving Credit Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, indentures or similar agreements or the occurrence of any other transactions, in which case such notice may be revoked by the Borrower (by notice to the Agent on or prior to the specified effective date) if such condition is not satisfied.  Subject to Section 2.21, any

 

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termination or reduction of the Revolving Credit Commitments shall be permanent. Each reduction of the Revolving Credit Commitments shall be made ratably among the Lenders in accordance with their respective Revolving Credit Commitments. On the Effective Date (after giving effect to the funding of the Term Loans by the Term Lenders representing the full amount of the Term Commitment on the Effective Date), the Term Commitment of the Term Lenders on the Effective Date will automatically and permanently terminate.

 

SECTION 2.06.                              Repayment of Advances and Letter of Credit Drawings.

 

(a)                                 Term Advances.  The Borrower shall repay to the Agent for the ratable account of the Term Lenders on the Term Loan Maturity Date the aggregate principal amount of the Term Advances made to it and then outstanding.

 

(b)                                 Revolving Credit Advances.  The Borrower shall repay to the Agent for the ratable account of each Revolving Credit Lender on the Termination Date applicable to such Revolving Credit Lender the aggregate principal amount of the Revolving Credit Advances made to it and then outstanding.

 

(c)                                  Letter of Credit Drawings.  The obligations of the Borrower under any Letter of Credit Agreement and any other agreement or instrument relating to any Letter of Credit shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement, such Letter of Credit Agreement and such other agreement or instrument under all circumstances, including, without limitation, the following circumstances (it being understood that any such payment by the Borrower is without prejudice to, and does not constitute a waiver of, any rights the Borrower might have or might acquire as a result of the payment by the applicable Issuing Bank or any Revolving Credit Lender of any draft or the reimbursement by the Borrower thereof):

 

(i)                                          any lack of validity or enforceability of this Agreement, any other Loan Document, any Letter of Credit Agreement, any Letter of Credit Application, any Letter of Credit or any other agreement or instrument relating thereto (all of the foregoing being, collectively, the “L/C Related Documents”);

 

(ii)                                       any change in the time, manner or place of payment of, or in any other term of, all or any of the obligations of the Borrower in respect of any L/C Related Document or any other amendment or waiver of or any consent to departure from all or any of the L/C Related Documents;

 

(iii)                                    the existence of any claim, set-off, defense or other right that the Borrower may have at any time against any beneficiary or any transferee of a Letter of Credit (or any Persons for which any such beneficiary or any such transferee may be acting), any Issuing Bank, the Agent, any Lender or any other Person, whether in connection with the transactions contemplated by the L/C Related Documents or any unrelated transaction;

 

(iv)                                   any statement or any other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

 

(v)                                      payment by any Issuing Bank under a Letter of Credit against presentation of a draft or certificate that does not comply with the terms of such Letter of Credit;

 

(vi)                                   any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any guarantee, for all or any of the obligations of the Borrower in respect of the L/C Related Documents;

 

(vii)                                any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including, without limitation, any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or a guarantor (if any);

 

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(viii)                             waiver by any Issuing Bank of any requirement that exists for such Issuing Bank’s protection and not the protection of the Borrower or any waiver by such Issuing Bank which does not in fact materially prejudice the Borrower;

 

(ix)                                   honor of a demand for payment presented electronically even if such Letter of Credit requires that demand be in the form of a draft; or

 

(x)                                      any payment made by any Issuing Bank in respect of an otherwise complying item presented after the date specified as the expiration date of, or the date by which documents must be received under such Letter of Credit if presentation after such date is authorized by the UCC, the ISP or the UCP, as applicable;

 

provided, in each case, that the foregoing shall not be construed to excuse the applicable Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are determined by final and binding decision of a court of competent jurisdiction to have been caused by such Issuing Bank’s willful misconduct or gross negligence when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. In furtherance and not in limitation of the foregoing, such Issuing Bank may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary; provided that nothing herein shall be deemed to excuse such Issuing Bank if it acts with gross negligence or willful misconduct in accepting such documents (determined by final and binding decision of a court of competent jurisdiction).

 

(d)                                 Swing Line Advances.  The Borrower shall repay to the Agent for the ratable account of the Swing Line Bank and each Revolving Credit Lender which has made a Swing Line Advance the outstanding principal amount of each Swing Line Advance made to it by each of them on the earlier of the maturity date specified in the applicable Notice of Swing Line Borrowing (which maturity shall be no later than ten Business Days after the requested date of such Borrowing) and the Termination Date applicable to the Swing Line Bank.

 

SECTION 2.07.                              Interest on Advances.

 

(a)                                 Scheduled Interest.  The Borrower shall pay interest on the unpaid principal amount of each Advance made to it and owing to each Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum:

 

(i)                  Base Rate Advances.  During such periods as such Advance is a Base Rate Advance and for each Swing Line Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the Applicable Margin for Base Rate Advances in effect from time to time, payable in arrears quarterly on the date that is five Business Days after the last Business Day of each fiscal quarter of the Borrower (as in effect on the Effective Date) during such periods and on the date such Base Rate Advance shall be Converted or paid in full or such Swing Line Advance is paid in full.

 

(ii)               Eurodollar Rate Advances.  During such periods as such Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the Adjusted LIBO Rate for such Interest Period for such Advance plus (y) the Applicable Margin for Eurodollar Rate Advances in effect from time to time, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in full.

 

(b)                                 Default Interest.  Upon the occurrence and during the continuance of an Event of Default under Section 6.01(a), the Agent may, and upon the request of the Required Lenders shall, require the Borrower to pay interest (“Default Interest”) on (i) the unpaid principal amount of each Advance owing to each Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such Advance pursuant to clause (a)(i) or (a)(ii) above and

 

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(ii) to the fullest extent permitted by law, the amount of any interest, fee or other amount payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to clause (a)(i) above; provided, however, that following acceleration of the Advances pursuant to Section 6.01, Default Interest shall accrue and be payable hereunder whether or not previously required by the Agent.

 

SECTION 2.08.                              Interest Rate Determination.

 

(a)                                 The Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Agent for purposes of Section 2.07(a)(i) or (ii).

 

(b)                                 If, with respect to any Eurodollar Rate Advances under any Facility, the Required Revolving Lenders or the Required Term Lenders, as applicable, notify the Agent that (i) they are unable to obtain matching deposits in the London inter-bank market at or about 11:00 A.M. (London time) on the second Business Day before the making of a Borrowing in sufficient amounts to fund their respective Advances as a part of such Borrowing during its Interest Period or (ii) the Adjusted LIBO Rate or the Eurodollar Rate, as applicable, for any Interest Period for such Advances will not adequately reflect the cost to such Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify the Borrower and the Lenders, whereupon (A) the Borrower will, on the last day of the then existing Interest Period therefor, either (x) prepay such Advances or (y) Convert such Advances into Base Rate Advances and (B) the obligation of the Appropriate Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.

 

(c)                                  If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

 

(d)                                 On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than the Borrowing Minimum, such Advances shall automatically Convert into Base Rate Advances.

 

(e)                                  Upon the occurrence and during the continuance of any Event of Default, (i) each Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor be Converted into Base Rate Advances and (ii) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended.

 

(f)                                   If prior to the commencement of any Interest Period for a Eurodollar Rate Advance, the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the Eurodollar Rate, as applicable (including because the LIBO Screen Rate is not available or published on a current basis), for such Interest Period then the Agent shall forthwith so notify the Borrower and the Lenders, whereupon (A) the Borrower will, on the last day of the then existing Interest Period therefor, either (x) prepay such Advances or (y) Convert such Advances into Base Rate Advances and (B) the obligation of the Appropriate Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.

 

(g)                               If at any time the Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in clause (f) above have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in clause (f) above have not arisen but the supervisor for the administrator of the LIBO Screen Rate or a Governmental Authority having jurisdiction over the Agent has made a public statement identifying a specific date after which the LIBO Screen Rate shall no longer be used for determining interest rates for loans, then the Agent and the Borrower shall endeavor to establish an alternate rate of interest to the Eurodollar Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be

 

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applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Margin); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Notwithstanding anything to the contrary in Section 8.01, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required Revolving Lenders or the Required Term Lenders, as applicable, stating that such Required Revolving Lenders or the Required Term Lenders, as applicable, object to such amendment.  Until an alternate rate of interest shall be determined in accordance with this clause (g) (but, in the case of the circumstances described in clause (b)(ii) of this Section 2.08, only to the extent the LIBO Screen Rate for such Interest Period is not available or published at such time on a current basis), (A) the Borrower will, on the last day of the then existing Interest Period therefor, either (x) prepay such Advances or (y) Convert such Advances into Base Rate Advances and (B) the obligation of the Appropriate Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended.

 

SECTION 2.09.                              Optional Conversion of Advances.  The Borrower may on any Business Day, upon notice given to the Agent not later than the time a Notice of Borrowing would be required under Section 2.02 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election, and subject to the provisions of Sections 2.08 and 2.12, Convert all Advances of one Type comprising the same Borrowing into Advances of the other Type; provided, however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not less than the Borrowing Minimum for Eurodollar Rate Advances and no Conversion of any Advances shall result in more separate Borrowings than permitted under Section 2.02(c).  Each such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the duration of the initial Interest Period for each such Advance.  Each notice of Conversion shall be irrevocable and binding on the Borrower.

 

SECTION 2.10.                              Optional Prepayments of Advances.  The Borrower shall notify the Agent (and, in the case of prepayment of a Swing Line Advance, the Swing Line Bank) by telephone (confirmed by electronic means) of such selection not later than 2:00 P.M. (New York City time), (i) in the case of a Base Rate Advance or any Swing Line Advance, on the scheduled date of such prepayment and (ii) in the case of a Eurodollar Rate Advance, at least three (3) Business Days before the scheduled date of such prepayment (or, in each case, such shorter period acceptable to the Agent (and Swing Line Bank, if applicable)); provided, however, that (x) each partial prepayment of Advances shall be in an aggregate principal amount of not less than the Borrowing Minimum or a Borrowing Multiple in excess thereof, (y) each partial prepayment of Swing Line Advances shall be in an aggregate principal amount of not less than $1,000,000 and (z) in the event of any such prepayment of a Eurodollar Rate Advance made prior to the last day of any Interest Period, the Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(f).  Each prepayment of outstanding Term Advances shall be applied as directed by the Borrower among any outstanding Eurodollar Rate Advances and Base Rate Advances or, in the absence of such direction, first to Base Rate Advances, and second to Eurodollar Rate Advances in direct order of expiration of the current Interest Period.  Each such notice shall be irrevocable; provided, that a notice of prepayment may state that such notice is conditioned upon the effectiveness of other credit facilities, indentures or similar agreements or the occurrence of any other transactions, in which case such notice may be revoked by the Borrower (by notice to the Agent (and Swing Line Bank if applicable) on or prior to the specified effective date) if such condition is not satisfied.

 

SECTION 2.11.                              Increased Costs.  (a) If any Change in Law shall:

 

(i)                  impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Adjusted LIBO Rate);

 

(ii)               subject any Recipient to any Taxes (other than (A) Indemnified Taxes or (B) Excluded Taxes); or

 

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(iii)            impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Eurodollar Rate Advances made by such Lender;

 

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Advance or of maintaining its obligation to make any such Advance, or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)                                 Capital Adequacy.  If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s Parent Company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s Parent Company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Advances made by such Lender to a level below that which such Lender or such Lender’s Parent Company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s Parent Company with respect to capital adequacy or liquidity), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s Parent Company for any such reduction suffered.

 

(c)                                  Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its Parent Company as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)                                 Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

SECTION 2.12.                              Illegality.  If any Lender reasonably determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted after the Effective Date that it is unlawful, for any Lender or its Applicable Lending Office to make, maintain or fund any Eurodollar Rate Advances, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market then, on notice thereof by such Lender to the Borrower through the Agent, (i) any obligations of such Lender to make or continue Eurodollar Rate Advances or to convert Base Rate Advances to Eurodollar Rate Advances shall be suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Agent without reference to the Adjusted LIBO Rate component of the Base Rate, in each case until such Lender notifies the Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrower shall upon demand from such Lender (with a copy to the Agent), convert all Eurodollar Rate Advances of such Lender to Base Rate Borrowings (the interest rate on such Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Agent without reference to the Adjusted LIBO Rate component of the Base Rate), either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Advances to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Adjusted LIBO Rate component thereof until the Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

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SECTION 2.13.                              Payments and Computations.

 

(a)                                 The Borrower shall make each payment hereunder, irrespective of any right of counterclaim or set-off, not later than 2:00 P.M. (New York City time) on the day when due in Dollars to the Agent at the Agent’s Account in same day funds.  Any amounts received after such time on any date may, in the discretion of the Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  The Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest, fees or commissions ratably (other than amounts payable pursuant to Section 2.04(b)(ii), 2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement.  Upon any Assuming Lender becoming a Lender hereunder as a result of a Commitment Increase pursuant to Section 2.21 and upon the Agent’s receipt of such Lender’s Assumption Agreement and recording of the information contained therein in the Register, from and after the applicable Increase Date, the Agent shall make all payments hereunder and under any other Loan Documents issued in connection therewith in respect of the interest assumed thereby to the Assuming Lender.  Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.07(c), from and after the effective date specified in such Assignment and Assumption, the Agent shall make all payments hereunder and under the other Loan Documents in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.

 

(b)                                 All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Base Rate at times when the Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Base Rate, Adjusted LIBO Rate, or Eurodollar Rate shall be determined by the Agent, and such determination shall be conclusive absent manifest error.

 

(c)                                  Whenever any payment hereunder or under the other Loan Documents shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest, fee or commission, as the case may be; provided, however, that, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day.

 

(d)                                 Unless the Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the Agent may assume that the Borrower has made such payment in full to the Agent on such date and the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent the Borrower shall not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Agent, at the higher of the NYFRB Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation.

 

SECTION 2.14.                              Taxes.

 

(a)                                 Payments Free of Taxes.  Any and all payments made by or on behalf of the Borrower under this Agreement or any other Loan Document shall be made free and clear of, and without deduction or withholding for or on account of, any Taxes; provided, that if the Borrower, the Agent or any other applicable withholding agent shall be required by applicable law to deduct or withhold any Taxes from such payments, then (i) the applicable withholding agent shall make such deductions or withholdings as are reasonably determined by the applicable withholding agent to be required by any applicable law, (ii) the applicable withholding agent shall timely pay the full amount deducted or withheld to the relevant Governmental Authority within the time allowed and in accordance with applicable law, and (iii) to the extent withholding or deduction is required to be made on account of Indemnified Taxes, the sum payable by the Borrower shall be increased as necessary so that after all required

 

33

 

deductions and withholdings have been made (including deductions or withholdings applicable to additional sums payable under this Section 2.14) the applicable Lender (or, in the case of any amount received by the Agent for its own account, the Agent) receives an amount equal to the sum it would have received had no such deductions or withholdings been made. Whenever any Indemnified Taxes are payable by the Borrower, as promptly as possible thereafter, the Borrower shall send to the Agent for its own account or for the account of a Lender, as the case may be, a copy of an official receipt (or other evidence acceptable to the Agent or such Lender, acting reasonably) received by the Borrower showing payment thereof.  Without duplication, after any payment of Taxes by the Borrower or the Agent to a Governmental Authority as provided in this Section 2.14, the Borrower shall deliver to the Agent or the Agent shall deliver to the Borrower, as the case may be, a copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by applicable law to report such payment or other evidence of such payment reasonably satisfactory to the Borrower or the Agent, as the case may be.

 

(b)                                 Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law or, at the option of the Agent, timely reimburse the Agent for the payment of, any Other Taxes.

 

(c)                                  Indemnification by the Borrower.  The Borrower shall, without duplication of any amounts paid pursuant to Section 2.14(a)(iii) or any amounts paid or reimbursed pursuant to Section 2.14(b), indemnify each Recipient, within 15 Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate setting forth in reasonable detail the basis and calculation of the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(d)                                 Indemnification by the Lenders.  Each Lender shall severally indemnify the Agent, within 15 Business Days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 8.07(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with this Agreement, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate setting forth in reasonable detail the basis and calculation of the amount of such payment or liability delivered to any Lender by the Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any other source against any amount due to the Agent under this paragraph (d).

 

(e)                                  Evidence of Payments.  As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.14, the Borrower shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Agent.

 

(f)                                   Status of Lenders.

 

(i)                  Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to any payments made under this Agreement shall deliver to the Borrower and the Agent, at the time or times and in the manner prescribed by applicable law or such other time or times reasonably requested by the Borrower or the Agent, such duly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to U.S. federal backup withholding or information

 

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reporting requirements.  Notwithstanding anything to the contrary in this Section 2.14(f), no Lender shall be required to provide any documentation under this Section 2.14(f) that such Lender is not legally eligible to provide.  Each person that shall become a Participant pursuant to Section 8.07 or a Lender pursuant to Section 8.07 shall, upon the effectiveness of the related transfer, be required to provide all documentation required pursuant to this Section 2.14(f); provided that a Participant shall furnish all such documentation solely to the participating Lender.

 

(ii)                                Without limiting the generality of the foregoing,

 

(A)                               any Lender that is a U.S. Person shall deliver to the Borrower and the Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter as required by applicable law or upon the reasonable request of the Borrower or the Agent), duly completed and executed originals of IRS Form W-9 (or any successor form) certifying that such Lender is exempt from U.S. federal backup withholding;

 

(B)                               any Foreign Lender shall, to the extent it is legally eligible to do so, deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter as required by applicable law or upon the reasonable request of the Borrower or the Agent), whichever of the following is applicable:

 

(1)                                 in the case of a Foreign Lender (or, if such Foreign Lender is disregarded as an entity separate from its owner for U.S. federal income tax purposes, the person treated as its owner for U.S. federal income tax purposes)  that is eligible to claim the benefits of an income tax treaty to which the United States is a party, duly completed and executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, claiming an exemption from, or reduction of, U.S. federal withholding Tax pursuant to such tax treaty;

 

(2)                                 duly completed and executed originals of IRS Form W-8ECI with respect to such Foreign Lender (or, if such Foreign Lender is disregarded as an entity separate from its owner for U.S. federal income tax purposes, the person treated as its owner for U.S. federal income tax purposes);

 

(3)                                 in the case of a Foreign Lender (or, if such Foreign Lender is disregarded as an entity separate from its owner for U.S. federal income tax purposes, the person treated as its owner for U.S. federal income tax purposes) that is eligible to claim the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3) (B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and that no payments in connection with any Loan Document are effectively connected with such Foreign Lender’s conduct of a trade or business within the United States (a “U.S. Tax Compliance Certificate”) and (y) duly completed and executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or

 

(C)                               to the extent a Foreign Lender (or, if such Foreign Lender is disregarded as an entity separate from its owner for U.S. federal income tax purposes, the person treated as its owner for U.S. federal income tax purposes) is not the beneficial owner of payments under this Agreement (for example, where the Foreign Lender is a partnership or is a participating Lender), duly completed and executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership (and not a participating Lender) and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such

 

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Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner;

 

(D)                               any Foreign Lender shall, to the extent it is legally eligible to do so, deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Agent to determine the withholding or deduction required to be made; and

 

(E)                                if a payment made to a Recipient under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Recipient were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Recipient shall deliver to the Borrower and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine whether such Recipient has complied with such Recipient’s obligations under FATCA and to determine the amount, if any, to deduct and withhold from such payment.  Solely for purposes of this clause (E), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees that if any documentation it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent in writing of its legal ineligibility to do so.

 

Each Lender hereby authorizes the Agent to deliver to the Borrower and to any successor Agent any documentation provided by such Lender to the Agent pursuant to this Section 2.14(f).

 

(g)                                  Treatment of Certain Refunds.  If any party determines, in its reasonable discretion, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.14 (including by the payment of additional amounts pursuant to this Section 2.14), it shall promptly pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest (solely with respect to the time period during which the indemnifying party actually held such funds, except to the extent that the refund was initially claimed at the written request of such indemnifying party) or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  In such event, such indemnified party shall, at the Borrower’s request, provide the Borrower with a copy of any notice of assessment or other evidence of the requirement to repay such refund received from the relevant Governmental Authority (provided, that such indemnified party may delete any information therein that it deems confidential).  An indemnified party shall claim any refund that it determines is available to it, unless it concludes in its reasonable discretion that it would be adversely affected by making such a claim.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

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(h)                                 Survival.  Each party’s obligations under this Section 2.14 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under this Agreement.

 

SECTION 2.15.                              Sharing of Payments, Etc.  If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Advances or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Advances and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Agent of such fact, and (b) purchase (for cash at face value) participations in the Advances and such other obligations before the Termination Date applicable to such Lender or, in the case of a Term Lender, Term Loan Maturity Date, of the other Appropriate Lenders, and, on and after the Termination Date applicable to such Lender, or in the case of a Term Lender, Term Loan Maturity Date, of all other Lenders or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Appropriate Lenders or all Lenders, as applicable, ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Advances and other amounts owing them; provided that:

 

(i)                  if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

 

(ii)               the provisions of this paragraph shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Advances to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

 

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.  For purposes of clause (b) of the definition of Excluded Taxes, a Lender that acquires a participation pursuant to this Section 2.15 shall be treated as having acquired such participation on the earlier date on which such Lender acquired the applicable interest in the Commitment(s) and/or Advance(s) to which such participation relates.

 

If at any time insufficient funds are received by and available to the Agent to pay fully all amounts of principal, unreimbursed Letters of Credit, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed Letters of Credit then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed Letters of Credit then due to such parties.

 

SECTION 2.16.                              Evidence of Debt.

 

(a)                                 Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder in respect of Advances.  The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the Agent) to the effect that a Note is required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to, or to be made by, such Lender, the Borrower shall promptly execute and deliver to such Lender a Note payable to such Lender in a principal amount up to the applicable Commitment of such Lender.

 

(b)                                 The Register maintained by the Agent pursuant to Section 8.07(c) shall include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded (i) the date and

 

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amount of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each Assumption Agreement and each Assignment and Assumption delivered to and accepted by it, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iv) the amount of any sum received by the Agent from the Borrower hereunder and each Lender’s share thereof.

 

(c)                                  Entries made in good faith by the Agent in the Register pursuant to subsection (b) above, and by each Lender in its account or accounts pursuant to subsection (a) above, shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest error; provided, however, that the failure of the Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement.

 

SECTION 2.17.                              Use of Proceeds.  The proceeds of the Advances shall be available (and the Borrower agrees that it shall use such proceeds) (i) for general corporate purposes (including acquisitions, investments and repayments of indebtedness), (ii) for payments in connection with the Effective Date Refinancing, and (iii) to pay the fees and expenses incurred in connection with the Effective Date Transactions.

 

SECTION 2.18.                              Mitigation Obligations; Replacement of Lenders.

 

(a)                                 Designation of a Different Applicable Lending Office.  If any Lender requests compensation under Section 2.11, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Applicable Lending Office for funding or booking its Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.11 or 2.14 as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)                                 Replacement of Lenders.  If any Lender requests compensation under Section 2.11, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14 and, in each case, such Lender has declined or is unable to designate a different Applicable Lending Office in accordance with Section 2.18(a), or if any Lender is a Defaulting Lender or a Non-Approving Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 8.07), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.11 or Section 2.14(a)) and obligations under this Agreement to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(i)                  the Borrower shall have paid to the Agent the assignment fee (if any) specified in Section 8.07;

 

(ii)               such Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder (including any amounts under Section 8.04(f)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

 

(iii)            in the case of any such assignment resulting from a claim for compensation under Section 2.11 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation or payments thereafter;

 

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(iv)           such assignment does not conflict with applicable law; and

 

(v)              in the case of any assignment resulting from a Lender becoming a Non-Approving Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

 

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

SECTION 2.19.                              Cash Collateral.

 

(a)                                 At any time that there shall exist a Defaulting Lender, within one Business Day following the written request of the Agent or any Issuing Bank (with a copy to the Agent) the Borrower shall Cash Collateralize the Issuing Banks’ Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to any reallocation pursuant to Section 2.20(a)(iv) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.

 

(b)                                 Grant of Security Interest.  The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Agent, for the benefit of the Issuing Banks, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in respect of L/C Obligations, to be applied pursuant to clause (c) below.  If at any time the Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Agent and the Issuing Banks as herein provided or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower will, promptly upon demand by the Agent, pay or provide to the Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

 

(c)                                  Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 2.19 or Section 2.20 in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of L/C Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

 

(d)                                 Termination of Requirement.  Cash Collateral (or the appropriate portion thereof) provided to reduce any Issuing Bank’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 2.19 following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) the existence of excess Cash Collateral, as reasonably determined by the Agent and each Issuing Bank; provided that, subject to Section 2.20 the Person providing Cash Collateral and each Issuing Bank may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations.

 

SECTION 2.20.                              Defaulting Lenders.

 

(a)                                 Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

 

(i)                                     Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

 

(ii)                                  Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VI or otherwise) or received by the Agent from a Defaulting Lender pursuant to Section 8.05 shall be applied at such time or times as may be determined by the Agent as follows:  first,

 

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to the payment of any amounts owing by such Defaulting Lender to the Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank or the Swing Line Bank hereunder; third, to Cash Collateralize the Issuing Banks’ Fronting Exposure with respect to such Defaulting Lender in accordance with 2.19; fourth, as the Borrower may request (so long as no Default exists), to the funding of any Advance in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifth, if so determined by the Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Advances under this Agreement and (y) Cash Collateralize the Issuing Banks’ future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 2.19; sixth, to the payment of any amounts owing to the Lenders, the Issuing Banks or the Swing Line Bank as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Banks or the Swing Line Bank against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Advances or L/C Obligations in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Advances were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 3.02 were satisfied or waived, such payment shall be applied solely to pay the Advances of, and L/C Obligations owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Advances of, or L/C Obligations owed to, such Defaulting Lender until such time as all Advances and funded and unfunded participations in L/C Obligations and Swing Line Advances are held by the Lenders pro rata in accordance with the Commitments under the applicable Facility without giving effect to Section 2.20(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.20(a) (ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

(iii)                               Certain Fees.

 

(A)                               No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and, except as provided in clause (C) below, the Borrower shall not be required to pay any such fee that otherwise would have been paid to that Defaulting Lender).

 

(B)                               Each Defaulting Lender shall be entitled to receive letter of credit fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Ratable Share of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 2.19.

 

(C)                               With respect to any Commitment Fee or letter of credit fee not required to be paid to any Defaulting Lender pursuant to clause (A) or (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations or Swing Line Advances that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to each Issuing Bank and the Swing Line Bank, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing Bank’s or Swing Line Bank’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.

 

(iv)                              Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in L/C Obligations and Swing Line Advances shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Ratable Shares (calculated without regard to such Defaulting Lender’s Revolving Credit Commitment) but only to the extent that (x) the conditions set forth in Section 3.01 are satisfied at the time of such reallocation (and, unless the Borrower has otherwise notified the Agent at such time, the Borrower shall be deemed to have represented and warranted

 

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that such conditions are satisfied at such time), and (y) such reallocation does not cause the sum of the aggregate principal amount of Revolving Credit Advances, the participations in outstanding Letters of Credit and participation in Swing Line Advances of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Credit Commitment.  Subject to Section 8.15, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(v)                                 Cash Collateral, Repayment of Swing Line Advances.  If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, within three (3) Business Days following the written request of the (i) Agent or (ii) Swing Line Bank or any Issuing Bank, as applicable (with a copy to the Agent), (x) first, prepay Swing Line Advances in an amount equal to the Swing Line Bank’s Fronting Exposure and (y) second, Cash Collateralize the Issuing Banks’ Fronting Exposure in accordance with the procedures set forth in Section 2.19.

 

(b)                                 Defaulting Lender Cure.  If the Borrower, the Agent, the Swing Line Bank and each Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable in respect of such Facility, purchase at par (together with any break funding costs incurred by the non-Defaulting Lenders as a result of such purchase) that portion of outstanding Advances of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Advances and funded and unfunded participations in Letters of Credit and Swing Line Advances to be held pro rata by the Appropriate Lenders in accordance with the Commitments under the applicable Facility (without giving effect to Section 2.20(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or other payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

(c)                                  New Swing Line Advances/Letters of Credit.  So long as any Revolving Credit Lender is a Defaulting Lender, in each case after giving effect to Section 2.20(a)(iv), (i) the Swing Line Bank shall not be required to fund any Swing Line Advances unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swing Line Advance and (ii) no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

 

SECTION 2.21.                              Increase in the Aggregate Commitments.

 

(a)                                 Request for Increase.  The Borrower may, at any time and from time to time, or in the case of the Term Facility, prior to the Term Loan Maturity Date, by notice to the Agent, request that the aggregate amount of the Revolving Credit Commitment and/or Term Commitment be increased by an amount of $25,000,000 or an integral multiple thereof (each a “Commitment Increase”) to be effective as of a date that is at least 90 days prior to the latest Termination Date, or in the case of the Term Facility, prior to the Term Loan Maturity Date (the “Increase Date”), as specified in the related notice to the Agent; provided, however, that in no event shall the aggregate amount of the Commitment Increases at any time exceed $1,000,000,000.

 

(b)                                 Lender Election to Increase.  The Agent shall promptly notify such Lenders and Eligible Assignees as are designated by the Borrower of a request by the Borrower for a Commitment Increase, which notice shall include (i) the Facility to be increased, (ii) the proposed amount of such requested Commitment Increase, (iii) the proposed Increase Date and (iv) the date by which such Lenders and Eligible Assignees wishing to participate in the Commitment Increase must commit to an increase in the amount of their respective applicable Commitments (the “Commitment Date”).  Each such Lender and Eligible Assignee that is willing to participate in such requested Commitment Increase (each, an “Increasing Lender”) shall, in its sole discretion, give written notice to the Agent on or prior to the Commitment Date of the amount by which it is willing to increase its Commitment or to establish its Commitment, as the case may be.  If such Lenders and Eligible Assignees notify the Agent that they are willing to

 

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participate in the requested Commitment Increase with applicable Commitments in an aggregate amount that exceed the amount of the requested Commitment Increase, the requested Commitment Increase shall be allocated among such Lenders and Eligible Assignees in such amounts as are agreed between the Borrower and the Agent.  No Lender shall be obligated to participate in such Commitment Increase.

 

(c)                                  Notification by Agent.  Promptly following each Commitment Date, the Agent shall notify the Borrower as to the amount, if any, by which such Lenders and Eligible Assignees are willing to participate in the requested Commitment Increase; provided, however, that the Revolving Credit Commitment or Term Commitment, as applicable, of each such Eligible Assignee shall be in an amount of (x) $5,000,000 or an integral multiple of $1,000,000 in excess thereof in the case of Revolving Credit Advances or Revolving Credit Commitments or (y) $500,000 or an integral multiple of $500,000 in excess thereof in the case of Term Advances.

 

(d)                                 Assuming Lenders.  On each Increase Date, each Eligible Assignee that accepts an offer to participate in a requested Commitment Increase in accordance with Section 2.21(b) (each such Eligible Assignee and each Eligible Assignee that shall become a party hereto in accordance with Section 2.22, an “Assuming Lender”) shall become a Lender party to this Agreement as of such Increase Date and the Revolving Credit Commitment or Term Commitment, as applicable, of each Increasing Lender for such requested Commitment Increase shall be so increased by such amount (or by the amount allocated to such Lender pursuant to the last sentence of Section 2.21(b)) as of such Increase Date.

 

(e)                                  Conditions to Effectiveness of Increase.  Notwithstanding the foregoing, any Commitment Increase pursuant to this Section shall not be effective with respect to any Lender or Eligible Assignee unless (i) the Agent shall have received on or before such Increase Date the following, each dated such date:

 

(A)                               certified copies of resolutions of the Board of Directors of the Borrower or comparable governing body authorizing the Commitment Increase and the corresponding modifications to this Agreement;

 

(B)                               an assumption agreement from each Assuming Lender, if any, in form and substance reasonably satisfactory to the Borrower and the Agent (each an “Assumption Agreement”), duly executed by such Assuming Lender, the Agent and the Borrower; and

 

(C)                               confirmation from each Increasing Lender of the increase in the amount of its Revolving Credit Commitment or Term Commitment, as applicable, in a writing reasonably satisfactory to the Borrower and the Agent; and

 

(ii) on the applicable Increase Date the following statements shall be true:

 

(A)                               no Default shall have occurred and be continuing on such date and after giving effect to such Commitment Increase; and

 

(B)                               the representations and warranties contained in Section 4.01 are true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date of, before and after giving effect to, such Commitment Increase, and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent any of such representations and warranties refers to an earlier date, in which case such representation and warranty shall be true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date of, before and after giving effect to, such Commitment Increase, and to the application of the proceeds therefrom.

 

On each Increase Date, upon fulfillment of the conditions set forth in this Section 2.21(e), the Agent shall notify the Appropriate Lenders (including, without limitation, each Assuming Lender) and the Borrower, on or before 1:00 P.M. (New York City time), of the occurrence of the Commitment Increase to be effected on such Increase Date and shall record in the Register the relevant information with respect to each Increasing Lender and

 

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each Assuming Lender on such date.  Each Increasing Lender and each Assuming Lender shall, before 2:00 P.M. (New York City time) on the Increase Date, to the extent applicable, (a) in the case of any increase in the Revolving Credit Facility, purchase at par that portion of outstanding Advances of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Advances to be held pro rata by the Lenders in accordance with the Commitments and/or (b) in case of any increase in the Term Facility, make available to the Agent at the Agent’s Account, in same day funds, an amount equal to such Increasing Lender’s or Assuming Lender’s increased Term Commitment.

 

SECTION 2.22.                              Extension of Commitment Termination Date.

 

(a)                                 Requests for Extension.  The Borrower may, by notice to the Agent (who shall promptly notify the Revolving Credit Lenders) not earlier than 75 days and not later than 30 days prior to any anniversary of the Effective Date (an “Anniversary Date”), but not more than two times, request that each Revolving Credit Lender extend such Lender’s Termination Date for an additional one year from the Termination Date then in effect for such Lender.

 

(b)                                 Lender Elections to Extend.  Each Revolving Credit Lender, acting in its sole and individual discretion, shall, by notice to the Agent given not later than the date (the “Notice Date”) that is 30 days after receiving notice of the applicable extension request, advise the Agent whether or not such Lender agrees to such extension (and each Revolving Credit Lender that determines not to so extend its Termination Date (a “Non-Extending Lender” and each other such Lender, an “Extending Lender”) shall notify the Agent of such fact promptly after such determination (but in any event no later than the Notice Date) and any Revolving Credit Lender that does not so advise the Agent on or before the Notice Date shall be deemed to be a Non-Extending Lender.  The election of any Revolving Credit Lender to agree to such extension shall not obligate any other Revolving Credit Lender to so agree.

 

(c)                                  Notification by Agent.  The Agent shall promptly notify the Borrower of each Revolving Credit Lender’s determination under this Section.

 

(d)                                 Assuming Lenders.  The Borrower shall have the right on or before the applicable Anniversary Date to replace each Non-Extending Lender with, and add as “Revolving Credit Lenders” under this Agreement in place thereof, one or more Assuming Lenders with the approval of the Agent (unless such Assuming Lender is already a Revolving Credit Lender), the Issuing Banks and the Swing Line Bank (which approvals shall in each case not be unreasonably withheld or delayed), each of which Assuming Lenders shall have entered into an agreement in form and substance satisfactory to the Borrower and the Agent pursuant to which such Assuming Lender shall, effective as of the applicable Anniversary Date, undertake a Revolving Credit Commitment (and, if any such Assuming Lender is already a Revolving Credit Lender, its Revolving Credit Commitment shall be in addition to such Lender’s Revolving Credit Commitment hereunder on such date).

 

(e)                                  Minimum Extension Requirement.  If (and only if) the total of the Revolving Credit Commitments of the Revolving Credit Lenders that have agreed so to extend their Termination Date and the additional Revolving Credit Commitments of the Assuming Lenders shall be more than 50% of the aggregate amount of the Revolving Credit Commitments in effect immediately prior to the applicable Anniversary Date, then, effective as of such Anniversary Date, the Termination Date of each Extending Lender and of each Assuming Lender shall be extended to the date falling one year after the existing Termination Date (except that, if such date is not a Business Day, such Termination Date as so extended shall be the next preceding Business Day) and each Assuming Lender shall thereupon become a “Lender” for all purposes of this Agreement.

 

(f)                                   Conditions to Effectiveness of Extensions.  Notwithstanding the foregoing, each extension of the Termination Date pursuant to this Section shall not be effective with respect to any Lender unless:

 

(x)                                 no Default shall have occurred and be continuing on the date of such extension and after giving effect thereto; and

 

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(y)                                 the representations and warranties contained in Section 4.01 are true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date of, before and after giving effect to, such extension of Revolving Credit Commitments, as though made on and as of such date, except to the extent any of such representations and warranties refers to an earlier date, in which case such representation and warranty shall be true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date of, before and after giving effect to, such extension of Revolving Credit Commitments.

 

ARTICLE III

 

CONDITIONS TO EFFECTIVENESS AND LENDING

 

SECTION 3.01.                              Conditions Precedent to Effectiveness.  This Agreement shall become effective on and as of the first date (the “Effective Date”) on which the following conditions precedent have been satisfied:

 

(a)                                 The Borrower shall have notified each Lender and the Agent in writing as to the proposed Effective Date.

 

(b)                                 The Borrower shall have paid all accrued fees and expenses of the Agent and the Lenders (including the accrued fees and expenses of counsel to the Agent).

 

(c)                                  On the Effective Date, the following statements shall be true and the Agent shall have received for the account of each Lender a certificate signed by a duly authorized officer of the Borrower, dated the Effective Date, stating that:

 

(i)                                   The representations and warranties contained in Section 4.01 are correct on and as of the Effective Date, and

 

(ii)                                After giving effect to the incurrence of the Loans on the Effective Date and the other transactions contemplated hereby, no event has occurred and is continuing that constitutes a Default.

 

(d)                                 The Agent shall have received on or before the Effective Date the following, each dated such day, in form and substance reasonably satisfactory to the Agent:

 

(i)                                   Counterparts of this Agreement, duly executed and delivered by each of the Lenders, the Borrower and the Agent (or in the case of any such party as to which an executed counterpart shall not have been received, the Agent shall have received, in form reasonably satisfactory to it, telecopy, email or other written confirmation from such party of its execution of a counterpart of this Agreement).

 

(ii)                                The Notes to the Lenders to the extent requested by any Lender pursuant to Section 2.16 at least five Business Days prior to the Effective Date.

 

(iii)                                 Certified copies of the resolutions of the Board of Directors of the Borrower approving this Agreement and the other Loan Documents, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement and the other Loan Documents.

 

(iv)                                A certificate of the Secretary or an Assistant Secretary of the Borrower certifying:

 

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(A)                               that attached thereto is a true and complete copy of the certificate or articles of incorporation, including all amendments thereto, of the Borrower, certified as of a recent date by the Secretary of State of the jurisdiction of its organization or by the Secretary or Assistant Secretary or similar officer of the Borrower or other person duly authorized by the constituent documents of the Borrower,

 

(B)                               that attached thereto is a true and complete copy of a certificate as to the good standing of the Borrower as of a recent date from such Secretary of State,

 

(C)                               that attached thereto is a true and complete copy of the by-laws of the Borrower as in effect on the Effective Date and at all times since a date prior to the date of the resolutions described in the following clause (D),

 

(D)                               that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or equivalent governing body) of the Borrower, authorizing the execution, delivery and performance by the Borrower of this Agreement and the borrowings hereunder, and the execution, delivery and performance of each of the other Loan Documents required hereby with respect to the Borrower and that such resolutions have not been modified, rescinded or amended and are in full force and effect on the Effective Date, and

 

(E)                                as to the incumbency and specimen signature of each officer or authorized signatory executing this Agreement or any other Loan Document delivered in connection herewith on behalf of the Borrower.

 

(v)                              Opinions of (i) Wachtell, Lipton, Rosen & Katz, as special New York counsel for the Borrower and (ii) Williams Mullen, as Virginia counsel for the Borrower, with respect to the enforceability of the applicable Loan Documents and other related matters, in each case (A) dated the Effective Date, (B) addressed to each Issuing Bank, the Agent and the Lenders on the Effective Date and (C) in form and substance reasonably satisfactory to the Agent covering such matters relating to the Loan Documents as the Agent shall reasonably request.

 

(e)                                  The Effective Date Refinancing shall, substantially simultaneously with the occurrence of the Effective Date (and in any event no later than the close of business on the Effective Date), be consummated.

 

(f)                                   The Senior Notes Offering shall, substantially simultaneously with the occurrence of the Effective Date (and in any event no later than the close of business on the Effective Date), be consummated.

 

(g)                                  Each Lender shall have received all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Patriot Act to the extent requested by such Lender at least five Business Days prior to the Effective Date.

 

SECTION 3.02.                              Conditions Precedent to Each Borrowing and Issuance.  The obligation of each Lender and the Swing Line Bank to make an Advance (other than (x) a Swing Line Advance made by a Lender pursuant to Section 2.02(b) or (y) an Advance made by any Issuing Bank or any Lender pursuant to Section 2.03(c)) on the occasion of each Borrowing and the obligation of each Issuing Bank to Issue a Letter of Credit shall be subject to the conditions precedent that the Effective Date shall have occurred and on the date of such Borrowing or such Issuance (as the case may be) (a) the Agent shall have received a Notice of Borrowing, Notice of Swing Line Borrowing or Notice of Issuance and (b) the following statements shall be true (and each of the giving of the applicable Notice of Borrowing, Notice of Swing Line Borrowing or Notice of Issuance and the acceptance by the Borrower of the proceeds of such Borrowing or such Issuance shall constitute a representation and warranty by the Borrower that on the date of such Borrowing or such Issuance that such statements are true):

 

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(i)                  the representations and warranties contained in Section 4.01 (except the representations and warranties set forth in the last sentence of Section 4.01(e) and in Section 4.01(f)) are true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date, before and after giving effect to such Borrowing or such Issuance and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent any of such representations and warranties refers to an earlier date, in which case such representation and warranty shall be true and correct in all material respects (other than any representation or warranty qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of such date of, before and after giving effect to, such Borrowing or such Issuance, and to the application of the proceeds therefrom, and

 

(ii)               no event has occurred and is continuing, or would result from such Borrowing or such Issuance or from the application of the proceeds therefrom, that constitutes a Default.

 

SECTION 3.03.                              Determinations Under Section 3.01.  For purposes of determining compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an officer of the Agent responsible for the transactions contemplated by this Agreement shall have received notice from such Lender prior to the date that the Borrower, by notice to the Lenders, designates as the proposed Effective Date, specifying its objection thereto.  The Agent shall promptly notify the Lenders of the occurrence of the Effective Date.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 4.01.                              Representations and Warranties of the Borrower.  The Borrower represents and warrants as follows:

 

(a)                                 The Borrower is a corporation duly organized, validly existing and in good standing under the laws of the State of Virginia.

 

(b)                                 The execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents to be delivered by it, and the consummation of the transactions contemplated hereby, are within the Borrower’s corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) the Borrower’s charter or by-laws or (ii) any law or any contractual restriction binding on or affecting the Borrower.

 

(c)                                  No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by the Borrower of this Agreement or the other Loan Documents to be delivered by it, except for such authorizations and approvals which have been obtained and notices and filings which have been made.

 

(d)                                 This Agreement has been, and each of the Notes to be delivered by it when delivered hereunder will have been, duly executed and delivered by the Borrower.  This Agreement is, and each of the Notes when delivered hereunder will be, the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.

 

(e)                                  The audited consolidated balance sheets and the statements of income, stockholders’ equity, and cash flow for the Borrower and its consolidated subsidiaries as of and for each fiscal year of the Borrower in the fiscal year period ended on February 3, 2018, including the notes thereto, if applicable, present fairly in all material respects the consolidated financial position of the Borrower and its

 

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consolidated subsidiaries as of the date and for the period referred to therein and the results of operations and cash flows for the periods then ended, and, except as set forth on Schedule 4.01(e), were prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, except, in the case of interim period financial statements, for the absence of notes and for normal year-end adjustments and except as otherwise noted therein. Since February 3, 2018, there has been no Material Adverse Change.

 

(f)                                   There is no pending or threatened action, suit, investigation, litigation or proceeding, including, without limitation, any Environmental Action, affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator that (i) could be reasonably likely to have a Material Adverse Effect other than the matters described on Schedule 4.01(f) Disclosed Litigation hereto or (ii) purports to affect the legality, validity or enforceability of this Agreement or any other Loan Document or the consummation of the transactions contemplated hereby.

 

(g)                                  The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U or X issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Advance will be used to purchase or carry any margin stock in violation of said Regulations T, U or X or to extend credit to others for the purpose of purchasing or carrying any margin stock in violation of said Regulations T, U or X.  Following application of the proceeds of each Advance, not more than 25 percent of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a Consolidated basis) that are subject to a restriction on sale, pledge, or disposal under this Agreement will be represented by margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System).

 

(h)                                 The Borrower is not an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended.

 

(i)                                     The written information furnished by or on behalf of the Borrower to the Agent or any Lender in connection with the negotiation and syndication of this Agreement (other than information of a general economic or industry nature or financial estimates, forecasts and other forward-looking information and after giving effect to all supplements and updates thereto), when taken as a whole, does not contain any untrue statement of a material fact or omitted to state a material fact necessary to make the statements made therein not materially misleading in light of the circumstances under which such statements are made.

 

(j)                                    Except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect:  (i) each Plan is in compliance with ERISA, the Code and any applicable law; (ii) no Reportable Event has occurred; (iii) no Plan is reasonably likely to be insolvent or in reorganization and no written notice of any such insolvency or reorganization has been given to the Borrower; (iv) each Plan that is subject to Title IV of ERISA has satisfied the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, and there has been no determination that any such Plan is, or is expected to be, in “at risk” status (within the meaning of Section 303 of ERISA; (v) neither the Borrower nor any ERISA Affiliate has incurred (or is reasonably likely to incur) any liability to or on account of a Plan or Multiemployer Plan pursuant to Section 406, 409, 502(c), (i) or (l), 4062, 4063, 4064, 4069, 4201, 4204 or 4071 of ERISA or has been notified in writing that it will incur any liability under any of the foregoing Sections with respect to any Plan or Multiemployer Plan; (vi) no proceedings have been instituted (or are reasonably likely to be instituted) to terminate or to reorganize any Plan or to appoint a trustee to administer any Plan, and no written notice of any such proceedings has been given to the Borrower or any ERISA Affiliate; and (vii) no lien imposed under Section 401(a)(29) or 430(k) of the Code or pursuant to ERISA on the assets of the Borrower exists (or is reasonably likely to exist) nor has the Borrower been notified in writing that such a lien will be imposed on the assets of the Borrower on account of any Plan.  No Plan has an Unfunded Current Liability that would, individually or when taken together with any other liabilities referenced in this Section 4.01(j), be reasonably likely to have a Material Adverse Effect.  Except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (i) neither the Borrower nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA), or has been determined to be in “endangered or

 

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critical” status with the meaning of Section 432 of the Code or Section 305 of ERISA and (ii) no such Multiemployer Plan is reasonably expected to be insolvent or in “endangered or critical” status.  Notwithstanding any provision of this Section 4.01(j) to the contrary, with respect to Multiemployer Plans, the representations and warranties in this Section 4.01(j), other than any made with respect to (i) liability under Section 4203 or 4205 of ERISA or (ii) liability for termination or reorganization of such Multiemployer Plans under ERISA, are made to the best knowledge of the Borrower.  Except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, neither the Borrower nor any ERISA Affiliate has incurred nor reasonably expects to incur any liability under Title IV of ERISA or any Lien in favor of the PBGC with respect to any Plan maintained by an ERISA Affiliate.

 

(i)                                     All Foreign Plans are in compliance with, and have been established, administered and operated in accordance with, the terms of such Foreign Plans and applicable law, except for any failure to so comply, establish, administer or operate the Foreign Plans as would not reasonably be expected to have a Material Adverse Effect.  All contributions or other payments which are due with respect to each Foreign Plan have been made in full and there are no funding deficiencies thereunder, except to the extent any such events would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(k)                                 Except where the failure of which would not be reasonably expected to have a Material Adverse Effect, (a) each of the Borrower and the Subsidiaries has filed all U.S. federal income tax returns and all other tax returns, domestic and foreign, required to be filed by it and has paid all material taxes payable by it that have become due, other than those (i) not yet delinquent or (ii) contested in good faith as to which adequate reserves have been provided to the extent required by law and in accordance with GAAP and (b) the Borrower and each of the Subsidiaries have paid, or have provided adequate reserves (in the good faith judgment of the management of the Borrower or such Subsidiary) in accordance with GAAP for the payment of, all federal, state, provincial and foreign taxes applicable for the current fiscal year to the Effective Date.

 

(l)                                     Except where the failure of which would not be reasonably expected to have a Material Adverse Effect, the Borrower and its Subsidiaries are in compliance with Environmental Laws and have not received written notice of any pending or threatened claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties.

 

(m)                             On the Effective Date, immediately following the making of each Advance made on the Effective Date and after giving effect to the application of the proceeds of such Advances, the Borrower on a Consolidated basis with its Subsidiaries is Solvent.

 

(n)                                 The Borrower and each of the Subsidiaries have good and marketable title to or leasehold interests in all properties that are necessary for the operation of their respective businesses as currently conducted and as proposed to be conducted, free and clear of all Liens (other than any Liens permitted by this Agreement) and except where the failure to have such good title would not reasonably be expected to have a Material Adverse Effect.

 

(o)                                 The Borrower has implemented and maintains in effect policies and procedures designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with AML Laws, Anti-Corruption Laws and applicable Sanctions, and the Borrower and its Subsidiaries and to the knowledge of the Borrower their respective officers, employees and directors, are in compliance with applicable Sanctions in all material respects.  None of (a) the Borrower or any Subsidiary or (b) to the knowledge of the Borrower, any of their respective directors, officers, employees or designated agents that will act in any capacity in connection with or directly benefit from the use of proceeds of the credit facility established hereby, is a Sanctioned Person.

 

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ARTICLE V

 

COVENANTS OF THE BORROWER

 

SECTION 5.01.                              Affirmative Covenants.  So long as any Advance shall remain unpaid, any Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower will:

 

(a)                                 Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries to comply, except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect, with all applicable laws, rules, regulations and orders, including, without limitation, ERISA, Environmental Laws and the Patriot Act.

 

(b)                                 Payment of Taxes, Etc.  Pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property and (ii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge, levy or claim (i) that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained in accordance with GAAP, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors or (ii) if the failure to pay or discharge such tax, assessment, charge, levy or claim, either individually or in the aggregate, could not be reasonably expected to have a Material Adverse Effect.

 

(c)                                  Maintenance of Insurance.  Maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is (i) commercially reasonable in the good faith judgment of the management of the Borrower and (ii) either consistent with past practices or in such amounts and covering such risks as is usually carried by companies engaged in similar businesses or owning similar properties in the same general areas in which the Borrower or such Subsidiary operates; provided, however, that the Borrower and its Subsidiaries may self-insure to the extent deemed commercially reasonable in the good faith judgment of the management of the Borrower.

 

(d)                                 Preservation of Existence, Etc.  Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its corporate or other organizational existence, rights (charter and statutory) and franchises; provided, however, that the Borrower and its Subsidiaries may consummate any merger or consolidation permitted under Section 5.02(b); and provided, further, that neither the Borrower nor any of its Subsidiaries shall be required to preserve the existence of any Subsidiary or any right or franchise of the Borrower or any Subsidiary if the management of the Borrower shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Borrower and its Subsidiaries, taken as a whole, or if the failure to preserve such existence, right or franchise would not reasonably be expected to have a Material Adverse Effect.

 

(e)                                  Visitation Rights.  At any reasonable time and from time to time, permit the Agent or any of the Lenders or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants.

 

(f)                                   Keeping of Books.  Keep, and cause each of its Subsidiaries to keep, proper books of record and account in conformity with GAAP.

 

(g)                                  Maintenance of Properties, Etc.  Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted, in each case except where the failure to so maintain and preserve would not reasonably be expected to have a Material Adverse Effect.

 

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(h)                                 Reporting Requirements.  Furnish to the Agent for prompt distribution to the Lenders:

 

(i)                                   as soon as available and in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Borrower, the Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such quarter and Consolidated statements of income and cash flows of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, duly certified (subject to year-end audit adjustments) by a Financial Officer of the Borrower as having been prepared in accordance with generally accepted accounting principles and certificates of a Financial Officer of the Borrower as to compliance with the terms of this Agreement and setting forth in reasonable detail the calculations necessary to demonstrate compliance with Section 5.03; provided that in the event of any change in generally accepted accounting principles used in the preparation of such financial statements, the Borrower shall also provide, if necessary for the determination of compliance with Section 5.03, a statement of reconciliation conforming such financial statements to GAAP;

 

(ii)                                as soon as available and in any event within 90 days after the end of each fiscal year of the Borrower, a copy of the annual audit report for such year for the Borrower and its Subsidiaries, containing the Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal year and Consolidated statements of income and cash flows of the Borrower and its Subsidiaries for such fiscal year, in each case accompanied by an audit opinion by KPMG LLP or other independent public accountants of national standing or otherwise acceptable to the Required Lenders, which report shall be unqualified as to the scope of audit and shall state that such financial statements present fairly in all material respects the financial condition as at the end of such fiscal year, and certificates of a Financial Officer of the Borrower as to compliance with the terms of this Agreement and setting forth in reasonable detail the calculations necessary to demonstrate compliance with Section 5.03; provided that in the event of any change in generally accepted accounting principles used in the preparation of such financial statements, the Borrower shall also provide, if necessary for the determination of compliance with Section 5.03, a statement of reconciliation conforming such financial statements to GAAP;

 

(iii)                                 as soon as possible and in any event within five days after an officer of the Borrower obtains knowledge thereof, the occurrence of each Default continuing on the date of such statement, a statement of an officer of the Borrower setting forth details of such Default and the action that the Borrower has taken and proposes to take with respect thereto;

 

(iv)                            promptly after the sending or filing thereof, copies of all reports that the Borrower sends to any of its security holders, and copies of all reports and registration statements that the Borrower or any Subsidiary files with the Securities and Exchange Commission or any national securities exchange;

 

(v)                               promptly after the commencement thereof, notice of all actions and proceedings before any court, governmental agency or arbitrator affecting the Borrower or any of its Subsidiaries of the type described in Section 4.01(f); and

 

(vi)                              such other information respecting the Borrower or any of its Subsidiaries as any Lender through the Agent may from time to time reasonably request. Any information or document that is required to be delivered to the Agent pursuant to this Section 5.01(h) shall be deemed delivered to the Agent and the Lenders upon the filing of such information with the Securities and Exchange Commission at the time such information or document becomes available on EDGAR; provided that the Borrower gives timely notice to the Agent of the filing thereof.

 

(i)                                     Transactions with Affiliates.  Conduct, and cause each of its Subsidiaries to conduct, all transactions otherwise permitted under this Agreement with any of their Affiliates on terms that, in the good faith judgment of the management of the Borrower or such Subsidiary, are fair and reasonable and no less favorable to the Borrower or such Subsidiary than it would obtain in a comparable arm’s length transaction with a Person not an Affiliate; provided that the foregoing restriction shall not apply to (a)

 

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transactions between or among the Borrower and any of its Subsidiaries or between and among any Subsidiaries, (b) the payment of reasonable fees and out-of-pocket costs to directors, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrower or its Subsidiaries or (c) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans approved by the Borrower’s board of directors.

 

(j)                                    AML Laws, Anti-Corruption Laws and Sanctions.  (i) Use the proceeds of the Loans only for the purposes set forth in Section 2.17; and (ii) not request any Borrowing or Letter of Credit, and not lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person which uses such proceeds for the purpose of funding activities or business directly, or to the knowledge of the Borrower or such Subsidiary, indirectly (A) in violation of AML Laws, (B) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or (C) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country to the extent such activities, businesses or transaction would be prohibited for a Person required to comply with Sanctions.

 

SECTION 5.02.                              Negative Covenants.  So long as any Advance shall remain unpaid, any Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower will not:

 

(a)                                 Liens, Etc.  Create or suffer to exist, or permit any of its Subsidiaries to create or suffer to exist, any Lien on or with respect to any of its properties, whether now owned or hereafter acquired, other than:

 

(i)                                   Permitted Liens;

 

(ii)                                Liens securing obligations under Capital Leases;

 

(iii)                             purchase money Liens upon or in any real property or equipment acquired or held by the Borrower or any Subsidiary in the ordinary course of business to secure the purchase price of such property or equipment or to secure Debt incurred solely for the purpose of financing the acquisition of such property or equipment, or Liens existing on such property or equipment at the time of its acquisition (other than any such Liens created in contemplation of such acquisition that were not incurred to finance the acquisition of such property) or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount, provided, however, that no such Lien shall extend to or cover any properties of any character other than the real property or equipment being acquired, and no such extension, renewal or replacement shall extend to or cover any properties not theretofore subject to the Lien being extended, renewed or replaced;

 

(iv)                            the Liens existing on the Effective Date and described on Schedule 5.02(a) — Existing Liens hereto;

 

(v)                               Liens on property of a Person existing at the time such Person is merged into or consolidated with the Borrower or any Subsidiary of the Borrower or becomes a Subsidiary of the Borrower and Liens on assets existing at the time such assets are acquired by the Borrower or any Subsidiary of the Borrower; provided that such Liens were not created in contemplation of such merger, consolidation or acquisition and do not extend to any assets other than those of the Person so merged into or consolidated with the Borrower or such Subsidiary or acquired by the Borrower or such Subsidiary;

 

(vi)                            Liens securing any Advances, L/C Obligations or any other obligations under or in connection with the Loan Documents;

 

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(vii)                                Liens not otherwise permitted by this Section 5.02(a) securing Debt or other obligations of the Borrower and its Subsidiaries; provided that the aggregate principal amount of all such Debt and other obligations, together with any Debt incurred under Section 5.02(d)(xii), does not exceed an amount equal to 15% of Consolidated Net Tangible Assets at the time of creation, incurrence or assumption of such Debt or other obligation; and

 

(viii)                                 the replacement, extension or renewal of any Lien permitted by clause (iii) or (iv) above upon or in the same property theretofore subject thereto or the replacement, extension or renewal (without increase in the amount or change in any direct or contingent obligor) of the Debt or other obligations secured thereby.

 

(b)                                 Mergers, Etc.  Merge or consolidate with or into any Person, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) (or permit any of its Subsidiaries to convey, transfer, lease or otherwise dispose of) all or substantially all of the assets (whether now owned or hereafter acquired) of the Borrower and its Subsidiaries taken as a whole to any Person, except that (i) the Borrower or any Subsidiary of the Borrower may convey, transfer, lease or otherwise dispose of assets to the Borrower or any Subsidiary of the Borrower and (ii) the Borrower may merge with any other Person so long as the Borrower is the surviving Person, provided, in each case, that no Default shall have occurred and be continuing at the time of such transaction or would result therefrom.

 

(c)                                  Change in Nature of Business.  Make any material change in the nature of the business of the Borrower and its Subsidiaries taken as a whole as carried on at the date hereof or any business that is similar, ancillary, complementary, incidental or related thereto; provided that the Chesapeake Development Project shall not be deemed to be a material change in the nature of its business.

 

(d)                                 Subsidiary Debt.  Permit any of its Subsidiaries to create or suffer to exist, any Debt other than:

 

(i)                                   Debt owing to the Borrower or any Subsidiary;

 

(ii)                                existing Debt outstanding on the Effective Date, and listed on Schedule 5.02(d) - Existing Subsidiary Debt (the “Existing Subsidiary Debt”), and any Debt extending the maturity of, or replacing, refunding, renewing or refinancing, in whole or in part, the Existing Subsidiary Debt; provided, that the principal amount of such Existing Subsidiary Debt shall not be increased above the principal amount thereof outstanding immediately prior to such extension, replacement, refunding, renewal or refinancing (except by an amount equal to any existing commitments utilized thereunder) as a result of or in connection with such extension, replacement, refunding, renewal or refinancing;

 

(iii)                                 guarantees by any Subsidiary in respect of Debt of any other Subsidiary otherwise permitted under this Section 5.02(d);

 

(iv)                            Debt representing deferred compensation or similar obligations to employees incurred in the ordinary course of business;

 

(v)                               any Debt of (A) a Person that becomes a Subsidiary of the Borrower to the extent such Debt exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (B) a Subsidiary to the extent such Debt is assumed in connection with an acquisition made by such Subsidiary and is not created in contemplation of such acquisition; provided, however, that such Debt shall not be guaranteed by any Subsidiary other than the acquired Subsidiary and its Subsidiaries;

 

(vi)                            any guarantees for Advances, L/C Obligations or any other obligations under or in connection with the Loan Documents;

 

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(vii)                                endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;

 

(viii)                             Debt under Capital Leases;

 

(ix)                            unsecured obligations due to vendors under any vendor factoring line;

 

(x)                               obligations in respect of letters of credit entered into in the ordinary course of business;

 

(xi)                            obligations under Hedge Agreements entered into for bona fide hedging purposes and not for speculative purposes; and

 

(xii)                                other Debt of the Borrower’s Subsidiaries that, together with the amount of Debt and other obligations secured by Liens permitted under Section 5.02(a)(vii), does not exceed 15% of Consolidated Net Tangible Assets at the time of creation, incurrence or assumption of such Debt.

 

SECTION 5.03.                              Financial Covenants.  So long as any Advance shall remain unpaid, any Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower will, in each case as of the last day of each full fiscal quarter of the Borrower ending after the Effective Date (each such date, a “Measurement Date”):

 

(a)                                 Leverage Ratio.  Maintain a ratio of (i) Consolidated Total Debt as of such Measurement Date plus five (5) times Consolidated Rental Expense for the four fiscal quarter period ending on such Measurement Date to (ii) Consolidated EBITDAR (such ratio, the “Leverage Ratio”) for the four fiscal quarter period ending on such Measurement Date of not greater than 4.0:1.0 (the “Leverage Covenant”); provided that such Leverage Covenant will step-down to (x) 3.75:1.00 commencing with the first quarter ending after the one year anniversary of the Effective Date and (y) 3.50:1.00 commencing with the first quarter ending after the two year anniversary of the Effective Date; provided that, at the election of the Borrower exercised by written notice to the Agent delivered at any time prior to the date that is 30 days following consummation of any Significant Acquisition by the Borrower or its Subsidiaries, the Leverage Covenant shall step-up to 4.00:1.00 for each of the next four fiscal quarters ending on or after the consummation of a Significant Acquisition by the Borrower or its Subsidiaries.

 

(b)                                 Fixed Charge Coverage Ratio.  Maintain a ratio of (i) Consolidated EBITDAR for the four fiscal quarter period ending on such Measurement Date to (ii) the sum of Consolidated Interest Expense and Consolidated Rental Expense for the four fiscal quarter period ending on such Measurement Date of not less than 2.0:1.0.

 

ARTICLE VI

 

EVENTS OF DEFAULT

 

SECTION 6.01.                              Events of Default.  If any of the following events (“Events of Default”) shall occur and be continuing:

 

(a)                                 The Borrower shall fail to pay any principal of any Advance when the same becomes due and payable; or the Borrower shall fail to pay any interest on any Advance or make any other payment of fees or other amounts payable under this Agreement or any Note within five days after the same becomes due and payable; or

 

(b)                                 Any representation or warranty made by the Borrower herein or by the Borrower (or any of its officers) in any certificate, document, financial or other statement in connection with this Agreement shall prove to have been incorrect in any material respect when made; or

 

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(c)                                  (i) The Borrower shall fail to perform or observe any term, covenant or agreement contained in Sections 2.17, 5.01(d) (as to the existence of the Borrower), 5.02 or 5.03, or (ii) the Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrower by the Agent or the Required Lenders; or

 

(d)                                 The Borrower or any of its Subsidiaries shall fail to pay any principal of or premium or interest on any Debt that is outstanding in a principal or notional amount of at least $150,000,000 in the aggregate (but excluding Debt outstanding hereunder) of the Borrower or such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, or to require the prepayment or redemption (other than by a regularly scheduled required prepayment or redemption), purchase or defeasance of such Debt or that an offer to repay, redeem, purchase or defease such Debt be made, in each case prior to the stated maturity thereof; provided that this Section 6.01(d) shall not apply to (i) secured Debt that becomes due as a result of a disposition, transfer, condemnation, insured loss or similar event relating to the property or assets securing such Debt, (ii) any customary offer to repurchase provisions upon an asset sale, (iii) customary debt and equity proceeds prepayment requirements contained in any bridge or other interim credit facility, (iv) Debt of any Person assumed in connection with the acquisition of such Person to the extent that such Debt is repaid as required by the terms thereof as a result of the acquisition of such Person or (v) the redemption of any Debt incurred to finance an acquisition pursuant to any special mandatory redemption feature that is triggered as a result of the failure of such acquisition to occur; or

 

(e)                                  The Borrower or any of its Material Subsidiaries shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any of its Material Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Borrower or any of its Material Subsidiaries shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or

 

(f)                                   Judgments or orders for the payment of money in excess of $150,000,000 in the aggregate shall be rendered against the Borrower or any of its Subsidiaries by a court of competent jurisdiction and such judgment or order for payment is not satisfied, discharged, vacated, bonded or stayed pending appeal within a period of 60 consecutive days; or

 

(g)                                  Any non-monetary judgment or order shall be rendered against the Borrower or any of its Subsidiaries by a court of competent jurisdiction that could be reasonably expected to have a Material Adverse Effect, and such judgment or order is not satisfied, discharged, vacated, bonded or stayed pending appeal within a period of 60 consecutive days; or

 

(h)                                 There shall have occurred a Change of Control; or

 

(i)                                     (i) Any Plan shall fail to satisfy the minimum funding standard required for any plan year or part thereof or a waiver of such standard or extension of any amortization period is sought or granted under Section 412 of the Code; any Plan is or shall have been terminated or is the subject of termination proceedings under ERISA (including the giving of written notice thereof); an event shall have occurred or a

 

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condition shall exist in either case entitling the PBGC to terminate any Plan or to appoint a trustee to administer any Plan (including the giving of written notice thereof); a Plan subject to Title IV of ERISA is, or is expected to be, in “at risk” status (within the meaning of Section 303 of ERISA)); the Borrower or any ERISA Affiliate has incurred or is likely to incur a liability to or on account of a Plan or Multiemployer Plan under Section 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA (including the giving of written notice thereof); (ii) there could result from any event or events set forth in clause (i) of this Section 6.01(i) the imposition of a lien, the granting of a security interest, or a liability, or the reasonable likelihood of incurring a lien, security interest or liability; (iii) a determination that any Plan is or is reasonably likely to be in at risk status (within the meaning of Section 303 of ERISA); or (iv) the Borrower or an ERISA Affiliate receives notice from the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA), or has been determined to be in “endangered or critical” status with the meaning of Section 432 of the Code or Section 305 of ERISA or such Multiemployer Plan is reasonably expected to be insolvent or in “endangered or critical” status and such circumstance or event described in this Section 6.01(i) will or would be reasonably likely to have a Material Adverse Effect; or

 

(j)                                    Any provision of this Agreement shall for any reason cease to be valid and binding on or enforceable against the Borrower, or the Borrower shall so state in writing;

 

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances (other than Advances to be made by a Lender pursuant to Section 2.02(b) or by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the Issuing Banks to Issue Letters of Credit to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, (A) the obligation of each Lender to make Advances (other than Advances to be made by a Lender pursuant to Section 2.02(b) or by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the Issuing Banks to Issue Letters of Credit shall automatically be terminated and (B) the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

 

SECTION 6.02.                              Actions in Respect of the Letters of Credit upon Default.  If any Event of Default shall have occurred and be continuing, the Agent may with the consent, or shall at the request, of the Required Revolving Lenders, irrespective of whether it is taking any of the actions described in Section 6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such demand the Borrower will, (a) pay to the Agent on behalf of the Revolving Credit Lenders in same day funds at the Agent’s office designated in such demand, for deposit in the L/C Cash Deposit Account, an amount equal to the aggregate Available Amount of all Letters of Credit then outstanding or (b) make such other arrangements in respect of the outstanding Letters of Credit as shall be acceptable to the Required Revolving Lenders and not more disadvantageous to the Borrower than clause (a); provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, an amount equal to the aggregate Available Amount of all outstanding Letters of Credit shall be immediately due and payable to the Agent for the account of the Revolving Credit Lenders without notice to or demand upon the Borrower, which are expressly waived by the Borrower, to be held in the L/C Cash Deposit Account.  If at any time an Event of Default is continuing the Agent determines that any funds held in the L/C Cash Deposit Account are subject to any right or claim of any Person other than the Agent and the Lenders or that the total amount of such funds is less than the aggregate Available Amount of all Letters of Credit, the Borrower will, forthwith upon demand by the Agent, pay to the Agent, as additional funds to be deposited and held in the L/C Cash Deposit Account, an amount equal to the excess of (a) such aggregate Available Amount over (b) the total amount of funds, if any, then held in the L/C Cash Deposit Account that the Agent determines to be free and clear of any such right and claim.  Upon the drawing of any Letter of Credit, to the extent funds are on deposit in the L/C Cash Deposit Account, such funds shall be applied to reimburse the Issuing Banks to the extent permitted by applicable law.  After all such Letters of Credit shall have expired or been fully drawn upon and all other obligations of the

 

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Borrower hereunder and under the other Loan Documents shall have been paid in full, the balance, if any, in such L/C Cash Deposit Account shall be returned to the Borrower.

 

ARTICLE VII

 

THE AGENT

 

SECTION 7.01.            Appointment and Authority.  Each of the Lenders hereby irrevocably appoints JPMorgan to act on its behalf as the Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Agent and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any Loan Document (or any other similar term) with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. Additionally, each Lender agrees that it will not assert any claim against the Agent based on an alleged breach of fiduciary duty by the Agent in connection with this Agreement and the transactions contemplated hereby.

 

SECTION 7.02.            Rights as a Lender.  The Person serving as the Agent hereunder shall have the same rights and powers in its capacity under this Agreement and the other Loan Documents as a Lender as any other Lender and may exercise the same as though it were not the Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account therefor to the Lenders.

 

SECTION 7.03.            Exculpatory Provisions.

 

(a)           None of the Agent or its Affiliates or any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, the Agent:

 

(i)            shall not be subject to any fiduciary or other implied duties, covenants, functions, responsibilities, obligations or liabilities regardless of whether a Default has occurred and is continuing;

 

(ii)           shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that the Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

 

(iii)          shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Agent or any of its Affiliates in any capacity.

 

(b)           None of the Agent or its Affiliates or any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be liable for any action taken or not taken by it (i) with the consent or at the

 

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request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 8.01 and 6.01), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Agent in writing by the Borrower or a Lender in accordance with Section 5.01(h)(iii).

 

(c)           None of the Agent or its Affiliates or any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by any Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of the Borrower to perform its obligations hereunder or thereunder.  No Agent shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Borrower. The Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents.

 

SECTION 7.04.            Reliance by Agent.  The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of an Advance or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Bank, the Agent may presume that such condition is satisfactory to such Lender unless the Agent shall have received notice to the contrary from such Lender or Issuing Bank prior to the making of such Advance or the issuance of such Letter of Credit.  The Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Agent may deem and treat the Lender specified in the Register with respect to any amount owing hereunder as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Agent in accordance with Section 8.07.  The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all or other Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, all or other Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.

 

SECTION 7.05.            Delegation of Duties.  The Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  The Agent shall not be responsible for the negligence or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care.  The Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Agent and any such subagent, and shall apply to their respective activities in connection with the syndication of the Facilities as well as activities as Agent.  Should any instrument in writing from the Borrower be required by any sub-agent appointed by the Agent to more fully or certainly vest in and confirm to such sub-agent such rights, powers, privileges and duties, the Borrower shall execute, acknowledge and deliver any and all such instruments promptly upon request by the Agent.  If any sub-agent, or successor thereto, shall become incapable of acting, resign or be removed, all rights, powers, privileges and duties of such sub-agent, to the extent permitted by law, shall automatically vest in and be exercised by the Agent until the appointment of a new sub-agent.

 

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SECTION 7.06.            Resignation of Agent.

 

(a)           The Agent may at any time give notice of its resignation to the Lenders and the Borrower upon 30 days’ notice to the Lenders and the Borrower.  Any such resignation by the Agent hereunder shall also constitute its resignation as an Issuing Bank and the Swing Line Bank, as applicable, in which case the resigning Agent (x) shall not be required to issue any further Letters of Credit or make any additional Swing Line Advances hereunder and (y) shall maintain all of its rights as Issuing Bank or Swing Line Bank, as the case may be, with respect to any Letters of Credit issued by it, or Swing Line Advances made by it, prior to the date of such resignation. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, subject to the reasonable consent of the Borrower (so long as no Event of Default under Section 6.01(a) or (e) shall have occurred and be continuing), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States, whereupon such successor agent shall succeed to the rights, powers and duties of the Agent, and the term “Agent” shall mean such successor agent effective upon such appointment and approval, and the former Agent’s rights, powers and duties as the Agent shall be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or any holders of the Loans.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), the retiring Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.

 

(b)           With effect from the Resignation Effective Date (1) the retiring Agent shall be discharged from its duties and obligations hereunder and (2) except for any indemnity payments owed to the retiring Agent, all payments, communications and determinations provided to be made by, to or through the Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Agent as provided for above.  Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Agent (other than any rights to indemnity payments owed to the retiring Agent), and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring Agent’s resignation hereunder, the provisions of this Article and Section 8.04 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent.

 

SECTION 7.07.            Non-Reliance on Agent and Other Lenders.  Each Lender expressly acknowledges that neither the Agent nor any of its Related Parties have made any representations or warranties to it and that no act by the Agent hereafter taken, including any review of the affairs of the Borrower or any affiliate of the Borrower, shall be deemed to constitute any representation or warranty by the Agent to any Lender.  Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own appraisal of, and investigation into the business, operations, property, financial and other condition and creditworthiness of, the Borrower and its affiliates and made its own decision to make its Loans hereunder and enter into this Agreement.  Each Lender also represents that it will, independently and without reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Borrower and its affiliates. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Agent hereunder, the Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of the Borrower or any affiliate of the Borrower that may come into the possession of the Agent or any of its Related Parties.

 

SECTION 7.08.            No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the Joint Lead Arrangers and Joint Bookrunners or Syndication Agent or Co-Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan

 

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Documents, except in its capacity, as applicable, as the Agent or a Lender hereunder; provided, that each such person and its Affiliates shall be entitled to the rights expressly stated to be applicable to them in Section 7.02 and 7.04 (subject to the applicable obligations and limitations as set forth therein).

 

SECTION 7.09.            Notice of Default. The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default unless such Agent has received written notice from a Lender or the Borrower referring to this Agreement, describing such Default and stating that such notice is a “Notice of Default.”  In the event that the Agent receives such a notice, the Agent shall give prompt notice thereof to the Lenders.  The Agent shall take such action with respect to such Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all or other Lenders); provided, that unless and until the Agent shall have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interests of the Lenders.

 

SECTION 7.10.            Withholding Tax.  To the extent required by any applicable law, the Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  If the Internal Revenue Service or any authority of the United States or other jurisdiction asserts a claim that the Agent did not properly withhold Tax from amounts paid to or for the account of any Lender for any reason (including because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify the Agent of a change in circumstances that rendered the exemption from, or reduction of, withholding Tax ineffective), such Lender shall indemnify the Agent (to the extent that the Agent has not already been reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) fully for all amounts paid, directly or indirectly, by the Agent as Tax or otherwise, including penalties, fines, additions to Tax and interest, together with all expenses incurred, including legal expenses, allocated staff costs and any out of pocket expenses.  Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due to the Agent under this Section 7.10.

 

SECTION 7.11.            Certain ERISA Matters.

 

(a)           Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent, and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:

 

(i)            such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,

 

(ii)           the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, and the conditions for exemptive relief thereunder are and will continue to be satisfied in connection therewith,

 

(iii)          (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

 

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(iv)          such other representation, warranty and covenant as may be agreed in writing between the Agent, in its sole discretion, and such Lender.

 

(b)           In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent, and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that:

 

(i)            none of the Agent or any Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Agent under this Agreement, any Loan Document or any documents related hereto or thereto),

 

(ii)           the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21, as amended from time to time) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E),

 

(iii)          the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the obligations),

 

(iv)          the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Commitments and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder, and

 

(v)           no fee or other compensation is being paid directly to the Agent, or any Arranger or any of their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Commitments or this Agreement.

 

(c)           The Agent, and each Arranger hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments and this Agreement, (ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.

 

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ARTICLE VIII

 

MISCELLANEOUS

 

SECTION 8.01.            Amendments, Etc.

 

(a)           No notice or demand on the Borrower or the Agent or any Lender in any case shall entitle such person to any other or further notice or demand in similar or other circumstances. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Agent or any Lender may have had notice or knowledge of such Default at the time.

 

(b)           Except as contemplated by Sections 2.08, 2.21, and 2.22, no amendment or waiver of any provision of this Agreement or the other Loan Documents, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that (x) no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the following:  (i) waive any of the conditions specified in Section 3.01, (ii) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances, or the number of Lenders, that shall be required for the Lenders or any of them to take any action hereunder, including by amending the definition of “Required Lenders”, “Required Revolving Lenders” or “Required Term Lenders”, or (iii) amend this Section 8.01 and (y) no amendment, waiver or consent shall, unless in writing and signed by each Lender directly affected thereby, do any of the following:  (i) increase or extend the Commitments of such Lender, (ii) reduce the principal of, or rate of interest on, the Advances or any fees or other amounts payable to such Lender hereunder, (iii) postpone any date fixed for any payment of principal of, or interest on, the Advances or any fees or other amounts payable to such Lender hereunder (including, but not limited to, the Term Loan Maturity Date or the Termination Date) or the pro rata application of repayments after acceleration of the Advances in accordance with Section 6.01 or (iv) change Section 2.05 or 2.15 in a manner that would alter the ratable reduction of Commitments or the pro rata sharing of payments required thereby; and provided, further, that (x) no amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Agent under this Agreement or any other Loan Document, (y) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Bank, in addition to the Lenders required above to take such action, affect the rights or obligations of the Swing Line Bank under this Agreement, and (z) no amendment, waiver or consent shall, unless in writing and signed by the Issuing Banks in addition to the Lenders required above to take such action, adversely affect the rights or obligations of the Issuing Banks in their capacities as such under this Agreement.

 

SECTION 8.02.            Notices, Etc.

 

(a)           Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:

 

(i)            if to the Borrower, to it at 500 Volvo Parkway, Chesapeake, VA 23320, Attention of Kevin Wampler, Chief Financial Officer (Facsimile No. (757) 321-5111; Telephone No. (757) 321-5840);

 

(ii)           if to the Agent, to JPMorgan at 500 Stanton Christiana Road, NCC 5, 1st Floor, Newark, Delaware 19713-2107, Attention of Ali Zigami (Telephone No. (302) 634-4834)) (e-mail ali.zigami@chase.com; Jacob.s.iati@jpmorgan.com);

 

(iii)          if to any Issuing Bank, to it at the address provided in writing to the Agent and the Borrower at the time of its appointment as an Issuing Bank hereunder; and

 

(iv)          if to a Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire.

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

 

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(b)           Electronic Communications.  Notices and other communications to the Lenders and the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that the foregoing shall not apply to notices to any Lender or Issuing Bank pursuant to Article II if such Lender or Issuing Bank, as applicable, has notified the Agent that it is incapable of receiving notices under such Article by electronic communication.  The Agent or the Borrower may, in its reasonable discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received.  Notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices delivered through electronic communications to the extent provided in Section 8.02(b) above shall be effective as provided in such Section 8.02(b).

 

(c)           Change of Address, Etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

 

(d)           Platform.

 

(i)            The Borrower agrees that the Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Issuing Banks and the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the “Platform”), and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet, or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Agent have access (whether a commercial, third-party website or whether sponsored by the Agent); provided, that (A) the Borrower shall deliver paper copies of such documents to the Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Agent or such Lender, and (B) the Borrower shall notify the Agent (by telecopier or electronic mail) of the posting of any such documents and provide to the Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Except for such certificates required by Section 5.01(h)(i) or (ii), the Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

(ii)           The Platform is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform.  In no event shall the Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s or the Agent’s transmission of communications through the Platform.  “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Agent, any Lender or any Issuing Bank by means of electronic communications pursuant to this Section 8.02, including through the Platform.

 

SECTION 8.03.            No Waiver; Remedies.  No failure on the part of any Lender or the Agent to exercise, and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

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SECTION 8.04.            Costs and Expenses.

 

(a)           Costs and Expenses.  The Borrower shall pay (i) all reasonable out of pocket expenses (including, without duplication of any amounts paid pursuant to Section 2.14, Other Taxes) incurred by the Agent, the Arrangers and their respective Affiliates (including the reasonable fees, charges and disbursements of counsel for the Agent and the Arrangers), in connection with the syndication of the Facilities, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out of pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iii) all out of pocket expenses incurred by the Agent, the Arrangers, any Lender or any Issuing Bank (including the fees, charges and disbursements of any counsel for the Agent, any Arranger, any Lender or any Issuing Bank), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Advances made or Letters of Credit issued hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Advances or Letters of Credit.

 

(b)           Indemnification by the Borrower.  The Borrower shall indemnify the Agent (and any sub-agent thereof), each Arranger, each Lender and each Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower) other than such Indemnitee and its Related Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Advance or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any violation of or liability under Environmental Laws by the Borrower or any Subsidiary, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) arose from any claim, actions, suits, inquiries, litigation, investigation or proceeding that does not involve an act or omission of the Borrower or any of its Affiliates and is brought by an Indemnitee against another Indemnitee (other than any claim, actions, suits, inquiries, litigation, investigation or proceeding against any Agent or an Arranger in its capacity as such).  This Section 8.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc.  arising from any non-Tax claim.

 

(c)           Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the Agent (or any sub-agent thereof), any Issuing Bank, the Swing Line Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Agent (or any such sub-agent), such Issuing Bank, the Swing Line Bank or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the aggregate principal amount of all Advances and the Available Amount of all outstanding Letters of Credit at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided that with respect to such unpaid amounts owed to any Issuing Bank or the Swing Line Bank solely in its capacity as such, only the Revolving Credit Lenders shall be required to pay such unpaid amounts, such payment to be made severally among them based on such Lenders’ Ratable Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) provided, further, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Agent (or any such sub-agent), such Issuing Bank or the Swing Line Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Agent (or any such sub-agent), such Issuing Bank or any the Swing Line Bank in connection with such

 

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capacity.  The obligations of the Lenders under this paragraph (c) are subject to the provisions of Section 2.02(f). The failure of any Lender to reimburse the Agent, Issuing Bank or Swing Line Bank, as the case may be, promptly upon demand for its ratable share of any amount required to be paid by the Lenders to such Agent, Issuing Bank or Swing Line Bank, as the case may be, as provided herein shall not relieve any other Lender of its obligation hereunder to reimburse such Agent or such Issuing Bank, as the case may be, for its ratable share of such amount, but no Lender shall be responsible for the failure of any other Lender to reimburse such Agent, Issuing Bank or Swing Line Bank, as the case may be, for such other Lender’s ratable share of such amount.  The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder.

 

(d)           Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Advance or Letter of Credit, or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

 

(e)           Payments.  All amounts due under this Section shall be payable promptly after demand therefor.

 

(f)            Breakage.  If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is made by the Borrower to or for the account of a Lender (i) other than on the last day of the Interest Period for such Advance (including as a result of an Event of Default), as a result of a payment or Conversion pursuant to Section 2.08, 2.10 or 2.12, acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 8.07 as a result of a demand by the Borrower pursuant to Section 8.07 or (ii) as a result of a payment or Conversion pursuant to Section 2.08, 2.10 or 2.12, the Borrower shall, upon demand by such Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender (it being understood that the deemed amount shall not exceed the actual amount) to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not occurred, at the Eurodollar Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in Dollars of a comparable amount and period from other banks in the eurocurrency market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 8.04(f) shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(g)           Survival.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in Sections 2.11, 2.14 and 8.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents.

 

SECTION 8.05.            Right of Set-off.  If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or its Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under

 

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this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided, that any recovery by any Lender or any Affiliate pursuant to its setoff rights under this Section 8.05 is subject to the provisions of Section 2.15, provided, further, that in the event that any Defaulting Lender shall exercise any such right of set-off, (x) all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of Section 2.20 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Agent a statement describing in reasonable detail the Advances owing to such Defaulting Lender as to which it exercised such right of set-off.  The rights of each Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of set-off) that such Lender or its Affiliates may have.  Each Lender agrees to notify the Borrower and the Agent promptly after any such set-off and application; provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

SECTION 8.06.            Binding Effect.  This Agreement shall become effective (other than Section 2.01, which shall only become effective upon satisfaction of the conditions precedent set forth in Section 3.01) when it shall have been executed by the Borrower and the Agent and when the Agent shall have been notified by each Lender that such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, the Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of each of the Lenders (and any other attempted assignment or transfer by the Borrower shall be null and void).

 

SECTION 8.07.            Assignments and Participations.

 

(a)           Successors and Assigns Generally.  No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be prohibited).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement or the other Loan Documents.

 

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Advances at the time owing to it); provided that (in each case with respect to any Facility) any such assignment shall be subject to the following conditions:

 

(i)            Minimum Amounts.

 

(A)          in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Advances at the time owing to it (in each case with respect to any Facility) or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)          in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Advances outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than (x) $500,000 or an integral multiple of $500,000 in excess thereof in the case of Term Advances and (y) $5,000,000 or an integral multiple of $1,000,000 in excess thereof in the case of Revolving Credit Advances or Revolving Credit Commitments, unless each of

 

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the Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

 

(ii)               Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Advance or the Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis.

 

(iii)            Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

 

(A)                               the consent of the Borrower (such consent not to be unreasonably withheld, conditioned or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided, that, with respect to assignments of Advances under the Term Facility, the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Agent within ten Business Days after having received notice thereof;

 

(B)                               the consent of the Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) the Revolving Credit Facility or any unfunded Commitments with respect to the Term Facility if such assignment is to a Person that is not a Lender with a Commitment in respect of such Facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender, or (ii) any Term Advances to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund; and

 

(C)                               the consent of each Issuing Bank and the Swing Line Bank shall be required for any assignment in respect of the Revolving Credit Facility (such consent not to be unreasonably withheld or delayed).

 

(iv)           Assignment and Assumption.  The parties to each assignment (which shall not include the Borrower unless its consent to such assignment is required hereunder) shall execute and deliver to the Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 (which fee may be waived by the Agent in its sole discretion); provided, that only a single processing and recordation fee shall be payable in respect of multiple contemporaneous assignments to Approved Funds with respect to any Lender.  The assignee if it is not a Lender, shall deliver to the Agent an Administrative Questionnaire.

 

(v)              No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

 

(vi)           No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).

 

(vii)        Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Agent, the applicable pro rata share of Advances previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and

 

66

 

satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent, each Issuing Bank, the Swing Line Bank and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Advances and participations in Letters of Credit and Swing Line Advances in accordance with its Ratable Share.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

Subject to acceptance and recording thereof by the Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.11 and 8.04 and remain liable under Section 8.04(c) with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

 

(c)                                  Register.  The Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and related interest) of the Advances owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding any notice to the contrary.  The Register shall be available for inspection by the Borrower and any Lender (with respect to its Commitment(s)), at any reasonable time and from time to time upon reasonable prior notice.

 

(d)                                 Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower, the Agent, any Issuing Bank or the Swing Line Bank, sell participations to any Person (other than a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person), a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Advances owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Agent, the Issuing Banks and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 8.04 with respect to any payments made by such Lender to its Participant(s).

 

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 8.01(b) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.11, 8.04(f) and 2.14 (subject to the requirements and limitations therein, including the requirements under Section 2.14(f) (it being understood that the documentation required under Section 2.14(f) shall be delivered solely to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) shall be subject to the provisions of Section 2.18 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.11 or 2.14, with respect to any participation, than its participating

 

67

 

Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.18 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as though it were a Lender; provided that such Participant shall be subject to Section 2.15 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and related interest) of each Participant’s interest in the Advances or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)                                  Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(f)                                   Issuing Bank Resignation.   Notwithstanding anything to the contrary herein, any Issuing Bank may, upon 30 days’ notice to the Borrower and the Lenders, resign as Issuing Bank; provided that on or prior to the expiration of such 30-day period with respect to such resignation, the relevant Issuing Bank shall have identified a successor Issuing Bank that is acceptable to the Borrower, willing to accept its appointment as successor Issuing Bank, and the effectiveness of such resignation shall be conditioned upon such successor assuming the rights and duties of the Issuing Bank.  If an Issuing Bank resigns as Issuing Bank, it shall retain all the rights and obligations of an Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing Bank and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Advances or fund risk participations in an outstanding Advance pursuant to Section 2.03(c)).  Upon the appointment of a successor Issuing Bank, (A) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank, and (B) the successor Issuing Bank shall use commercially reasonable efforts to issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or to make other arrangements satisfactory to the retiring Issuing Bank to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of Credit.

 

SECTION 8.08.                              Confidentiality.  Each of the Agent and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ Related Parties in connection with its participation in any of the transaction evidenced by this Agreement or the other Loan Documents or the administration of this Agreement or the other Loan Documents, in each case on a need to know basis (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (in which case the Agent or applicable Lender shall inform the Borrower (except with respect to any audit or examination conducted by bank accountants or any self-regulatory authority or governmental or regulatory authority exercising examination or regulatory authority) of such disclosure to the extent practicable and not prohibited by applicable law, rule or regulation); (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations

 

68

 

under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Facilities or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Facilities; and (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower or any Subsidiary of the Borrower that is not to the knowledge of the Agent or such Lender subject to confidentiality obligations to the Borrower or any Subsidiary of the Borrower.

 

For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Agent, any Lender or any Issuing Bank on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries; provided that, in the case of information received from the Borrower or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

SECTION 8.09.                              Governing Law.  This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

 

SECTION 8.10.                              Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by 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 Agreement by telecopier or email shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 8.11.                              Jurisdiction, Etc.

 

(a)                                 Jurisdiction.  The Borrower irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Agent, any Lender or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts of any jurisdiction.

 

(b)                                 Waiver of Venue.  Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (a) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

69

 

(c)                                  Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 8.02.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

 

SECTION 8.12.                              No Liability of the Issuing Banks.  As among the parties to this Agreement, the Borrower assumes all risks of the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Borrower’s pursuit of such rights and remedies as they may have against the beneficiary or transferee at law or under any other agreement.  Neither an Issuing Bank nor any of its Related Parties shall be liable or responsible for:  (a) the use that may be made of any Letter of Credit or any acts or omissions of any beneficiary or transferee in connection therewith; (b) the failure to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit); (c) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged; (d) payment by such Issuing Bank against presentation of documents that do not comply with the terms of a Letter of Credit, including failure of any documents to bear any reference or adequate reference to the Letter of Credit; or (e) any other circumstances whatsoever in making or failing to make payment under any Letter of Credit, except that the Borrower shall have a claim against such Issuing Bank, and such Issuing Bank shall be liable to the Borrower, to the extent of any direct, but not consequential, damages suffered by the Borrower that the Borrower proves were caused by such Issuing Bank’s willful misconduct or gross negligence when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  In furtherance and not in limitation of the foregoing, such Issuing Bank may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary; provided that nothing herein shall be deemed to excuse such Issuing Bank if it acts with gross negligence or willful misconduct in accepting such documents.

 

SECTION 8.13.                              Patriot Act Notice.  Each Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower in accordance with the Patriot Act.  The Borrower shall provide such information and take such actions as are reasonably requested by the Agent or any Lenders in order to assist the Agent and the Lenders in maintaining compliance with the Patriot Act.

 

SECTION 8.14.                              Other Relationships; No Fiduciary Relationships.  No relationship created hereunder or under any other Loan Document shall in any way affect the ability of the Agent and each Lender to enter into or maintain business relationships with the Borrower or any Affiliate thereof beyond the relationships specifically contemplated by this Agreement and the other Loan Documents.  The Borrower agrees that in connection with all aspects of the transactions contemplated hereby and any communications in connection therewith, the Borrower, its Subsidiaries and their respective Affiliates, on the one hand, and the Agent, the Lenders and their respective Affiliates, on the other hand, will have a business relationship that does not create, by implication or otherwise, any advisory, equitable or fiduciary duties on the part of the Agent, any Lender or any of their respective Affiliates, and no such duties will be deemed to have arisen in connection with any such transactions or communications.  The Borrower acknowledges that the Agent, each Lender and their Affiliates may have economic interests that conflict with those of the Borrower, its stockholders and/or its Affiliates.  The Borrower also hereby agrees that none of the Agent, any Lender or any of their respective Affiliates have advised and are advising the Borrower as to any legal, accounting, regulatory or tax matters, and that the Borrower is consulting its own advisors concerning such matters to the extent it deems appropriate.

 

SECTION 8.15.                              Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

70

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)                                a reduction in full or in part or cancellation of any such liability;

 

(ii)                                a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                                 the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

 

As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

SECTION 8.16.                              Waiver of Jury Trial.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby (whether based on contract, tort or any other theory).  Each party hereto acknowledges that it and

 

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the other parties hereto have been induced to enter into this Agreement and the other Loan Documents by, among other things, the mutual waivers in the Section.

 

[Signature Pages Follow]

 

72

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

	
 
    	
DOLLAR TREE, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin S.   Wampler
    
	
 
    	
 
    	
Name:
    	
Kevin S. Wampler
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

S-1

 

	
 
    	
JPMORGAN CHASE BANK, N.A., as Agent, a   Lender, a Swing Line Bank and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anna Kostenko
    
	
 
    	
 
    	
Name: Anna Kostenko
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ekta Patel
    
	
 
    	
 
    	
Name: Ekta Patel
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos J. Medina
    
	
 
    	
 
    	
Name: Carlos J. Medina
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
FIFTH THIRD BANK,
    
	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mary Ramsey
    
	
 
    	
 
    	
Name: Mary Ramsey
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    
	
 
    	
ROYAL BANK OF CANADA,
    
	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julia Ivanova
    
	
 
    	
 
    	
Name: Julia Ivanova
    
	
 
    	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Conan Schleicher
    
	
 
    	
 
    	
Name: Conan Schleicher
    
	
 
    	
 
    	
Title: Senior Vice President
    

 

S-2

 

	
 
    	
PNC BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Notaro
    
	
 
    	
 
    	
Name: David Notaro
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
SUNTRUST BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julie Lindberg
    
	
 
    	
 
    	
Name: Julie Lindberg
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
CITIZENS BANK OF PENNSYLVANIA,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy Van Riper
    
	
 
    	
 
    	
Name: Tracy Van Riper
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
HSBC BANK USA, NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jaime E. Mariano
    
	
 
    	
 
    	
Name: Jaime E. Mariano
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
REGIONS BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brand Hosford
    
	
 
    	
 
    	
Name: Brand Hosford
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
TD BANK, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Craig Welch
    
	
 
    	
 
    	
Name: Craig Welch
    
	
 
    	
 
    	
Title: Senior Vice President
    

 

S-3

 

	
 
    	
CAPITAL ONE NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy Miller
    
	
 
    	
 
    	
Name: Timothy Miller
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
COMPASS BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ramon Garcia
    
	
 
    	
 
    	
Name: Ramon Garcia
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
THE HUNTINGTON NATIONAL BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian H. Gallagher
    
	
 
    	
 
    	
Name: Brian H. Gallagher
    
	
 
    	
 
    	
Title: Managing Director
    

 

S-4Primero Mining Corp.: Exhibit 4.1- Filed by newsfilecorp.com

Execution Copy 

PRIMERO MINING CORP. 
as Borrower 

and 

BMO CAPITAL MARKETS 
as Lead Arranger and Sole
Bookrunner 

and 

BANK OF MONTREAL 
as Administrative Agent

and 

THE SEVERAL LENDERS 
FROM TIME TO TIME PARTIES
HERETO 

__________________________________________

CREDIT AGREEMENT

__________________________________________

Dated as of May 23, 2014 

 

Fasken Martineau DuMoulin LLP 
Toronto, Ontario 

Credit Agreement - Primero Mining 

Table of Contents 

	  	  	PAGE 
	  	  	  
	  	  	  
	  	  	  
	ARTICLE 1 INTERPRETATION
    	1 
	1.1 	Defined Terms 	1 
	1.2 	Other Usages 	34 
	1.3 	Plural and Singular 	34 
	1.4 	Headings 	34 
	1.5 	Currency 	34 
	1.6 	Applicable Law 	35 
	1.7 	Time of the Essence 	35 
	1.8 	Non-Banking Days 	35 
	1.9 	Consents and Approvals 	35 
	1.10 	Amount of Credit 	35 
	1.11 	Schedules 	36 
	1.12 	Extension of Credit 	36 
	1.13 	Accounting Terms – GAAP 	36 
	1.14 	Change in Accounting
      Polices 	36 
	1.15 	Paramountcy 	36 
	 	  	  
	ARTICLE 2 CREDIT FACILITY 	37 
	2.1 	Establishment of Credit
      Facility 	37 
	2.2 	Lenders’ Commitments 	37 
	2.3 	Reduction of Credit
      Limit 	37 
	2.4 	Termination of Credit Facility 	38 
	 	  	  
	ARTICLE 3 GENERAL PROVISIONS RELATING TO
      CREDITS 	38 
	3.1 	Types of Credit
      Availments 	38 
	3.2 	Funding of Loans 	38 
	3.3 	Failure of Lender to Fund
      Loan 	39 
	3.4 	Funding of Bankers’ Acceptances. 	40 
	3.5 	BA Equivalent Loans. 	42 
	3.6 	Timing of Credit Availments 	42 
	3.7 	Inability to Fund U.S.
      Dollar Advances in Canada 	42 
	3.8 	Time and Place of Payments 	43 
	3.9 	Remittance of Payments
    	44 
	3.10 	Evidence of Indebtedness 	44 
	3.11 	General Provisions Relating
      to All Letters 	44 
	3.12 	Notice Periods 	47 
	3.13 	Administrative Agent’s
      Discretion to Allocate 	48 
	 	  	  
	ARTICLE 4 DRAWDOWNS 	48 
	4.1 	Drawdown Notice 	48 

Credit Agreement - Primero Mining 

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	  	  	PAGE 
	  	  	  
	  	  	  
	ARTICLE 5 ROLLOVERS 	49 
	5.1 	LIBOR Loans 	49 
	5.2 	Bankers’ Acceptances 	49 
	5.3 	Rollover Notice 	49 
	5.4 	Rollover by Lenders 	49 
	 	  	  
	ARTICLE 6 CONVERSIONS 	50 
	6.1 	Converting Loan to Other Type of Loan
	50 
	6.2 	Converting Loan to Bankers’
      Acceptances 	50 
	6.3 	Converting Bankers’ Acceptances to Loan
    	50 
	6.4 	Conversion Notice 	51 
	6.5 	Absence of Notice 	51 
	6.6 	Conversion by Lenders
	51 
	 	  	  
	ARTICLE 7 INTEREST AND
      FEES 	52 
	7.1 	Interest Rates 	52 
	7.2 	Calculation and Payment of
      Interest 	52 
	7.3 	General Interest Rules 	52 
	7.4 	Selection of Interest
      Periods 	53 
	7.5 	BA Acceptance Fees 	54 
	7.6 	Standby Fees 	54 
	7.7 	Letter Fees 	54 
	 	  	  
	ARTICLE 8 RESERVE, CAPITAL, INDEMNITY AND TAX
      PROVISIONS 	54 
	8.1 	Conditions of Credit 	54 
	8.2 	Change of Circumstances 	55 
	8.3 	Failure to Fund as a Result
      of Change of Circumstances 	56 
	8.4 	Indemnity Relating to Credits 	57 
	8.5 	Indemnity for Transactional
      and Environmental Liability 	58 
	8.6 	Payments Free and Clear of Taxes 	59 
	 	  	  
	ARTICLE 9 REPAYMENTS AND PREPAYMENTS 	62 
	9.1 	Repayment of Credit
      Facility 	62 
	9.2 	Extension of Maturity Date 	62 
	9.3 	Voluntary Prepayments
	64 
	9.4 	Mandatory Prepayments 	64 
	9.5 	Prepayment Notice 	64 
	9.6 	Currency of Repayment 	64 
	9.7 	Repayments of Credit
      Excess 	64 
	9.8 	Reimbursement or Conversion on Presentation
      of Letters 	65 
	9.9 	Letters Subject to an
      Order 	65

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	  	  	PAGE 
	  	  	  
	  	  	  
	9.10 	Reimbursement Obligation for
      Maturing Bankers’ Acceptances 	65 
	 	  	  
	ARTICLE 10 REPRESENTATIONS AND
      WARRANTIES 	66 
	10.1 	Representations and Warranties 	66 
	10.2 	Survival of Representations
      and Warranties 	72 
	 	  	  
	ARTICLE 11 COVENANTS 	73 
	11.1 	Financial Covenants 	73 
	11.2 	Affirmative Covenants
	73 
	11.3 	Restrictive Covenants 	80 
	11.4 	Performance of Covenants by
      Administrative Agent 	81 
	 	  	  
	ARTICLE 12 CONDITIONS
      PRECEDENT TO OBTAINING CREDIT 	82 
	12.1 	Conditions Precedent to All Credit 	82 
	12.2 	Conditions Precedent to
      Initial Extension of Credit 	82 
	12.3 	Waiver 	85 
	 	  	  
	ARTICLE 13 DEFAULT AND REMEDIES 	85 
	13.1 	Events of Default 	85 
	13.2 	Bankers’ Acceptances 	88 
	13.3 	Letters 	88 
	13.4 	Refund of Overpayments 	89 
	13.5 	Remedies Cumulative 	89 
	13.6 	Set-Off 	90 
	 	  	  
	ARTICLE 14 THE ADMINISTRATIVE AGENT 	90 
	14.1 	Appointment and
      Authorization of Administrative Agent 	90 
	14.2 	Interest Holders 	91 
	14.3 	Consultation with
      Counsel 	91 
	14.4 	Documents 	91 
	14.5 	Administrative Agent as
      Finance Party 	91 
	14.6 	Responsibility of Administrative Agent
    	91 
	14.7 	Action by Administrative
      Agent 	91 
	14.8 	Notice of Events of Default 	92 
	14.9 	Responsibility
      Disclaimed 	92 
	14.10 	Indemnification 	93 
	14.11 	Credit Decision 	93 
	14.12 	Successor Administrative Agent 	93 
	14.13 	Delegation by Administrative
      Agent 	94 
	14.14 	Waivers and Amendments 	94 
	14.15 	Determination by
      Administrative Agent Conclusive and Binding 	96 
	14.16 	Adjustments among Lenders after
      Acceleration 	96 

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	14.17 	Redistribution of
      Payment 	97 
	14.18 	Distribution of Notices 	97 
	14.19 	Other Security Not
      Permitted 	97 
	14.20 	Discharge of Security 	97 
	14.21 	Determination of
      Exposures 	97 
	14.22 	Decision to Enforce Security 	99 
	14.23 	Enforcement 	99 
	14.24 	Application of Cash Proceeds of
      Realization 	99 
	14.25 	Entering Into Contracts
    	100 
	14.26 	Survival 	100 
	 	  	  
	ARTICLE 15 MISCELLANEOUS 	100 
	15.1 	Notices 	100 
	15.2 	Severability 	101 
	15.3 	Counterparts 	101 
	15.4 	Successors and Assigns 	102 
	15.5 	Assignment 	102 
	15.6 	Entire Agreement 	103 
	15.7 	Further Assurances 	103 
	15.8 	Judgment Currency 	104 
	15.9 	Confidentiality 	105 

	SCHEDULE A PRICING GRID 	1 
	 	 
	SCHEDULE B LENDERS AND INDIVIDUAL
      COMMITMENTS 	1 
	 	 
	SCHEDULE C COMPLIANCE CERTIFICATE
	1 
	 	 
	SCHEDULE D FORM OF ASSIGNMENT 	1 
	 	 
	SCHEDULE E FORM OF DRAWDOWN NOTICE
    	1 
	 	 
	SCHEDULE F FORM OF ROLLOVER NOTICE
    	1 
	 	 
	SCHEDULE G FORM OF CONVERSION NOTICE
    	1 
	 	 
	SCHEDULE H CORPORATE STRUCTURE 	1 
	 	 
	SCHEDULE I SECURITY DOCUMENTS 	1 

Credit Agreement - Primero Mining 

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	  	PAGE 
	 	 
	SCHEDULE J QUALIFIED AFFILIATE
      INSTRUMENT OF ADHESION 	1 
	 	 
	SCHEDULE K EJIDOS LITIGATION 	1 

Credit Agreement - Primero Mining 

CREDIT AGREEMENT dated as
of May 23, 2014 between Primero Mining Corp., a corporation existing under the
laws of the Province of British Columbia (the “Borrower”), the lending
institutions from time to time parties hereto as Lenders (each a “Lender”
and, collectively, the “Lenders”), and Bank of Montreal, as
Administrative Agent. 

WHEREAS the Borrower has
requested the Lenders to provide to it a certain senior secured revolving credit
facility for the purposes set forth in Section 11.2(c);

AND WHEREAS the Lenders
are each willing to provide such credit facility to the Borrower for the
aforementioned purposes upon the terms and conditions contained herein; 

NOW THEREFORE THIS AGREEMENT
WITNESSES that, in consideration of the mutual covenants and agreements
herein contained and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties hereto covenant and
agree as follows: 

ARTICLE 1 
INTERPRETATION 

	1.1 	
      Defined Terms

The following defined terms shall
for all purposes of this agreement, or any amendment, substitution, supplement,
replacement, restatement or addition hereto, have the following respective
meanings unless the context otherwise specifies or requires or unless otherwise
defined herein: 

“$” denotes U.S. dollars. 

“Acquisition” means: 

	 	(a) 	
      if the acquisition is a share purchase, the Borrower
      shall Control the entity being acquired immediately following the
      completion of such acquisition; or

	 	 	 
	 	(b) 	
      if the acquisition is an asset purchase, all or
      substantially all of the assets of the vendor (or of a division or unit of
      the vendor) are being acquired.

“Administrative Agent” means
Bank of Montreal, in its capacity as administrative agent of the Lenders, and
any successor thereto pursuant to Section 14.12. 

“Affected Lender” shall have
the meaning ascribed thereto in Section 8.3. 

“Affiliate” means an affiliated
body corporate and, for the purposes of this agreement, (i) one body corporate
is affiliated with another body corporate if one such body corporate is the
Subsidiary of the other or both are Subsidiaries of the same body corporate or
each of them is Controlled by the same Person and (ii) if two bodies corporate are affiliated with the same body
corporate at the same time, they are deemed to be affiliated with each other;
for greater certainty for the purposes of this definition, “body corporate” shall include a chartered bank. 

Credit Agreement - Primero Mining 

- 2 -

“Alternate Base Rate Canada”
  means, at any particular time, the variable rate of interest per annum,
  calculated on the basis of a year of 365 days (or 366 days in the case of a leap
  year), which is equal to the greater of (a) the Base Rate Canada at such time
and (b) the Federal Funds Effective Rate at such time plus 1⁄2 of 1%. 

“Applicable Law” means all
public laws, statutes, ordinances, decrees, judgments, codes, standards, acts,
orders, by-laws, rules, regulations, Official Body consents, permits, binding
policies and guidelines, and requirements of all Official Bodies, which now or
hereafter may be lawfully applicable to and enforceable against any Obligor or
its property or any part thereof. 

“Applicable Margin” means, at
any particular time, the aggregate of (a) the applicable interest rate margin or
fee rate, as the case may be, expressed as a percentage per annum which are in
effect at such time based upon the Total Net Debt Leverage Ratio for the Fiscal
Quarter that is the subject of the quarterly Compliance Certificate delivered by
the Borrower to the Administrative Agent at the time of the first drawdown
hereunder as provided in Section 12.2(e)(iii) or otherwise most recently
delivered by the Borrower to the Administrative Agent, as set forth in the table
in Schedule A hereto, and (b) where the Borrower fails to pay any amount
required to be paid by them hereunder when due in respect of principal,
interest, Bankers’ Acceptance reimbursement, BA Acceptance Fees, Letter
reimbursement or Letter fees, having received notice that such amount is due, 2%
per annum on such overdue amounts in order to compensate the Lenders for the
additional risk, provided that (i) changes in the Applicable Margin shall be
effective as of the first day of the calendar month next following the relevant
Reporting Date and (ii) changes in the Applicable Margin shall apply, as at the
effective dates of such changes, to Letters, Loans and Bankers’ Acceptances
outstanding on such dates, but only for those portions of the terms of such
Letters, Loans and Bankers’ Acceptances after the effective date of such
changes, as provided above. Notwithstanding the foregoing, until December 31,
2014, the Applicable Margin shall not be less than that based on Level II in
Schedule A hereto. 

“Asset Purchase Agreement”
means the asset purchase agreement dated July 29, 2010 pursuant to which PEM
purchased the San Dimas Mine from Desarrollos Mineros San Luis, S.A. de C.V., as
the same may be amended, modified, supplemented or replaced from time to time
with the consent of the Lenders.

“Assenting Lender” shall have
the meaning ascribed thereto in Section 8.3. 

“Available Credit” means, at
any particular time, the amount, if any, by which the Credit Limit at such time
exceeds the amount of credit outstanding under the Credit Facility at such time.

Credit Agreement - Primero Mining 

- 3 - 

“BA Acceptance Fee” means, for
each issuance of a Bankers’ Acceptance or a BA Equivalent Note, a fee in the
amount calculated by multiplying the face amount of such Bankers’ Acceptance or
principal amount of such BA Equivalent Loan by an amount equal to the Applicable
Margin and then multiplying the product so obtained by a fraction (x) the
numerator of which is the number of days in the term to maturity of such
Bankers' Acceptance or BA Equivalent Note and (y) the denominator of which is
365 days (or 366 days in the case of a Bankers' Acceptance which matures in a
leap year). 

“BA Cash Collateral Account”
means a special purpose account to be established by the Borrower with the
Administrative Agent for the purposes set out in Section 13.2. 

“BA Discount Rate” means: 

	 	(a) 	
      for Schedule I Lenders, the CDOR Rate with a term
      identical to the term to maturity of the applicable Bankers’ Acceptance;
      and

	 	 	 
	 	(b) 	
      for Schedule II Lenders, Schedule III Lenders and Non-BA
      Lenders, the sum of:

	 	(i) 	
      the BA Discount Rate for Schedule I Lenders determined in
      accordance with subsection (a) above; and

	 	 	 
	 	(ii) 	
      10 basis points per annum.

Any Schedule I Lender who declares
itself as a Non-BA Lender shall be entitled to receive the BA Discount Rate
defined in subsection (b) above. 

“BA Discounted Proceeds” means,
in respect of any Bankers’ Acceptances to be accepted by a Lender on any day, an
amount (rounded to the nearest whole cent and with one-half of one cent being
rounded up) calculated on such day by multiplying: 

	 	(a) 	
      the aggregate face amount of such Bankers’ Acceptances;
      by

	 	 	 
	 	(b) 	
      the price, where the price is determined by dividing one
      by the sum of one plus the product of:

	 	(i) 	
      the BA Discount Rate which is applicable to such Bankers’
      Acceptance (expressed as a decimal); and

	 	 	 
	 	(ii) 	
      a fraction, the numerator of which is the number of days
      remaining in the term of such Bankers’ Acceptances and the denominator of
      which is 365;

with the price as so determined being
rounded up or down to the fifth decimal place and .000005 being rounded up. 

Credit Agreement - Primero Mining 

- 4 - 

“BA Draft” shall have the
meaning ascribed thereto in Section 3.4(i) . 

“BA Equivalent Loans” shall
have the meaning ascribed thereto in Section 3.5. 

“BA Equivalent Note” shall have
the meaning ascribed thereto in Section 3.4(i) . 

“BA Proceeds” means, with
respect to a particular Bankers’ Acceptance, the BA Discounted Proceeds with
respect thereto less the amount of the BA Acceptance Fee in respect of such
Bankers’ Acceptance. 

“Bankers’ Acceptance” means a
depository bill or bill of exchange (a) drawn by the Borrower and accepted by a
Lender, (b) denominated in Canadian dollars, (c) having a term of 30 to 180 days
(subject to availability and subject to the right of the Administrative Agent,
in its sole discretion, to restrict the term or maturity dates applicable
thereto), (d) issued and payable only in Canada and (e) having a face amount of
at least Cdn.$1,000,000. 

“Banking Day” means any
day of the year, other than a Saturday, Sunday or other day on which banks are
required or authorized to close in Toronto, Ontario and, where used in the
context of (i) an advance in U.S. dollars, is also a day on which banks are not
required or authorized to close in New York, New York; and (ii) a LIBOR Loan, is
also a day on which banks are not required or authorized to close in New York,
New York and on which dealings are carried on in the London interbank market in
respect of transactions in U.S. dollars. 

“Base Rate Loan” means monies
lent by the Lenders to the Borrower hereunder and upon which interest accrues at
a rate referable to the Alternate Base Rate Canada. 

“Base Rate Canada” means the
variable rate of interest per annum determined by the Administrative Agent from
time to time as its base rate for United States dollar loans made by the
Administrative Agent in Canada from time to time, being a variable per annum
reference rate of interest adjusted automatically upon change by the
Administrative Agent, calculated on the basis of a year of 365 days (or 366 days
in the case of a leap year). 

“Black Fox Mine” means the
mining operations located in the Township of Black River - Matheson, Ontario and
owned and operated by Primero Gold. 

“BMO Fee Letter” means the fee
letter dated May 23, 2014 entered into between Bank of Montreal and the
Borrower. 

“BNS Fee Letter” means the fee
letter dated May 23, 2014 entered into between The Bank of Nova Scotia and the
Borrower. 

“Borrower Silver Purchase
Guarantee” means the guarantee of the Borrower in favour of SWC dated August
6, 2010 and pursuant to which the Borrower guaranteed the obligations of STB
under the SLW Silver Purchase Agreement, as the same may be amended, modified, supplemented or replaced
from time to time with the consent of the Lenders. 

Credit Agreement - Primero Mining 

- 5 -

“Branch of Account” means the
  branch of the Administrative Agent located at 595 Burrard Street, Vancouver,
  British Columbia, or such other branch of the Administrative Agent located in
  Canada as the Administrative Agent may advise the Borrower from time to
time.

“Canadian Dollar Equivalent”
means the Exchange Equivalent in Canadian dollars of any amount of United States
dollars. 

“Capital Expenditures” means,
for any period, the aggregate of all expenditures (whether paid in cash or
accrued as liabilities and including in all events all amounts expended or
capitalized under Capital Leases, but excluding any amount representing
capitalized interest) by the Borrower on a consolidated basis, during such
period that, in conformity with GAAP, are or are required to be included as
additions during such period to tangible fixed assets, provided that the term
“Capital Expenditures” shall not include (a) expenditures made in
connection with the replacement, substitution or restoration of assets (i) to
the extent financed from insurance proceeds paid on account of the loss of or
damage to the assets being replaced or restored or (ii) to the extent funded
with awards of compensation arising from the expropriation, taking by eminent
domain or condemnation of the assets being replaced, (b) the purchase price of
equipment that is purchased simultaneously with the trade in of existing
equipment to the extent of the credit granted by the seller of such equipment
for the equipment being traded in at such time, (c) the purchase price of
tangible fixed assets and other capital expenditures made within 60 days of the
sale of any asset to the extent purchased with the proceeds of such sale, or (d)
expenditures that constitute any part of rental expenses under operating leases
for real or personal property. 

“Capital Lease”, as applied to
any Person, shall mean any lease of any property (whether real, personal or
mixed and including, without limitation, equipment) by that Person as lessee
that, in conformity with GAAP, is, or is required to be, accounted for as a
finance lease obligation on the balance sheet of that Person. 

“Capital Reorganization” means
any change in the issued and outstanding Shares of an Obligor. 

“Cash” means cash and Cash
Equivalents of the Borrower determined on a consolidated basis.

“Cash Equivalents” means (i)
securities issued or directly and fully guaranteed or insured by the United
States or Canadian government or any agency or instrumentality thereof with
maturities of 12 months or less from the date of acquisition, (ii) certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and
overnight bank deposits, in each case with any commercial bank incorporated in
the United States or any Canadian chartered bank having capital and surplus in
excess of $500,000,000, (iii) repurchase obligations for underlying securities
of the types described in clauses (i) and (ii) entered into with any financial
institution meeting the qualifications specified in clause (ii) above, (iv)
commercial paper rated A 1 or the equivalent thereof by Moody’s or S&P and
in each case maturing within one year after the date of acquisition, (v)
investment funds investing at least 95% of their assets in securities of the
types described in clauses (i) to (iv) above and (vi) readily marketable direct
obligations issued by any state of the United States or province of Canada or
any political subdivision thereof having one of the two highest rating
categories obtainable from either Moody’s or S&P with maturities of 12
months or less from the date of acquisition. 

Credit Agreement - Primero Mining 

- 6 -

“Cash Management Agreement”
  means any present or future agreement pursuant to which any Obligor
contracts for the provision of a cash management facility. 

“Cash Proceeds of Realization”
means the aggregate of (i) all Proceeds of Realization in the form of cash and
(ii) all cash proceeds of the sale or disposition of non-cash Proceeds of
Realization, in each case expressed in United States dollars. 

“CDOR Rate” means, with respect
to an issue of Bankers’ Acceptances with the same maturity date to be accepted
by a Lender hereunder, the discount rate per annum, calculated on the basis of a
year of 365 days, (i) equal to, as determined by the Administrative Agent, the
discount rate of such Lender that appears on the Reuters Screen CDOR Page for
such Lender at or about 10:00 a.m. (Toronto time) on the date of issue and
acceptance of such Bankers’ Acceptances, for bankers’ acceptances having a
comparable face value and an identical maturity date to the face value and
maturity date of such issue of Bankers’ Acceptances or (ii) if such rate does
not appear on such Page for such Lender, equal to the rate per annum for
Canadian dollar bankers’ acceptances having such term which is quoted by such
Lender at such time. 

“Cerro de Gallo Project” means
the mining operations located in the state of Guanajuato, Mexico and owned and
operated by San Anton de las Minas, SA. de C.V. 

“Change of Control”
means any transaction the consummation of which results in (i) another
entity owning at least 50% of the voting power of the Shares of the Borrower,
(ii) any entity acquiring Control of the Borrower; (iii) the Borrower ceasing to
own or control, directly or indirectly, 100% of the issued and outstanding
shares of each of the Guarantors or (iv) the Borrower ceasing to own or control,
directly or indirectly, any Material Project. 

Credit Agreement - Primero Mining 

- 7 - 

“Closing Certificate” of a
particular Obligor means a certificate of a senior officer of such Obligor
addressed to the Administrative Agent, in form and substance satisfactory to the
Administrative Agent, acting reasonably, and certifying (a) the truth and
correctness of attached copies of the articles of incorporation and by-laws of
such Obligor (or the equivalent in the jurisdiction of formation of the Obligor)
and the resolution of the board of directors of such Obligor (or the equivalent
in the jurisdiction of formation of the Obligor) authorizing it to execute,
deliver and perform its obligations under the Credit Documents to which it is a
party, (b) specimen signatures of the individuals authorized to sign Credit
Documents on behalf of such Obligor and (c) in the case of the Closing
Certificate of the Borrower, (i) that no Default has occurred and is continuing
or would arise immediately after or as a result of this agreement becoming
effective, (ii) no Material Adverse Change has occurred since December 31, 2013
and (iii) there exists no pending or threatened (in writing) litigation,
proceedings or investigations which (x) contest the entering into of this
agreement or (y) could reasonably be expected to have a Material Adverse Effect.

“Collateral Agency Agreement”
means the collateral agency agreement dated the date hereof between the Mexican
Collateral Agent, the Non-Mexican Proceeds Agent, the Administrative Agent, SWC,
Goldcorp and each Obligor (other than Primero Gold), in form and substance
satisfactory to the Administrative Agent, and pursuant to which, inter
alia, the Mexican Collateral Agent and the Non-Mexican Proceeds Agent were
appointed to hold certain collateral owned by the Obligors for and on behalf of
the Administrative Agent, SWC and Goldcorp. 

“Common Cash Management
Agreements” means any Cash Management Agreement between an Obligor on the
one hand and a Qualified Cash Management Lender on the other hand. 

“Common Risk Management
Agreements” means any Risk Management Agreement between an Obligor on the
one hand and a Qualified Risk Management Lender on the other hand. 

“Companies” means the Borrower
and its Subsidiaries and “Company” means any of the Companies. 

“Compliance Certificate” means
a compliance certificate, in the form attached as Schedule C and signed by a
senior financial officer of the Borrower, evidencing compliance with the terms
of this agreement. 

“Contaminant” means any
contaminant, as defined by the EPA. 

“Contributing Lender” shall
have the meaning ascribed thereto in Section 3.3. 

“Control” when used with
respect to any Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through ownership of voting equity, by contract or otherwise and
“Controlled” shall have a similar meaning. 

Credit Agreement - Primero Mining 

- 8 -

“Conversion Notice” shall have
the meaning ascribed thereto in Section 6.4. 

“Corporate Reorganization”
means any change in the legal existence of any Company (other than a Capital
Reorganization) including by way of amalgamation, merger, winding up,
continuance or plan of arrangement, provided such change does not involve any
Person other than the Companies. 

“Credit Documents” means
this agreement, the Guarantees, the Fee Letters, the Security Documents, the
Perfection Certificate, the Postponement and Subordination Undertaking, the
Intercreditor Documents, the Sandstorm Subordination Agreement and all
instruments and agreements executed and delivered by the Obligors in favour of
the Finance Parties or the Mexican Collateral Agent from time to time in
connection with this agreement or any other Credit Document, but specifically
excluding the Common Cash Management Agreements and the Common Risk Management
Agreements. 

“Credit Excess” means, as at a
particular date, the amount, if any, by which the aggregate amount of credit
outstanding hereunder as at the close of business on such date exceeds the
amount of the Credit Facility (as such amount may be reduced from time to time
pursuant to the terms hereof) as at the close of business on such date. 

“Credit Facility” means the
revolving term credit facility established by the Lenders in favour of the
Borrower pursuant to Section 2.1. 

“Credit Facility Repayment
Date” means the date on which all Secured Obligations under or in connection
with the Credit Facility have been permanently repaid in full and the Lenders
have no further commitments with respect to the Credit Facility. 

“Credit Limit” means, at
any particular time, $75,000,000 (as such amount may be reduced pursuant to
Section 2.3) . 

“Default” means any event which
is or which, with the passage of time, the giving of notice or both, would be an
Event of Default. 

“Defaulting Lender” shall have
the meaning ascribed thereto in Section 3.3. 

“Designated Accounts” means the
Borrower’s United States dollar account numbered 004-4719-550 and Canadian
dollar account numbered 004-1936-702, each maintained by the Administrative
Agent at the Branch of Account for the purposes of transactions under the Credit
Facility and “Designated Account” means any one of the Designated
Accounts. 

Credit Agreement - Primero Mining 

- 9 - 

“Disposition” shall mean any
sale, assignment, transfer, conveyance, lease, license or other disposition of
any nature or kind whatsoever of any property or of any right, title or interest
in or to any property, and the verb “Dispose” shall have a correlative
meaning. 

“Draft” means any draft, bill
of exchange, receipt, acceptance, demand or other request for payment drawn or
issued under or in respect of a Letter. 

“Drawdown Notice” shall have
the meaning ascribed thereto in Section 4.1. 

“EBITDA” means for any
particular Fiscal Quarter, Net Income for such Fiscal Quarter plus, to the
extent deducted in determining Net Income, the aggregate of: 

	 	(a) 	
      Interest Expenses for such Fiscal Quarter;

	 	 	 
	 	(b) 	
      consolidated income tax expenses of the Borrower (but
      excluding any Subsidiaries which are not Guarantors) for such Fiscal
      Quarter; and

	 	 	 
	 	(c) 	
      consolidated depreciation and amortization expenses and
      other non-cash expenses of the Borrower (which shall include, for
      certainty, the Borrower’s non-cash stock options but excluding any
      Subsidiaries which are not Guarantors) for such Fiscal
  Quarter;

in each case expressed in United
States dollars. 

The calculation of EBITDA shall be
adjusted, without duplication, for unrealized derivative financial instrument
gains or losses, non-cash revenues and expenses of the Borrower on a
consolidated basis but excluding any Subsidiaries which are not Guarantors
including, without limitation, deferred revenue and the difference between
accrued and cash reclamation costs. If any of the Obligors shall have acquired
the assets of any going concern business, or the shares of another Person which
shall have become a Subsidiary of the relevant Obligor during such period, such
acquisition shall be deemed to have occurred on the first day of such period and
any Indebtedness incurred or assumed by the relevant Obligor in connection with
such acquisition shall be deemed to have been incurred or assumed on the first
day of such period; provided, however in determining the results of operations
of such going concern, business or such Person for purposes of Sections 11.1(b)
and 11.1(c) hereof for any portion of such period prior to the date of its
acquisition or becoming a Subsidiary of the relevant Obligor, such determination
shall be made by using historical results with adjustments to exclude those
revenues actually received and operating expenses actually incurred by such
other Person during such period that are reasonably expected to be eliminated
following the acquisition thereof by the Borrower and are approved by the
Majority Lenders (all such exclusions to be identified on a separate schedule
delivered by the Borrower to the Administrative Agent and the Lenders). EBITDA
for any period prior to the closing date of any Disposition by any of the
Obligors out of the ordinary course of business shall be adjusted to take into
account on a pro forma basis the EBITDA for such period for the Person or
property Disposed of as agreed to by the Borrower and the
Majority Lenders prior to the closing date of such Disposition. 

Credit Agreement - Primero Mining 

- 10 -

“Ejidos” means a
  communal ownership of land recognized by the federal laws in Mexico which
  controls surface rights over its communal property through a board of directors.

“Ejidos Claims” means those
claims commenced by Ejidos as of December 11, 2013, as more particularly
described in Schedule K hereto. 

“Enforcement Date”
means: 

	 	(a) 	
      the date on which the Administrative Agent notifies the
      Borrower, pursuant to Section 13.1, that all indebtedness of the Borrower
      to the Lenders hereunder has become immediately due and payable or on
      which such indebtedness automatically becomes due and payable pursuant to
      Section 13.1, whichever occurs first; or

	 	 	 
	 	(b) 	
      if all indebtedness of the Borrower to the Lenders
      hereunder has been repaid in full and all commitments of the Lenders
      hereunder have terminated, the date on which a Qualified Cash Management
      Lender or Qualified Risk Management Lender notifies the Borrower that all
      indebtedness of the Borrower to such Qualified Cash Management Lender or
      Qualified Risk Management Lender under the relevant Common Cash Management
      Agreement or Common Risk Management Agreement, as the case may be, has
      become immediately due and payable or on which such indebtedness
      automatically becomes due and payable, whichever occurs
  first.

“Environment” means soil, land
surface or subsurface strata, surface waters (including navigable waters, ocean
waters, streams, ponds, drainage basins and wetlands), groundwaters, drinking
water supply, stream sediments, ambient air (including indoor air), plant and
animal life and any other environmental medium or natural resource. 

“Environmental Law” means any
Legal Requirement that addresses, is related to or is otherwise concerned with
environmental, health or safety issues, including any Legal Requirement relating
to any emissions, releases or discharges of Hazardous Materials into ambient
air, surface water, ground water or land, or otherwise relating to the
manufacture, processing, distribution, use, existence, treatment, storage,
disposal, transport, handling, clean-up or control of Hazardous Materials,
including the Equator Principles and the World Bank Environment, Health and
Safety Guidelines for Mining and Milling, each as amended from time to time.

“EPA” means the
Environmental Protection Act (Ontario), as amended from time to time, and
any successor statute. 

Credit Agreement - Primero Mining 

- 11 - 

“Equator Principles” means the
Equator Principles III, being the principles developed and adopted by various
banks and financial institutions, to the extent applicable to the operation of
mines and based on (but not limited to) the: 

	 	(a) 	
      IFC Performance Standards;

	 	 	 
	 	(b) 	
      IFC Environmental, Health and Safety General Guidelines;
      and

	 	 	 
	 	(c) 	
      IFC Environmental, Health and Safety Guidelines for
      Mining.

“Equity” means, at any
particular time, the amount, expressed in United States dollars, which would, in
accordance with GAAP, be classified on the consolidated balance sheet of the
Borrower (but excluding any Subsidiaries which are not Guarantors) at such time
as shareholder’s equity. 

“Event of Default” means any
one of the events set forth in Section 13.1. 

“Exchange Equivalent”
means, as of any date of determination, with reference to any amount
expressed in one currency, the amount of another applicable currency required to
purchase such amount in the first currency on such date either (i) in the case
of any amount derived directly or indirectly from any financial statements of
the Borrower, the exchange rate used to convert from one currency to another, as
applicable, in the preparation of such financial statements, (ii) in determining
the amount of Available Credit, the spot rate of exchange for converting from
one currency to another quoted by the Bank of Canada at approximately 12:00 noon
(Toronto time) on the first Banking Day of the calendar month in which the
calculation is being made, and (iii) in all other cases, the spot rate of
exchange for converting from one currency to another quoted by the Bank of
Canada at approximately 12:00 noon (Toronto time) on the effective date of such
conversion. 

“Excluded Taxes” means any (a)
Taxes imposed on or measured by, net income (however denominated), franchise
Taxes, branch profits Taxes or capital Taxes imposed on a Lender, in each case
by any jurisdiction (or political subdivision thereof) as a result of a present
or former connection between the Lender and the jurisdiction (or political
subdivision thereof) other than Taxes levied by reason of the fact that the
Lender has executed, delivered, become party to or performed its obligations
under, or has enforced or perfected a security interest under any Credit
Documents, or sold or assigned any credit or commitment or interest under any
Credit Documents, (b) U.S. withholding tax imposed under FATCA, and (c) Taxes
solely attributable to a Lender’s failure to comply with Section 8.6(h) . 

“Exposure” means, with respect
to a particular Finance Party at a particular time, the amount of the Secured
Obligations owing to such Finance Party at such time, determined by such Finance
Party in good faith in accordance with Section 14.21. 

“FATCA” means sections
1471 to 1474 of the U.S. Internal Revenue Code of 1986 or any associated
regulations or other official guidance as of the date of this agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with).

Credit Agreement - Primero Mining 

- 12 -

“Federal Funds Effective Rate”
  means, for any particular day, the variable rate of interest per annum,
  calculated on the basis of a year of 365 days (or 366 days in the case of a leap
  year) and for the actual number of days elapsed, equal to the weighted average
  of the rates on overnight federal funds transactions with members of the Federal
  Reserve System arranged by Federal Funds brokers as published for such day (or,
  if such day is not a Banking Day, for the next preceding Banking Day) by the
  Federal Reserve Bank of New York or, for any Banking Day on which such rate is
  not so published by the Federal Reserve Bank of New York, the average of the
  quotations for such day for such transactions received by the Administrative
  Agent from three Federal Funds brokers of recognized standing selected by the
Administrative Agent. 

“Fee Letters” means the BMO Fee
Letter and the BNS Fee Letter. 

“Finance Documents” means the
Credit Documents, the Common Cash Management Agreements and the Common Risk
Management Agreements. 

“Finance Parties” means the
Administrative Agent, the Lenders, the Qualified Cash Management Lenders and the
Qualified Risk Management Lenders. 

“Fiscal Quarter” means any of
the three-month periods ending on the last day of March, June, September and
December in each Fiscal Year. 

“Fiscal Year” means the
twelve-month period ending on the last day of December in each year. 

“GAAP” means, at any given
date, International Financial Reporting Standards, which include standards and
interpretations adopted by the International Accounting Standards Board, applied
on a consistent basis. 

“Goldcorp” means Goldcorp Inc.,
a corporation incorporated under the laws of the Province of Ontario. 

“Goldcorp Indemnity Agreement”
means the deed of indemnity dated August 6, 2010 and entered into by the
Borrower and STB in favour of Goldcorp and pursuant to which the Borrower and
STB indemnified Goldcorp for certain payments required to be made by Goldcorp
under the Goldcorp Silver Purchase Guarantee. 

“Goldcorp Note” means the
$50,000,000 promissory note dated August 6, 2010 issued by PEM to Desarrollos
Mineros San Luis, S.A. de C.V., as assigned to International Mineral Finance
S.a.r.l. by assignment agreement dated August 6, 2010. 

Credit Agreement - Primero Mining 

- 13 - 

“Goldcorp Obligations” means
the obligations of the Obligors and others under the Goldcorp Indemnity
Agreement and the Goldcorp Security. 

“Goldcorp Security” means,
collectively, (i) the security interests granted by the Borrower to Goldcorp in
the SW/Borrower Secured Assets as security for the obligations of the Borrower
under the Goldcorp Indemnity Agreement, (ii) the security interests granted by
STB to Goldcorp in the SW/STB Secured Assets as security for the
obligations of STB under the Goldcorp Indemnity Agreement, (iii) the security
interests granted by PEM to Goldcorp in the SW/PEM Secured Assets as security
for the obligations of PEM under the Goldcorp Indemnity Agreement, (iv) the
security interests granted by the minority shareholders of PEM to Goldcorp in
the shares of PEM as security for the obligations of such minority shareholders
under or with respect to the Goldcorp Indemnity Agreement and (v) the security
interests to be granted by the Future Owners (as defined in the Goldcorp
Indemnity Agreement) in the present and future personal property of such Future
Owners other than the Excluded Collateral (as defined in the Goldcorp Indemnity
Agreement) as security for the obligations of such Future Owners under or in
respect of the Goldcorp Indemnity Agreement. 

“Goldcorp Silver Purchase
Guarantee” means the guarantee dated August 6, 2010 and entered into by
Goldcorp in favour of SWC and pursuant to which Goldcorp guaranteed certain of
the obligations of STB under the SLW Silver Purchase Agreement, as the same may
be amended, modified, supplemented or replaced from time to time. 

“Grey Fox Project” means the
exploration property owned by Primero Gold and located approximately four
kilometers south-east of the Black Fox Mine.

“Guarantees” means,
collectively, the guarantees to be entered into by each Obligor in favour of the
Administrative Agent for the benefit of the Finance Parties and, if applicable,
the Mexican Collateral Agent, in each case form and substance satisfactory to
the Administrative Agent, and pursuant to which each Obligor shall guarantee all
of the Secured Obligations of each other Obligor, as the same may be amended,
modified, supplemented or replaced from time to time. 

“Guarantors” means,
collectively, Primero Gold, San Anton Resource Corporation, Kings-San Anton,
S.A. de C.V., San Anton de las Minas, S.A. de C.V., San Anton del Oro, S.A. de
C.V., PEM, STB and PML and all other Material Subsidiaries of the Borrower
including those that become Guarantors pursuant to Section 11.2(o) . 

“Hazardous Materials” means any
waste or other substance that is hazardous, radioactive, toxic, a pollutant or a
contaminant, or that is regulated, listed, defined, designated, or classified,
or otherwise determined to be, as such under or pursuant to any Environmental
Law, including any mixture or solution thereof, and specifically including
petroleum and all derivatives thereof or synthetic substitutes thereof and asbestos or asbestos-containing
materials and cyanide or cyanide-containing compounds. 

Credit Agreement - Primero Mining 

- 14 -

“IFC” means the International
Finance Corporation. 

“IFC Environmental, Health and
Safety Guidelines for Mining” means the guidelines and standards relating to
the mining sector dated August 20, 2008, relevant and applicable to the Projects
from time to time. 

“IFC Environmental, Social, Health
and Safety Guidelines” means all environmental, social, health and safety
regulations, orders, standards, customs, policies, procedures, guidelines and
practices published by the IFC, relevant and applicable to the Projects from
time to time. 

“IFC Performance Standards”
means the environmental and social policies providing guidance on matters
relevant to the IFC’s operations, and any other environmental standards,
requirements and guidelines published by the IFC, relevant and applicable to the
Projects from time to time. 

“Indebtedness” of any Person
means, without duplication, all debts, liabilities and obligations of such
Person which would, in accordance with GAAP, be recorded as liabilities on the
consolidated balance sheet of such Person including, without limitation, (i)
indebtedness of such Person for borrowed money or for the deferred purchase
price of property and services, other than trade payables incurred in the
ordinary course of business and payable in accordance with customary practices,
(ii) other indebtedness of such Person which is evidenced by a note, bond,
debenture or similar instrument, (iii) obligations of such Person under any
Capital Lease, (iv) Purchase Money Indebtedness of such Person, (v)
reimbursement obligations of such person in respect of bankers’ acceptances;
(vi) contingent obligations of such Person in respect of any letter of credit,
bank guarantee or surety bond, (vii) to the extent accelerated, obligations of
any Person under any commodity hedging transaction, spot or forward foreign
exchange transaction, interest rate swap transaction, currency swap transaction,
forward rate transaction, rate cap transaction, rate floor transaction, rate
collar transaction, any other exchange or rate protection, any combination of
such transactions or any option with respect to any such transaction, and (viii)
the contingent obligations of such Person under any guarantee or other agreement
assuring payment of any obligations of any Person of the type described in the
foregoing clauses (i) to (vii); provided, however, that Indebtedness of any
Person shall exclude indebtedness of such Person which, at any and all times and
at the option of such Person, can be converted into shares of such Person. 

“Indemnified Parties” shall
have the meaning ascribed thereto in Section 8.5(a) . 

“Indemnified Liabilities” shall
have the meaning ascribed thereto in Section 8.5(a) . 

Credit Agreement - Primero Mining 

- 15 -

“Indebtedness Currency” shall
have the meaning ascribed thereto in Section 15.8(a) . 

“Individual Commitment” means,
with respect to a particular Lender, the amount set forth in Schedule B attached
hereto, as reduced or amended from time to time pursuant to, as applicable,
Sections 2.2, 2.3, 8.3 and 15.5 as the individual commitment of such Lender,
provided that, upon the termination of the Credit Facility pursuant to Section
2.4, the Individual Commitment of each Lender shall thereafter be equal to the
Individual Commitment of such Lender immediately prior to the termination of the
Credit Facility. 

“Intellectual Property” shall
mean all issued patents and patent applications, industrial design
registrations, trade-marks, registrations and applications therefor, trade-names
and styles, logos, copyright registrations and applications therefor, all of the
foregoing owned by or licensed to any Obligor and used in or necessary to the
operation of its business. 

“Intercreditor Agreement” means
the intercreditor agreement dated the date hereof between the Mexican Collateral
Agent, the Non-Mexican Proceeds Agent, the Administrative Agent, SWC and
Goldcorp, as acknowledged by each Obligor (other than Primero Gold), in form and
substance satisfactory to the Administrative Agent, and pursuant to which the
relative priorities of the Security, the SWC Security and the Goldcorp Security
and the priority of payment between the Secured Obligations and the SWC
Obligations and the Goldcorp Obligations are agreed upon.

“Intercreditor Documents” means
the Intercreditor Agreement and the Collateral Agency Agreement. 

“Interest Coverage Ratio”
means, at any particular time, the ratio of Rolling EBITDA at such time to
Rolling Interest Expenses at such time. 

“Interest Expenses” means, for
any particular period, the amount, expressed in United States dollars, which
would, in accordance with GAAP consistently applied, be classified on the
consolidated income statement of the Borrower (but excluding any Subsidiaries
which are not Guarantors) for such period as gross interest expenses.

“Interest Period” means, in the
case of any LIBOR Loan, the applicable period for which interest on such LIBOR
Loan shall be calculated pursuant to Article 7. 

“Investment” shall mean any
advance, loan, extension of credit or capital contribution to, purchase of
Shares, bonds, notes, debentures or other securities of, or any other investment
made in, any Person but shall exclude any Acquisition. The amount of any
Investment shall be the original principal or capital amount thereof less all
returns of principal or equity, or distributions or dividends paid, thereon and
shall, if made by the transfer or exchange of property other than cash, be
deemed to have been made in an original principal or capital amount equal to the fair value of such property at the time of
such Investment, as determined in good faith by the Borrower. 

Credit Agreement - Primero Mining

- 16 -

“Issuing Lender” means Bank of
  Montreal or any other Lender selected by the Administrative Agent and acceptable
  to the Borrower who assumes in writing the obligation of issuing Letters under
the Credit Facility on behalf of the Lenders. 

“Judgment Currency” shall have
the meaning ascribed thereto in Section 15.8(a) . 

“Judgment Conversion Date”
shall have the meaning ascribed thereto in Section 15.8(a)(ii) . 

“Lead Arranger” means BMO
Capital Markets. 

“Legal Requirement” means any
federal, state, local, provincial, municipal, foreign, international,
multinational or other administrative order, constitution, ordinance,
regulation, statute or treaty. 

“Lenders” means the individual
financial institutions set out and described in Schedule B, as amended from time
to time, and “Lender” means any of the Lenders. After the Credit Facility
Repayment Date, “Lender” shall mean each Person that was a Lender
immediately prior to the Credit Facility Repayment Date but only for so long as
such Person is a Qualified Cash Management Lender or Qualified Risk Management
Lender. 

“Letter Cash Collateral
Account” means a special purpose account to be established by the Borrower
with the Administrative Agent for the purposes set out in Section 13.3.

“Letters” means standby letters
of credit issued by the Issuing Lender at the request, and on the credit, of the
Borrower, each being denominated in United States dollars or Canadian dollars,
having a term of not more than one year, being renewable in the sole discretion
of the Issuing Lender, being issued to a named beneficiary acceptable to the
Issuing Lender and being otherwise in a form satisfactory to the Issuing Lender.

“LIBOR” means, with
respect to a particular Interest Period, the rate of interest per annum which
appears on page 3750 of the Telerate screen at approximately 11:00 a.m. (London
time) two London Business Days before the first day of such Interest Period; or
if such Telerate screen is not available, then the rate of interest per annum
which appears on LIBOR01 page of the Reuters screen at approximately 11:00 a.m.
(London time) two London Business Days before the first day of such Interest
Period; or if such LIBOR01 page is not available, then the rate of interest per
annum equal to the rate per annum which the Administrative Agent offers U.S.
dollar deposits to leading banks in the London interbank market at approximately
11:00 a.m. (London time), two London Business Days before the first day of such
Interest Period, for a period comparable to such Interest Period and in an amount
approximately equal to the amount of such LIBOR Loan. For the purposes of this
definition, “London Business Day” means a day on which dealings are
carried on in the London inter-bank market in respect of transactions in U.S.
dollars. 

Credit Agreement - Primero Mining

- 17 -

“LIBOR Loan” means monies lent
  by the Lenders to the Borrower in United States dollars and upon which interest
accrues at a rate referable to LIBOR. 

“Lien” means any deed of trust,
mortgage, charge, hypothec, assignment, pledge, lien, vendor’s privilege,
vendor’s right of reclamation, security interest, deemed trust or encumbrance of
whatever kind or nature, regardless of form and whether consensual or arising by
operation of law (statutory or otherwise), that secures the payment of any
indebtedness or liability or the observance or performance of any obligation
(including any agreement to give any of the foregoing and any filing of or
agreement to give any financing statement under the PPSA or any similar action
under any similar law of any other jurisdiction). 

“Loans” means Prime Rate Loans,
BA Equivalent Loans, Base Rate Loans and LIBOR Loans. 

“Majority Lenders” (i) such
group of Lenders (and, if there is less than three Lenders, all of the Lenders)
whose Individual Commitments aggregate at least two-thirds of the Total
Commitment Amount at such time, and (ii) means, at any time following the Credit
Facility Repayment Date, such group of Finance Parties which have aggregate
Exposure in an amount at least two-thirds of the aggregate Exposure of all of
the Finance Parties at such time. 

“Material Adverse Change” means
any change of circumstances or event (or any Lender becoming aware of any facts
not previously disclosed or known) which, in the case of Section 12.2(d) of this
Agreement, the Lenders determine, and in each other case, the Majority Lenders
determine, is reasonably likely to have a Material Adverse Effect.

“Material Adverse Effect” means
a material adverse effect (or a series of adverse effects, none of which is
material in and of itself but which, cumulatively, result in a material adverse
effect) on:

	 	(a) 	
      the business, property, assets, liabilities or condition
      (financial or otherwise) of the Companies taken as a whole;

	 	 	 
	 	(b) 	
      the ability of any Obligor to perform its obligations
      under any Credit Document to which it is a party; or

	 	 	 
	 	(c) 	
      the ability of any Finance Party or the Mexican
      Collateral Agent to enforce its rights under any Credit
  Document.

Credit Agreement - Primero Mining 

- 18 - 

Notwithstanding the foregoing, normal course adverse price
fluctuations in the commodity markets shall not, in and of themselves, be deemed
to constitute a Material Adverse Effect. 

“Material Agreements” means, at
any particular time, those agreements set forth in Section 7 of the Perfection
Certificate. 

“Material Properties” means the
San Dimas Mine, the Black Fox Mine , the Grey Fox Project, the Cerro de
Gallo Project and the Ventanas Property. 

“Material Subsidiary” means any
direct or indirect Subsidiary of the Borrower: 

	 	(a) 	
      in respect of which the product obtained by multiplying
      (i) the percentage of the Shares of such Subsidiary directly or indirectly
      owned by the Borrower by (ii) the gross revenues of such Subsidiary for
      the most recently completed four Fiscal Quarters, is greater than
      $5,000,000; or

	 	 	 
	 	(b) 	
      in respect of which the product obtained by multiplying
      (i) the percentage of the Shares directly or indirectly owned by the
      Borrower by (ii) the book value of the assets of such Subsidiary as at the
      last day of the most recently completed fiscal quarter of such Subsidiary,
      is greater than $10,000,000; or

	 	 	 
	 	(c) 	
      which owns any direct or indirect interest in a Material
      Property; or

	 	 	 
	 	(d) 	
      which is a party to a Material Agreement (including but
      not limited to STB).

For certainty, a direct or indirect
Subsidiary of the Borrower that satisfies the criteria of paragraph (a), (b) or
(c) above, solely by being an intermediate holding company, shall nonetheless
constitute a “Material Subsidiary”.

“Maturity Date” means May 23,
2017, as the same may be extended from time to time pursuant to Section 9.2.

“Mexican Collateral” shall have
the meaning ascribed thereto in the Intercreditor Documents. 

“Mexican Collateral Agent”
means Banco Nacional de México, S.A., integrante del Grupo Financiero Banamex,
División Fiduciaria, in its capacity as Mexican collateral agent appointed by
the Administrative Agent, Goldcorp and SLW pursuant to the Collateral Agency
Agreement to hold, for and on behalf of the Administrative Agent, Goldcorp and
SLW, the Mexican Collateral pursuant to the Mexican Collateral Documents. 

“Mexican Collateral Documents”
shall have the meaning ascribed thereto in the Intercreditor Documents. 

Credit Agreement - Primero Mining 

- 19 - 

“Mexico” means the United
Mexican States. 

“Mining Properties” means all
mining rights, claims, leases and concessions in connection with or in respect
of the Material Properties.

“Moody’s” means Moody’s
Investors Service, Inc. or any successor by merger or consolidation to its
business. 

“Net Cash Proceeds” means, with
respect to any Prepayment Trigger Event, the gross cash proceeds (including
payments from time to time in respect of instalment obligations, if any)
received by or on behalf of an Obligor in respect of such Prepayment Trigger
Event less the sum of: 

	 	(a) 	
      the amount, if any, of all Taxes paid or estimated to be
      payable by or on behalf of the Obligor in connection with such Prepayment
      Trigger Event; and

	 	 	 
	 	(b) 	
      reasonable and customary fees, commissions, expenses,
      issuance costs, deductibles, discounts and other costs paid by or on
      behalf of the Obligor in connection with such Prepayment Trigger
    Event.

“Net Income” means, for any
particular period, the amount, expressed in United States dollars, which would,
in accordance with GAAP, be classified on the consolidated income statement of
the Borrower (but excluding any Subsidiaries which are not Guarantors) for such
period as the net income of the Borrower excluding any extraordinary items. 

“Net Disposition Proceeds”
means, with respect to any Disposition, the gross proceeds received by or on
behalf of an Obligor in respect of such Disposition less the sum of: 

	 	(a) 	
      the amount, if any, of all Taxes paid or estimated to be
      payable by or on behalf of the Obligor in connection with such
      Disposition; and

	 	 	 
	 	(b) 	
      reasonable and customary fees, commissions, expenses,
      issuance costs, deductibles, discounts and other costs paid by or on
      behalf of the Obligor in connection with such
  Disposition.

“Non-BA Lender” shall have the
meaning ascribed thereto in Section 3.5. 

“Non-Mexican Collateral” shall
have the meaning ascribed thereto in the Intercreditor Documents. 

“Non-Mexican Proceeds Agent”
means Citi Trust Company Canada, in its capacity as agent to receive the
proceeds of all Non-Mexican Collateral for the purpose of distributing same to
the Administrative Agent, SLW and Goldcorp pursuant to the terms of the
Collateral Agency Agreement. 

Credit Agreement - Primero Mining 

- 20 - 

“Obligors” means the Borrower
and the Guarantors and “Obligor” means any of the Obligors. 

“Official Body” means any
national, provincial, territorial, state or municipal government or government
of any political subdivision thereof, or any agency, authority, board, central
bank, monetary authority, commission, department or instrumentality thereof, or
any court, tribunal, grand jury, mediator, arbitrator or referee, whether
foreign or domestic. 

“Order” means an order,
judgment, injunction or other determination by an Official Body restricting
payment by the Issuing Lender under and in accordance with a Letter or extending
the Issuer Lender’s liability under a Letter beyond the expiration date stated
therein. 

“Other Capital Lease” means any
Capital Lease in respect of which the subject lessor

	 	(a) 	
      has no financial recourse to any Obligor; or

	 	 	 
	 	(b) 	
      has entered into a non-disturbance agreement in favour of
      the Administrative Agent or, if applicable, the Mexican Collateral Agent,
      in form and substance satisfactory to the Administrative
  Agent.

“Other Taxes” means all present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made hereunder or under any
other Credit Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this agreement or any other Credit Document. 

“Participant” shall have the
meaning ascribed thereto pursuant to Section 15.5(b) . 

“Payment” shall have the
meaning ascribed thereto in Section 8.6(a) . 

“PEM” mean Primero Empresa
Minera, S.A. de C.V., a corporation incorporated under the laws of Mexico. 

“PEM Silver Purchase
Guarantees” means the guarantee of PEM in favour of SWC dated August 6, 2010
and pursuant to which PEM guaranteed the obligations of STB under the SLW Silver
Purchase Agreement, as the same may be amended, modified, supplemented or
replaced from time to time with the consent of the Lenders. 

“Perfection Certificate” means
the certificate of a senior officer of the Borrower, addressed to the
Administrative Agent or the Mexican Collateral Agent, as applicable, in form and
substance satisfactory to the Administrative Agent and pursuant to which certain
factual matters relating to the Companies and the Secured Assets are certified
true and correct, together with all schedules and exhibits attached thereto or referred to therein, as the same
may be updated from time to time pursuant to Sections 11.2(b), 11.2(o) and
11.2(p) . 

Credit Agreement - Primero Mining 

- 21 -

“Permitted Acquisition” means
any Acquisition that satisfies each of the following conditions:

	 	(a) 	
      the entity or assets being acquired are in the mining
      industry, mineral exploration or mineral extraction;

	 	 	 
	 	(b) 	
      if the subject Acquisition is financed solely with Shares
      of the Borrower, the entity or assets being acquired are in a Permitted
      Jurisdiction, Brazil, Peru, Chile, Columbia, Guyana, Suriname or Uruguay
      and otherwise if the subject Acquisition is paid in whole or in part with
      cash or by way of an assumption of debt, the entity or assets being
      acquired are in a Permitted Jurisdiction, Chile, Brazil or Peru;

	 	 	 
	 	(c) 	
      no Default or Event of Default would have occurred and be
      continuing at the time of such Acquisition or would arise immediately
      after such Acquisition and as a result thereof;

	 	 	 
	 	(d) 	
      in the case of an Acquisition not financed solely by the
      issuance of Shares of the Borrower, (i) immediately after the Acquisition,
      the aggregate of Unrestricted Cash in Permitted Jurisdictions and
      Available Credit is no less than $25,000,000, (ii) after giving effect to
      the Acquisition, the Borrower would be in pro forma compliance with
      each of the financial covenants in Section 11.1 and the Borrower shall
      have delivered to the Administrative Agent a Compliance Certificate to
      such effect, (iii) the Acquisition is made pursuant to a negotiated
      agreement and (iv) the Borrower shall have delivered to the Administrative
      Agent information with respect to the acquired entity or the acquired
      assets, as the case may be, which any of the Lenders may reasonably
      require; and

	 	 	 
	 	(e) 	
      in the case of an Acquisition of an entity which becomes
      a direct or indirect Subsidiary of the Borrower, the Borrower shall have
      complied with Section 11.2(o).

“Permitted Capital
Reorganization” means any Capital Reorganization (i) that does not result in
any change in the combined direct and indirect percentage ownership interest of
the Borrower in any Obligor; (ii) notice of which (and reasonable details
thereof) has been provided by the Borrower to the Administrative Agent in
writing not later than ten Banking Days before its proposed completion date, and
(iii) where at the time of the delivery of the aforesaid notice by the Borrower
to the Administrative Agent, the Borrower delivers to the Administrative Agent
an officer’s certificate (A) certifying that the completion of the Capital
Reorganization will not have a Material Adverse Effect and (B) in which the
Borrower shall covenant to deliver or cause to be delivered to the
Administrative Agent or the Mexican Collateral Agent, as applicable, contemporaneously with the completion of any such Capital
Reorganization involving an Obligor, any Credit Documents and/or amendments
thereto, certificates, opinions and other things as the Administrative Agent or
the Mexican Collateral Agent may request to ensure the completion of such
Capital Reorganization shall not adversely affect any rights of any Finance
Party or, if applicable, the Mexican Collateral Agent under any Credit Document
and (iv) certifying that no Default or Event of Default has occurred and is
outstanding at the time of the completion of the Capital Reorganization or would
arise immediately upon giving effect thereto.

Credit Agreement - Primero Mining 

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“Permitted Corporate
  Reorganization” means any Corporate Reorganization (i) notice of which (and
  reasonable details thereof) has been provided by the Borrower to the
  Administrative Agent in writing not later than ten Banking Days before its
  proposed completion date, and (ii) the aforesaid notice by the Borrower to the
  Administrative Agent, the Borrower delivers to the Administrative Agent includes
  an officer’s certificate (A) certifying that the completion of the Corporate
  Reorganization will not have a Material Adverse Effect and (B) in which the
  Borrower shall covenant to deliver or cause to be delivered to the
  Administrative Agent or the Mexican Collateral Agent, as applicable,
  contemporaneously with the completion of such Corporate Reorganization involving
  an Obligor, any Credit Documents and/or amendments thereto, certificates,
  opinions and other things as the Administrative Agent or the Mexican Collateral
  Agent may request to ensure the completion of such Capital Reorganization shall
  not adversely affect any rights of any Finance Party or, if applicable, the
  Mexican Collateral Agent under any Credit Document and (iii) certifying that no
  Default or Event of Default has occurred and is outstanding at the time of the
  completion of the Corporate Reorganization or would arise immediately upon
giving effect thereto.

“Permitted Dispositions” means
any one or more of the following: 

	 	(a) 	
      Dispositions of inventory, product or produced or
      unprocessed minerals, metals or other mineral or extracted materials
      Disposed of in the ordinary course of business;

	 	 	 
	 	(b) 	
      Dispositions of worn out, unserviceable or obsolete
      equipment in the ordinary course of business;

	 	 	 
	 	(c) 	
      Dispositions of publicly traded securities Disposed of
      for their fair market value; and

	 	 	 
	 	(d) 	
      other Dispositions provided that the aggregate Net
      Disposition Proceeds of such Dispositions do not exceed $10,000,000 in any
      Fiscal Year (for the avoidance of doubt, such $10,000,000 threshold
      excludes the proceeds of any Permitted Dispositions referenced in
      paragraphs (a), (b) and (c) of this definition);in each case, further provided that a Disposition will be
deemed not to be a Permitted Disposition if (i) the asset Disposed of is an
asset of a Material Property (other than the Disposition of the Ventanas
Property to an Obligor and the Disposition of worn out, unserviceable or
obsolete equipment Disposed of in the ordinary course of business) or (ii) a
Default or Event of Default has occurred and is continuing at the time of such
Disposition or would arise immediately after such Disposition as a result
thereof. 

Credit Agreement - Primero Mining 

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“Permitted Indebtedness” means
any one or more of the following: 

	 	(a) 	
      the Secured Obligations;

	 	 	 
	 	(b) 	
      Indebtedness of the Obligors arising under Capital Leases
      and Purchase Money Indebtedness of the Obligors; provided that, at any
      particular time, the aggregate amount of such Indebtedness does not exceed
      $10,000,000;

	 	 	 
	 	(c) 	
      Indebtedness of the Obligors under Other Capital Leases
      provided that, at any particular time, the aggregate amount of such
      Indebtedness does not exceed $30,000,000 (for the avoidance of doubt, such
      amount being in excess to the amount referenced in paragraph (b),
      above);

	 	 	 
	 	(d) 	
      at all times that the Intercreditor Documents remain in
      full force and effect, Indebtedness of the Obligors existing at the date
      hereof including Indebtedness under the SLW Silver Purchase Agreement, the
      Borrower Silver Purchase Guarantee, the PEM Silver Purchase Guarantee and
      the Goldcorp Indemnity Agreement;

	 	 	 
	 	(e) 	
      vendor-take-back Indebtedness incurred pursuant to a
      Permitted Acquisition which has no recourse to any entity which has any
      direct or indirect ownership interest in the San Dimas Mine and where the
      recourse of such Indebtedness is limited to (i) the acquired assets, (ii)
      the acquired entity, or (iii) the relevant Obligor’s equity interest in
      the acquired entity, in each case provided that the Borrower has provided
      evidence satisfactory to the Lenders that (x) no Default or Event of
      default has occurred and is continuing at the time of or would arise as a
      result of the incurring of such Indebtedness and (y) the Borrower would be
      in compliance with all of the financial covenants in Section 11.1 on a
      pro forma basis after giving effect to the incurring of such
      Indebtedness;

	 	 	 
	 	(f) 	
      at all times that the Postponement and Subordination
      Undertaking remains in full force and effect, Indebtedness of the Obligors
      to any other Obligor or to any other Company;

	 	 	 
	 	(g) 	
      trade payables and other accrued liabilities of the
      Obligors incurred in the ordinary course of business and payable in
      accordance with customary practices;

Credit Agreement - Primero Mining

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	 	(h) 	
      any other unsecured Indebtedness for borrowed money not
      referred to in clauses (a) to (l) above which does not have a maturity or
      any scheduled repayment due prior to the third anniversary of the Maturity
      Date, is otherwise on terms no more onerous than the Secured Obligations
      and does not aggregate more than $200,000,000; and

	 	 	 
	 	(i) 	
      an unsecured overdraft facility in the maximum amount of
      $10,000,000 obtain in the ordinary course of business;

	 	 	 
	 	(j) 	
      unsecured Risk Management Agreements with non-Lenders
      obtained in the ordinary course of business, including any guarantees
      given in relation to the same; provided that, at any particular time, the
      aggregate amount of such Indebtedness under such unsecured Risk Management
      Agreements does not exceed $10,000,000;

	 	 	 
	 	(k) 	
      at all times that the Sandstorm Subordination Agreement
      remains in full force and effect, Indebtedness of Primero Gold under the
      Sandstorm Gold Purchase Agreement; and

	 	 	 
	 	(l) 	
      any guarantee or indemnity in respect of Permitted
      Indebtedness;

in each case, provided that no Default
or Event of Default has occurred and is continuing at the time of the incurrence
of such Indebtedness or would arise immediately after the incurrence of such
Indebtedness. 

“Permitted Investments” means
any one or more of the following: 

	 	(a) 	
      Investments constituting Capital Expenditures;

	 	 	 
	 	(b) 	
      Investments in Cash;

	 	 	 
	 	(c) 	
      Investments financed by the issuance of shares of the
      Borrower;

	 	 	 
	 	(d) 	
      Investments by any Obligor in another Obligor;
  and

	 	 	 
	 	(e) 	
      other Investments in an aggregate amount not exceeding
      $10,000,000 at any time;

in each case, provided that no Default
or Event of Default has occurred and is continuing at the time of the Investment
or would arise immediately after the Investment. 

“Permitted Jurisdictions” means
Canada, the United States and Mexico and “Permitted Jurisdiction” means
any of the Permitted Jurisdictions. 

Credit Agreement - Primero Mining 

- 25 -

“Permitted Liens” means any one
or more of the following with respect to the property and assets of the
Obligors:

	 	(a) 	
      the Security;

	 	 	 
	 	(b) 	
      for so long as the Intercreditor Documents remain in full
      force and effect, the SWC Security and the Goldcorp Security;

	 	 	 
	 	(c) 	
      Liens for taxes, assessments or governmental charges or
      levies not at the time due or delinquent or the validity of which are
      being contested in good faith by appropriate proceedings and as to which
      reserves are being maintained in accordance with GAAP;

	 	 	 
	 	(d) 	
      the Lien of any judgment rendered or the Lien of any
      claim filed which is being contested in good faith by appropriate
      proceedings and as to which reserves are being maintained in accordance
      with GAAP;

	 	 	 
	 	(e) 	
      Liens and charges incidental to construction or current
      operations which have not at such time been filed pursuant to law or which
      relate to obligations not due or delinquent or the validity of which are
      being contested in good faith by appropriate proceedings and as to which
      reserves are being maintained in accordance with GAAP;

	 	 	 
	 	(f) 	
      restrictions, easements, rights-of-way, servitudes or
      other similar rights in land granted to or reserved by other persons which
      in the aggregate do not materially impair the usefulness, in the operation
      of the business of any Obligor, of the property subject to such
      restrictions, easements, rights-of-way, servitudes or other similar rights
      in land granted to or reserved by other persons;

	 	 	 
	 	(g) 	
      the right reserved to or vested in any municipality or
      governmental or other public authority by the terms of any lease, licence,
      franchise, grant or permit acquired by any Obligor or by any statutory
      provision, to terminate any such lease, licence, franchise, grant or
      permit, or to require annual or other payments as a condition to the
      continuance thereof and any right of such municipality or government or
      other public authority in the event of failure to make such annual or
      other payments;

	 	 	 
	 	(h) 	
      the Lien resulting from the deposit of cash or securities
      (i) in connection with contracts, tenders or expropriation proceedings, or
      (ii) to secure workers’ compensation, surety or appeal bonds, letters of
      credit, costs of litigation when required by law and public and statutory
      obligations, or (iii) in connection with the discharge of Liens or claims
      incidental to construction and mechanics’, warehouseman’s, carriers’ and
      other similar liens or construction and mechanics' and other similar Liens
      arising in the ordinary course of business;

Credit Agreement - Primero Mining

- 26 - 

	 	(i) 	
      security given to a public utility or any municipality or
      governmental or other public authority when required by such utility or
      other authority in connection with the operations of any Obligor, all in
      the ordinary course of business;

	 	 	 
	 	(j) 	
      the restrictions, exceptions, reservations, limitations,
      provisos and conditions, if any, expressed in any original patents or
      grants from any Official Body, and any statutory and common law
      limitations, exceptions, reservations and qualifications;

	 	 	 
	 	(k) 	
      title defects or irregularities which are of a minor
      nature and in the aggregate will not materially impair the use of the
      property for the purpose for which it is held;

	 	 	 
	 	(l) 	
      applicable municipal and other governmental restrictions
      affecting the use of land or the nature of any structures which may be
      erected thereon, provided such restrictions have been complied with and
      will not materially impair the use of the property for the purpose for
      which it is held;

	 	 	 
	 	(m) 	
      Liens on minerals or the proceeds of sale of such
      minerals arising or granted pursuant to a processing or refining
      arrangement entered into in the ordinary course and upon usual market
      terms, securing the payment of any Obligor’s portion of the fees, costs
      and expenses attributable to the processing of such minerals under any
      such processing or refining arrangement, but only insofar as such Liens
      relate to obligations which are at such time not past due;

	 	 	 
	 	(n) 	
      Liens securing Indebtedness arising under clauses (b),
      (c), (d) and (k) of the definition of Permitted Indebtedness;
and

	 	 	 
	 	(o) 	
      the extension, renewal or refinancing of any Permitted
      Lien, provided that the amount so secured does not exceed the original
      amount secured immediately prior to such extension, renewal or refinancing
      and the Lien is not extended to any additional
property.

“Permitted Reorganizations”
means Permitted Corporate Reorganizations and Permitted Capital Reorganizations.

“Person” means any natural
person, corporation, firm, partnership, joint venture, joint stock company,
incorporated or unincorporated association, government, governmental agency or
any other entity, whether acting in an individual, fiduciary or other capacity.

“PML” means Primero Mining
Luxembourg, a société anonyme formed under the laws of Luxembourg. 

“Pollutant” means any
pollutant, as defined by EPA. 

Credit Agreement - Primero Mining 

- 27 -

“Postponement and Subordination
Undertaking” means the postponement and subordination undertaking to be
entered into by certain Companies in favour of the Administrative Agent and, if
applicable, the Mexican Collateral Agent pursuant to Section 11.2(q), in form
and substance satisfactory to the Administrative Agent, as the same may be
amended, modified, supplemented or replaced from time to time. 

“PPSA” means the Personal
Property Security Act (British Columbia), as amended. 

“Primero Gold” means Primero
Gold Canada Inc. (formerly Brigus Gold Corp.), a corporation amalgamated under
the laws of Canada. 

“Prepayment Notice” shall have
the meaning ascribed thereto in Section 9.5. 

“Prepayment Trigger Event”
means the receipt by any Company of any insurance proceeds in excess of
$5,000,000 or the Exchange Equivalent thereof, where such proceeds or any
portion thereof have not been used or committed by such Company to repair or
replace the subject assets within six months of such Company’s receipt thereof.

“Prime Rate” means the higher
of the following: (i) the floating rate of interest announced from time to time
by the Administrative Agent as its reference rate then in effect for determining
rates of interest on Canadian dollar loans to its customers in Canada and
designated as its prime rate; and (ii) the thirty (30) day CDOR Rate plus one
percent (1%) per annum. Any change in the Prime Rate shall be effective on the
date the change becomes effective generally without the necessity for any
notice. 

“Prime Rate Loan” means monies
lent by the Lenders to the Borrower hereunder in Canadian dollars and upon which
interest accrues at a rate referrable to the Prime Rate. 

“Pro Rata Share” means, at any
particular time with respect to a particular Lender, the ratio of the Individual
Commitment of such Lender at such time to the aggregate of the Individual
Commitments of all of the Lenders at such time. 

“Proceeds of Realization” means
all cash and non-cash proceeds derived from any sale, disposition or other
realization of the Secured Assets or received from the Guarantors pursuant to
the Guarantees (i) after any notice being sent by the Administrative Agent to
the Borrower pursuant to Section 13.1 declaring all indebtedness of the Borrower
hereunder to be immediately due and payable, (ii) upon any dissolution,
liquidation, winding-up, reorganization, bankruptcy, insolvency or receivership
of any Obligor (or any other arrangement or marshalling of the Secured Assets
that is similar thereto) or (iii) upon the enforcement of, or any action taken
with respect to, the Guarantees or the Security Documents. For greater
certainty, insurance proceeds derived as a result of the loss or destruction of
any of the Secured Assets or cash or non-cash proceeds derived from any expropriation or other condemnation of any of
the Secured Assets shall not constitute Proceeds of Realization prior to the
Enforcement Date. 

Credit Agreement - Primero Mining

- 28 -

“Properties” means,
  collectively, all mines, all projects for the development of mines and all
exploration properties now or hereafter owned by the Obligors. 

“Purchase Money Indebtedness”
means Indebtedness assumed by any Obligor as part of, or issued or incurred by
such Obligor to pay or provide funds to pay, all or a part of the purchase price
of any property, goods, chattels or equipment hereafter or previously acquired
by such Obligor (including, without limitation, any title retention
arrangement). 

“Purchasing Lenders” shall have
the meaning ascribed thereto in Section 15.5(c) . 

“Qualified Affiliate” means an
Affiliate of a Lender who has executed and delivered to the Administrative Agent
an instrument of adhesion in the form set forth in Schedule J. 

“Qualified Cash Management
Lender” means any Person that enters into a Cash Management Agreement at a
time when such Person is a Lender. 

“Qualified Risk Management
Lender” means (x) any Person that enters into a Risk Management Agreement at
a time when such Person is a Lender or (y) any Qualified Affiliate that enters
into a Risk Management Agreement at a time when the Lender with which such
Qualified Affiliate is affiliated is a Lender. 

“Receiver” means a receiver,
receiver and manager or other Person having similar powers or authority
appointed by the Administrative Agent or, if applicable, the Mexican Collateral
Agent or by a court at the instance of the Administrative Agent or, if
applicable, the Mexican Collateral Agent in respect of the Secured Assets or any
part thereof. 

“Release” means any spilling,
leaking, emitting, discharging, depositing, escaping, leaching, dumping or other
releasing into the Environment, whether intentional or unintentional. 

“Relevant Taxes” shall have the
meaning ascribed thereto in Section 8.6(g) . 

“Reporting Date” means the
45th day following the last day of any of the first three Fiscal
Quarters of a Fiscal Year or the 90th day following the last day of a
Fiscal Year. 

“Restraint” shall have the
meaning ascribed thereto in Section 8.2(a) . 

“Restricted Payment”
means:

Credit Agreement - Primero Mining

- 29 - 

	 	(a) 	
      the declaration, payment or setting aside for payment of
      any dividend or other distribution on or in respect of any shares in the
      capital of the Borrower, other than a dividend declared, paid or set aside
      for payment by the Borrower which is payable in shares of the
    Borrower;

	 	 	 
	 	(b) 	
      the payment or setting aside for payment of any amount in
      consideration of the redemption, retraction, purchase, retirement or other
      acquisition, in whole or in part, of any shares in the capital of the
      Borrower or any securities, instruments or contractual rights capable of
      being converted into, exchanged or exercised for shares in the capital of
      the Borrower, including, without limitation, options, warrants, conversion
      or exchange privileges and similar rights; or

	 	 	 
	 	(c) 	
      the payment or prepayment of interest or the repayment or
      prepayment of principal with respect to any Indebtedness of the Borrower
      which is postponed in right of payment to the Secured Obligations
      (including, for certainty, under or in connection with the Postponement
      and Subordination Undertaking).

“Risk Management Agreement”
means any present or future agreement which evidences any gold, silver or
other commodity hedging transaction, spot or forward foreign exchange
transaction, interest rate swap transaction, currency swap transaction, forward
rate transaction, rate cap transaction, rate floor transaction, rate collar
transaction, and any other exchange or rate protection transaction, any
combination of such transactions or any option with respect to any such
transaction entered into by any Obligor. 

“Rolling EBITDA” means: 

	 	(a) 	
      for the Fiscal Quarter ending June 30, 2014, EBITDA for
      such Fiscal Quarter multiplied by four;

	 	 	 
	 	(b) 	
      for the Fiscal Quarter ending September 30, 2014, the
      aggregate amount of EBITDA for such Fiscal Quarter and for the immediately
      preceding Fiscal Quarter multiplied by two;

	 	 	 
	 	(c) 	
      for the Fiscal Quarter ending December 31, 2014, the
      aggregate amount of EBITDA for such Fiscal Quarter and for the two
      immediately preceding Fiscal Quarters multiplied by 4/3; and

	 	 	 
	 	(d) 	
      for each Fiscal Quarter thereafter, the aggregate amount
      of EBITDA for such Fiscal Quarter and for the three immediately preceding
      Fiscal Quarters.

“Rolling Interest Expenses”
means: 

	 	(a) 	
      for the Fiscal Quarter ending June 30, 2014, Interest
      Expenses for such Fiscal Quarter multiplied by
four;

Credit Agreement - Primero Mining 

- 30 - 

	 	(b) 	
      for the Fiscal Quarter ending September 30, 2014, the
      aggregate amount of Interest Expenses for such Fiscal Quarter and for the
      immediately preceding Fiscal Quarter multiplied by two;

	 	 	 
	 	(c) 	
      for the Fiscal Quarter ending December 31, 2014, the
      aggregate amount of Interest Expenses for such Fiscal Quarter and for the
      two immediately preceding Fiscal Quarters multiplied by 4/3; and

	 	 	 
	 	(d) 	
      for each Fiscal Quarter thereafter, the aggregate amount
      of Interest Expenses for such Fiscal Quarter and for the three immediately
      preceding Fiscal Quarters.

“Rollover Notice” shall have
the meaning ascribed thereto in Section 5.3. 

“Royalties” means: 

	 	(a) 	
      the 4% net smelter royalty with respect to the San Anton
      (T-205335) concession payable to the Mexican Geological Service;
  and

	 	 	 
	 	(b) 	
      the 3% net smelter royalty with respect to the La
      Libertad (T-198427), Nuevo San Anton (T-208424), El Cipres (T-210168), Ave
      de Gracia (T- 216707) and Dolores (T-220992) concessions payable to
      Corporacion Turistica Sanluis, S.A. de C.V.

“S&P” means Standard &
Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC
business, and its successors. 

“San Dimas Mine” means the
mining operations located approximately 125 kilometres northeast of Mazatlan,
Sinaloa, Mexico and approximately 150 kilometres west of Durango, Durango,
Mexico and owned and operated by PEM. 

“Sandstorm” means Sandstorm
Gold Ltd. (formerly Sandstorm Resources Ltd.). 

“Sandstorm Gold Purchase Agreement”
means the gold purchase agreement in respect of the Black Fox Mine dated
November 9, 2010 between Primero Gold and Sandstorm Gold Ltd. 

“Sandstorm Subordination
Agreement” means the subordination agreement dated May 23, 2014 entered into
between Sandstorm and the Administrative Agent, as acknowledged by Primero Gold
pursuant to which Sandstorm subordinates the Project Charge (as defined in the
Sandstorm Gold Purchase Agreement) to the Administrative Agent’s Security over
Primero Gold’s assets. 

“Schedule I Lenders” means
Lenders which are listed in Schedule I to the Bank Act (Canada). 

“Schedule II Lenders” means
Lenders which are listed in Schedule II to the Bank Act (Canada). 

Credit Agreement - Primero Mining 

- 31 - 

“Schedule III Lenders” means
Lenders which are listed in Schedule III to the Bank Act (Canada).

“Secured Assets” means: 

	 	(a) 	
      all of the present and future assets, property and
      undertaking of the Obligors; and

	 	 	 
	 	(b) 	
      any and all proceeds of any of the
  foregoing.

“Secured Obligations” shall
mean all indebtedness, obligations and liabilities, present or future, absolute
or contingent, matured or not, at any time owing by the Obligors to the Finance
Parties or the Mexican Collateral Agent, or remaining unpaid to the Finance
Parties, under or in connection with the Finance Documents and Secured
Obligations of a particular Obligor shall mean all indebtedness, obligations and
liabilities, present or future, absolute or contingent, matured or not, at any
time owing by such Obligor to the Finance Parties or the Mexican Collateral
Agent, or remaining unpaid to the Finance Parties or the Mexican Collateral
Agent, under or in connection with the Finance Documents to which such Obligor
is a party. For certainty, “Secured Obligations” shall include interest
accruing subsequent to the filing of, or which would have accrued but for the
filing of, a petition for bankruptcy, in accordance with and at the rate
(including any rate applicable upon any Default or Event of Default to the
extent lawful) specified herein, whether or not such interest is an allowable
claim in such bankruptcy proceeding. 

“Security” means the collateral
security constituted by the Security Documents. 

“Security Documents” means the
security documents described in Schedule I hereto as well as any other security
documents granted from time to time by any Obligor in favour of the
Administrative Agent or the Mexican Collateral Agent, as applicable, to secure
all or any part of the Secured Obligations. 

“Senior Net Debt” means that
portion of Total Net Debt which ranks pari passu with or in priority to the
Secured Obligations. 

“Senior Net Debt Leverage
Ratio” means, at any particular time, the ratio of Senior Net Debt at such
time to Rolling EBITDA at such time. 

“Share Purchase Agreement”
means the share purchase agreement dated July 29, 2010 pursuant to which the
Borrower bought the shares of STB from Goldcorp Silver (Barbados) Ltd. (as may
be amended from time to time with the consent of the Majority Lenders).

“Shares”, as applied to the
shares of any corporation or other entity, means the shares or other ownership
interests of every class whether now or hereafter authorized, regardless of
whether such shares or other ownership interests shall be limited to a fixed sum
or percentage with respect to the rights of the holders thereof to participate in dividends and in the distribution of
assets upon the voluntary or involuntary liquidation, dissolution or winding-up
of such corporation or other entity. 

Credit Agreement - Primero Mining 

- 32 -

“SLW” means Silver Wheaton
  Corp., a corporation incorporated under the laws of the Province of Ontario.

“SLW Silver Purchase Agreement”
means the second amended and restated silver purchase agreement effective
August 6, 2010 between STB, SWC, the Borrower and SLW, as the same may be
amended, modified, supplemented or replaced from time to time with the consent
of the Lenders. 

“STB” means Silver Trading
(Barbados) Limited, a corporation incorporated under the laws of Barbados. 

“Subsidiary” means, with
respect to any Person, any corporation, company or other similar business entity
(including, for greater certainty, a chartered bank) of which more than fifty
per cent (50%) of the outstanding Shares or other equity interests (in the case
of Persons other than corporations) having ordinary voting power to elect a
majority of the board of directors or the equivalent thereof of such
corporation, company or similar business entity (irrespective of whether at the
time Shares of any other class or classes of the Shares of such corporation,
company or similar business entity shall or might have voting power upon the
occurrence of any contingency) is at the time directly or indirectly owned by
such Person, by such Person and one or more other Subsidiaries of such Person,
or by one or more other Subsidiaries of such Person. 

“Subsidiary Notice” shall have
the meaning ascribed thereto in Section 11.2(o) . 

“SW/Borrower Secured Assets”
means all of the present and after acquired property of the Borrower other than
Excluded Collateral (as defined in the SLW Silver Purchase Agreement). 

“SWC” means Silver Wheaton
(Caymans) Ltd., a corporation incorporated under the laws of the Cayman Islands.

“SWC Obligations” means the
obligations of the Obligors and others under the SLW Silver Purchase Agreement,
the Borrower Silver Purchase Guarantee, the PEM Silver Purchase Guarantee and
the SWC Security. 

“SWC Security” means,
collectively, (i) the security interests granted by STB to SWC in the SW/STB
Secured Assets as security for the obligations of STB under the SLW Silver
Purchase Agreement, (ii) the security interests granted by the Borrower to SWC
in the SW/Borrower Secured Assets as security for the obligations of the
Borrower under the Borrower Silver Purchase Guarantee, (iii) the security
interests granted by PEM to SWC in the SW/PEM Secured Assets as security for the
obligations of PEM under the PEM Silver Purchase Guarantee, (iv) the security
interests granted by the minority shareholders of PEM to SWC in the shares of PEM as security for the obligations of such
minority shareholders under or with respect to the SLW Silver Purchase Agreement
and (v) the security interests to be granted by the Future Owners (as defined in
the SLW Silver Purchase Agreement) in the present and future personal property
of such Future Owners other than the Excluded Collateral (as defined in the SLW
Silver Purchase Agreement) as security for the obligations of such Future Owners
under or in respect of the SLW Silver Purchase Agreement. 

Credit Agreement - Primero Mining

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“SWC Subsidiary Debtors” means
  the following debtors under the SLW Silver Purchase Agreement and their
  respective successors and permitted assigns: PEM, Primero Compania Minera, S.A.
  de C.V., Primero Servicios Mineros, S.A. de C.V., Eduardo Luna (minority
shareholder), STB and PML.

“SW/PEM Secured Assets” means
all of the present and after acquired property of PEM other than Excluded
Collateral (as defined in the SLW Silver Purchase Agreement). 

“SW/STB Secured Assets” means
all of the present and after acquired personal property of STB other than
Excluded Collateral (as defined in the SLW Silver Purchase Agreement). 

“Tangible Net Worth” means, at
any particular time, the amount of Equity at such time less the aggregate of the
amounts at such time, expressed in United States dollars, which would, in
accordance with GAAP, be classified upon the consolidated balance sheet of the
Borrower (but excluding any Subsidiaries which are not Guarantors) as goodwill
and other intangible assets (measured at their book value). 

“Tax Act” means the Income
Tax Act (Canada), as amended from time to time, and regulations promulgated
thereunder. 

“Taxes” means all taxes,
royalties, assessments, fees, rates, levies, imposts, deductions, dues, duties
and other charges of any nature, including any interest, fines, penalties or
other liabilities with respect thereto, imposed, levied, collected, withheld or
assessed by any Official Body (including a federal, state, provincial,
territorial, municipal or foreign Official Body), and whether disputed or not.

“Total Commitment Amount”
means, at any particular time, the aggregate of the Individual Commitments
of all of the Lenders at such time. 

“Total Net Debt” means, at any
particular time, the aggregate Indebtedness of the Borrower, calculated on a
consolidated basis but excluding any Subsidiaries which are not Guarantors, at
such time less the aggregate of (i) all Unrestricted Cash of the Obligors held
in a Permitted Jurisdiction at such time and (ii) any such Indebtedness for
which the holder thereof has no recourse to any of the Obligors. 

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“Total Net Debt Leverage
Ratio” means, at any particular time, the ratio of Total Net Debt at such
time to Rolling EBITDA at such time. 

“Transferee” shall have the
meaning ascribed thereto in Section 15.5(d) . 

“Unrestricted Cash” means Cash
other than Cash held in reserve to satisfy any liabilities, contingent or
otherwise. 

“U.S.” and “United
States” means the United States of America. 

“U.S. Dollar Equivalent” means
the relevant Exchange Equivalent in United States dollars of any amount of
Canadian dollars. 

“Ventanas Property” means the
exploration property located in the Ventanas Mining District or southern part of
the San Dimas District along the western flank of the Sierra Madre Occidental
mountain range in Durango State, Mexico, composed of 23 near-contiguous mining
concessions covering approximately 3,470 hectares or 35 square kilometres that
are centered near coordinates 23°54‘06”N latitude and 105°44‘58”W longitude,
near the border of Sinaloa and Durango states and 120 kilometres west of the
city of Durango, the capital of Durango State. 

“Waste” means any waste, as
defined by EPA.

	1.2 	
      Other Usages

References to “this agreement”,
“the agreement”, “hereof”, “herein”, “hereto” and like references refer to this
agreement and not to any particular Article, Section or other subdivision of
this agreement. Any references herein to any agreements or documents shall mean
such agreements or documents as amended, supplemented, restated or otherwise
modified from time to time in accordance with the terms hereof and thereof. 

	1.3 	
      Plural and Singular

Where the context so requires,
words importing the singular number shall include the plural and vice versa.

	1.4 	
      Headings

The division of this agreement
into Articles and Sections and the insertion of headings in this agreement are
for convenience of reference only and shall not affect the construction or
interpretation of this agreement. 

	1.5 	
      Currency

Unless otherwise specified
herein, all statements of or references to dollar amounts in this agreement
shall mean lawful money of the United States. 

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	1.6 	
      Applicable Law

This agreement shall be governed
by and construed in accordance with the laws of the Province of Ontario and the
federal laws of Canada applicable therein. Any legal action or proceeding with
respect to this agreement may be brought in the courts of the Province of
Ontario and, by execution and delivery of this agreement, the parties hereby
accept for themselves and in respect of their property, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts. Each
party irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to such party to the
address prescribed by Section 15.1, such service to become effective five
Banking Days after such mailing. Nothing herein shall limit the right of any
party to serve process in any manner permitted by law or to commence legal
proceedings or otherwise proceed against any other party in any other
jurisdiction. 

	1.7 	
      Time of the Essence

Time shall in all respects be of
the essence of this agreement. 

	1.8 	
      Non-Banking Days

Subject to Section 7.4(c),
whenever any payment to be made hereunder shall be stated to be due or any
action to be taken hereunder shall be stated to be required to be taken on a day
other than a Banking Day, such payment shall be made or such action shall be
taken on the next succeeding Banking Day and, in the case of the payment of any
amount, the extension of time shall be included for the purposes of computation
of interest, if any, thereon. 

	1.9 	
      Consents and Approvals

Whenever the consent or approval
of a party hereto is required in a particular circumstance, unless otherwise
expressly provided for therein, such consent or approval shall not be
unreasonably withheld or delayed by such party. 

	1.10 	
      Amount of Credit

Any reference herein to the
“amount of credit outstanding” or “outstanding amount of credit” or any similar
phrase shall mean, at any particular time: 

	 	(a) 	
      in the case of a Prime Rate Loan or a BA Equivalent Loan,
      the U.S. Dollar Equivalent of the principal amount thereof;

	 	 	 
	 	(b) 	
      in the case of a Bankers’ Acceptance, the U.S. Dollar
      Equivalent of the face amount of the Bankers’ Acceptance;

	 	 	 
	 	(c) 	
      in the case of a Base Rate Loan or a LIBOR Loan, the
      principal amount thereof;

	 	 	 
	 	(d) 	
      in the case of a Letter denominated in Canadian dollars,
      the U.S. Dollar Equivalent of the contingent liability of the Issuing
      Lender thereunder at such time; and

	 	 	 
	 	(e) 	
      in the case of a Letter denominated in United States
      dollars, the contingent liability of the Issuing Lender thereunder at such
      time.

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	1.11 	
      Schedules

Each and every one of the
schedules which is referred to in this agreement and attached to this agreement
shall form a part of this agreement. 

	1.12 	
      Extension of Credit

For the purposes hereof, each
drawdown, rollover and conversion shall be deemed to be an extension of credit
to the Borrower hereunder. 

	1.13 	
      Accounting Terms – GAAP

All accounting terms not
specifically defined in this agreement shall be interpreted in accordance with
GAAP. 

	1.14 	
      Change in Accounting
Polices

Whereas the Borrower may adopt
new accounting policies from time to time, whereby such adoption is compelled by
accounting or regulatory bodies having jurisdiction or at its own discretion,
and whereas these accounting changes may result in a material change in the
calculation of the financial covenants or financial covenant thresholds or terms
used in this agreement or any other Credit Document, then the Borrower, the
Administrative Agent and the Lenders agree to enter into good faith negotiations
in order to amend such provisions of this agreement or such Credit Document, as
applicable, so as to equitably reflect such accounting changes with the desired
result that the criteria for evaluating the Borrower’s financial condition,
financial covenants, financial covenant thresholds or terms used in this
agreement or any other Credit Document shall be the same after such accounting
changes as if such accounting changes had not been made; provided, however, that
the agreement of the Majority Lenders to any required amendments of such
provisions shall be sufficient to bind all Lenders. If the Borrower and the
Majority Lenders cannot agree upon the required amendments immediately prior to
the date of implementation of any accounting policy change, then all
calculations of financial covenants, financial covenant thresholds or terms used
in this agreement or any other Credit Document shall be prepared and delivered
without reflecting the accounting policy change. 

	1.15 	
      Paramountcy

In the event of any conflict or
inconsistency between the provisions of this agreement and the provisions of the
Intercreditor Documents, the provisions of the Intercreditor Documents shall
prevail and be paramount. If any covenant, representation, warranty or event of
default contained in any other Security Document or Finance Document (other than
the Intercreditor Documents) is in conflict with or is inconsistent with a
provision of this agreement relating to the same specific matter, such covenant,
representation, warranty or event of default shall be deemed to be amended to
the extent necessary to ensure that it is not in conflict with or inconsistent
with the provision of this agreement relating to the same specific matter.

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ARTICLE 2 
CREDIT FACILITY 

	2.1 	
      Establishment of Credit
Facility

Subject to the terms and
conditions hereof, the Lenders hereby establish in favour of the Borrower a
revolving term credit facility (the “Credit Facility”) in an amount equal
to the Credit Limit (as such amount may be reduced from time to time).

	2.2 	
      Lenders’ Commitments

Subject to the terms and
conditions hereof, the Lenders agree to extend credit to the Borrower from time
to time provided that the aggregate amount of credit extended by each Lender
shall not at any time exceed the Individual Commitment of such Lender and
further provided that the aggregate amount of credit outstanding shall not at
any time exceed the amount of the Credit Limit. All credit requested shall be
made available to the Borrower contemporaneously by all of the Lenders. Each
Lender shall provide to the Borrower its Pro Rata Share of each credit, whether
such credit is extended by way of drawdown, rollover or conversion. No Lender
shall be responsible for any default by any other Lender in its obligation to
provide its Pro Rata Share of any credit nor shall the Individual Commitment of
any Lender be increased as a result of any such default of another Lender in
extending credit hereunder. The failure of any Lender to make available to the
Borrower its Pro Rata Share of any credit shall not relieve any other Lender of
its obligation hereunder to make available to the Borrower its Pro Rata Share of
such credit. 

	2.3 	
      Reduction of Credit Limit

The Borrower may, from time to
time and at any time, by notice in writing to the Administrative Agent,
permanently reduce the amount of the Credit Limit in whole or in part to the
extent the Credit Facility is not being utilized at the time such notice is
given, provided that such reduction shall not become effective until five
Banking Days after such notice has been given. The amount of the Credit Limit
will be permanently reduced with respect to repayment or prepayment made in
accordance with Section 9.1 or 9.4. The Credit Limit shall also be permanently
reduced, at the time of any Prepayment Trigger Event, by the amount, if any, of
the Net Cash Proceeds not deployed by the Borrower as a mandatory prepayment
under the Credit Facility pursuant to Section 9.4. Any repayment or prepayment
of credit outstanding under the Credit Facility (other than as set forth above)
shall not cause a reduction in the amount of the Credit Limit. Any repayment of
outstanding credit which forms part of any conversion from one type of credit to
another type of credit under Article 3 or Article 6 or of any rollover under
Article 5 shall not cause any reduction in the amount of the Credit Limit. Upon
any reduction of the amount of the Credit Limit, the Individual Commitment of
each Lender shall thereupon be reduced by an amount equal to such Lender’s Pro
Rata Share of such reduction of the amount of the Credit Limit.

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	2.4 	
      Termination of Credit
Facility

	 	(a) 	
      The Credit Facility shall terminate upon the earliest to
      occur of:

	 	(i) 	
      the termination of the Credit Facility in accordance with
      Section 13.1;

	 	 	 
	 	(ii) 	
      the date on which the amount of the Credit Limit has been
      permanently reduced to zero pursuant to Section 2.3; and

	 	 	 
	 	(iii) 	
      the Maturity Date.

	 	(b) 	
      Upon the termination of the Credit Facility, the right of
      the Borrower to obtain any credit hereunder and all of the obligations of
      the Lenders to extend credit hereunder shall automatically
    terminate.

ARTICLE 3 
GENERAL PROVISIONS RELATING TO
CREDITS 

	3.1 	
      Types of Credit Availments

Subject to the terms and
conditions hereof the Borrower may obtain credit from the Lenders through the
Branch of Account by way of one or more Prime Rate Loans, BA Equivalent Loans,
Bankers’ Acceptances, Base Rate Loans, LIBOR Loans and Letters. Any extension of
credit hereunder by way of drawdown of LIBOR Loans shall be in the amount of at
least $1,000,000. Any extension of credit hereunder by way of drawdown of
Bankers’ Acceptances or BA Equivalent Loans shall be in the amount of at least
Cdn.$1,000,000 or an integral multiple of Cdn.$100,000 in excess thereof and, in
determining a Lender’s Pro Rata Share of outstanding Bankers’ Acceptances or BA
Equivalent Loans, the Administrative Agent shall be entitled, in its sole
discretion and notwithstanding any other provision hereof, to increase or
decrease the face amount of any Bankers’ Acceptance or the principal amount of
any BA Equivalent Loan to the nearest Cdn.$100,000. The aggregate face amount of
all outstanding Letters shall not at any time exceed $25,000,000. 

	3.2 	
      Funding of Loans

Each Lender shall make available
to the Administrative Agent its Pro Rata Share of the principal amount of each
Loan prior to 11:00 a.m. (Toronto time) on the date of the extension of credit.
The Administrative Agent shall, upon fulfilment by the Borrower of the terms and
conditions set forth in Article 12 and unless otherwise irrevocably authorized
and directed in the Drawdown Notice, make such funds available to the Borrower
on the date of the extension of credit by crediting the relevant Designated
Account (or causing such account to be credited). Unless the Administrative
Agent has been notified by a Lender at least one Banking Day prior to the date
of the extension of credit that such Lender will not make available to the
Administrative Agent its Pro Rata Share of such Loan, the Administrative Agent
may assume that such Lender has made such portion of the Loan available to the
Administrative Agent on the date of the extension of credit in accordance with
the provisions hereof and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding amount.
If the Administrative Agent has made such assumption, to the extent such Lender shall not have so made its Pro Rata Share of the
Loan available to the Administrative Agent, such Lender agrees to pay to the
Administrative Agent, forthwith on demand, such Lender’s Pro Rata Share of the
Loan and all reasonable costs and expenses incurred by the Administrative Agent
in connection therewith together with interest thereon at the then prevailing
interbank rate for each day from the date such amount is made available to the
Borrower until the date such amount is paid or repaid to the Administrative
Agent; provided, however, that notwithstanding such obligation, if such Lender
fails so to pay, the Borrower shall, without prejudice to any rights that the
Borrower might have against such Lender, repay such amount to the Administrative
Agent forthwith after demand therefor by the Administrative Agent. The amount
payable by each Lender to the Administrative Agent pursuant hereto shall be set
forth in a certificate delivered by the Administrative Agent to such Lender and
the Borrower (which certificate shall contain reasonable details of how the
amount payable is calculated) and shall constitute prima facie evidence
of such amount payable. If such Lender makes the payment to the Administrative
Agent required herein, the amount so paid shall constitute such Lender’s Pro
Rata Share of the Loan for purposes of this agreement and shall entitle the
Lender to all rights and remedies against the Borrower in respect of such Loan. 

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	3.3 	
      Failure of Lender to Fund
Loan

If any Lender (a “Defaulting
Lender”) fails to make available to the Administrative Agent its Pro Rata
Share of any Loan as required and the Administrative Agent has not funded
pursuant to Section 3.2, the Administrative Agent shall forthwith give notice of
such failure by such Defaulting Lender to the Borrower and the other Lenders and
such notice shall state that any Lender may make available to the Administrative
Agent all or any portion of the Defaulting Lender’s Pro Rata Share of such Loan
(but in no way shall any other Lender or the Administrative Agent be obliged to
do so) in the place and stead of the Defaulting Lender. If more than one Lender
gives notice that it is prepared to make funds available in the place and stead
of a Defaulting Lender in such circumstances and the aggregate of the funds
which such Lenders (herein collectively called the “Contributing Lenders”
and individually called the “Contributing Lender”) are prepared to make
available exceeds the amount of the advance which the Defaulting Lender failed
to make, then each Contributing Lender shall be deemed to have given notice that
it is prepared to make available its pro rata share of such advance based
on the Contributing Lenders’ relative commitments to advance in such
circumstances. If any Contributing Lender makes funds available in the place and
stead of a Defaulting Lender in such circumstances, then the Defaulting Lender
shall pay to any Contributing Lender making the funds available in its place and
stead, forthwith on demand, any amount advanced on its behalf together with
interest thereon at the then prevailing interbank rate for each day from the
date of advance to the date of payment, against payment by the Contributing
Lender making the funds available of all interest received in respect of the
Loan from the Borrower. In addition to interest as aforesaid, the Borrower shall
pay all amounts owing by the Borrower to the Defaulting Lender hereunder (with
respect to the amounts advanced by the Contributing Lenders on behalf of the
Defaulting Lender) to the Contributing Lenders until such time as the Defaulting
Lender pays to the Administrative Agent for the Contributing Lenders all amounts
advanced by the Contributing Lenders on behalf of the Defaulting Lender.

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	3.4 	
      Funding of Bankers’
Acceptances.

	 	(a) 	
      If the Administrative Agent receives from the Borrower a
      Drawdown Notice, Rollover Notice or Conversion Notice requesting a
      drawdown of, a rollover of or a conversion into Bankers’ Acceptances, the
      Administrative Agent shall notify each of the Lenders prior to 11:00 a.m.
      (Toronto time) on the second Banking Day prior to the date of such
      extension of credit of such request and of each Lender’s Pro Rata Share of
      such extension of credit. The Administrative Agent shall also at such time
      notify the Borrower of each Lender’s Pro Rata Share of such extension of
      credit. Each Lender shall, not later than 11:00 a.m. (Toronto time) on the
      date of each extension of credit by way of Bankers’ Acceptance, accept
      drafts of the Borrower which are presented to it for acceptance and which
      have an aggregate face amount equal to such Lender’s Pro Rata Share of the
      total extension of credit being made available by way of Bankers’
      Acceptances on such date, as advised by the Administrative Agent. Each
      Lender shall purchase the Bankers’ Acceptances which it has accepted for a
      purchase price equal to the BA Discounted Proceeds therefor. Each Lender
      may at any time and from time to time hold, sell, rediscount or otherwise
      dispose of any and all Bankers’ Acceptances accepted and purchased by
      it.

	 	 	 
	 	(b) 	
      The Borrower shall provide for payment to the accepting
      Lenders of the face amount of each Bankers’ Acceptance at its maturity,
      either by payment of such amount or through an extension of credit
      hereunder or through a combination of both. The Borrower hereby waives
      presentment for payment of Bankers’ Acceptances by the Lenders and any
      defence to payment of amounts due to a Lender in respect of a Bankers’
      Acceptance which might exist by reason of such Bankers’ Acceptance being
      held at maturity by the Lender which accepted it and agrees not to claim
      from such Lenders any days of grace for the payment at maturity of
      Bankers’ Acceptances.

	 	 	 
	 	(c) 	
      In the case of a drawdown by way of Bankers’ Acceptance,
      each Lender shall, forthwith after the acceptance of drafts of the
      Borrower as aforesaid, make available to the Administrative Agent the BA
      Proceeds with respect to the Bankers’ Acceptances accepted by it. The
      Administrative Agent shall, upon fulfilment by the Borrower of the terms
      and conditions set forth in Article 12, make such BA Proceeds available to
      the Borrower on the date of such extension of credit by crediting the
      relevant Designated Account. In the case of a rollover of or conversion
      into Bankers’ Acceptances, each Lender shall retain the Bankers’
      Acceptance accepted by it and shall not be required to make any funds
      available to the Administrative Agent for deposit to the relevant
      Designated Account; however, forthwith after the acceptance of drafts of
      the Borrower as aforesaid, the Borrower shall pay to the Administrative
      Agent on behalf of such Lenders an amount equal to the aggregate amount of
      the BA Acceptance Fees in respect of such Bankers’ Acceptances plus the
      amount by which the aggregate face amount of such Bankers’ Acceptances
      exceeds the aggregate BA Discounted Proceeds with respect
  thereto.

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	 	(d) 	
      Any Bankers’ Acceptance may, at the option of the
      Borrower, be executed in advance by or on behalf of the Borrower (as
      otherwise provided herein), by mechanically reproduced or facsimile
      signatures of any two officers of the Borrower who are properly so
      designated and authorized by the Borrower from time to time. Any Bankers’
      Acceptance so executed and delivered by the Borrower to the Lenders shall
      be valid and shall bind the Borrower and may be dealt with by the Lenders
      to all intents and purposes as if the Bankers’ Acceptance had been signed
      in the executing officers’ own handwriting.

	 	 	 
	 	(e) 	
      The Borrower shall notify the Lenders as to those
      officers whose signatures may be reproduced and used to execute Bankers’
      Acceptances in the manner provided in Section 3.4(d). Bankers’ Acceptances
      with the mechanically reproduced or facsimile signatures of designated
      officers may be used by the Lenders and shall continue to be valid,
      notwithstanding the death, termination of employment or termination of
      authorization of either or both of such officers or any other circumstance
      until such time as the Borrower shall otherwise notify the
  Lenders.

	 	 	 
	 	(f) 	
      The Borrower hereby indemnifies and agrees to hold
      harmless the Lenders against and from all losses, damages, expenses and
      other liabilities caused by or attributable to the use of the mechanically
      reproduced or facsimile signature instead of the original signature of an
      authorized officer of the Borrower on a Banker’s Acceptance prepared,
      executed, issued and accepted pursuant to this agreement, except to the
      extent determined by a court of competent jurisdiction to be due to the
      negligence or wilful misconduct of the Lenders.

	 	 	 
	 	(g) 	
      Each of the Lenders agrees that, in respect of the
      safekeeping of executed depository bills of the Borrower which are
      delivered to it for acceptance hereunder, it shall exercise the same
      degree of care which it gives to its own property, provided that it shall
      not be deemed to be an insurer thereof.

	 	 	 
	 	(h) 	
      All Bankers’ Acceptances shall be issued in the form of
      depository bills made payable originally to and deposited with The
      Canadian Depository for Securities Limited pursuant to the Depository
      Bills and Notes Act (Canada).

	 	 	 
	 	(i) 	
      To facilitate the issuance of Bankers’ Acceptances
      pursuant to this agreement, the Borrower irrevocably appoints each Lender
      from time to time as the attorney-in- fact of the Borrower to execute,
      endorse and deliver on behalf of the Borrower drafts in the forms
      prescribed by such Lender (if such Lender is not a Non-BA Lender) for
      bankers’ acceptances denominated in Canadian dollars (each such executed
      draft that has not yet been accepted by a Lender being referred to as a
      “BA Draft”) or non interest-bearing promissory notes of the
      Borrower in favour of such Lender (if such Lender is a Non-BA Lender)
      (each such promissory note being referred to as a “BA Equivalent
      Note”). Each Bankers’ Acceptance and BA Equivalent Note executed and
      delivered by a Lender on behalf of the Borrower as provided for in this
      Section 3.4(i) shall be as binding on the Borrower as if it had been
      executed and delivered by a duly authorized officer of the
  Borrower.

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	3.5 	
      BA Equivalent Loans.

If, in the sole judgement of a
Lender, such Lender is unable to extend credit by way of Bankers’ Acceptances in
accordance with this agreement, such Lender shall give an irrevocable notice to
such effect to the Administrative Agent and the Borrower prior to 10:00 a.m.
(Toronto time) on the date of the requested credit extension (such Lender being
herein referred to as a “Non-BA Lender”) and shall make available to the
Borrower prior to 11:00 a.m. (Toronto time) on the date of such requested credit
extension a Canadian dollar loan (a “BA Equivalent Loan”) in the
principal amount equal to such Lender’s Pro Rata Share of the total credit to be
extended by way of Bankers’ Acceptances, such BA Equivalent Loan to be funded in
the same manner as a Loan is funded pursuant to Sections 3.2 and 3.9. Such BA
Equivalent Loan shall have the same term as the Bankers’ Acceptances for which
it is a substitute and shall bear such rate of interest per annum throughout the
term thereof as shall permit such Non-BA Lender to obtain the same effective
rate as if such Non-BA Lender had accepted and purchased a Bankers’ Acceptance
at the same BA Acceptance Fee and pricing at which the Administrative Agent
would have accepted and purchased such Bankers’ Acceptance at approximately
11:00 a.m. (Toronto time) on the date such BA Equivalent Loan is made, on the
basis that, and the Borrower hereby agrees that, for such a BA Equivalent Loan,
interest shall be payable in advance on the date of the extension of credit by
the Non-BA Lender deducting the interest payable in respect thereof from the
principal amount of such BA Equivalent Loan. All BA Equivalent Loans shall be
evidenced by a promissory note in the form of a depository note made payable
originally to and deposited with The Canadian Depository for Securities Limited
pursuant to the Depository Bills and Notes Act (Canada). 

	3.6 	
      Timing of Credit
Availments

No LIBOR Loan, Bankers’
Acceptance or BA Equivalent Loan may have a maturity date later than the
Maturity Date. 

	3.7 	
      Inability to Fund U.S. Dollar Advances in
      Canada

If a Lender determines in good
faith, which determination shall be final, conclusive and binding on the
Borrower, and the Administrative Agent notifies the Borrower that (i) by reason
of circumstances affecting financial markets inside or outside Canada, deposits
of United States dollars are unavailable to such Lender in Canada, (ii) adequate
and fair means do not exist for ascertaining the applicable interest rate on the
basis provided in the definition of LIBOR or Alternate Base Rate Canada, as the
case may be, (iii) the making or continuation of United States dollar advances
in Canada has been made impracticable by the occurrence of a contingency (other
than a mere increase in rates payable by such Lender to fund the advance) which
materially and adversely affects the funding of the advances at any interest
rate computed on the basis of the LIBOR or the Alternate Base Rate Canada, as
the case may be, or by reason of a change in any Applicable Law or government
regulation, guideline or order (whether or not having the force of law but, if
not having the force of law, one with which a responsible Canadian chartered
bank would comply) or in the interpretation thereof by any Official Body
affecting such Lender or any relevant financial market, which results in LIBOR
or the Alternative Base Rate Canada, as the case may be, no longer representing
the effective cost to such Lender of deposits in such market for a relevant
Interest Period, or (iv) any change to present law or any future law, regulation, order, treaty or
official directive (whether or not having the force of law but, if not having
the force of law, one with which a responsible Canadian chartered bank would
comply) or any change therein or any interpretation or application thereof by
any Official Body has made it unlawful for such Lender to make or maintain or
give effect to its obligations in respect of United States dollar advances in
Canada as contemplated herein, then: 

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	 	(a) 	
      the right of the Borrower to obtain any affected Base
      Rate Canada Loan or LIBOR Loan from such Lender shall be suspended until
      such Lender determines, acting reasonably, that the circumstances causing
      such suspension no longer exist and such Lender so notifies the
  Borrower;

	 	 	 
	 	(b) 	
      if any affected Base Rate Canada Loan or LIBOR Loan is
      not yet outstanding, any applicable Drawdown Notice shall be cancelled and
      the advance requested therein shall not be made;

	 	 	 
	 	(c) 	
      if any LIBOR Loan is already outstanding at any time when
      the right of the Borrower to obtain credit by way of a LIBOR Loan is
      suspended, it shall, subject to the Borrower having the right to obtain
      credit by way of a Base Rate Canada Loan at such time, be converted on the
      last day of the Interest Period applicable thereto (or on such earlier
      date as may be required to comply with any Applicable Law) to a Base Rate
      Canada Loan in the principal amount equal to the principal amount of the
      LIBOR Loan or, if the Borrower does not have the right to obtain credit by
      way of a Base Rate Canada Loan at such time, such LIBOR Loan shall be
      converted on the last day of the Interest Period applicable thereto (or on
      such earlier date as may be required to comply with any applicable law) to
      a loan in such other currency as may be mutually agreed upon in the
      principal amount equal to the Exchange Equivalent of such LIBOR Loan;
      and

	 	 	 
	 	(d) 	
      if any Base Rate Canada Loan is already outstanding at
      any time when the right of the Borrower to obtain credit by way of a Base
      Rate Canada Loan is suspended, it shall, subject to the Borrower having
      the right to obtain credit by way of a LIBOR Loan at such time, be
      immediately converted to a LIBOR Loan in the principal amount equal to the
      principal amount of the Base Rate Canada Loan and having an Interest
      Period of one month or, if the Borrower does not have the right to obtain
      credit by way of a LIBOR Loan at such time, it shall be immediately
      converted to a loan in such other currency as may be mutually agreed upon
      in the principal amount equal to the Exchange Equivalent of the principal
amount of the Base Rate Canada Loan.

	3.8 	
      Time and Place of Payments

Unless otherwise expressly
provided herein, the Borrower shall make all payments pursuant to this agreement
or pursuant to any document, instrument or agreement delivered pursuant hereto
by deposit to the relevant Designated Account before 12:00 noon (Toronto time)
on the day specified for payment and the Administrative Agent shall be entitled
to withdraw the amount of any payment due to the Administrative Agent or the
Lenders hereunder from such account on the day specified for payment.
In addition to the foregoing, the Borrower authorizes and directs the
Administrative Agent to debit automatically, by mechanical, electronic or manual
means, any bank account of the Borrower maintained with the Administrative Agent
for all amounts due and payable by the Borrower under this agreement, including
the repayment of principal and the payment of interest, fees and all charges for
the keeping of that bank account. The Administrative Agent shall notify the
Borrower as to the particulars of those debits in the normal course. 

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	3.9 	
Remittance of Payments

Forthwith after the withdrawal
from the relevant Designated Account or other bank account by the Administrative
Agent of any payment of principal, interest, fees or other amounts for the
benefit of the Lenders pursuant to Section 3.6, the Administrative Agent shall,
subject to Sections 3.3 and 8.3 remit to each Lender, in immediately available
funds, such Lender’s Pro Rata Share of such payment (except to the extent such
payment results from a Loan with respect to which a Lender had failed, pursuant
to Section 3.2, to make available to the Administrative Agent its Pro Rata Share
and, where any other Lender has made funds available in the place and stead of a
Defaulting Lender); provided that if the Administrative Agent, on the assumption
that it will receive, on any particular date, a payment of principal (including,
without limitation, a prepayment), interest, fees or other amount hereunder,
remits to each Lender its Pro Rata Share of such payment and the Borrower fails
to make such payment, each Lender agrees to repay to the Administrative Agent,
forthwith on demand, to the extent that such amount is not recovered from the
Borrower on demand and after reasonable efforts by the Administrative Agent to
collect such amount (without in any way obligating the Administrative Agent to
take any legal action with respect to such collection), such Lender’s Pro Rata
Share of the payment made to it pursuant hereto together with interest thereon
at the then prevailing interbank rate for each day from the date such amount is
remitted to the Lenders until the date such amount is paid or repaid to the
Administrative Agent, the exact amount of the repayment required to be made by
the Lenders pursuant hereto to be as set forth in a certificate delivered by the
Administrative Agent to each Lender, which certificate shall constitute prima
facie evidence of such amount of repayment. 

	3.10 	
      Evidence of Indebtedness

The Administrative Agent shall
open and maintain accounts wherein it shall record the amount and type of credit
outstanding, each advance and each payment of principal and interest on account
of each Loan, each Bankers’ Acceptance accepted and cancelled, the amount and
currency of each Letter issued and drawn upon and all other amounts becoming due
to and being paid to the Lenders (including the Issuing Lender) and the
Administrative Agent hereunder. The Administrative Agent’s accounts constitute,
in the absence of manifest error, prima facie evidence of the
indebtedness of the Borrowers to the Lenders (including the Issuing Lender) and
the Administrative Agent hereunder. 

	3.11 	
      General Provisions Relating to All
  Letters

	 	(a) 	
      Each request by the Borrower for the issuance or
      amendment of a Letter shall be deemed to be a representation by the
      Borrower that the extension of credit so requested complies with the conditions set forth in Section
12.1. The Borrower hereby acknowledges and confirms to the Issuing Lender that
the Issuing Lender shall not be obliged to make any inquiry or investigation as
to the right of any beneficiary to make any claim or Draft under a Letter and
payment by the Issuing Lender pursuant to a Letter shall not be withheld by the
Issuing Lender by reason of any matters in dispute between the beneficiary
thereof and the Borrower. The sole obligation of the Issuing Lender with respect
to Letters issued by it is to cause to be paid a Draft drawn or purporting to be
drawn in accordance with the terms of the applicable Letter and for such purpose
the Issuing Lender is only obliged to determine that the Draft purports to
comply with the terms and conditions of the relevant Letter.

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	 	(b) 	
      The Issuing Lender shall not have any responsibility or
      liability for or any duty to inquire into the form, sufficiency (other
      than to the extent provided in the preceding paragraph), authorization,
      execution, signature, endorsement, correctness (other than to the extent
      provided in the preceding paragraph), genuineness or legal effect of any
      Draft, certificate or other document presented to it pursuant to a Letter
      issued by the Issuing Lender and the Borrower unconditionally assumes all
      risks with respect to the same. The Borrower agrees that it assumes all
      risks of the acts or omissions of the beneficiary of any Letter with
      respect to the use by such beneficiary of the relevant Letter. The
      Borrower shall promptly examine a copy of each Letter and each amendment
      thereto that is delivered to it and, in the event of any claim of
      non-compliance with the Borrower’s instructions or other irregularity, the
      Borrower will immediately notify the Issuing Lender. The Borrower shall be
      conclusively deemed to have waived any such claim against the Issuing
      Lender and its correspondents unless such notice is given as
  aforesaid.

	 	 	 
	 	(c) 	
      The obligations of the Borrower hereunder with respect to
      Letters shall be absolute, unconditional and irrevocable and shall not be
      reduced by any event or occurrence including, without
limitation:

	 	(i) 	
      any lack of validity or enforceability of this agreement
      or any such Letter;

	 	 	 
	 	(ii) 	
      any amendment or waiver of or any consent to departure
      from this agreement;

	 	 	 
	 	(iii) 	
      the existence of any claim, set-off, defense or other
      rights which the Borrower may have at any time against any beneficiary or
      any transferee of any such Letter (or any person or entities for whom any
      such beneficiary or any such transferee may be acting), any Lender, the
      Issuing Lender or any other person or entity;

	 	 	 
	 	(iv) 	
      any Draft, statement or other document presented under
      any such Letter proving to be forged, fraudulent, invalid or insufficient
      in any respect or any statement therein being untrue or inaccurate in any
      respect whatsoever;

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	 	(v) 	
      any non-application or misapplication by the beneficiary
      of such Letter of the proceeds of any drawing under such Letter;

	 	 	 
	 	(vi) 	
      the surrender or impairment of any Security;

	 	 	 
	 	(vii) 	
      any reduction or withdrawal of the Issuing Lender’s
      credit rating by any rating agency; or

	 	 	 
	 	(viii) 	
      any other circumstance or happening whatsoever, similar
      to any of the foregoing, including any other circumstance that might
      otherwise constitute a defense available to, or a discharge of, the
      Borrower.

The obligations of the Borrower
hereunder with respect to Letters shall remain in full force and effect and
shall apply to any amendment to or extension of the expiration date of any such
Letter, approved in writing by the Borrower. The Issuing Lender shall not be
under any obligation to amend any Letter if (A) the Issuing Lender would have no
obligation at such time to issue such Letter in its amended form under the terms
hereof, or (B) the beneficiary of such Letter does not accept the proposed
amendment to such Letter. 

	 	(d) 	
      Any action, inaction or omission taken or suffered by the
      Issuing Lender or any of its correspondents under or in connection with a
      Letter or any Draft made thereunder, if in good faith and in conformity
      with foreign or domestic laws, regulations or customs applicable thereto,
      shall be binding upon the Borrower and shall not place the Issuing Lender
      or any of its correspondents under any resulting liability to the
      Borrower. Without limiting the generality of the foregoing, the Issuing
      Lender and its correspondents may receive, accept or pay as complying with
      the terms of a Letter, any Draft thereunder, otherwise in order which may
      be signed by, or issued to, the administrator or any executor of, or the
      trustee in bankruptcy of, or the receiver for any property of, or other
      person or entity acting as the representative or in the place of, such
      beneficiary or its successors and assigns. The Borrower covenants that it
      will not take any steps, issue any instructions to the Issuing Lender or
      any of its correspondents or institute any proceedings intended to
      derogate from the right or ability of the Issuing Lender or its
      correspondents to honour and pay any Draft or Drafts.

	 	 	 
	 	(e) 	
      The Borrower agrees that the Lenders, the Issuing Lender
      and the Administrative Agent shall have no liability to it for any reason
      in respect of or in connection with any Letter, the issuance thereof, any
      payment thereunder, or any other action taken by the Lenders, the Issuing
      Lender or the Administrative Agent or any other Person in connection
      therewith, other than on account of the Issuing Lender’s gross negligence
      or wilful misconduct.

	 	 	 
	 	(f) 	
      Save to the extent expressly provided otherwise in this
      Section 3.9, the rights and obligations between the Issuing Lender and the
      Borrower with respect to each Letter shall be determined in accordance
      with the applicable provisions of the (i) Uniform Customs and Practice for
      Documentary Credits, ICC Publications 600 or (ii) the International Standby Practices - ISP98, ICC
Publication No. 590, as applicable. 

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	 	(g) 	
      The Issuing Lender shall act on behalf of the Lenders
      with respect to any Letters issued by it and the documents associated
      therewith, and the Issuing Lender shall have all of the benefits and
      immunities (A) provided to the Administrative Agent in Article 14 with
      respect to any acts taken or omissions suffered by the Issuing Lender in
      connection with Letters issued by it or proposed to be issued by it and
      any documentation pertaining to such Letters as fully as if the term
      “Administrative Agent” as used in Article 14 included the Issuing Lender
      with respect to such acts or omissions, and (B) as additionally provided
  herein with respect to the Issuing Lender.

	 	 	 
	 	(h) 	
      Immediately upon the issuance of each Letter, each Lender
      shall be deemed to, and hereby irrevocably and unconditionally agrees to,
      purchase from the Issuing Lender a risk participation in such Letter in an
      amount equal to the product of such Lender’s Pro Rata Share times the
      amount of such Letter.

	 	 	 
	 	(i) 	
      None of the Issuing Lender, the Administrative Agent nor
      any correspondent, participant or assignee of the Issuing Lender shall be
      liable to any Lender for (i) any action of any of the Issuing Lender, the
      Administrative Agent or any correspondent, participant or assignee of the
      Issuing Lender taken or omitted in connection herewith at the request or
      with the approval of the Lenders or the Majority Lenders, as applicable,
      (ii) any action of any of the Issuing Lender, the Administrative Agent or
      any correspondent, participant or assignee of the Issuing Lender taken or
      omitted in the absence of such party’s gross negligence or wilful
      misconduct; or (iii) any deficiency in the due execution, effectiveness,
      validity or enforceability of any document or instrument related to any
Letter.

	3.12 	
      Notice Periods

Each Drawdown Notice, Rollover
Notice, Conversion Notice and Prepayment Notice shall be given to the
Administrative Agent or the Issuing Lender, as the case may be: 

	 	(a) 	
      prior to 10:00 a.m. (Toronto time) on the tenth day prior
      to the date of any voluntary prepayment;

	 	 	 
	 	(b) 	
      prior to 10:00 a.m. (Toronto time) on the fifth Banking
      Day prior to the issuance of a Letter;

	 	 	 
	 	(c) 	
      prior to 10:00 a.m. (Toronto time) on the third Banking
      Day prior to the date of a drawdown of, rollover of, conversion into or
      conversion of a LIBOR Loan; and

	 	 	 
	 	(d) 	
      prior to 10:00 a.m. (Toronto time) on the second Banking
      Day prior to the date of any other drawdown, rollover or
  conversion.

  	3.13 	
      Administrative Agent’s Discretion to
    Allocate

Notwithstanding the provisions of
Section 3.2 with respect to the funding of Loans in accordance with each
Lender’s Pro Rata Share, the Administrative Agent shall be entitled to
reallocate the funding obligations among the Lenders in order to ensure, to the
greatest extent practicable, that after such funding the aggregate amount of
credit extended hereunder by each Lender coincides with such Lender’s Pro Rata
Share of the aggregate amount of credit extended by all of the Lenders, provided
that no such allocation shall result in the aggregate amount of credit extended
hereunder by any Lender exceeding such Lender’s Individual Commitment. 

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ARTICLE 4 
DRAWDOWNS 

	4.1 	
      Drawdown Notice

Subject to Sections 3.1 and 3.7
and provided that all of the applicable conditions precedent set forth in
Article 12 have been fulfilled by the Borrower or waived by the Lenders as
provided in Section 14.14, the Borrower may, from time to time, obtain credit
hereunder by giving to the Administrative Agent an irrevocable notice in
substantially the form of Schedule E hereto (“Drawdown Notice”) in
accordance with Section 3.12 and specifying, as applicable: 

	 	(a) 	
      the date the credit is to be obtained;

	 	 	 
	 	(b) 	
      whether the credit is to be obtained by way of a Prime
      Rate Loan, a BA Equivalent Loan, a Base Rate Loan, a LIBOR Loan, a
      Bankers’ Acceptance or a Letter;

	 	 	 
	 	(c) 	
      in the case of any credit to be obtained by way of a
      Loan, the principal amount of the Loan;

	 	 	 
	 	(d) 	
      if the credit is to be obtained by way of LIBOR Loan, the
      applicable Interest Period;

	 	 	 
	 	(e) 	
      if the credit is to be obtained by way of Bankers’
      Acceptances, the aggregate face amount of the Bankers’ Acceptances to be
      issued and the term of the Bankers’ Acceptances;

	 	 	 
	 	(f) 	
      if the credit is to be obtained by way of Letter, the
      date of issuance of the Letter, whether the Letter is to be a letter of
      credit or a letter of guarantee, the named beneficiary of the Letter, the
      maturity date and amount of the Letter, the currency in which the Letter
      is to be denominated and all other terms of the Letter; and

	 	 	 
	 	(g) 	
      the details of any irrevocable authorization and
      direction pursuant to Section 3.2.

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ARTICLE 5 
ROLLOVERS 

	5.1 	
      LIBOR Loans

Subject to Section 3.7 and
provided that the Borrower has, by giving notice to the Administrative Agent in
accordance with Section 5.3, requested the Lenders to continue to extend credit
by way of a LIBOR Loan to replace all or a portion of an outstanding LIBOR Loan
as it matures, each Lender shall, on the maturity of such LIBOR Loan, continue
to extend credit to the Borrower by way of a LIBOR Loan (without a further
advance of funds to the Borrower) in the principal amount equal to such Lender’s
Pro Rata Share of the principal amount of the matured LIBOR Loan or the portion
thereof to be replaced. 

	5.2 	
      Bankers’ Acceptances

Subject to Section 3.4 and
provided that the Borrower has, by giving notice to the Administrative Agent in
accordance with Section 5.3, requested the Lenders to accept its drafts to
replace all or a portion of outstanding Bankers’ Acceptances as they mature,
each Lender shall, on the maturity of such Bankers’ Acceptances and concurrent
with the payment by the Borrower to such Lender of the face amount of such
Bankers’ Acceptances or the portion thereof to be replaced, accept the
Borrower’s draft or drafts having an aggregate face amount equal to its Pro Rata
Share of the aggregate face amount of the matured Bankers’ Acceptances or the
portion thereof to be replaced. 

	5.3 	
      Rollover Notice

The notice to be given to the
Administrative Agent pursuant to Section 5.1 or 5.2 (“Rollover Notice”)
shall be irrevocable, shall be given in accordance with Section 3.12, shall be
in substantially the form of Schedule F hereto and shall specify: 

	 	(a) 	
      the maturity date of the maturing Bankers’ Acceptances or
      the expiry date of the Interest Period of the LIBOR Loan to be replaced,
      as the case may be;

	 	 	 
	 	(b) 	
      the face amount of the maturing Bankers’ Acceptances or
      the principal amount of the LIBOR Loan to be replaced, as the case may be,
      and the portion thereof to be replaced; and

	 	 	 
	 	(c) 	
      the aggregate face amount of the new Bankers’ Acceptances
      and the term or terms of the new Bankers’ Acceptances or the principal
      amount of the new LIBOR Loans, as the case may be, and the Interest Period
      or Interest Periods of the new LIBOR Loans.

	5.4 	
      Rollover by Lenders

Upon written notice to such
effect to the Borrower at such time as a Default has occurred and is continuing,
the Administrative Agent may, as applicable: 

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	 	(a) 	
      on the maturity date of a LIBOR Loan, rollover such LIBOR
      Loan into a LIBOR Loan having an Interest Period of one month or such
      other period as the Lenders may determine, as though a notice to such
      effect had been given in accordance with Section 5.3.

	 	 	 
	 	(b) 	
      on the maturity date of a Bankers’ Acceptance, rollover
      such Bankers’ Acceptance into a Bankers’ Acceptance having a term of 30
      days or such other period as the Lenders may determine, as though a notice
      to such effect had been given in accordance with Section
  5.3.

ARTICLE 6 
CONVERSIONS 

	6.1 	
      Converting Loan to Other Type of
  Loan

Subject to Sections 3.1 and 3.7
and provided that the Borrower has, by giving notice to the Administrative Agent
in accordance with Section 6.4, requested the Lenders to convert all or a
portion of an outstanding Loan into another type of Loan, each Lender shall, on
the date of conversion (which, in the case of the conversion of all or a portion
of an outstanding LIBOR Loan, shall be the date on which such Loan matures),
continue to extend credit to the Borrower by way of the type of Loan into which
the outstanding Loan or a portion thereof is converted (with a repayment and a
subsequent advance of funds to the Borrower) in the aggregate principal amount
equal to such Lender’s Pro Rata Share of the principal amount of the outstanding
Loan or the portion thereof which is being converted. 

	6.2 	
      Converting Loan to Bankers’
  Acceptances

Subject to Section 3.4 and
provided that the Borrower has, by giving notice to the Administrative Agent in
accordance with Section 6.4, requested the Lenders to accept its drafts to
replace all or a portion of an outstanding Loan and, if a LIBOR Loan or a BA
Equivalent Loan is to be replaced, the date of conversion is the date on which
such Loan matures, each Lender shall, on the date of conversion and concurrent
with the payment by the Borrower to each Lender of the principal amount of such
outstanding Loan or the portion thereof which is being converted, accept the
Borrower’s draft or drafts having an aggregate face amount as provided in the
Conversion Notice. 

	6.3 	
      Converting Bankers’ Acceptances to
  Loan

Each Lender shall, on the
maturity date of a Bankers’ Acceptance which such Lender has accepted, pay to
the holder thereof the face amount of such Bankers’ Acceptance. Subject to
Sections 3.1 and 3.7, and provided that the Borrower has, by giving notice to
the Administrative Agent in accordance with Section 6.4, requested the Lenders
to convert all or a portion of outstanding maturing Bankers’ Acceptances into a
particular type of Loan, each Lender shall, upon the maturity date of such
Bankers’ Acceptances and the payment by such Lender to the holders of such
Bankers’ Acceptances of the aggregate face amount thereof, make credit available
to the Borrower by way of the Loan into which the matured Bankers’ Acceptances
or a portion thereof are converted in the aggregate principal amount as provided
in the Conversion Notice. Where a particular Non-BA Lender has funded the
Borrower by way of a BA Equivalent Loan rather than by way of Bankers’
Acceptances, the provisions of this Section 6.3 as they relate to Bankers’
Acceptances shall apply mutatis mutandis to such BA Equivalent Loan. 

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	6.4 	
Conversion Notice

The notice to be given to the
Administrative Agent pursuant to Section 6.1, 6.2 or 6.3 (“Conversion
Notice”) shall be irrevocable, shall be given in accordance with Section
3.12, shall be in substantially the form of Schedule G hereto and shall specify:

	 	(a) 	
      whether an outstanding Loan or Bankers’ Acceptances are
      to be converted and, if an outstanding Loan is to be converted, the type
      of Loan to be converted;

	 	 	 
	 	(b) 	
      the date on which the conversion is to take
  place;

	 	 	 
	 	(c) 	
      the face amount of the Bankers’ Acceptances or the
      portion thereof which is to be converted or the principal amount of the
      Loan or the portion thereof which is to be converted;

	 	 	 
	 	(d) 	
      the type and amount of the Loan or Bankers’ Acceptances
      into which the outstanding Loan or Bankers’ Acceptances are to be
      converted;

	 	 	 
	 	(e) 	
      if outstanding extension of credit is to be converted
      into a LIBOR Loan, the applicable Interest Period; and

	 	 	 
	 	(f) 	
      if an outstanding Loan is to be converted into Bankers’
      Acceptances, the aggregate face amount of the new Bankers’ Acceptances to
      be issued, the term or terms of the new Bankers’
  Acceptances.

	6.5 	
      Absence of Notice

Subject to Section 3.6 and 3.7,
in the absence of a Rollover Notice or Conversion Notice within the appropriate
time periods referred to herein, a maturing Bankers’ Acceptance or BA Equivalent
Loan shall be automatically converted to a Prime Rate Loan and a maturing LIBOR
Loan shall be automatically converted to a Base Rate Loan as though a notice to
such effect had been given in accordance with Section 6.4. 

	6.6 	
      Conversion by Lenders

If an Event of Default has
occurred and is continuing at 10:00 a.m. (Toronto time) on the third Banking Day
prior to the maturity date of a Bankers’ Acceptance, BA Equivalent Loan or a
LIBOR Loan, such Bankers’ Acceptances or BA Equivalent Loan shall be
automatically converted to a Prime Rate Loan and such LIBOR Loan shall be
automatically converted to a Base Rate Loan as though a notice to such effect
had been given in accordance with Section 6.4. 

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ARTICLE 7 
INTEREST AND FEES 

	7.1 	
      Interest Rates

The Borrower shall pay to the
Lenders, in accordance with Section 3.8, interest on the outstanding principal
amount from time to time of each Loan and on overdue interest thereon, at the
rate per annum equal to: 

	 	(i) 	
      in the case of each Prime Rate Loan, the Prime Rate plus
      the Applicable Margin;

	 	 	 
	 	(ii) 	
      in the case of each Base Rate Loan, the Alternate Base
      Rate Canada plus the Applicable Margin; and

	 	 	 
	 	(iii) 	
      in the case of each LIBOR Loan, LIBOR plus the Applicable
      Margin.

	7.2 	
      Calculation and Payment of
  Interest

	 	(a) 	
      Interest on the outstanding principal amount from time to
      time of each LIBOR Loan and on overdue interest thereon shall accrue from
      day to day from and including the date on which credit is obtained by way
      of such Loan or on which such overdue interest is due, as the case may be,
      to but excluding the date on which such Loan or overdue interest, as the
      case may be, is repaid in full (both before and after maturity and
      judgment) and shall be calculated on the basis of the actual number of
      days elapsed divided by 360.

	 	 	 
	 	(b) 	
      Interest on the outstanding principal amount from time to
      time of each Prime Rate Loan and Base Rate Loan and on overdue interest
      thereon shall accrue from day to day from and including the date on which
      credit is obtained by way of such Loan or on which such overdue interest
      is due, as the case may be, to but excluding the date on which such Loan
      or overdue interest, as the case may be, is repaid in full (both before
      and after maturity and judgment) and shall be calculated on the basis of
      the actual number of days elapsed divided by 365 or, in the case of a leap
      year, 366.

	 	 	 
	 	(c) 	
      Accrued interest shall be
paid,

	 	(i) 	
      in the case of interest on Prime Rate Loans and Base Rate
      Loans, monthly in arrears on the last day of each calendar month;
    and

	 	 	 
	 	(ii) 	
      in the case of interest on LIBOR Loans, in arrears on the
      last day of the applicable Interest Period but, in any event, at least
      every 3 months.

	7.3 	
      General Interest Rules

	 	(a) 	
      For the purposes hereof, whenever interest is calculated
      on the basis of a year of 360 or 365 days, each rate of interest
      determined pursuant to such calculation expressed as an annual rate for the purposes of the Interest
Act (Canada) is equivalent to such rate as so determined multiplied by the
actual number of days in the calendar year in which the same is to be
ascertained and divided by 360 or 365 days, respectively. 

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	 	(b) 	
      Interest on each Loan and on overdue interest thereon
      shall be payable in the currency in which such Loan is denominated during
  the relevant period.

	 	 	 
	 	(c) 	
      If the Borrower fails to pay any fee or other amount
      (other than principal or interest) of any nature payable by it to the
      Administrative Agent or the Lenders hereunder or under any document,
      instrument or agreement delivered pursuant hereto on the due date
      therefor, the Borrower shall pay to the Administrative Agent or the
      Lenders, as the case may be, interest on such overdue amount in the same
      currency as such overdue amount is payable from and including such due
      date to but excluding the date of actual payment (as well before and after
      judgment) at the rate per annum, calculated and compounded monthly, which
      is equal to the Alternate Base Rate Canada plus 4.00%. Such interest on
      overdue amounts shall become due and be paid on demand made by the
      Administrative Agent.

	 	 	 
	 	(d) 	
      No interest or fee to be paid hereunder shall be paid at
      a rate exceeding the maximum rate permitted by Applicable Law. In the
      event that such interest or fee exceeds such maximum rate, such interest
      or fees shall be reduced or refunded, as the case may be, so as to be
      payable at the highest rate recoverable under Applicable
Law.

	7.4 	
      Selection of Interest
Periods

With respect to each LIBOR Loan,
the Borrower shall specify in the Drawdown Notice, Rollover Notice or Conversion
Notice, the duration of the Interest Period provided that: 

	 	(a) 	
      Interest Periods shall have a duration from one, two,
      three or six months (subject to availability and subject to the right of
      the Administrative Agent, in its sole discretion, to restrict the term or
      maturity date of Interest Periods);

	 	 	 
	 	(b) 	
      the first Interest Period for a LIBOR Loan shall commence
      on and include the day on which credit is obtained by way of such Loan and
      each subsequent Interest Period applicable thereto shall commence on and
      include the date of the expiry of the immediately preceding Interest
      Period applicable thereto; and

	 	 	 
	 	(c) 	
      if any Interest Period would end on a day which is not a
      Banking Day, such Interest Period shall be extended to the next succeeding
      Banking Day unless such next succeeding Banking Day falls in the next
      calendar month, in which case such Interest Period shall be shortened to
      end on the immediately preceding Banking Day.

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	7.5 	
      BA Acceptance Fees

With respect to each BA Draft of
the Borrower accepted pursuant hereto and each BA Equivalent Note issued
hereunder, the Borrower shall pay to the Lenders, in advance, the BA Acceptance
Fee therefor. Such BA Acceptance Fees shall be non-refundable and shall be fully
earned when due. 

	7.6 	
      Standby Fees

Upon the first Banking Day
following the completion of each Fiscal Quarter and on the termination of the
Credit Facility, the Borrower shall pay, in accordance with Section 3.6, to the
Lenders, in arrears, a standby fee calculated at the rate per annum, on the
basis of the actual number of days elapsed and a year of 365 or 366 days, as the
case may be, set forth in Schedule A hereto, on the Available Credit, such fee
to accrue daily from the date of the execution and delivery of this agreement to
and including the termination of the Credit Facility.

	7.7 	
      Letter Fees

	 	(a) 	
      The Borrower shall pay in accordance with Section 3.8 to
      the Administrative Agent, for the benefit of the Lenders, an issuance fee
      (in the currency which the Letter is denominated) in advance on the date
      each Letter is issued or renewed, calculated at the rate per annum equal
      to the Applicable Margin (on the basis of a year of 365 or 366 days, as
      the case may be) on the amount of each such Letter. In addition, with
      respect to all Letters, the Borrower shall from time to time pay to the
      Lenders its usual and customary fees (at the then prevailing rates) for
      the amendment, delivery and administration of letters of credit and
      letters of guarantee such as the Letters. Each such payment is
      non-refundable and fully earned when due.

	 	 	 
	 	(b) 	
      With respect to each Letter issued hereunder at the time
      when there is one or more Lenders other than the Issuing Lender, the
      Borrower shall pay to the Administrative Agent for the account of the
      Issuing Lender a fee (in the currency in which the Letter is denominated)
      in advance on the date each such Letter is issued or renewed, calculated
      at a rate per annum equal to 0.25% on the amount of each such Letter for
      the number of days in the term of such Letter in the year of 365 or 366
      days, as the case may be, in which the Letter is issued or renewed. Each
      such payment is non-refundable and fully earned when
due.

ARTICLE 8 
RESERVE, CAPITAL, INDEMNITY AND TAX
PROVISIONS 

	8.1 	
      Conditions of Credit

The obtaining or maintaining of
credit hereunder shall be subject to the terms and conditions contained in this
Article 8. 

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	8.2 	
      Change of
Circumstances

	 	(a) 	
      If, with respect to any type of credit, the introduction
      or adoption of any law, regulation, guideline, request or directive
      (whether or not having the force of law) of any governmental authority,
      central bank or comparable agency (“Restraint”) or any change
      therein or in the application thereof to the Borrower or to any Lender or
      in the interpretation or administration thereof or any compliance by any
      Lender therewith:

	 	(i) 	
      prohibits or restricts extending or maintaining such type
      of credit or the charging of interest or fees in connection therewith, the
      Borrower agrees that such Lender shall have the right to comply with such
      Restraint, shall have the right to refuse to permit the Borrower to obtain
      such type of credit and shall have the right to require, at the option of
      the Borrower, the conversion of such outstanding credit to another type of
      credit to permit compliance with the Restraint or repayment in full of
      such credit together with accrued interest thereon on the last day on
      which it is lawful for such Lender to continue to maintain and fund such
      credit or to charge interest or fees in connection therewith, as the case
      may be; or

	 	 	 
	 	(ii) 	
      shall impose or require any reserve, special deposit
      requirements or tax (excluding taxes measured with reference to the net
      income of such Lender or capital taxes or receipts and franchise taxes),
      shall establish an appropriate amount of capital to be maintained by such
      Lender or shall impose any other requirement or condition which results in
      an increased cost to such Lender of extending or maintaining a credit or
      obligation hereunder or reduces the amount received or receivable by such
      Lender with respect to any credit under this agreement or reduces such
      Lender’s effective return hereunder or on its capital or causes such
      Lender to make any payment or to forego any return based on any amount
      received or receivable hereunder, then, on notification to the Borrower by
      such Lender, the Borrower shall pay immediately to such Lender such
      amounts as shall fully compensate such Lender for all such increased
      costs, reductions, payments or foregone returns which accrue up to and
      including the date of receipt by the Borrower of such notice and
      thereafter, upon demand from time to time, the Borrower shall pay such
      additional amount as shall fully compensate such Lender for any such
      increased or imposed costs, reductions, payments or foregone returns. Such
      Lender shall notify the Borrower of any actual increased or imposed costs,
      reductions, payments or foregone returns forthwith on becoming aware of
      same and shall concurrently provide to the Borrower a certificate of an
      officer of such Lender setting forth the amount of compensation to be paid
      to such Lender and the basis for the calculation of such amount.
      Notwithstanding this Section 8.2(a)(ii), the Borrower shall not be liable
      to compensate such Lender for any such cost, reduction, payment or
      foregone return occurring more than 60 days before receipt by the Borrower
      of the aforementioned notification from such Lender; provided, however,
      that the aforementioned limitation shall not apply to any such cost, reduction, payment
or foregone return of a retroactive nature. 

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For certainty, the Dodd-Frank Wall
  Street Reform and Consumer Protection Act as well as Basel III and all request,
  rules, guidelines or directives thereunder or issued in connection therewith
  shall be deemed to be a “Restraint”, regardless of the date enacted,
adopted, promulgated or issued. 

	 	(b) 	
      Each Lender agrees that, as promptly as practicable after
      it becomes aware of the occurrence of an event or the existence of a
      condition that would cause it to seek additional amounts from the Borrower
      pursuant to Section 8.2(a), it will use reasonable efforts to make, fund
      or maintain the affected credit of such Lender through another lending
      office or take such other actions as it deems appropriate, in its sole
      discretion, if as a result thereof the additional moneys which would
      otherwise be required to be paid in respect of such credit pursuant to
      Section 8.2(a), would be reduced and if, as determined by such Lender in
      its sole discretion, the making, funding or maintaining of such affected
      credit through such other lending office or the taking of such other
      actions would not otherwise adversely affect such credit or such Lender
      and would not, in such Lender’s sole discretion, be commercially
      unreasonable.

	8.3 	
      Failure to Fund as a Result of Change of
      Circumstances

If any Lender but not all of the
Lenders seeks additional compensation pursuant to Section 8.2(a), if any Lender
becomes either a Defaulting Lender or a Lender in respect of which any amounts
are paid or become payable by the Borrower pursuant to Section 8.6 (the
“Affected Lender”), then the Borrower may indicate to the Administrative
Agent in writing that it desires to replace the Affected Lender with one or more
of the other Lenders, and the Administrative Agent shall then forthwith give
notice to the other Lenders that any such Lender or Lenders may, in the
aggregate, advance all (but not part) of the Affected Lender’s Pro Rata Share of
the affected credit and, in the aggregate, assume all (but not part) of the
Affected Lender’s Individual Commitment and obligations hereunder and acquire
all (but not part) of the rights of the Affected Lender and assume all (but not
part) of the obligations of the Affected Lender under each of the other Credit
Documents (but in no event shall any other Lender or the Administrative Agent be
obliged to do so). If one or more Lenders shall so agree in writing (herein
collectively called the “Assenting Lenders” and individually called an
“Assenting Lender”) with respect to such advance, acquisition and
assumption, the Pro Rata Share of such credit of each Assenting Lender and the
Individual Commitment and the obligations of such Assenting Lender hereunder and
the rights and obligations of such Assenting Lender under each of the other
Credit Documents shall be increased by its respective pro rata share
(based on the relative Individual Commitment of the Assenting Lenders) of the
Affected Lender’s Pro Rata Share of such credit and Individual Commitment and
obligations hereunder and rights and obligations under each of the other Credit
Documents on a date mutually acceptable to the Assenting Lenders and the
Borrower. On such date, the Assenting Lenders shall extend to the Borrower the
Affected Lender’s Pro Rata Share of such credit and shall prepay to the Affected
Lender the advances of the Affected Lender then outstanding, together with all
interest accrued thereon and all other amounts owing to the Affected Lender
hereunder, and, upon such advance and prepayment by the Assenting Lenders, the Affected Lender shall cease to be a
“Lender” for purposes of this agreement and shall no longer have any
obligations hereunder. Upon the assumption of the Affected Lender’s Individual
Commitment as aforesaid by an Assenting Lender, Schedule B hereto shall be
deemed to be amended to increase the Individual Commitment of such Assenting
Lender by the respective amounts of such assumption. 

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	8.4 	
      Indemnity Relating to
Credits

Upon notice from the
Administrative Agent to the Borrower, the Borrower shall pay to the
Administrative Agent, for the benefit of the Lenders (including the Issuing
Lender), such amount or amounts (as determined by each lender in accordance with
its usual practice) as will compensate the Lenders for any loss, cost or expense
incurred by them: 

	 	(a) 	
      in the liquidation or redeposit of any funds acquired by
      the Lenders to fund or maintain any portion of a LIBOR Loan or a BA
      Equivalent Loan as a result of:

	 	(i) 	
      the failure of the Borrower to borrow or make repayments
      on the dates specified under this agreement or in any notice from the
      Borrower to the Administrative Agent (provided that if any notice
      specifies the repayment of a LIBOR Loan or a BA Equivalent Loan at any
      time other than its maturity date, then the Borrower shall be responsible
      for any loss, costs or expenses referred to above); or

	 	 	 
	 	(ii) 	
      the repayment or prepayment of any amounts on a day other
      than the payment dates prescribed herein or in any notice from the
      Borrower to the Administrative Agent (provided that if any notice
      specifies the repayment of a LIBOR Loan or a BA Equivalent Loan at any
      time other than its maturity date, then the Borrower shall be responsible
      for any loss, costs or expenses referred to above);
or

	 	(b) 	
      with respect to any Bankers’ Acceptance or Letter,
      arising from claims or legal proceedings, and including reasonable legal
      fees and disbursements, respecting the collection of amounts owed by the
      Borrower hereunder in respect of such Bankers’ Acceptance or Letter or the
      enforcement of the Administrative Agents’ or Lenders’ rights hereunder in
      respect of such Bankers’ Acceptance or Letter including, without
      limitation, legal proceedings attempting to restrain the Lenders
      (including the Issuing Lender) from paying any amount under such Bankers’
      Acceptance or Letter; or

	 	 	 
	 	(c) 	
      in converting United States dollars into Canadian dollars
      or Canadian dollars into United States dollars as a result of the failure
      of the Borrower to make repayments of outstanding credit hereunder in the
      currency in which such outstanding credit was
  denominated.

The aforesaid notice from the
Administrative Agent shall be accompanied by a written certificate from each
Lender showing in reasonable detail the basis for such claim, which shall be
deemed to be prima facie correct absent manifest error. 

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	8.5 	Indemnity for Transactional and
      Environmental Liability 

	 	(a) 	
      The Borrower hereby agrees to indemnify and hold the
      Administrative Agent, each Lender and each of their respective Affiliates,
      shareholders, officers, directors, employees, and agents (collectively,
      the “Indemnified Parties”) free and harmless from and against any
      and all claims, demands, actions, causes of action, suits, losses, costs,
      charges, liabilities and damages, and expenses in connection therewith
      (irrespective of whether such Indemnified Party is a party to the action
      for which indemnification hereunder is sought), and including, without
      limitation, reasonable legal fees and out of pocket disbursements and
      amounts paid in settlement which are approved by the Borrower
      (collectively in this Section 8.5(a), the “Indemnified
      Liabilities”), incurred or suffered by, or asserted against, the
      Indemnified Parties or any of them as a result of, or arising out of, or
      relating to (i) the extension of credit contemplated herein, (ii) any
      transaction financed or to be financed in whole or in part, directly or
      indirectly, with the proceeds of any credit extended hereunder, (iii) any
      actual or threatened investigation, litigation or other proceeding
      relating to any credit extended or proposed to be extended as contemplated
      herein or (iv) the execution, delivery, performance or enforcement of the
      Credit Documents and any instrument, document or agreement executed
      pursuant hereto, except for any such Indemnified Liabilities that a court
      of competent jurisdiction’s binding and non- appealable decision held that
      such Indemnified Liability arose on account of the relevant Indemnified
      Party’s gross negligence or willful misconduct.

	 	 	 
	 	(b) 	
      Without limiting the generality of the indemnity set out
      in the preceding clause (a), the Borrower hereby further agrees to
      indemnify and hold the Indemnified Parties free and harmless from and
      against any and all claims, demand, actions, causes of action, suits,
      losses, costs, charges, liabilities and damages, and expenses in
      connection therewith, including, without limitation, reasonable and
      documented legal fees and out of pocket disbursements and amounts paid in
      settlement which are approved by the Borrower, of any and every kind
      whatsoever paid (collectively in this Section 8.5(b), the “Indemnified
      Liabilities”), incurred or suffered by, or asserted against, the
      Indemnified Parties or any of them for, with respect to, or as a direct or
      indirect result of, (i) the presence on or under, or the escape, seepage,
      leakage, spillage, discharge, emission or release from, any real property
      legally or beneficially owned (or any estate or interest which is owned),
      leased, used or operated by any Company of any Hazardous Material,
      Contaminant, Pollutant or Waste, and (ii) any other violation of or
      liability pursuant to an Environmental Law with respect to any Company,
      and regardless of whether caused by, or within the control of, such
      Company, except for any such Indemnified Liabilities that a court of
      competent jurisdiction’s binding and non-appealable decision held that
      such Indemnified Liability arose on account of the relevant Indemnified
      Party’s gross negligence or willful misconduct.

	 	 	 
	 	(c) 	
      All obligations provided for in this Section 8.5 shall
      survive indefinitely the permanent repayment of the outstanding credit
      hereunder and the termination of the Credit Agreement. The obligations provided for in this
Section 8.5 shall not be reduced or impaired by any investigation made by or on
behalf of the Administrative Agent or any of the Lenders. 

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	 	(d) 	
      The Borrower hereby agrees that, for the purposes of
      effectively allocating the risk of loss placed on the Borrower by this
      Section 8.5, the Administrative Agent and each Lender shall be deemed to
      be acting as the agent or trustee on behalf of and for the benefit of
      their respective shareholders, officers, directors, employees and
  agents.

	 	 	 
	 	(e) 	
      If, for any reason, the obligations of the Borrower
      pursuant to this Section 8.5 shall be unenforceable, the Borrower agrees
      to make the maximum contribution to the payment and satisfaction of each
      obligation that is permissible under Applicable Law.

	 	 	 
	 	(f) 	
      The indemnity under this Section 8.5 shall not apply to
      any matters specifically dealt with in Sections 8.2, 8.4, 8.6 or
11.2(f).

	8.6 	
      Payments Free and Clear of
Taxes

	 	(a) 	
      Any and all payments made by or on behalf of the Borrower
      under this agreement or under any other Credit Document (any such payment
      being hereinafter referred to as a “Payment”) to or for the benefit
      of the Administrative Agent or any Lender shall be made without set-off or
      counterclaim, and free and clear of, and without deduction or withholding
      for, or on account of, any and all present or future Taxes except to the
      extent that such deduction or withholding is required by law or the
      administrative practice of any Official Body. If any such Taxes are so
      required to be deducted or withheld from or in respect of any Payment made
      to or for the benefit of the Administrative Agent or any Lender, the
      Borrower shall:

	 	(i) 	
      promptly notify the Administrative Agent of such
      requirement;

	 	 	 
	 	(ii) 	
      with respect to Taxes other than Excluded Taxes, pay to
      the Administrative Agent or Lender, as the case may be, in addition to the
      Payment to which the Administrative Agent or Lender is otherwise entitled,
      such additional amount as is necessary to ensure that the net amount
      actually received by the Administrative Agent or Lender (free and clear,
      and net, of any such Taxes, including the full amount of any Taxes
      required to be deducted or withheld from any additional amount paid by the
      Borrower under this Section 8.6(a), whether assessable against the
      Borrower, the Administrative Agent or such Lender) equals the full amount
      the Administrative Agent or Lender, as the case may be, would have
      received had no such deduction or withholding been required;

	 	 	 
	 	(iii) 	
      make such deduction or withholding;

	 	 	 
	 	(iv) 	
      pay to the relevant Official Body in accordance with
      Applicable Law the full amount of Taxes required to be deducted or
      withheld (including the full amount of Taxes required to be deducted or withheld from
any additional amount paid by the Borrower to the Administrative Agent or Lender
under this Section 8.6(a)), within the time period required by Applicable Law;
and 

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	 	(v) 	
      as promptly as possible thereafter, forward to the
      Administrative Agent or Lender, as the case may be, an original official
      receipt (or a certified copy), or other documentation reasonably
      acceptable to the Administrative Agent or Lender, evidencing such payment
to such Official Body.

	 	(b) 	
      In addition, the Borrower agrees to pay any and all
      present or future Other Taxes.

	 	 	 
	 	(c) 	
      The Borrower hereby indemnifies and holds harmless the
      Administrative Agent and each Lender, on an after-Taxes basis, for the
      full amount of Taxes and Other Taxes, interest, penalties and other
      liabilities, levied, imposed or assessed against (and whether or not paid
      directly by) the Administrative Agent or any Lender, as applicable, and
      for all expenses, resulting from or relating to the Borrower’s failure
      to:

	 	(i) 	
      remit to the Administrative Agent or any Lender the
      documentation referred to in Section 8.6(a)(v); or

	 	 	 
	 	(ii) 	
      pay any Taxes or Other Taxes when due to the relevant
      Official Body (including, without limitation, any Taxes imposed by any
      Official Body on amounts payable under this Section
  8.6)),

whether or not such Taxes were correctly or legally assessed.
The Administrative Agent or any Lender who pays any Taxes or Other Taxes, shall
promptly notify the Borrower of such payment, provided, however, that failure to
provide such notice shall not detract from, or compromise, the obligations of
the Borrower under this Section 8.6. Payment pursuant to this indemnification
shall be made within 30 days from the date the Administrative Agent or any
Lender, as the case may be, makes written demand therefor accompanied by a
certificate as to the amount of such Taxes or Other Taxes and the calculation
thereof, which calculation shall be prima facie evidence of such
amount.

	 	(d) 	
      If the Borrower determines in good faith that a
      reasonable basis exists for contesting any Taxes for which a payment has
      been made under this Section 8.6, the relevant Lender or the
      Administrative Agent, as applicable, shall, if so requested by the
      Borrower, cooperate with the Borrower in challenging such Taxes at the
      Borrower’s expense.

	 	 	 
	 	(e) 	
      If any Lender or the Administrative Agent, as applicable,
      receives a refund of, or credit for, Taxes for which a payment has been
      made by the Borrower under this Section 8.6, which refund or credit in the
      good faith judgment of such Lender or the Administrative Agent, as the
      case may be, is attributable to the Taxes giving rise to such payment made
      by the Borrower, then such Lender or the Administrative Agent, as the case
      may be, shall reimburse the Borrower for such amount (if any, but not exceeding the amount of any payment
made under this Section 8.6 that gives rise to such refund or credit), net of
out-of-pocket expenses of such Lender or the Administrative Agent, as the case
may be, which the Administrative Agent or such Lender, as the case may be,
determines in its absolute discretion will leave it, after such reimbursement,
in no better or worse position than it would have been in if such Taxes had not
been exigible. The Borrower, upon the request of the Administrative Agent or any
Lender, agrees to repay the Administrative Agent or Lender, as the case may be,
any portion of any such refund or credit paid over to the Borrower that the
Administrative Agent or Lender, as the case may be, is required to pay to the
relevant Official Body and agrees to pay any interest, penalties or other
charges paid by the Administrative Agent or Lender, as the case may be, as a
result of or related to such payment to such Official Body. Neither the
Administrative Agent nor any Lender shall be under any obligation to arrange its
tax affairs in any particular manner so as to claim any refund or credit. None
of the Lenders nor the Administrative Agent shall be obliged to disclose any
information regarding its tax affairs or computations to the Borrower or any
other Person in connection with this Section 8.6(f) or any other provision of
this Section 8.6. 

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	 	(f) 	
      The Borrower also hereby indemnifies and holds harmless
      the Administrative Agent and each Lender, on an after-Taxes basis, for any
      additional taxes on net income that the Administrative Agent or any Lender
      may be obliged to pay as a result of the receipt of amounts under this
  Section 8.6.

	 	 	 
	 	(g) 	
      Any Lender that is entitled to an exemption from or
      reduction of withholding Taxes or Other Taxes (collectively, “Relevant
      Taxes”) under the law of the jurisdiction in which the Borrower is
      resident for tax purposes, or any treaty to which such jurisdiction is a
      party, with respect to Payments shall, at the request of the Borrower,
      deliver to the Borrower (with a copy to the Administrative Agent), at the
      time or times prescribed by Applicable Law or reasonably requested by the
      Borrower or the Administrative Agent, such properly completed and executed
      documentation prescribed by Applicable Law (if any) as will permit such
      payments to be made without withholding or at a reduced rate of
      withholding or a reduced rate of Relevant Taxes. In addition, (i) any
      Lender, if requested by the Borrower or the Administrative Agent, shall
      deliver such other documentation prescribed by Applicable Law (if any) or
      reasonably requested by the Borrower or the Administrative Agent as will
      enable the Borrower or the Administrative Agent to determine whether or
      not such Lender is subject to withholding or information reporting
      requirements, and (ii) any Lender that ceases to be, or to be deemed to
      be, resident in Canada for purposes of Part XIII of the Tax Act or any
      successor provision thereto in respect of Payments shall within five
      Business Days thereof notify the Borrower and the Administrative Agent in
      writing. Notwithstanding the foregoing, no Lender shall be required to
      deliver any documentation pursuant to this Section 8.6(h) that such Lender
      is not legally able to deliver.

	 	 	 
	 	(h) 	
      Additional amounts payable under Section 8.6(a) have the
      same character as the Payments to which they relate. For greater
certainty, for example, additional amounts payable under Section 8.6(a), in respect of interest
payable under a Credit Document, shall be payments of interest under such Credit
Document.

	 	 	 
	 	(i) 	
      The Borrower’s obligations under this Section 8.6 shall
      survive without limitation the termination of the Credit Facility and this
      agreement and all other Credit Documents and the permanent repayment of
      the outstanding credit and all other amounts payable
  hereunder.

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ARTICLE 9 
REPAYMENTS AND PREPAYMENTS 

	9.1 	
      Repayment of Credit
Facility

The Borrower shall repay to the
Administrative Agent, for the account of the Lenders, in full the outstanding
credit under the Credit Facility on the Maturity Date together with all accrued
and unpaid interest thereon and all accrued and unpaid fees with respect
thereto. 

	9.2 	
      Extension of Maturity
Date

	 	(a) 	
      The Borrower may request in writing (a “Request for
      Offer of Extension”) from the Lenders (each, a “Requested
      Lender”), not more than 120 days and not less than 90 days prior to
      the current Maturity Date, and each successive anniversary of the Maturity
      Date thereafter, or such other date as may be agreed to by the Lenders
      (the “Anniversary Date”), an offer by the Requested Lenders to the
      Borrower to extend the then current Maturity Date for a specified period
      on specific terms and conditions (an “Offer of Extension”). Such
      request shall be made by the Borrower by delivering to the Administrative
      Agent an executed Request for Offer of Extension and such other
      information as the Administrative Agent and Requested Lenders may request.
      The Administrative Agent shall forthwith notify each Requested Lender of
      such request by the Borrower and each Requested Lender shall notify the
      Administrative Agent and the Borrower as to whether or not it agrees (in
      its sole discretion) to such request no later than 30 days following
      receipt by such Requested Lender of notice of such request; provided that,
      if a Requested Lender does not so notify the Administrative Agent and the
      Borrower, such Requested Lender shall be deemed to have elected not to
      agree to such request.

	 	 	 
	 	(b) 	
      Any such Requested Lender that does not, or is deemed not
      to, agree to such request shall become a “Non-Agreeing Lender” and
      unless its Individual Commitment is purchased pursuant to Section 9.2(d),
      the Secured Obligations owing to such Requested Lender shall be repaid in
      accordance with and subject to Section 9.2(e).

	 	 	 
	 	(c) 	
      If the Majority Lenders agree to such request, the
      Administrative Agent shall within two (2) Banking Days deliver to the
      Borrower an Offer of Extension. Any such Offer of Extension shall be open
      for acceptance by the Borrower until the Banking Day immediately preceding
      the next succeeding Anniversary Date. Upon written notice by the Borrower
      to the Administrative Agent accepting an Offer of Extension and agreeing to the terms and conditions
specified therein, if any, the Maturity Date, in respect of those Lenders
agreeing to such extension (the “Agreeing Lenders”), shall be extended to
the date specified in the Offer of Extension and the terms and conditions, if
any, specified thereunder, shall become effective on the first day after the
succeeding Anniversary Date referred to above. 

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	 	(d) 	
      Each of the Agreeing Lenders shall have the right (but
      not the obligation) to purchase the Individual Commitment of any
      Non-Agreeing Lender for a purchase price in an amount equal to the
      aggregate outstanding principal amount of the Secured Obligations owing to
      such Non-Agreeing Lender, including accrued interest thereon to the date
      of payment of such principal amount and all other amounts payable to such
      Non-Agreeing Lender under this agreement. Each of the Agreeing Lenders
      (each, an “Extension Purchasing Lender”) wishing to exercise its
      rights to purchase the Individual Commitment of a Non-Agreeing Lender
      shall forthwith so notify the Borrower, the Administrative Agent and each
      of the other Lenders, if any, and such Extension Purchasing Lender shall
      thereupon be obligated to purchase not less than fifteen (15) days prior
      to the then current Anniversary Date an undivided share of the Individual
      Commitment of each Non-Agreeing Lender equal to the ratio that such
      Extension Purchasing Lender's Individual Commitment is of the aggregate of
      all Extension Purchasing Lenders' Individual Commitments or as otherwise
      agreed to by the Borrower and all Extension Purchasing Lenders. The
      Non-Agreeing Lenders, the Extension Purchasing Lenders, the Administrative
      Agent, the Borrower and each of the other Lenders, if any, shall forthwith
      duly execute and deliver any necessary documentation to give effect to
      such purchase, whereupon each Non-Agreeing Lender shall, as of the
      effective date thereof, be released from its obligations to the Borrower
      hereunder and under the other Credit Documents arising subsequent to such
  date.

	 	 	 
	 	(e) 	
      If a Non-Agreeing Lender's Individual Commitment is not
      purchased pursuant to Section 9.2(d), so long as there exists no Default,
      the Borrower shall repay all Secured Obligations owing hereunder to such
      Non-Agreeing Lender on its then current Maturity Date and, upon such
      repayment, (A) such Non-Agreeing Lender shall cease to be a Lender
      hereunder and such Non-Agreeing Lender's Individual Commitment shall be
      terminated, (B) the Total Commitment Amount shall be reduced by the amount
      of the Non-Agreeing Lender's terminated Individual Commitment, and (C) the
      Pro Rata Share of each remaining Lender shall be adjusted
    accordingly.

	 	 	 
	 	(f) 	
      If an Offer of Extension has been provided to the
      Borrower which it has accepted as required thereby, the Maturity Date for
      each Lender that has approved the Request for Offer of Extension shall be
      extended to the date which is set out in the Offer of Extension, and the
      terms and conditions specified in such Offer of Extension shall be
      immediately effective. If an Offer of Extension is not provided to the
      Borrower, the provisions of Section 9.2(d) and (f) shall not be
      applicable, and the Borrower shall repay all Secured Obligations
outstanding hereunder on the Maturity Date.

	 	 	 
	 	(g) 	
      This Section 9.2 shall apply from time to time to permit
      successive extensions of the Maturity Date, if and for so long as the
      Majority Lenders have agreed in accordance with Section
9.2(c).

Credit Agreement - Primero Mining 

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	9.3 	
      Voluntary Prepayments

Subject to Section 9.5, the
Borrower shall be entitled to prepay all or any portion of the outstanding Loans
at any time, without penalty, provided that Section 8.4 shall be complied with
in connection with any such prepayment. Other than any payments required
pursuant to Section 8.4 , there are no premiums, penalties or other additional
payments associated with any voluntary prepayments under this Section 9.3.
Amounts which are prepaid as aforesaid may be reborrowed. 

	9.4 	
      Mandatory Prepayments

The Borrower shall, within five
Banking Days of the occurrence of a Prepayment Trigger Event, prepay outstanding
credit under the Credit Facility in an amount equal to 100% of the Net Cash
Proceeds in respect of such Prepayment Trigger Event. Amounts which are prepaid
as aforesaid under the Credit Facility may not be reborrowed. Section 8.4 shall
be complied with in connection with any prepayment pursuant to this Section 9.4.

	9.5 	
      Prepayment Notice

The Borrower shall give written
notice to the Administrative Agent of each voluntary prepayment pursuant to
Section 9.3. Such notice (a “Prepayment Notice”) shall be irrevocable,
shall be given in accordance with Section 3.12 and shall specify: 

	 	(a) 	
      the date on which the prepayment is to take place;
    and

	 	 	 
	 	(b) 	
      the type and principal amount of the Loan or the portion
      thereof which is to be prepaid (which amount shall be at least
      $1,000,000).

	9.6 	
      Currency of Repayment

All payments and repayments of
outstanding credit hereunder shall be made in the currency of such outstanding
credit. 

	9.7 	
      Repayments of Credit
Excess

In the event that the Credit
Excess at any time exceeds 3% of the aggregate amount of credit outstanding at
such time, the Borrower shall repay to the Lenders, upon the demand of the
Administrative Agent, the amount of the Credit Excess at such time, but nothing
herein shall be deemed to obligate any Lender or the Administrative Agent to
fund the Credit Excess. 

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	9.8 	
      Reimbursement or Conversion on Presentation of
      Letters

	 	(a) 	
      On presentation of a Letter and payment thereunder by the
      Issuing Lender, the Borrower shall forthwith pay to the Issuing Lender,
      and thereby reimburse the Issuing Lender for, all amounts paid by the
      Issuing Lender pursuant to such Letter. Failing such payment, the Borrower
      shall be deemed to have effected a conversion of such Letter into a Prime
      Rate Loan (in the case of a Letter denominated in Canadian dollars) or
      into a Base Rate Loan (in the case of a Letter denominated in United
      States dollars) to the extent of the payment of the Issuing Lender
      thereunder.

	 	 	 
	 	(b) 	
      If the Issuing Lender makes payment under any Letter and
      the Borrower does not fully reimburse the Issuing Lender on or before the
      date of payment, then Section 9.8(a) shall apply to deem a Loan to be
      outstanding to the Borrower under this agreement in the manner therein set
      out. Each Lender shall, on request by the Issuing Lender, immediately pay
      to the Issuing Lender an amount equal to such Lender’s Pro Rata Share of
      the amount paid by the Issuing Lender such that each Lender is
      participating in the deemed Loan in accordance with its Pro Rata
    Share.

	 	 	 
	 	(c) 	
      Each Lender shall immediately on demand indemnify the
      Issuing Lender to the extent of such Lender’s Pro Rata Share of any amount
      paid or liability incurred by the Issuing Lender under each Letter issued
      by it hereunder to the extent that the Borrower does not fully reimburse
      the Issuing Lender therefor.

	 	 	 
	 	(d) 	
      For certainty, the obligations of the Lenders in this
      Section 9.8 shall continue as obligations of the Persons who were Lenders
      at the time each such Letter was issued notwithstanding that such Lender
      may assign its rights and obligations hereunder, unless the Issuing Lender
      specifically releases such Lender from such obligations in
  writing.

	9.9 	
      Letters Subject to an
Order

The Borrower shall pay to the
Issuing Lender for deposit to the Letter Cash Collateral Account an amount equal
to the maximum amount available to be drawn under any unexpired Letter which
becomes the subject of any Order and concurrently with such payment deliver to
the Administrative Agent a certificate of a senior officer of SWC addressed to
the Administrative Agent that no SWC Payment Default (as defined in the
Intercreditor Agreement) has occurred and is continuing; payment in respect of
each such Letter shall be due forthwith upon demand in the currency in which
such Letter is denominated. The Issuing Lender shall apply funds in the Letter
Cash Collateral Account to (a) satisfy any reimbursements obligations of the
Borrower to the Issuing Lender under Section 9.8, or (b) refund to the Borrower
any amounts payable by the Issuing Lender to the Borrower under Section 13.4.

	9.10 	
      Reimbursement Obligation for Maturing Bankers’
      Acceptances

The Borrower hereby
unconditionally agrees to pay to the Lenders on the maturity date (whether at
stated maturity, by acceleration or otherwise) of each Bankers’ Acceptance drawn
by the Borrower the undiscounted face amount of such then-maturing Bankers’ Acceptance. The obligation of the Borrower to reimburse the
Lenders for then-maturing Bankers’ Acceptances may be satisfied by the Borrower
by: 

Credit Agreement - Primero Mining 

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	 	(a) 	
      paying to the Lenders, in accordance with Section 3.8, on
      the maturity date of such Bankers’ Acceptances an amount equal to the
      aggregate undiscounted face amount thereof, provided that the Borrower
      shall notify the Administrative Agent of its intention to reimburse the
      Lenders in such manner prior to 10:00 a.m. (Toronto time) on such maturity
  date;

	 	 	 
	 	(b) 	
      replacing the maturing Bankers’ Acceptances with new
      Bankers’ Acceptances in accordance with Section 5.2; or

	 	 	 
	 	(c) 	
      converting the maturing Bankers’ Acceptances into a Loan
in accordance with Section 6.3, 6.5 or 6.6.

In no event shall the Borrower
claim from the Lenders any grace period with respect to the aforesaid obligation
of the Borrower to reimburse the Lenders. 

ARTICLE 10 
REPRESENTATIONS AND WARRANTIES

	10.1 	
      Representations and
Warranties

To induce the Lenders and the
Administrative Agent to enter into this agreement and to induce the Lenders to
extend credit hereunder, the Borrower hereby represents and warrants to the
Lenders and the Administrative Agent, as of the date of this agreement, as of
the date of each extension of credit hereunder and as of the last day of each
Fiscal Quarter, as follows and acknowledges and confirms that the Lenders and
the Administrative Agent are relying upon such representations and warranties in
entering into this agreement and in extending credit hereunder: 

	 	(a) 	
      Status and Power of Obligors. Each Company is a
      corporation duly incorporated and organized and validly subsisting in good
      standing under the laws of its jurisdiction of incorporation. Each Company
      is duly qualified, registered or licensed in all jurisdictions where the
      nature of its business makes such qualification, registration or licensing
      necessary. Each Company has all requisite corporate capacity, power and
      authority to own, hold under licence or lease its properties, to carry on
      its business as now conducted. Each Company has all necessary corporate
      capacity to enter into, and carry out the transactions contemplated by,
      the Finance Documents to which is a party.

	 	 	 
	 	(b) 	
      Authorization and Enforcement. All necessary
      action, corporate or otherwise, has been taken to authorize the execution,
      delivery and performance by each Company of the Finance Documents to which
      it is a party. Each Company has duly executed and delivered the Finance
      Documents to which it is a party. The Finance Documents to which each
      Company is a party are legal, valid and binding obligations of such
      Company, enforceable against such Company in accordance with its terms,
      except to the extent that the enforceability thereof may be
  limited by (i) applicable bankruptcy, insolvency, moratorium,
reorganization and other similar laws of general application limiting the
enforcement of creditors’ rights generally, (ii) the fact that the courts may
deny the granting or enforcement of equitable remedies and (iii) the fact that,
pursuant to the Currency Act (Canada), no court in Canada may make an
order expressed in any currency other than lawful money of Canada. 

Credit Agreement - Primero Mining 

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	 	(c) 	
      Compliance with Other Instruments. The execution,
      delivery and performance by Company Obligor of the Finance Documents to
      which it is a party, and the consummation of the transactions contemplated
      herein and therein, do not and will not conflict with, result in any
      breach or violation of, or constitute a default under, the terms,
      conditions or provisions of, the charter or constating documents or
      by-laws of, or any shareholder agreement or declaration relating to, such
      Company. The execution, delivery and performance by each Company of the
      Finance Documents to which it is a party, and the consummation of the
      transactions contemplated herein and therein, do not and will not conflict
      with, result in any material breach or violation of, or constitute a
      material default under, the terms, conditions or provisions of, any law,
      regulation, judgment, decree or order binding on or applicable to such
      Company or to which its property is subject or of any Material Agreement
      or any material lease, licence, permit or other instrument to which such
      Company is a party or is otherwise bound or by which such Company benefits
      or to which its property is subject and do not require the consent or
  approval of any Official Body or any other party.

	 	 	 
	 	(d) 	
      Financial Statements. The consolidated financial
      statements of the Borrower for the most recently completed Fiscal Quarter
      or Fiscal Year, as the case may be, were prepared in accordance with GAAP
      and no Material Adverse Change has occurred in the condition, financial or
      otherwise, of the Obligors since the date of such consolidated financial
      statements. The balance sheet of the aforesaid consolidated financial
      statements presents a fair statement of the financial condition and assets
      and liability of the Borrower as at the date thereof and the statements of
      operations, retained earnings and cash flows contained in the aforesaid
      consolidated financial statements fairly presents the results of the
      consolidated operations of the Borrower throughout the period covered
      thereby. Except to the extent reflected or reserved against in the
      aforesaid balance sheet (including the notes thereto) and except as
      incurred in the ordinary and usual course of the business of the Borrower,
      the Borrower does not have any outstanding indebtedness or any liability
      or obligations (whether accrued, absolute, contingent or otherwise) of a
      material nature customarily reflected or reserved against in a balance
      sheet (including the notes thereto) prepared in accordance with
    GAAP.

	 	 	 
	 	(e) 	
      Litigation. Other than the Ejidos Claims, there
      are no actions, suits, inquiries, claims or proceedings (whether or not
      purportedly on behalf of any Obligor) pending or threatened in writing
      against or affecting any Obligor before any Official Body which in any
      case or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

Credit Agreement - Primero Mining 

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	 	(f) 	
      Title to Assets. Each Obligor has good and
      marketable title to its property, assets and undertaking, free from any
      Lien other than the Permitted Liens.

	 	 	 
	 	(g) 	
      Conduct of Business. No Obligor is in violation of
      any Capital Lease and otherwise no Obligor is in violation of any other
      agreement, mortgage, franchise, licence, judgment, decree, order, statute,
      statutory trust, rule or regulation relating in any way to itself or to
      the operation of its business or to its property or assets (including, for
      certainty, all Environmental Laws) and which could reasonably be expected
      to have a Material Adverse Effect. Each Obligor holds all licenses,
      certificates of approval, approvals, registrations, permits and consents
      which are required to operate its businesses where they are currently
      being operated except where the failure to have such licenses,
      certificates of approval, approvals, registrations, permits and consents
      could not reasonably be expected to have a Material Adverse
  Effect.

	 	 	 
	 	(h) 	
      Outstanding Defaults. No Default or Event of
      Default exists or would result from the incurring of any Secured
      Obligations. No event has occurred which constitutes or which, with the
      giving of notice, lapse of time or both, would constitute a default under
      or in respect of any Material Agreement, undertaking or instrument to
      which any Obligor is a party or to which its respective property or assets
      may be subject, and which could reasonably be expected to have a Material
      Adverse Effect.

	 	 	 
	 	(i) 	
      Solvency Proceedings. No Obligor
  has:

	 	(i) 	
      admitted its inability to pay its debts generally as they
      become due or failed to pay its debts generally as they become
  due;

	 	 	 
	 	(ii) 	
      in respect of itself, filed an assignment or petition in
      bankruptcy or a petition to take advantage of any insolvency
    statute;

	 	 	 
	 	(iii) 	
      made an assignment for the benefit of its
    creditors;

	 	 	 
	 	(iv) 	
      consented to the appointment of a receiver of the whole
      or any substantial part of its assets;

	 	 	 
	 	(v) 	
      filed a petition or answer seeking a reorganization,
      arrangement, adjustment or composition in respect of itself under
      applicable bankruptcy laws or any other Applicable Law or statute of
      Canada, the United States, Mexico, Barbados, Luxembourg or other
      applicable jurisdiction or any subdivision thereof; or

	 	 	 
	 	(vi) 	
      been adjudged by a court having jurisdiction a bankrupt
      or insolvent, nor has a decree or order of a court having jurisdiction
      been entered for the appointment of a receiver, liquidator, trustee or
      assignee in bankruptcy of any Obligor with such decree or order having
      remained in force and undischarged or unstayed for a period of 30
    days.

Credit Agreement - Primero Mining 

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	 	(j) 	
      Tax Returns and Taxes. Each Obligor has filed all
      material Tax returns and Tax reports required by law to have been filed by
      it and has paid all Taxes thereby shown to be owing, except any such Taxes
      which are being diligently contested in good faith by appropriate
      proceedings and for which adequate reserves in accordance with GAAP shall
      have been set aside on its books.

	 	 	 
	 	(k) 	
      Expropriation or Condemnation. There is no present
      or threatened (in writing) expropriation or condemnation of the property
      or assets of any Obligor.

	 	 	 
	 	(l) 	
      Environmental
Compliance.

	 	(i) 	
      All facilities and property (including underlying
      groundwater) owned, leased, used or operated by any Company have been, and
      continue to be, owned or leased in material compliance with all
      Environmental Laws;

	 	 	 
	 	(ii) 	
      There are no pending or threatened in
  writing:

	 	(A) 	
      claims, complaints, notices or requests for information
      received by any Company with respect to any alleged violation of any
      Environmental Law which alleged violation could reasonably be expected to
      have a Material Adverse Effect;

	 	 	 
	 	(B) 	
      complaints, notices or inquiries to any Company regarding
      potential material liability under any Environmental
Law;

	 	(iii) 	
      There have been no Releases of any Hazardous Materials or
      any escape, seepage, leakage, spillage, discharge, emission or release of
      any Hazardous Materials at, on, under or from any property now or
      previously owned, operated, used or leased by any Company in violation of
      Environmental Laws other than any such escape, seepage, leakage, spillage,
      discharge, emission or release which has been corrected in compliance with
      Applicable Law or which could not reasonably be expected to have a
      Material Adverse Effect;

	 	 	 
	 	(iv) 	
      Each Company has been issued and is in material
      compliance with all permits, certificates, approvals, licenses and other
      authorizations under any Environmental Laws to carry on its business;
      and

	 	 	 
	 	(v) 	
      No conditions exist at, on or under any property now or
      previously owned, operated, used or leased by any Company which, with the
      passage of time, or the giving of notice or both, would give rise to
      material liability under any Environmental
Law.

	 	(m) 	
      Subsidiaries and Partnerships. There are no direct
      Subsidiaries of the Borrower other than the Guarantors. No Obligor is,
      directly or indirectly, a member of, or a partner or participant in, any
      partnership, joint venture or syndicate.

Credit Agreement - Primero Mining 

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	 	(n) 	
      Corporate Structure. As at the date hereof, and
      hereafter, except as such information may change as a result of a
      transaction permitted hereby and reported to the Administrative Agent in
      accordance with Section 11.2(b)(iii), the chart attached hereto as
      Schedule H accurately sets out the corporate structure of the Borrower and
      all of its Subsidiaries and evidences (i) intercorporate share ownership
      and (ii) ownership of projects and mines (including, without limitation,
      the Material Properties).

	 	 	 
	 	(o) 	
      Assets Insured. The property and assets of the
      Obligors are insured with insurers, in amounts, for risks and otherwise
      which are reasonable in relation to such property and assets (subject to
      the amount of such deductibles as are reasonable and normal in the
      circumstances) against loss or damage, and there has been no default or
      failure by the party or parties insured under the provisions of such
      policies of insurance maintained which would prevent the recovery by the
      Obligor insured thereunder of the full amount of any material insured
      loss. The named insured under all insurance policies maintained by the
      Obligors is not in default under any of the material provisions contained
      in any such insurance policies.

	 	 	 
	 	(p) 	
      Intellectual Property. Each Obligor owns or is
      licensed or otherwise has the right to use all Intellectual Property that
      is used in the operation of its businesses without conflict with the
      rights of any other Person (other than any Intellectual Property the
      absence of which or any such conflict with respect to which would not have
      a Material Adverse Effect). No Obligor has received any notice of any
      claim of infringement or similar claim or proceeding relating to any of
      the Intellectual Property which if determined against such Obligor could
      reasonably be expected to have a Material Adverse Effect. No present or
      former employee of any Obligor and no other Person owns or claims in
      writing to own or has or claims in writing to have any interest, direct or
      indirect, in whole or in part, in any of the Intellectual Property of such
      Obligor that could reasonably be expected to have a Material Adverse
      Effect.

	 	 	 
	 	(q) 	
      Employment and Labour Agreements. Each Obligor is
      in compliance with the terms and conditions of all collective bargaining
      agreements and other labour agreements except where the failure to so
      comply could not reasonably be expected to have a Material Adverse
      Effect.

	 	 	 
	 	(r) 	
      Capital of the Guarantors. All Shares issued by
      each Guarantor are fully paid and non-assessable. There are no outstanding
      warrants, options or other agreements which require or may require the
      issuance of any Shares of the Guarantors or the issuance of any debt or
      securities convertible into Shares of the Guarantors, there are no
      outstanding debt or securities convertible into Shares of the Guarantors
      and there are no such Shares allotted for issuance. There is no unanimous
      shareholder agreement with respect to any of the Obligors.

	 	 	 
	 	(s) 	
      Mining Properties. The Mining Properties have been
      validly granted and recorded in the name of the relevant Obligor, are
      owned by the relevant Obligor and are in full force and effect. No Person other than the
relevant Obligor has any right, title or interest in or to the Mining Properties
owned by such Obligor. The Mining Properties are subject to the relevant
Obligor’s continued compliance with Applicable Law relating thereto. The Mining
Properties give the relevant Obligor the exclusive right to mine or exploit any
and all minerals on the areas covered by the relevant Mining Properties. All
fees, including without limitation maintenance fees, and other payments due to
any Official Body in respect of the Mining Properties have been paid in full on
a timely basis except any such fees which are being diligently contested in good
faith and for which adequate reserves in accordance with GAAP shall have been
set aside on its books or where such non-payment could not be reasonably
expected to have a Material Adverse Effect. Other than the Royalties, no fees,
royalties or other payments payable to any Person other than Official Bodies are
or shall become due with respect to any of the Mining Properties. Except with
respect to the SLW Silver Purchase Agreement, the Sandstorm Gold Purchase
Agreement, the Royalties and payments to Official Bodies required pursuant to
Applicable Law, no Obligor is a party to, and has no knowledge of, any royalty
or similar agreements pursuant to which such Obligor or any other party is
obligated to pay to any Person any amount with respect to any of the Mining
Properties. 

Credit Agreement - Primero Mining 

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	 	(t) 	
      Liens. The Liens granted to the Administrative
      Agent or the Mexican Collateral Agent, as applicable, pursuant to the
      Security Documents are fully perfected first priority Liens in and to the
      Secured Assets (subject only to Permitted Liens which by their nature or
      by reason of the Intercreditor Documents would constitute prior ranking
      security) and will, upon the acquisition of additional Secured Assets by
      each Obligor, constitute first charges or security interests upon all such
      Secured Assets of such Obligor (subject only to Permitted Liens which by
      their nature or by reason of the Intercreditor Documents would constitute
      prior ranking security) free and clear of all Liens except Permitted
  Liens.

	 	 	 
	 	(u) 	
      Consents, Approvals, etc. No consents, approvals,
      acknowledgements, undertakings, non-disturbance agreements, directions or
      other documents or instruments which have not already been provided to the
      Administrative Agent or the Mexican Collateral Agent are required to be
      entered into by any Person (i) to make effective the Security created or
      intended to be created by the Obligors in favour of the Administrative
      Agent or the Mexican Collateral Agent, as applicable, pursuant to the
      Security Documents, (ii) to ensure the perfection and the intended
      priority of such Security and (iii) to implement the transactions
      contemplated hereby.

	 	 	 
	 	(v) 	
      Material Agreements. As at the date hereof, the
      only Material Agreements are those identified in the definition thereof.
      The Material Agreements (to the extent that such Material Agreements have
been entered into) are:

	 	(i) 	
      in full force and effect;

Credit Agreement - Primero Mining 

- 72 - 

	 	(ii) 	
      enforceable by the relevant Obligor against all other
      parties thereto in accordance with their terms (subject to bankruptcy and
      insolvency laws and other similar laws affecting creditors’ rights
      generally and to general equitable principles); and

	 	 	 
	 	(iii) 	
      in the form previously or concurrently delivered to the
      Administrative Agent pursuant to this agreement.

All performance required under each
Material Agreement (and, to the best of the knowledge of the Borrower, of each
other party thereto) required at the date of making this representation from
time to time has occurred, except to the extent any such non-performance would
not reasonably be expected to result in a Material Adverse Effect. No default
(however denominated) in the performance of the obligations of the Borrower (or,
to the best of the knowledge of the Borrower, of any other party thereto) under
any Material Agreement has occurred and is continuing. There is no prohibition
on assignment in any Material Agreement other than where consent to assignment
has been obtained prior to the assignment of such Material Agreement. The entry
into and performance by the Obligors of the Credit Documents will not conflict
with any term of any Material Agreement. 

	 	(w) 	
      Proceeds of Crime (Money Laundering) and Terrorist
      Financing Act (Canada). The Borrower's most recent audited
      balance sheet states that the Borrower has net assets of at least
      CDN$75,000,000. The Borrower's shares are traded on a Canadian stock
      exchange or a stock exchange designated under subsection 262(1) of the Tax
      Act. The Borrower operates in a country that is a member of the Financial
      Action Task Force. The Borrower is not a charity registered with the
      Canada Revenue Agency nor does it solicit charitable financial donations
      from the public.

	 	 	 
	 	(x) 	
      Perfection Certificate. Other than as may be
      updated from time to time pursuant to Section 11.2(b), 11.2(o) and
      11.2(p), all information in the Perfection Certificate is hereby certified
      to be true and correct.

	 	 	 
	 	(y) 	
      No Omissions. None of the representations and
      statements of fact set forth in this Section 10.1 omits to state any
      material fact necessary to make any such representation or statement of
      fact not misleading in any material respect.

	10.2 	
      Survival of Representations and
  Warranties

All of the representations and
warranties of the Borrower contained in Section 10.1 shall survive the execution
and delivery of this agreement until all credit outstanding hereunder has been
repaid in full and the Credit Facility has been terminated, notwithstanding any
investigation made at any time by or on behalf of the Administrative Agent or
any of the Lenders. 

Credit Agreement - Primero Mining 

- 73 - 

ARTICLE 11 
COVENANTS 

	11.1 	Financial Covenants 

The Borrower hereby covenants and
agrees with the Administrative Agent and the Lenders that, until all credit
outstanding hereunder has been repaid in full and the Credit Facility has been
terminated, and unless waived in writing in accordance with Section 14.14: 

	 	(a) 	
      Tangible Net Worth. The Borrower shall at all
      times maintain Tangible Net Worth in an amount greater than or equal to
      U.S. $763,419,000 plus 50% of the aggregate positive Net Income for the
      Fiscal Quarters during the period from April 1, 2014 to the last day of
      the Fiscal Quarter which has been most recently completed at such time.
      For the purpose of the foregoing, if the Net Income for a particular
      Fiscal Quarter is negative, the Net Income for such Fiscal Quarter shall
      be deemed to be zero.

	 	 	 
	 	(b) 	
      Total Net Debt Leverage Ratio. The Borrower shall
      at all times maintain the Total Net Debt Leverage Ratio in an amount less
      than or equal to 3.5 to 1.

	 	 	 
	 	(c) 	
      Senior Net Debt Leverage Ratio. The Borrower shall
      at all times maintain the Senior Net Debt Leverage Ratio in an amount less
      than or equal to 2.0 to 1.

	 	 	 
	 	(d) 	
      Interest Coverage Ratio. The Borrower shall at all
      times maintain the Interest Coverage Ratio in an amount greater than or
      equal to 4.5 to 1.

	11.2 	
      Affirmative Covenants

The Borrower hereby covenants and
agrees with the Administrative Agent and the Lenders that, until all credit
outstanding hereunder has been repaid in full and the Credit Facility has been
terminated, and unless waived in writing in accordance with Section 14.14: 

	 	(a) 	
      Prompt Payment. The Borrower shall duly and
      punctually pay, or cause to be duly and punctually paid to the
      Administrative Agent and, if applicable, the Mexican Collateral Agent, all
      amounts payable by each Obligor under the Credit Documents to which it is
      a party at the times and places and in the currency and manner mentioned
      therein.

	 	 	 
	 	(b) 	
      Financial Reporting. The Borrower shall furnish
      the Administrative Agent with the following statements and reports with
      sufficient copies for all of the Lenders (the filing of any of the
      following documents on SEDAR shall satisfy the delivery obligation in
      relation to such documents so filed when the Borrower has provided written
      notice of such filing to the Administrative
Agent):

	 	(i) 	
      within 90 days after the end of each Fiscal Year, copies
      of the audited consolidated financial statements of the Borrower for such
      Fiscal Year together with the auditors’ report on such audited financial
      statements in form and substance satisfactory to the Administrative Agent,
      as well as a chart setting out the corporate structure of the Borrower and
all of its Subsidiaries, whether direct or indirect, and evidencing (i)
intercorporate share ownership and (ii) ownership of the Material Properties;

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	 	(ii) 	
      within 45 days after the end of each Fiscal Quarter, the
  unaudited consolidated financial statements of the Borrower;

	 	 	 
	 	(iii) 	
      concurrent with the deliveries of financial statements
      pursuant to any of clauses (i) and (ii) above, a duly executed and
      completed Compliance Certificate and, where disclosure in the Perfection
      Certificate has changed as of such date, an updated Perfection Certificate
      together with written notification of any change in the information
      certified in the Perfection Certificate;

	 	 	 
	 	(iv) 	
      within 45 days of each Fiscal Year end, (I) a budget for
      the Borrower on a consolidated basis and for each Material Property for
      the ensuing Fiscal Year (with a breakdown for each month), (II) a
      consolidated financial model for the Borrower including a life of mine
      plan for each Material Property and (III) a statement of mineral reserves
      and resources for each Material Property as at the end of such Fiscal Year
      prepared by the Borrower and based on the most recent statement of mineral
      reserves and resources publicly disclosed by the Borrower under National
      Instrument 43-101, as reconciled with subsequent actual mining production
      by the Borrower and its Subsidiaries, in each case in form and substance
      satisfactory to the Administrative Agent;

	 	 	 
	 	(v) 	
      within 21 days of each calendar month end, an operating
      report for each Material Property;

	 	 	 
	 	(vi) 	
      such other statements, reports and information as the
      Administrative Agent on the instructions of the Majority Lenders may
reasonably request from time to time.

The Borrower shall, upon request,
furnish the Administrative Agent with copies of all documents which are filed by
the Borrower with the Ontario Securities Commission or with any similar Official
Body in any other jurisdiction in compliance with applicable securities
legislation which are not available on SEDAR. 

	 	(c) 	
      Use of Proceeds. The Borrower shall apply all of
      the proceeds of the Credit Facility to the general corporate purposes of
      the Borrower, including the funding of Permitted Acquisitions (which does
      not include hostile acquisitions). For certainty, the Borrower shall not
      use any proceeds of the Credit Facility to make a Restricted
    Payment.

	 	 	 
	 	(d) 	
      Insurance. The Borrower shall, and shall cause
      each other Obligor to, maintain on an individual or aggregate basis, with
      financially sound and reputable insurers, insurance with respect to the
      properties and business of the Obligors against
loss,damage, risk or liability of the kinds customarily insured
against by Persons carrying on a similar business. The Borrower shall cause the
Administrative Agent (and, in the case of the Mexican Collateral Agent, the
Mexican Collateral Agent) to be named in each such policy as secured party or
mortgagee and lender’s loss payee or additional insured, as appropriate, in a
manner acceptable to the Administrative Agent. Each policy of insurance shall
contain a clause or endorsement requiring the insurer to give not less than
thirty (30) days’ prior written notice to the Administrative Agent in the event
of cancellation of the policy for any reason whatsoever. The Borrower shall, and
shall cause each other Obligor to, comply with all of the material provisions
contained in all such insurance policies. All premiums for such insurance shall
be paid by the Borrower when due and certificates of insurance and, if
requested, photocopies of the policies shall be delivered to the Administrative
Agent. The Borrower shall promptly notify the Administrative Agent of any loss,
damage, or destruction to the Secured Assets, whether or not covered by
insurance, in excess of $1,000,000. If any Default shall be continuing, the
Majority Lenders may determine, in their sole discretion, whether any insurance
proceeds shall be used for repair or replacement. If a Default exists, the
Administrative Agent (and, in the case of the Mexican Collateral Agent, the
Mexican Collateral Agent) shall collect the insurance proceeds directly and no
Obligor shall enter into any settlement agreement with the applicable insurance
company without the prior written consent of the Administrative Agent, which
consent shall not be unreasonably withheld.

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	 	(e) 	
      Access to Senior Financial Officers. Upon the
      request of the Administrative Agent at reasonable intervals, the Borrower
      shall, and shall cause each other Obligor to, make available its senior
      financial officers to answer questions concerning such Obligor’s business
  and affairs.

	 	 	 
	 	(f) 	
      Reimbursement of Expenses. Regardless of whether
      any credit has been extended hereunder, the Borrower shall (i) reimburse
      the Administrative Agent, on demand, for all reasonable out-of-pocket
      costs, charges and expenses incurred by or on behalf of the Administrative
      Agent (including, without limitation, the reasonable and documented fees,
      disbursements and other charges of one primary legal counsel and any local
      or special legal counsel to the Administrative Agent as well as the
      reasonable costs of any engineering reports and environmental audits and
      studies as required by the Administrative Agent) in connection with the
      due diligence review undertaken by the Administrative Agent, the
      negotiation, preparation, execution, delivery, syndication, participation,
      administration and interpretation of the Credit Documents and the closing
      documentation ancillary to the completion of the transactions contemplated
      hereby and thereby and any amendments and waivers hereto and thereto
      (whether or not consummated or entered into), the charges of Intralinks
      and any lien search fees and lien registration fees, and (ii) reimburse
      the Administrative Agent and the Lenders, on demand, for all reasonable
      out-of-pocket costs, charges and expense incurred by or on behalf of any
      of them (including the fees, disbursements and other charges of counsel)
      in connection with the enforcement of the Credit
Documents.

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	 	(g) 	
      Notice of Expropriation or Condemnation, Litigation
      and Default. The Borrower shall promptly notify the Administrative
      Agent in writing of:

	 	(i) 	
      the commencement or the written threat of any
      expropriation or condemnation of any material assets, property or
      undertaking of any Obligor or of the institution of any proceedings
      related thereto;

	 	 	 
	 	(ii) 	
      any actions, suits, inquiries, disputes, claims or
      proceedings (whether or not purportedly on behalf of any Obligor)
      commenced or threatened in writing against or affecting any Obligor before
      any Official Body which in any case or in the aggregate could reasonably
      be expected to have a Material Adverse Effect;

	 	 	 
	 	(iii) 	
      upon the occurrence of a Default of which the Borrower is
      aware, the nature and date of occurrence of such Default, the Borrower’s
      assessment of the duration and effect thereof and the action which the
      Borrower proposes to take with respect thereto; and

	 	 	 
	 	(iv) 	
      in addition to, and not in limitation of, paragraph (iii)
      above, notice of any breach, default or missed payment under any Capital
      Lease, or any anticipated breach, default or missed payment under any
      Capital Lease together with any written notice or demand in respect
      thereof delivered to the relevant Obligor by the subject
  lessor.

	 	(h) 	
      Corporate Existence. The Borrower shall, and shall
      cause each other Obligor to, maintain its corporate existence in good
      standing and qualify and remain duly qualified to carry on business and
      own property in each jurisdiction where the nature of its business makes
      such qualification necessary.

	 	 	 
	 	(i) 	
      Conduct of Business. The Borrower shall, and shall
      cause each other Obligor to, conduct its business in such a manner so as
      to comply with all laws and regulations, so as to observe and perform all
      its obligations under leases, licences and agreements (including Material
      Agreements) necessary for the proper conduct of its business and so as to
      preserve and protect its property and assets and the earnings, income and
      profits therefrom except to the extent such non-compliance, non-observance
      or non-performance could not reasonably be expected to have a Material
      Adverse Effect. The Borrower shall, and shall cause each other Obligor to,
      perform all obligations incidental to any trust imposed upon it by statute
      and shall ensure that any breaches of the said obligations and the
      consequences of any such breach shall be promptly remedied. The Borrower
      shall, and shall cause each other Obligor to, obtain and maintain all
      licenses, permits, government approvals, franchises, authorizations and
      other rights necessary for the operation of its business where failure to
      do so could reasonably be expected to have a Material Adverse
    Effect.

	 	 	 
	 	(j) 	
      Taxes. The Borrower shall pay, and shall cause
      each other Obligor to pay, all material Taxes levied, assessed or imposed
      upon it and upon its property or assets or any part thereof, as and when the same become due and
payable, save and except when and so long as the validity of any such Taxes is
being contested in good faith by appropriate proceedings and reserves are being
maintained in accordance with GAAP. 

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	 	(k) 	
      Environmental Matters. The Borrower shall, and
      shall cause each other Company to, promptly notify the Administrative
      Agent and provide copies upon receipt of all written claims, complaints,
      notices or inquiries from any Official Body relating to the condition of
      its facilities and properties or material compliance with Environmental
      Laws and shall proceed diligently to resolve any such claims, complaints,
      notices or inquiries relating to material compliance with Environmental
      Laws and provide such information and certifications which the
      Administrative Agent may reasonably request from time to time to evidence
  compliance with this Section 11.2(k).

	 	 	 
	 	(l) 	
      Books and Records. The Borrower shall, and shall
      cause each other Obligor to, keep proper books of account and records
      covering all its business and affairs on a current basis, make full, true
      and correct entries of its transactions in such books, set aside on its
      books from their earnings all such proper reserves as required by GAAP and
      permit representatives of the Administrative Agent to inspect such books
      of account, records and documents and to make copies therefrom during
      reasonable business hours and upon reasonable notice and to discuss the
      affairs, finances and accounts of such Obligor with its auditors during
      reasonable business hours and upon reasonable notice. On not less than
      three days prior written notice where no Default has occurred or is
      continuing and on not less than twenty-four hours prior notice where a
      Default has occurred and is continuing, the Borrower shall, and shall
      cause each other Obligor to, permit the Finance Parties or any of their
      respective representatives during reasonable business hours to inspect any
      and all of its properties and operations (including the Material
      Properties), to visit all of its offices or any other location where
      relevant personnel or records are located, to discuss its financial
      matters with its officers, its banks and its independent chartered
      accountants or certified public accountants, as the case may be, (and
      hereby authorizes such independent chartered accountants or certified
      public accountants, as the case may be, to discuss its financial matters
      with any of the foregoing persons or its representatives whether or not
      any representative of the relevant Obligor is present) and to examine (and
      photocopy extracts from) any of its books or other corporate records or
      any instrument, document or correspondence relating to the Material
      Properties.

	 	 	 
	 	(m) 	
      Change of Name or Jurisdiction of Formation. If
      any Obligor changes its legal name or its jurisdiction of formation or the
      jurisdiction of its location for the purposes of Sections 7 and 7.1 of the
      PPSA or adopts a French form of its legal name, the Borrower shall
      promptly notify the Administrative Agent in writing of the details of such
      change or adoption.

	 	 	 
	 	(n) 	
      Maintenance of Secured Assets. The Borrower shall,
      and shall cause each other Obligor to, maintain, preserve, protect and
keep:

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- 78 - 

	 	(i) 	
      all of its ownership, lease, use, licence and other
      interests in the Secured Assets as are necessary or advisable for it to be
      able to operate the Material Properties substantially in accordance with
      sound mining and business practice; and

	 	 	 
	 	(ii) 	
      all of the Secured Assets owned by it in good repair,
      working order, and condition, and make necessary and proper repairs,
      renewals, and replacements so that the business carried on in connection
      therewith may be properly conducted at all times, unless the continued
      maintenance of any of such Secured Assets is no longer necessary or
      economically desirable for the operation of the Material Properties, such
      operation to be substantially in accordance with sound mining and business
      practice.

	 	(o) 	
      Additional Guarantees and
  Security

	 	(i) 	
      At least ten Banking Days prior to the direct or indirect
      formation or acquisition by the Borrower of a Material Subsidiary after
      the date hereof, the Borrower shall notify the Administrative Agent of
      such proposed formation or acquisition (a “Subsidiary
    Notice”).

	 	 	 
	 	(ii) 	
      On or before the date of the formation or acquisition of
      any Material Subsidiary referred to in a Subsidiary Notice, the Borrower
      shall provide to the Administrative Agent or the Mexican Collateral Agent,
      as applicable, an updated Perfection Certificate and such other
      information regarding such Material Subsidiary and its business, finances
      and assets as the Lenders may request.

	 	 	 
	 	(iii) 	
      The Borrower shall, or shall cause each entity which is
      to become a Material Subsidiary and is referred to in a Subsidiary Notice
      to, within ten Banking Days after the formation or acquisition of such
      Material Subsidiary, deliver to the Administrative Agent or the Mexican
      Collateral Agent, as applicable, the
following:

	 	(A) 	
      a Guarantee executed by such Material Subsidiary in
      favour of the Administrative Agent or the Mexican Collateral Agent, as
      applicable;

	 	 	 
	 	(B) 	
      Security Documents executed by such Material Subsidiary
      in favour of the Administrative Agent or the Mexican Collateral Agent, as
      applicable;

	 	 	 
	 	(C) 	
      a Closing Certificate of such Material
  Subsidiary;

	 	 	 
	 	(D) 	
      an instrument of adhesion executed by such Material
      Subsidiary and pursuant to which such Material Subsidiary agrees to be
      bound by the terms of the Postponement and Subordination
    Undertaking;

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- 79 - 

	 	(E) 	
      opinions of such Material Subsidiary’s counsel with
      respect to, inter alia, such Material Subsidiary, the
      enforceability of the afore- mentioned Credit Documents and as to such
      other matters as the Administrative Agent or the Mexican Collateral Agent,
      as applicable, may reasonably request, and otherwise in form and substance
      satisfactory to the Administrative Agent; 

	 	  	
       

	 	(F) 	
      an updated Perfection Certificate containing all relevant
      information relating to such Material Subsidiary; and 

	 	  	
       

	 	(G) 	
      a certificate of a senior officer of the Borrower
      certifying that no Default has occurred and is continuing or would occur
      or arise immediately after or as a result of such Material Subsidiary
      becoming a Guarantor hereunder; 

whereupon such Material Subsidiary
shall become a Guarantor for all purposes of this agreement.

	 	(p) 	
      Change in Information in Perfection Certificate.
      If any of the information contained in the Perfection Certificate shall
      change, the Borrower shall promptly notify the Administrative Agent or the
      Mexican Collateral Agent, as applicable, in writing of the details of such
      change and the Perfection Certificate shall thereupon be deemed to be
      amended accordingly.

	 	 	 
	 	(q) 	
      Intercompany Indebtedness. The Borrower shall
      cause all Indebtedness owing by any Obligor to another Company to be
      subordinated and postponed, pursuant to the Postponement and Subordination
      Undertaking, to the Secured Obligations of such Obligor for so long as a
      Default has occurred and is continuing. The Borrower shall cause any other
      Company, prior to the incurrence of any such Indebtedness, to execute and
      deliver to the Administrative Agent the Postponement and Subordination
      Undertaking or an instrument of adhesion thereto. The Borrower shall not,
      and shall not suffer or permit, any acceleration of any Indebtedness owed
      by any Company to another Company.

	 	 	 
	 	(r) 	
      Security. The Borrower shall ensure that, at all
      times, the Secured Obligations of the Obligors are collaterally secured by
      the Security.

	 	 	 
	 	(s) 	
      BA Cash Collateral Account and Letter Cash Collateral
      Account. The Borrower shall, upon the request of the Administrative
      Agent, promptly establish the BA Cash Collateral Account and the Letter
      Cash Collateral Account with the Administrative Agent.

	 	 	 
	 	(t) 	
      Ventanas Property. On or before the date on which
      the Borrower publicly announces that the Ventanas Property has achieved
      commercial production, PEM shall transfer ownership thereof to a
      wholly-owned Person which is a Guarantor and the Ventanas Property shall
      be a Secured Asset charged pursuant to a Security Document granted solely
      in favour of the Administrative Agent (and not, for certainty, the Mexican
      Collateral Agent).

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	11.3 	Restrictive Covenants

The Borrower hereby covenants and
agrees with the Administrative Agent and the Lenders that, until all credit
outstanding hereunder has been repaid in full and the Credit Facility has been
terminated, and unless waived in writing in accordance with Section 14.14: 

	 	(a) 	
      Liens. The Borrower shall not, and shall not
      permit or suffer any other Obligor to, enter into or grant, create, assume
      or suffer to exist any Lien affecting any of their respective properties,
      assets or undertaking, whether now owned or hereafter acquired, save and
      except only for the Permitted Liens (provided, however, no Liens other
      than the Security shall be permitted on the Shares of any of the
      Guarantors) and provided that no Default or Event of Default has occurred
      and is continuing at the time of or would arise as a result of the
      granting of such Permitted Lien.

	 	 	 
	 	(b) 	
      Corporate Existence. Except as contemplated by any
      Permitted Reorganization, the Borrower shall not, and shall not permit or
      suffer any other Obligor to, take part in any amalgamation, merger,
      dissolution, winding up, corporate reorganization or similar proceeding or
      arrangement or discontinue any businesses.

	 	 	 
	 	(c) 	
      Dispositions. The Borrower shall not, and shall
      not suffer or permit any other Obligor to, Dispose of any of their
      respective assets other than Permitted Dispositions.

	 	 	 
	 	(d) 	
      Risk Management Agreements. The Borrower shall
      not, and shall not suffer or permit any other Obligor to, enter into any
      Risk Management Agreement for speculative purposes, any Risk Management
      Agreement with any counterparty on a margined basis, any Risk Management
      Agreement with a counterparty that is not a Lender or a Qualified
      Affiliate (unless it is on an unsecured basis).

	 	 	 
	 	(e) 	
      Amendments. The Borrower shall not, and shall not
      suffer or permit any other Obligor to, amend their constating documents in
      a manner that necessitates any amendments to the Security Documents or
      related Lien filings or that otherwise would negatively impact the Credit
      Documents (including, for certainty, any amendments that in any way impose
      transfer restrictions on the Shares of the relevant Obligor) or amend or
      terminate any of the Material Agreements (other than as permitted pursuant
      to the Intercreditor Documents). For avoidance of doubt, this Section
      11.3(e) does not apply to a change of name that complies with Section
      11.2(m).

	 	 	 
	 	(f) 	
      Restricted Payments. The Borrower shall not make
      any Restricted Payments unless each of the following conditions is
      satisfied:

	 	(i) 	
      no Default or Event of Default has occurred and is
      continuing at the time of the Restricted Payment or would be likely to
      arise as a result of the Restricted Payment; and

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	 	(ii) 	
      the Total Net Debt Leverage Ratio would be less than 2.0
      to 1 after giving effect to the Restricted
Payment.

	 	(g) 	
      Indebtedness. The Borrower shall not, and shall
      not suffer or permit any other Obligor to, create, incur, assume or suffer
      to exist any Indebtedness other than Permitted Indebtedness.

	 	 	 
	 	(h) 	
      Investments. The Borrower shall not, and shall not
      permit any other Obligor to, make any Investments other than Permitted
      Investments.

	 	 	 
	 	(i) 	
      Acquisitions. The Borrower shall not, and shall
      not suffer or permit any other Obligor to, make any Acquisitions other
      than Permitted Acquisitions.

	 	 	 
	 	(j) 	
      Transactions with Affiliates. Unless undertaken in
      connection with a Permitted Reorganization, the Borrower shall not, and
      shall not permit any other Obligor to, sell, lease or otherwise transfer
      any property or assets to, or purchase, lease or otherwise acquire any
      property or assets from, or otherwise engage in any other transactions
      with, any of its Affiliates other than in the ordinary course of business
      at prices and on terms and conditions not less favourable to such Obligor
      than could be obtained on an arm’s length basis from unrelated third
      parties. Unless undertaken in connection with a Permitted Reorganization,
      the Borrower shall not, and shall not suffer or permit any other Obligor
      to, enter into any transaction or series of transactions with Affiliates
      of any of the Obligors, which involve an outflow of money or other
      property from such Obligor to an Affiliate of any of the Obligors,
      including payment of management fees, affiliation fees, administration
      fees, compensation, salaries, asset purchase payments or any other type of
      fees or payments similar in nature, other than on terms and conditions
      substantially as favourable to such Obligor as would be obtainable by such
      Obligor in a reasonably comparable arm’s length transaction with a Person
      other than an Affiliate of such Obligor.

	 	 	 
	 	(k) 	
      Business Activities. The Borrower shall not, and
      shall not suffer or permit any of its Subsidiaries to, engage in any
      business activity other than the acquisition, development and operation of
      precious and base metal mines in the Permitted Jurisdictions, Brazil,
      Peru, Chile, Columbia, Guyana, Suriname or Uruguay and any activity
      incidental thereto.

	11.4 	Performance of Covenants by Administrative
      Agent 

The Administrative Agent may, on
the instructions of the Majority Lenders and upon notice by the Administrative
Agent to the Borrower, perform any covenant of the Borrower under this agreement
which the Borrower fails to perform or cause to be performed and which the
Administrative Agent is capable of performing, including any covenants the
performance of which requires the payment of money, provided that the
Administrative Agent shall not be obligated to perform any such covenant on
behalf of the Borrower and no such performance by the Administrative Agent shall
require the Administrative Agent to further perform the Borrower’s covenants or
shall operate as a derogation of the rights and remedies of the Administrative Agent and the Lenders under this agreement or as
a waiver of such covenant by the Administrative Agent. Any amounts paid by the
Administrative Agent as aforesaid shall be reimbursed by the Lenders in their
Pro Rata Shares and shall be repaid by the Borrower to the Administrative Agent
on behalf of the Lenders on demand. 

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ARTICLE 12 
CONDITIONS PRECEDENT TO OBTAINING
CREDIT 

	12.1 	Conditions Precedent to All Credit
  

The obligation of the Lenders to
extend credit hereunder is subject to fulfilment of the following conditions
precedent on the date such credit is extended: 

	 	(a) 	
      the Borrower shall have complied with the requirements of
      Article 4, Article 5 or Article 6, as the case may be, in respect of the
      relevant credit;

	 	 	 
	 	(b) 	
      no Default or Event of Default has occurred and is
      continuing or would arise immediately after giving effect to or as a
      result of such extension of credit; and

	 	 	 
	 	(c) 	
      the representations and warranties of the Borrower
      contained in Section 10.1 shall be true and correct in all respects on the
      date such credit is extended as if such representations and warranties
      were made on such date unless such representations and warranties relate
      solely to an earlier date.

	12.2 	Conditions Precedent to Initial Extension of
      Credit 

The obligations of the Lenders to
extend credit by way of the initial drawdown under the Credit Facility is
subject to the fulfilment of the following conditions precedent at the time, or
immediately following, such extension of credit: 

	 	(a) 	
      the conditions precedent set forth in Section 12.1 have
      been fulfilled;

	 	 	 
	 	(b) 	
      the Obligors and Cerro Resources NL shall have duly
      executed and delivered to the Administrative Agent and the Mexican
      Collateral Agent the Credit Documents to which each is a party, in form
      and substance satisfactory to the Administrative Agent;

	 	 	 
	 	(c) 	
      each relevant Subsidiary of the Borrower has executed and
      delivered to the Administrative Agent the Postponement and Subordination
      Undertaking, in form and substance satisfactory to the Administrative
      Agent, and any other documents in connection therewith as the
      Administrative Agent may require;

	 	 	 
	 	(d) 	
      all of the parties thereto shall have executed and
      delivered the Intercreditor Documents;

	 	 	 
	 	(e) 	
      Sandstorm shall have executed and delivered to the
      Administrative Agent the Sandstorm Subordination Agreement and Primero
      Gold shall have acknowledged such agreement;

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- 83 - 

	 	(f) 	
      the Administrative Agent or the Mexican Collateral Agent,
      as applicable, has received, in form and substance satisfactory to the
      Administrative Agent:

	 	(i) 	
      the Perfection Certificate;

	 	 	 
	 	(ii) 	
      a Closing Certificate of each Obligor;

	 	 	 
	 	(iii) 	
      a Compliance Certificate;

	 	 	 
	 	(iv) 	
      a certificate of status or good standing for each Obligor
      (where available) issued by the appropriate governmental body or agency of
      the jurisdiction in which such Obligor is incorporated;

	 	 	 
	 	(v) 	
      certificates representing all of the issued and
      outstanding Shares of the Guarantors (other than Shares of PML which are
      uncertificated and the Shares of STB, the certificates for which will
      continue to be held in pledge by SWC pursuant to the SWC Security and the
      Intercreditor Documents), duly endorsed in blank or accompanied by an
      executed stock transfer power of attorney;

	 	 	 
	 	(vi) 	
      certified copies of the Material Agreements;

	 	 	 
	 	(vii) 	
      a schedule detailing all policies of insurance maintained
      in accordance with Section 11.2(d) and the coverage effected thereby, such
      evidence with respect to the adequacy of insurance cover stipulated
      pursuant to Section 11.2(d) as the Administrative Agent may require,
      endorsements to all such insurance policies signed by the issuers of such
      policies and acknowledging the interests of the Administrative Agent and
      the Mexican Collateral Agent for and on behalf of, inter alia, the
      Finance Parties in such policies as referred to in Section 11.2(d) and
      evidence reasonably satisfactory to it that all such policies are in full
      force and effect;

	 	 	 
	 	(viii) 	
      an opinion of counsel to each Obligor addressed to,
      inter alia, the Administrative Agent and the Finance Parties and,
      as applicable, the Mexican Collateral Agent and their counsel, relating to
      the status and capacity of such Obligor, the due authorization, execution
      and delivery and the validity and enforceability of the Credit Documents
      to which such Obligor is a party in the jurisdiction where the Secured
      Assets are located and the jurisdiction of incorporation of such Obligor
      and such other matters as the Administrative Agent may reasonably
      request;

	 	 	 
	 	(ix) 	
      in respect of each Material Property, title insurance for
      the benefit of, or a title opinion addressed to, each Finance Party (and
      if such Material Property is located in Mexico, the Mexican Collateral
      Agent) in form and substance satisfactory to the Administrative Agent,
      acting reasonably;

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	 	(x) 	
      an opinion of the Administrative Agent’s counsel with
      respect to such matters as may be reasonably required by the
      Administrative Agent in connection with the transactions
  hereunder;

	 	 	 
	 	(xi) 	
      requisite information to identify the Obligors under the
      applicable “know your client” legislation, delivered sufficiently in
      advance for each Lender to complete such identification;

	 	 	 
	 	(xii) 	
      certified copies of current collective bargaining
      agreements with employees of the Material Properties, in form and
      substance satisfactory to the Lenders; and

	 	 	 
	 	(xiii) 	
      evidence that all material licenses and permits which are
      required to operate the Material Properties, in form and substance
      satisfactory to the Lenders, have been obtained and are in full force and
      effect;

	 	(g) 	
      prior to or concurrent with the initial drawdown
      hereunder, the Goldcorp Note shall be repaid in full and any guarantee
      thereof and any security therefor shall be released and
  discharged;

	 	 	 
	 	(h) 	
      there has not occurred a Material Adverse Change since
      December 31, 2013;

	 	 	 
	 	(i) 	
      there shall exist no pending or threatened (in writing)
      litigation, proceedings or investigations which (x) contest the
      consummation of the Credit Facility or any part thereof or (y) could
      reasonably be expected to have a Material Adverse Effect;

	 	 	 
	 	(j) 	
      the Lenders shall have completed and be satisfied with
      its legal, technical and environmental due diligence review of the
      Obligors, the Material Agreements and the Material Properties, which shall
      include but not be limited to a review of the current mineral reserve and
      resource statement, mine plan, financial model and operating
    permits;

	 	 	 
	 	(k) 	
      the Administrative Agent and its counsel shall be
      satisfied, acting reasonably, that all necessary approvals,
      acknowledgements, directions and consents have been given and that all
      relevant laws have been complied with in respect of all agreements and
      transactions referred to herein;

	 	 	 
	 	(l) 	
      all documents and instruments shall have been properly
      registered, recorded and filed in all places which, searches shall have
      been conducted in all jurisdictions which, and deliveries of all consents,
      approvals, directions, acknowledgements, undertakings, limitation of
      liability letters, access agreements and non-disturbance agreements,
      negotiable documents of title, ownership certificates and other documents
      and instruments to the Administrative Agent or, as applicable, the Mexican
      Collateral Agent shall have been made which, in the opinion of the
      Administrative Agent’s counsel, are desirable or required to make
      effective the Security created or intended to be created by the Obligors
      in favour of the Collateral Agent pursuant to the Security Documents and to
ensure the perfection and the intended priority of the Security; 

Credit Agreement - Primero Mining 

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	 	(m) 	
      the Borrower shall have paid to the Administrative Agent,
      the Lead Arranger and the Lenders all fees and expenses (including,
      without limitation, the fees and expenses of Lenders’ legal counsel)
      required to be paid on or before the initial extension of credit under the
  Credit Facility;

	 	 	 
	 	(n) 	
      all outstanding Indebtedness of the Obligors which is not
      Permitted Indebtedness shall have been permanently repaid and cancelled
      and all guarantees and security agreements executed and delivered under or
      in connection therewith shall have been released and discharged,
      satisfactory arrangements for the discharge of all attendant security
      registrations shall have been made and all collateral security in
      connection therewith shall have been returned to the Borrower;
  and

	 	 	 
	 	(o) 	
      all outstanding legal fees of counsel to the
Administrative Agent shall have been paid.

	12.3 	Waiver 

The terms and conditions of
Sections 12.1 and 12.2 are inserted for the sole benefit of the Administrative
Agent and the Lenders, and the Lenders may waive them in accordance with Section
14.14, in whole or in part, with or without terms or conditions, in respect of
any extension of credit, without prejudicing their right to assert the terms and
conditions of Section 12.1 and 12.2 in whole or in part in respect of any other
extension of credit. 

ARTICLE 13 
DEFAULT AND REMEDIES 

	13.1 	
      Events of Default

Upon the occurrence of any one or
more of the following events, unless expressly waived in writing in accordance
with Section 14.14: 

	 	(a) 	
      the breach by the Borrower of the provisions of Section
      9.1;

	 	 	 
	 	(b) 	
      the failure of any Obligor to pay any amount due under
      the Credit Documents (other than amounts due pursuant to Section 9.1)
      within three Banking Days after the payment is due;

	 	 	 
	 	(c) 	
      other than pursuant to a Permitted Reorganization, the
      commencement by any Obligor or by any other Person of proceedings for the
      dissolution, liquidation or winding up of any Obligor or for the
      suspension of operations of any Obligor (other than such proceedings
      commenced by another Person which are diligently defended and are
      discharged, vacated or stayed within thirty days after
    commencement);

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	 	(d) 	
      if any Obligor ceases or threatens to cease to carry on
      its business or is adjudged or declared bankrupt or insolvent or admits
      its inability to pay its debts generally as they become due or fails to
      pay its debts generally as they become due or makes an assignment for the
      benefit of creditors, petitions or applies to any tribunal for the
      appointment of a receiver or trustee for it or for any part of its
      property (or such a receiver or trustee is appointed for it or any part of
      its property), or commences (or any other Person commences) any
      proceedings relating to it under any bankruptcy, insolvency,
      reorganization, arrangement, readjustment of debt, dissolution or
      liquidation law or statute of any jurisdiction whether now or hereafter in
      effect (other than such proceedings commenced by another Person which are
      diligently defended and are discharged, vacated or stayed within thirty
      days after commencement), or by any act indicates its consent to, approval
      of, or acquiescence in, any such proceeding for it or for any part of its
      property, or suffers the appointment of any receiver or trustee,
      sequestrator or other custodian;

	 	 	 
	 	(e) 	
      if any representation or warranty made by any Obligor in
      any Finance Document or in any other document, agreement or instrument
      delivered pursuant hereto or referred to herein or any material
      information furnished in writing to the Administrative Agent or the
      Mexican Collateral Agent by any Obligor proves to have been incorrect in
      any material respect when made or furnished which, if capable of being
      cured, has not been remedied within ten Banking Days after written notice
      to do so has been given by the Administrative Agent or the Mexican
      Collateral Agent to the Borrower;

	 	 	 
	 	(f) 	
      if a judgment, writ, execution, attachment or similar
      process is entered, issued or levied against any Obligor or against all or
      any portion of the property of any Obligor in connection with any judgment
      against it in an amount of at least $5,000,000 (individually or in the
      aggregate), and such judgment, writ, execution, attachment or similar
      process is not released, bonded, satisfied, discharged, vacated or stayed
      within thirty days after its entry, issuance, commencement or
  levy;

	 	 	 
	 	(g) 	
      any breach of any provision of Section 11.1 or Section
      11.3;

	 	 	 
	 	(h) 	
      the breach or failure of due observance or performance by
      any Company of any covenant or provision of any Finance Document (other
      than those previously referred to in this Section 13.1) or of any other
      document, agreement or instrument delivered pursuant hereto or thereto or
      referred to herein or therein to which any of the Finance Parties is a
      party and such breach or failure continues for 10 Banking Days after the
      earlier of (x) the Borrower becoming aware of such breach or failure or
      (y) the Mexican Collateral Agent, the Administrative Agent or any other
      Finance Party giving the Borrower notice of such breach or
  failure;

	 	 	 
	 	(i) 	
      the breach or failure of due observance or performance by
      the Obligors of one or more covenants or provisions of one or more
      Material Agreements resulting in a claim against the Obligors in excess of
      $5,000,000 in the aggregate and such breaches or failures continue for 10 Banking Days after the
earlier of (x) the Borrower becoming aware of such breaches or failures or (y)
the Mexican Collateral Agent, the Administrative Agent or any other Finance
Party giving the Borrower notice of such breaches or failures; 

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	 	(j) 	
      if one or more encumbrancers, liens or landlords take
      possession of any part of the property of any Obligor or attempt to
      enforce their security or other remedies against such property and their
      claims remain unsatisfied for such period as would permit such property to
      be sold thereunder and such property which has been repossessed or is
      capable of being sold has an aggregate fair market value of at least
  $5,000,000 (individually or in the aggregate);

	 	 	 
	 	(k) 	
      if an event of default under any one or more agreements,
      indentures or instruments, under which any Obligor has outstanding
      Indebtedness in an amount of at least $5,000,000 (individually or in the
      aggregate) or under which another Person has outstanding Indebtedness in
      an amount of at least $3,000,000 (individually or in the aggregate) which
      is guaranteed by any Obligor, shall happen (with all applicable grace
      periods having expired) and be continuing, or if any Indebtedness of or
      guaranteed by any Obligor in an amount of at least $5,000,000
      (individually or in the aggregate) which is payable on demand is not paid
      on demand or if any Obligor fails to make any payment under any Capital
      Lease when due;

	 	 	 
	 	(l) 	
      the occurrence of a Change of Control;

	 	 	 
	 	(m) 	
      the occurrence of a Brigus Event of Default (as defined
      in the Sandstorm Gold Purchase Agreement) or otherwise the occurrence of
      an event of default under any other Material Agreement or the termination
      or amendment of any other Material Agreement if such event of default,
      termination or amendment could reasonably be expected to have a Material
      Adverse Effect;

	 	 	 
	 	(n) 	
      the expropriation, condemnation or abandonment of the a
      Material Property or any part thereof or any restriction or limitation
      imposed by any Official Body on the relevant Obligor’s legal right to use
      the Mining Properties owned by it for mining and exploration activities
      whether as a result of the Ejido Litigation or otherwise and such
      imposition resulting in such restriction or limitation has not been
      discharged, vacated or stayed within 30 days;

	 	 	 
	 	(o) 	
      any one or more of the Finance Documents is determined by
      a court of competent jurisdiction not to be a legal, valid and binding
      obligation of any Company which is a party thereto, enforceable by the
      Mexican Collateral Agent, the Finance Parties or any of them against such
      Obligor and such Finance Document has not been replaced by a legal, valid,
      binding and enforceable document which is equivalent in effect to such
      Finance Document, assuming such Finance Document had originally been
      legal, valid, binding and enforceable, in form and substance acceptable to
      the relevant Finance Parties, within 30 days of such determination,
      provided, however, that such grace period shall only be provided if
such Company actively co-operates with the relevant Finance Party
and, if applicable, the Mexican Collateral Agent to so replace such Finance
Document; 

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	 	(p) 	
      the validity, enforceability or priority of any of the
  Finance Documents is contested in any manner by any Company;

	 	 	 
	 	(q) 	
      any Finance Document is terminated or rescinded or any
      Person takes an action to terminate or rescind any Finance
  Document;

	 	 	 
	 	(r) 	
      any Security Document does not create legal, valid,
      binding and enforceable security over the assets charged under that
      Security Document;

	 	 	 
	 	(s) 	
      any Security Document does not constitute first ranking,
      priority security in the Secured Assets (subject to Permitted Liens which
      by their nature or by reason of the Intercreditor Agreement would
      constitute prior ranking security); or

	 	 	 
	 	(t) 	
      the occurrence of a Material Adverse
Change;

the Administrative Agent (with the approval and instructions of
the Majority Lenders) may, by notice to the Borrower, terminate the Credit
Facility (provided, however, that the Credit Facility shall automatically
terminate, without notice of any kind, upon the occurrence of an event described
in clause (c) or (d) above) and the Administrative Agent (with the approval and
instructions of the Majority Lenders) may, by the same or further notice to the
Borrower, declare all indebtedness of the Borrower to the Lenders pursuant to
this agreement to be immediately due and payable whereupon all such indebtedness
shall immediately become and be due and payable without further demand or other
notice of any kind, all of which are expressly waived by the Borrower (provided,
however, that all such indebtedness of the Borrower to the Lenders shall
automatically become due and payable, without notice of any kind, upon the
occurrence of an event described in clause (c) or (d) above).

	13.2 	Bankers’ Acceptances

The Borrower acknowledges that
extensions of credit hereunder by way of Bankers’ Acceptances and BA Equivalent
Loans may not be repaid prior to the maturity thereof. If any Bankers’
Acceptance or BA Equivalent Loan is repaid prior to the scheduled maturity date
thereof (whether as a result of acceleration or otherwise), the Administrative
Agent will invest any funds in respect of such purported repayment in a term
deposit maturing on the scheduled maturity date of the Bankers’ Acceptance or BA
Equivalent Loan. Any interest accruing on the term deposit will be paid to the
Borrower on the maturity date thereof, provided that no Event of Default has
occurred. 

	13.3 	
      Letters

With respect to any Letters which
are outstanding at the time that all indebtedness of the Borrower to the Lenders
pursuant to this agreement become immediately due and payable pursuant to
Section 13.1, the Borrower shall forthwith (i) pay to the Administrative Agent
for deposit to the Letter Cash Collateral Account the then aggregate contingent
liability of the Issuing Lender under such Letters and (ii) a certificate of a
senior officer of SWC addressed to the Administrative Agent that no SWC Payment Default (as
defined in the Intercreditor Agreement) has occurred and is continuing.
Thereafter, the Administrative Agent shall apply the funds so deposited in the
Letter Cash Collateral Account at the direction of the Issuing Lender to (a)
satisfy the reimbursement obligations of the Borrower to the Issuing Lender
under Section 9.8 as Letters are drawn upon or (b) refund to the Borrower any
amounts payable by the Issuing Lender to the Borrower under Section 13.4. 

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	13.4 	Refund of Overpayments

With respect to each Letter for
which the Issuing Lender has been paid all of its contingent liability pursuant
to Section 9.9 or 13.3 and provided that all amounts due by the Borrower to the
Administrative Agent under Section 9.9 or 13.3 have been paid, the Issuing
Lender agrees to pay to the Borrower, upon the earlier of: 

	 	(a) 	
      the date on which either the original counterpart of such
      Letter is returned to the Issuing Lender for cancellation or the Issuing
      Lender is released by the beneficiary thereof from any further obligations
      in respect of such Letter;

	 	 	 
	 	(b) 	
      the expiry of such Letter; and

	 	 	 
	 	(c) 	
      the Issuing Lender is permanently enjoined by a court of
      competent jurisdiction from honouring such Letter pursuant to a final
      Order;

an amount equal to any excess of the amount received by the
Issuing Lender hereunder in respect of its contingent liability under such
Letter over the total of amounts applied to reimburse the Issuing Lender for
amounts paid by it under or in connection with such Letter (the Issuing Lender
having the right to so appropriate such funds). 

	13.5 	Remedies Cumulative 

The Borrower expressly agrees
that the rights and remedies of the Administrative Agent and the Lenders under
this agreement are cumulative and in addition to and not in substitution for any
rights or remedies provided by law. Any single or partial exercise by the
Administrative Agent or any Lender of any right or remedy for a default or
breach of any term, covenant or condition in this agreement does not waive,
alter, affect or prejudice any other right or remedy to which the Administrative
Agent or such Lender may be lawfully entitled for the same default or breach.
Any waiver by the Administrative Agent with the approval of the Majority Lenders
or all of the Lenders in accordance with Section 14.14 of the strict observance,
performance or compliance with any term, covenant or condition of this agreement
is not a waiver of any subsequent default and any indulgence by the Lenders with
respect to any failure to strictly observe, perform or comply with any term,
covenant or condition of this agreement is not a waiver of the entire term,
covenant or condition or any subsequent default. No failure or delay by the
Mexican Collateral Agent, the Administrative Agent or any Lender in exercising
any right shall operate as a waiver of such right nor shall any single or
partial exercise of any power or right preclude its further exercise or the
exercise of any other power or right. 

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- 90 - 

	13.6 	
      Set-Off

In addition to any rights now or
hereafter granted under Applicable Law, and not by way of limitation of any such
rights, the Administrative Agent and each Lender is authorized, at any time that
an Event of Default has occurred and is continuing without notice to the
Borrower or to any other Person, any such notice being expressly waived by the
Borrower, to set-off, appropriate and apply any and all deposits, matured or
unmatured, general or special, and any other indebtedness at any time held by or
owing by the Administrative Agent or such Lender, as the case may be, to or for
the credit of or the account of the Borrower against and on account of the
obligations and liabilities of the Borrower which are due and payable to the
Administrative Agent or such Lender, as the case may be, under the Finance
Documents. 

ARTICLE 14 
THE ADMINISTRATIVE AGENT 

	14.1 	
      Appointment and Authorization of Administrative
      Agent

	 	(a) 	
      Each Finance Party hereby appoints and authorizes, and
      hereby agrees that it will require any assignee of any of its interests in
      the Credit Documents (other than the holder of a participation in its
      interests herein or therein) to appoint and authorize the Administrative
      Agent to take such actions as agent on its behalf and to exercise such
      powers under the Credit Documents as are delegated to the Administrative
      Agent or the Administrative Agent by such Finance Party by the terms
      hereof, together with such powers as are reasonably incidental thereto.
      Neither the Administrative Agent nor any of its directors, officers,
      employees or agents shall be liable to any of the Finance Parties for any
      action taken or omitted to be taken by it or them hereunder or thereunder
      or in connection herewith or therewith, except for its own gross
      negligence or wilful misconduct and each Finance Party hereby acknowledges
      that the Administrative Agent is entering into the provisions of this
      Section 14.1 on its own behalf and as agent and trustee for its directors,
      officers, employees and agents.

	 	 	 
	 	(b) 	
      Each Lender hereby authorizes the Administrative Agent to
      execute and deliver the Intercreditor Documents and to designate and
      appoint (A) Banco Nacional de Mexico, S.A. as the Mexican Collateral
      Agent, and (B) Citibank, as the Non- Mexican Proceeds Agent in each case
      under the Intercreditor Documents and each of the Lenders hereby
      recognizes such designations and appointments, without the need of any
      further requirement, formalization or notice. Each of the Lenders hereby
      agrees that it shall take any and all necessary or appropriate further
      actions as it might be required to take, by law or otherwise, to authorize
      the Administrative Agent to carry out the foregoing or for the Mexican
      Collateral Agent or Non-Mexican Proceeds Agent to exercise its faculties
      and powers, and to comply with its obligations, under the Intercreditor
      Documents and the Mexican Collateral Documents, as the case may be,
      directly or through its attorneys-in-fact or designees, including but not
      limited to the individualization of any required special power of
      attorney.

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	14.2 	
      Interest Holders

The Administrative Agent may
treat each Lender set forth in Schedule B hereto or the person designated in the
last notice delivered to it under Section 15.5 as the holder of all of the
interests of such Lender under the Credit Documents. 

	14.3 	
      Consultation with Counsel

The Administrative Agent may
consult with legal counsel selected by it as counsel for the Administrative
Agent and the Lenders and shall not be liable for any action taken or not taken
or suffered by it in good faith and in accordance with the advice and opinion of
such counsel. 

	14.4 	
      Documents

The Administrative Agent shall
not be under any duty to the Finance Parties to examine, enquire into or pass
upon the validity, effectiveness or genuineness of the Credit Documents or any
instrument, document or communication furnished pursuant to or in connection
with the Credit Documents and the Administrative Agent shall, as regards the
Finance Parties, be entitled to assume that the same are valid, effective and
genuine, have been signed or sent by the proper parties and are what they
purport to be. 

	14.5 	
      Administrative Agent as Finance
  Party

With respect to those portions of
the Credit Facility made available by it, the Administrative Agent shall have
the same rights and powers under the Credit Documents as any other Finance Party
and may exercise the same as though it were not the Administrative Agent. The
Administrative Agent and its Affiliates may accept deposits from, lend money to
and generally engage in any kind of business with the Borrower and its
Affiliates and persons doing business with the Borrower and/or any of its
Affiliates as if it were not the Administrative Agent and without any obligation
to account to the Finance Parties therefore. 

	14.6 	
      Responsibility of Administrative
  Agent

The duties and obligations of the
Administrative Agent to the Finance Parties under the Credit Documents are only
those expressly set forth herein. The Administrative Agent shall not have any
duty to the Finance Parties to investigate whether a Default or an Event of
Default has occurred. The Administrative Agent shall, as regards the Lenders, be
entitled to assume that no Default or Event of Default has occurred and is
continuing unless the Administrative Agent has actual knowledge or has been
notified by the Borrower of such fact or has been notified by a Finance Party
that such Finance Party considers that a Default or Event of Default has
occurred and is continuing, such notification to specify in detail the nature
thereof. 

	14.7 	
      Action by Administrative
Agent

The Administrative Agent shall be
entitled to use its discretion with respect to exercising or refraining from
exercising any rights which may be vested in it on behalf of the Finance Parties
by and under this agreement; provided, however, that the Administrative Agent
shall not exercise any rights under Section 13.1 or under the
Guarantees or the Security Documents or expressed to be on behalf of or with the
approval of the Majority Lenders or instruct the Mexican Lien Agent to exercise
any rights under the Mexican Collateral Document without the request, consent or
instructions of the Majority Lenders. Furthermore, any rights of the
Administrative Agent expressed to be on behalf of or with the approval of the
Majority Lenders shall be exercised by the Administrative Agent upon the request
or instructions of the Majority Lenders. The Administrative Agent shall incur no
liability to the Finance Parties under or in respect of any of the Credit
Documents with respect to anything which it may do or refrain from doing in the
reasonable exercise of its judgment or which may seem to it to be necessary or
desirable in the circumstances, except for its gross negligence or wilful
misconduct. The Administrative Agent shall in all cases be fully protected in
acting or refraining from acting under any of the Credit Documents in accordance
with the instructions of the Majority Lenders and any action taken or failure to
act pursuant to such instructions shall be binding on all Finance Parties. In
respect of any notice by or action taken by the Administrative Agent hereunder,
the Borrower shall at no time be obliged to enquire as to the right or authority
of the Administrative Agent to so notify or act. 

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	14.8 	
      Notice of Events of
Default

In the event that the
Administrative Agent shall acquire actual knowledge or shall have been notified
of any Default or Event of Default, the Administrative Agent shall promptly
notify the Lenders and shall take such action and assert such rights under
Section 13.1 of this agreement and under the other Credit Documents as the
Majority Lenders shall request in writing and the Administrative Agent shall not
be subject to any liability by reason of its acting pursuant to any such
request. If the Majority Lenders shall fail for five Banking Days after receipt
of the notice of any Default or Event of Default to request the Administrative
Agent to take such action or to assert such rights under any of the Credit
Documents in respect of such Default or Event of Default, the Administrative
Agent may, but shall not be required to, and subject to subsequent specific
instructions from the Majority Lenders, take such action or assert such rights
(other than rights under Section 13.1 of this agreement or under the other
Credit Documents and other than giving an express waiver of any Default or any
Event of Default) as it deems in its discretion to be advisable for the
protection of the Lenders except that, if the Majority Lenders have instructed
the Administrative Agent not to take such action or assert such rights, in no
event shall the Administrative Agent act contrary to such instructions unless
required by law to do so. 

	14.9 	
      Responsibility Disclaimed

The Administrative Agent shall be
under no liability or responsibility whatsoever as agent hereunder: 

	 	(a) 	
      to the Borrower or any other Person as a consequence of
      any failure or delay in the performance by, or any breach by, any Lender
      or Lenders of any of its or their obligations under any of the Credit
      Documents;

	 	 	 
	 	(b) 	
      to any Lender or Lenders as a consequence of any failure
      or delay in performance by, or any breach by, any Obligor of any of its
      obligations under any of the Credit Documents; or

	 	 	 
	 	(c) 	
      to any Lender or Lenders for any statements,
      representations or warranties in any of the Credit Documents or in any
      other documents contemplated hereby or thereby or in any other information
      provided pursuant to any of the Credit Documents or any other documents
      contemplated thereby or for the validity, effectiveness, enforceability or
      sufficiency of any of the Credit Documents or any other document
      contemplated hereby or thereby.

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	14.10 	Indemnification 

The Lenders agree to indemnify
the Administrative Agent (to the extent not reimbursed by the Borrower) in their
respective Pro Rata Shares from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any nature whatsoever which may be imposed on,
incurred by or asserted against the Administrative Agent in any way relating to
or arising out of any of the Credit Documents or any other document contemplated
hereby or thereby or any action taken or omitted by the Administrative Agent
under any of the Credit Documents or any document contemplated hereby or
thereby, except that no Lender shall be liable to the Administrative Agent for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
gross negligence or wilful misconduct of the Administrative Agent. 

	14.11 	
      Credit Decision

Each Lender represents and warrants to the Administrative Agent
that: 

	 	(a) 	
      in making its decision to enter into this agreement and
      to make its Pro Rata Share of the Credit Facility available to the
      Borrower, it is independently taking whatever steps it considers necessary
      to evaluate the financial condition and affairs of the Obligors and that
      it has made an independent credit judgment without reliance upon any
      information furnished by the Administrative Agent; and

	 	 	 
	 	(b) 	
      so long as any portion of the Credit Facility is being
      utilized by the Borrower, it will continue to make its own independent
      evaluation of the financial condition and affairs of the
  Obligors.

	14.12 	
      Successor Administrative
Agent

Subject to the appointment and
acceptance of a successor Administrative Agent as provided below, the
Administrative Agent may, with the prior written consent of the Borrower (which
consent shall not be required for so long as a Default has occurred and is
continuing), resign at any time by giving 30 days written notice thereof to the
Borrower and the Lenders. Upon any such resignation, the Majority Lenders, with
the prior written consent of the Borrower (which consent shall not be required
(x) if the successor Administrative Agent is an Affiliate or Subsidiary of the
Administrative Agent on the date hereof or (y) for so long as a Default has
occurred and is continuing), shall have the right to appoint a successor
Administrative Agent who shall be one of the Lenders unless none of the Lenders
wishes to accept such appointment. If no successor Administrative Agent shall
have been so appointed and shall have accepted such appointment by the time of such resignation, then the retiring
Administrative Agent may, on behalf of the Finance Parties and with the prior
written consent of the Borrower (which consent shall not be required for so long
as an Event of Default has occurred and is continuing), appoint a successor
Administrative Agent which shall be a bank which has combined capital and
reserves in excess of $250,000,000. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges, duties and obligations of the retiring
Administrative Agent (in its capacity as Administrative Agent but not in its
capacity as a Finance Party) and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder (in its capacity as
Administrative Agent but not in its capacity as a Finance Party). After any
retiring Administrative Agent’s resignation hereunder as the Administrative
Agent, provisions of this Article 14 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
the Administrative Agent. 

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	14.13 	
      Delegation by Administrative
Agent

With the prior approval of the
Majority Lenders, the Administrative Agent shall have the right to delegate any
of its duties or obligations hereunder as Administrative Agent to any Affiliate
of the Administrative Agent so long as the Administrative Agent shall not
thereby be relieved of such duties or obligations. 

	14.14 	
      Waivers and Amendments

	 	(a) 	
      Subject to Sections 14.14(b) and (c), any term, covenant
      or condition of any of the Credit Documents may only be amended with the
      prior consent of the Borrower and the Majority Lenders or compliance
      therewith may be waived (either generally or in a particular instance and
      either retroactively or prospectively) by the Majority Lenders and in any
      such event the failure to observe, perform or discharge any such covenant,
      condition or obligation, so amended or waived (whether such amendment is
      executed or such consent or waiver is given before or after such failure),
      shall not be construed as a breach of such covenant, condition or
      obligation or as a Default or Event of Default.

	 	 	 
	 	(b) 	
      Notwithstanding Section 14.14(a), without the prior
      written consent of each Lender, no such amendment or waiver shall
      directly:

	 	(i) 	
      increase the amount of the Credit Facility or the amount
      of the Individual Commitment of any Lender;

	 	 	 
	 	(ii) 	
      extend the Maturity Date;

	 	 	 
	 	(iii) 	
      extend the time for the payment of interest on Loans,
      forgive any portion of principal thereof, reduce the stated rate of
      interest thereon or amend the requirement of pro rata application
      of all amounts received by the Administrative
Agent;

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	 	(iv) 	
      change the percentage of the Lenders’ requirement to
      constitute the Majority Lenders or otherwise amend the definition of
      Majority Lenders;

	 	 	 
	 	(v) 	
      reduce the stated amount or postpone the date for payment
      of any fees or other amount to be paid pursuant to Article 7 or Article 8
      of this agreement;

	 	 	 
	 	(vi) 	
      permit any subordination or postponement of any of the
      Secured Obligations;

	 	 	 
	 	(vii) 	
      except as otherwise permitted pursuant to Section 14.20,
      release or discharge the Guarantees or the Security Documents, in whole or
      in part; or

	 	 	 
	 	(viii) 	
      alter the terms of this Section
14.14.

	 	(c) 	
      Notwithstanding Section 14.14(a), without the prior
      written consent of each Lender, each Qualified Cash Management Lender and
      each Qualified Risk Management Lender, no such amendment or waiver shall
      directly:

	 	(i) 	
      change the percentage of the Lenders’ requirement to
      constitute the Majority Lenders or otherwise amend the definition of
      Majority Lenders;

	 	 	 
	 	(ii) 	
      permit any subordination of any of the Secured
      Obligations;

	 	 	 
	 	(iii) 	
      except as otherwise permitted pursuant to Section 14.20,
      release or discharge the Guarantees or the Security Documents, in whole or
      in part;

	 	 	 
	 	(iv) 	
      alter the terms of this Section 14.14;

	 	 	 
	 	(v) 	
      amend the definitions of “Common Cash Management
      Agreement”, “Common Risk Management Agreement”, “Enforcement
      Date”, “Exposure”, “Finance Document”, “Finance
      Party”, “Qualified Affiliate”, “Qualified Cash Management
      Lender”, “Qualified Risk Management Lender”, “Cash
      Management Agreement”, “Risk Management Agreement” or
      “Secured Obligations”; or

	 	 	 
	 	(vi) 	
      change the ability of a Qualified Risk Management Lender
      to close out or terminate a Risk Management Agreement or the ability to
      net or set-off; or

	 	 	 
	 	(vii) 	
      amend or waive Section 11.3(d), Section 14.21, Section
      14.22 or Section 14.24.

	 	(d) 	
      No amendment to or waiver of any provision hereof to the
      extent it affects the rights or obligations of the Administrative Agent
      shall be effective without the prior written consent of the Administrative
      Agent.

	 	 	 
	 	(e) 	
      No amendment to or waiver of any provision hereof to the
      extent it affects the rights or obligations of the Issuing Lender shall be
      effective without the prior written consent of the Issuing
  Lender.

	 	 	 
	 	(f) 	
      Notwithstanding Section 14.14(b)(iii), the Administrative
      Agent shall be entitled, without the consent of any Lender, to authorize
      the Mexican Collateral Agent to execute and deliver a release or discharge
      of any Security over any Secured Assets at the time of any disposition of
      such assets which is permitted hereunder.

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	14.15 	
      Determination by Administrative Agent Conclusive and
      Binding

Any determination to be made by
the Administrative Agent on behalf of or with the approval of the Lenders or the
Majority Lenders under this agreement shall be made by the Administrative Agent
in good faith and, if so made, shall be binding on all parties, absent manifest
error. The Obligors are entitled to assume that any action taken by the
Administrative Agent under or in connection with any Credit Document has been
appropriately authorized by the Lenders or the Majority Lenders, as the case may
be, pursuant to the terms hereof. 

	14.16 	
      Adjustments among Lenders after
  Acceleration

	 	(a) 	
      The Lenders agree that, at any time after all
      indebtedness of the Borrower to the Lenders pursuant hereto has become
      immediately due and payable pursuant to Section 13.1 or after the
      cancellation or termination of the Credit Facility, they will at any time
      or from time to time upon the request of any Lender through the
      Administrative Agent purchase portions of the availments made available by
      the other Lenders which remain outstanding, and make any other adjustments
      which may be necessary or appropriate, in order that the amounts of the
      availments made available by the respective Lenders which remain
      outstanding, as adjusted pursuant to this Section 14.16, will be in the
      same proportions as their respective Pro Rata Shares thereof immediately
      prior to such acceleration, cancellation or termination.

	 	 	 
	 	(b) 	
      The Lenders agree that, at any time after all
      indebtedness of the Borrower to the Lenders pursuant hereto has become
      immediately due and payable pursuant to Section 13.1 or after the
      cancellation or termination of the Credit Facility, the amount of any
      repayment made by the Borrower under this agreement, and the amount of any
      proceeds of the exercise of any rights or remedies of the Lenders under
      the Credit Documents, which are to be applied against amounts owing
      hereunder as principal, will be so applied in a manner such that to the
      extent possible, the availments made available by the Lenders which remain
      outstanding, after giving effect to such application, will be in the same
      proportions as their respective Pro Rata Shares thereof immediately prior
      to such acceleration, cancellation or termination.

	 	 	 
	 	(c) 	
      For greater certainty, the Lenders acknowledge and agree
      that without limiting the generality of the provisions of Section 14.16(a)
      and (b), such provisions will have application if and whenever any Lender
      shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of
set-off, compensation, or otherwise), other than on account of any monies owing
or payable by the Borrower to it under the Finance Documents in excess of its
        pro rata share of payments on account of monies owing by the Borrower to
all the Finance Parties thereunder. 

	 	 	 
	 	(d) 	
      The Borrower agrees to be bound by and to do all things
      necessary or appropriate to give effect to any and all purchases and other
      adjustments made by and between the Lenders pursuant to this Section
14.16.

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	14.17 	Redistribution of Payment

If a Lender shall receive payment
of a portion of the aggregate amount of principal and interest due to it
hereunder which is greater than the proportion received by any other Lender in
respect of the aggregate amount of principal and interest due (having regard to
the respective Individual Commitments of the Lenders), the Lender receiving such
proportionately greater payment shall purchase a participation (which shall be
deemed to have been done simultaneously with receipt of such payment) in that
portion of the aggregate outstanding credit of the other Lender or Lenders so
that the respective receipts shall be pro rata to their respective
participation in the credits; provided, however, that if all or part of such
proportionately greater payment received by such purchasing Lender shall be
recovered from the Borrower, such purchase shall be rescinded and the purchase
price paid for such participation shall be returned by such selling Lender or
Lenders to the extent of such recovery, but without interest.

	14.18 	Distribution of Notices

Except as otherwise expressly
provided herein, promptly after receipt by the Administrative Agent of any
notice or other document which is delivered to the Administrative Agent
hereunder on behalf of the Lenders, the Administrative Agent shall provide a
copy of such notice or other document to each of the Lenders. 

	14.19 	
      Other Security Not
Permitted

None of the Finance Parties shall
be entitled to enjoy any Lien with respect to any of the Secured Assets other
than the Security. 

	14.20 	Discharge of Security

To the extent a sale or other
disposition of the Secured Assets is permitted pursuant to the provisions
hereof, the Lenders hereby authorize the Administrative Agent, at the cost and
expense of the Borrower, to execute such discharges and other instruments (or,
if applicable, to so authorize the Mexican Collateral Agent) which are necessary
for the purposes of releasing and discharging the Security therein or for the
purposes of recording the provisions or effect thereof in any office where the
Security Documents may be registered or recorded or for the purpose of more
fully and effectively carrying out the provisions of this Section 14.20. 

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	14.21 	Determination of Exposures

Concurrent with any request for
any approval or instructions of the Majority Lenders and prior to any
distribution of Cash Proceeds of Realization to the Finance Parties, the
Administrative Agent shall request each Finance Party to provide to the
Administrative Agent a written calculation of such Finance Party’s Exposure,
each such calculation to be certified true and correct by the Finance Party
providing same. Each Finance Party shall so provide such calculation within two
Banking Days following the request of the Administrative Agent. Any such
calculation provided by a particular Finance Party shall, absent manifest error,
constitute prima facie evidence of such Finance Party’s Exposure at such
time. With respect to each determination of the Exposure of the Finance Parties,
the Administrative Agent shall promptly notify the Finance Parties. For the
purposes of determining a particular Finance Party’s Exposure: 

	 	(a) 	
      the Exposure of a Finance Party under any Credit
      Documents shall be the aggregate amount (expressed in United States
      dollars) owing to such Finance Party thereunder on such date;

	 	 	 
	 	(b) 	
      the Exposure of a Qualified Risk Management Lender in
      respect of Common Risk Management Agreements shall be measured as the net
      exposure of such Qualified Risk Management Lender under all Common Risk
      Management Agreements with the Obligors to which such Qualified Risk
      Management Lender is a party, being the aggregate exposure of such
      Qualified Risk Management Lender thereunder less the aggregate exposure of
      the Obligors thereunder; the exposure of a party to a Common Risk
      Management Agreement shall be, in the case of a Common Risk Management
      Agreement which has not been terminated as of such date, the total amount
      which would be owing to such party by the other party under such Common
      Risk Management Agreement in the event of the early termination as of such
      date of such Common Risk Management Agreement as a result of the
      occurrence of a default, event of default or termination event (however
      specified or designated) with respect to such party thereunder or, in the
      case of a Common Risk Management Agreement which has been terminated as of
      such date, the total amount which is owing to such party by the other
      party under such Common Risk Management Agreement, in each case expressed
      in United States dollars;

	 	 	 
	 	(c) 	
      the Exposure of a Qualified Cash Management Lender in
      respect of Common Cash Management Agreements shall be measured as the net
      exposure of such Qualified Cash Management Lender under all Common Cash
      Management Agreements with the Obligors to which such Qualified Cash
      Management Lender is a party, being the aggregate exposure of such
      Qualified Cash Management Lender thereunder less the aggregate exposure of
      the Obligors thereunder; the exposure of a party to a Common Cash
      Management Agreement shall be, in the case of a Common Cash Management
      Agreement which has not been terminated as of such date, the total amount
      which would be owing to such party by the other party under such Common
      Cash Management Agreement in the event of the early termination as of such
      date of such Common Cash Management Agreement as a result of the
      occurrence of a default, event of default or termination event (however
      specified or designated) with respect to such party thereunder or, in the
      case of a Common Cash Management Agreement which has been terminated as
      of such date, the total amount which is owing to such party by the
other party under such Common Cash Management Agreement, in each case expressed
in United States dollars; 

	 	 	 
	 	(d) 	
      any amount of Secured Obligations denominated in Canadian
      dollars shall be expressed as the U.S. Dollar Equivalent thereof;
  and

	 	 	 
	 	(e) 	
      the Exposure of the Administrative Agent, for the
      purposes of Section 14.24(b)(iii) and for no other purposes, shall not
      include the amounts distributed pursuant to Sections 14.24(b)(i) and
(ii).

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	14.22 	Decision to Enforce Security
  

Upon the Security becoming
enforceable in accordance with its terms, the Administrative Agent shall
promptly so notify each of the Finance Parties. Any Lender may thereafter
provide the Administrative Agent with a written request to enforce the Security.
Forthwith after the receipt of such a request, the Administrative Agent shall
seek the instructions of the Majority Lenders as to whether the Security should
be enforced and the manner in which the Security should be enforced. In seeking
such instructions, the Administrative Agent shall submit a specific proposal to
the Finance Parties. From time to time, any Lender may submit a proposal to the
Administrative Agent as to the manner in which the Security should be enforced
and the Administrative Agent shall submit any such proposal to the Lenders for
approval of the Majority Lenders. The Administrative Agent shall promptly notify
the Finance Parties of all instructions and approvals of the Majority Lenders.
If the Majority Lenders instruct the Administrative Agent to enforce the
Security, each of the Lenders agrees to accelerate the Secured Obligations owed
to it to the extent permitted under the relevant Finance Document and in
accordance with the relevant Finance Document. 

	14.23 	
      Enforcement

The Administrative Agent reserves
the sole right to enforce, or otherwise deal with (and instruct the Mexican
Collateral Agent to enforce or otherwise deal with), the Security and to deal
with the Obligors in connection therewith; provided, however, that the
Administrative Agent shall so enforce, or otherwise deal with, the Security as
the Majority Lenders shall instruct. 

	14.24 	
      Application of Cash Proceeds of
  Realization

	 	(a) 	
      All Proceeds of Realization not in the form of cash shall
      be forthwith delivered to the Administrative Agent and disposed of, or
      realized upon, by the Administrative Agent as set forth in the
      Intercreditor Documents and otherwise in such manner as the Majority
      Lenders may approve so as to produce Cash Proceeds of
  Realization.

	 	 	 
	 	(b) 	
      Subject to the claims, if any, of secured creditors of
      the Obligors whose security ranks in priority to the Security, all Cash
      Proceeds of Realization shall be applied and distributed, and the claims
      of the Finance Parties shall be deemed to have the relative priorities
      which would result in the Cash Proceeds of Realization being applied and
      distributed, as follows:

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	 	(i) 	
      firstly, to the payment of all reasonable costs and
      expenses incurred by the Administrative Agent or, if applicable, the
      Mexican Collateral Agent (including, without limitation and in each case,
      all legal fees and disbursements) in the exercise of all or any of the
      powers granted to them hereunder or under the Security Documents and the
      Guarantees and in payment of all of the remuneration of any Receiver and
      all costs and expenses properly incurred by such Receiver (including,
      without limitation, all legal fees and disbursements) in the exercise of
      all or any powers granted to it under the Security Documents;

	 	 	 
	 	(ii) 	
      secondly, in payment of all amounts of money borrowed or
      advanced by the Administrative Agent, the Mexican Collateral Agent or such
      Receiver pursuant to the Security Documents and any interest
    thereon;

	 	 	 
	 	(iii) 	
      thirdly, to the payment of the Secured Obligations
      (including holding as cash collateral to be applied against Secured
      Obligations which have not then matured) to the Finance Parties pro
      rata in accordance with their relative Exposures; and

	 	 	 
	 	(iv) 	
      the balance, if any, in accordance with Applicable
      Law.

	 	(c) 	
      Notwithstanding the foregoing, at any time that the
      Intercreditor Documents are in force and effect, Proceeds of Realization
      and Cash Proceeds of Realization shall be dealt with in accordance with
      the Intercreditor Documents.

	14.25 	
      Entering Into Contracts

The Administrative Agent may
enter into any Credit Document (including the Intercreditor Documents) as agent
for and on behalf of the Finance Parties. 

	14.26 	
      Survival

The provisions of this Article 14
and all other provisions of this agreement which are necessary to give effect to
each of the provisions of this Article 14 shall survive the permanent repayment
in full of the Credit Facility and the termination of all of the commitments of
the Lenders in connection therewith until such time as all of the Secured
Obligations have been satisfied in full and all of the commitments of the
Finance Parties in connection therewith have been terminated. 

ARTICLE 15 
MISCELLANEOUS 

	15.1 	
      Notices

	 	(a) 	
      All notices and other communications provided for herein
      shall be in writing and shall be personally delivered to an officer or
      other responsible employee of the addressee or sent by telefacsimile,
      charges prepaid, at or to the applicable addresses or telefacsimile
      numbers, as the case may be, set out opposite the parties’ name on the signature page hereof or at or to such
other address or addresses, telefacsimile number or numbers as any party hereto
may from time to time designate to the other parties in such manner. Any
communication which is personally delivered as aforesaid shall be deemed to have
been validly and effectively given on the date of such delivery if such date is
a Banking Day and such delivery is received before 4:00 p.m. (London time);
otherwise, it shall be deemed to have been validly and effectively given on the
Banking Day next following such date of delivery. Any communication which is
transmitted by telefacsimile as aforesaid shall be deemed to have been validly
and effectively given on the date of transmission if such date is a Banking Day
and such transmission was received before 4:00 p.m. (London time); otherwise, it
shall be deemed to have been validly and effectively given on the Banking Day
next following such date of transmission. 

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	 	(b) 	
      Notices and other communications to the Lenders hereunder
      may be delivered or furnished by electronic communication (including
      e-mail, Internet or intranet websites) pursuant to procedures approved by
      the Administrative Agent, provided that the foregoing shall not apply to
      notices to any party thereto if such party has notified the Administrative
      Agent that it is incapable of receiving notices under this Section 15.1 by
      electronic communication. The Administrative Agent or the Borrower may, in
      its discretion, agree to accept notices and other communications to it
      hereunder by electronic communications pursuant to procedures approved by
      it, provided that approval of such procedures may be limited to particular
  notices or communications.

	 	 	 
	 	(c) 	
      Unless the Administrative Agent otherwise prescribes, (i)
      notices and other communications sent to an e-mail address shall be deemed
      received upon the sender’s receipt of an acknowledgement from the intended
      recipient (such as by the “return receipt requested” function, as
      available, return e-mail or other written acknowledgement), provided that
      if such notice or other communication is not sent prior to 4:00 p.m.
      (London time) such notice or communication shall be deemed to have been
      sent at the opening of business on the next Banking Day, and (ii) notices
      or communications posted to an Internet or intranet website shall be
      deemed received upon the deemed receipt by the intended recipient at its
      e- mail address as described in the foregoing subsection (i) of
      notification that such notice or communication is available and
identifying the website address therefor.

	15.2 	Severability 

Any provision hereof which is
prohibited or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof. 

	15.3 	Counterparts 

This agreement may be executed in
one or more counterparts, each of which shall be deemed to be an original and
all of which taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart by
facsimile or electronic means shall be equally as effective as delivery of an
original executed counterpart. 

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	15.4 	
Successors and Assigns

This agreement shall enure to the
benefit of and shall be binding upon the parties hereto and their respective
successors and permitted assigns. 

	15.5 	
      Assignment

	 	(a) 	
      Neither the Credit Documents nor the benefit thereof may
      be assigned by the Borrower.

	 	 	 
	 	(b) 	
      A Lender may at any time sell to one or more other
      persons (“Participants”) participating interests in any credit
      outstanding hereunder, any commitment of such Lender hereunder or any
      other interest of the Lender hereunder. In the event of any such sale by a
      Lender of a participating interest to a Participant, such Lender’s
      obligations under this agreement to the Borrower shall remain unchanged,
      such Lender shall remain solely responsible for the performance thereof
      and the Borrower shall continue to be obligated to such Lender in
      connection with such Lender’s rights under this agreement. The Borrower
      agrees that if amounts outstanding under this agreement are due and
      unpaid, or shall have been declared to be or shall have become due and
      payable upon the occurrence of an Event of Default, or any Default which
      might mature into an Event of Default, each Participant shall be deemed to
      have the right of setoff in respect of its participating interest in
      amounts owing under this agreement to the same extent as if the amount of
      its participating interest were owing directly to it as the relevant
      Lender under this agreement. The Borrower also agrees that each
      Participant shall be entitled to the benefits of Article 8 with respect to
      its participation hereunder and for the purposes of Article 8 such
      Participant shall be deemed to be a Lender to the extent of such
      participation, provided, that such Participant shall have complied with
      obligations of a Lender provided in Article 8 and that no Participant
      shall be entitled to receive any greater amount pursuant to such Article
      than the relevant Lender would have been entitled to receive in respect of
      the amount of the participation transferred by the relevant Lender to such
      Participant had no such transfer occurred.

	 	 	 
	 	(c) 	
      With the prior written consent of, (x) the Administrative
      Agent, (y) the Issuing Lender and (z) at any time that no Default has
      occurred and is continuing, the Borrower (provided, however, that if the
      Borrower does not respond to a request for its consent to any such sale
      within five Banking Days of such receipt, the Borrower shall be deemed to
      have consented thereto), a Lender may at any time sell all or any part of
      its rights and obligations under the Credit Documents (but not less than
      the lesser of (x) $2,000,000 and (y) the amount of its Individual
      Commitment) to one or more Persons (“Purchasing Lenders”). For
      certainty, no consent from the Borrower shall be required for any sale by
      a Lender to another Lender or by a Lender to any of its Affiliates of such
      Lender’s interest hereunder.

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Upon such sale, the relevant Lender shall, to the extent of
such sale, be released from its obligations under the Credit Documents and each
of the Purchasing Lenders shall become a party to the Credit Documents to the
extent of the interest so purchased. Any such assignment by a Lender shall not
be effective unless and until such Lender has paid to the Administrative Agent
an assignment fee in the amount of $3,500 for each Purchasing Lender, unless and
until the Purchasing Lender has executed an instrument substantially in the form
of Schedule D hereto whereby the Purchasing Lender has agreed to be bound by the
terms of the Credit Documents as a Lender and has agreed to a specific
Individual Commitment and a specific address and telefacsimile number for the
purpose of notices as provided in Section 15.1 and unless and until the
requisite consents to such assignment have been obtained, unless and until a
copy of a fully executed copy of such instrument has been delivered to each of
the Administrative Agent and the Borrower. Upon any such assignment becoming
effective, Schedule B hereto shall be deemed to be amended to include the
Purchasing Lender as a Lender with the specific Individual Commitment, address
and telefacsimile number as aforesaid and the Individual Commitment of the
Lender making such assignment shall be deemed to be reduced by the amount of the
Individual Commitment of the Purchasing Lender.

	 	(d) 	
      The Borrower authorizes the Administrative Agent and the
      Lenders to disclose to any Participant or Purchasing Lender (each, a
      “Transferee”) and any prospective Transferee or any professional
      advisor of any Transferee or prospective Transferee and authorizes each of
      the Lenders to disclose to any other Lender any and all financial
      information in their possession concerning the Borrower which has been
      delivered to them by or on behalf of the Borrower pursuant to this
      agreement or which has been delivered to them by or on behalf of the
      Borrower in connection with their credit evaluation of the Obligors prior
      to becoming a party to this agreement, so long as any such Transferee
      agrees not to disclose any confidential, non-public information to any
      person other than its non-brokerage affiliates, employees, accountants or
      legal counsel, unless required by law and authorizes each of the Lenders
      to disclose to any other Lender and to any Person where disclosure is
      required by law, regulation, legal process or regulatory authority (for
      certainty under any circumstance and not solely in connection with
      assignment of rights).

	15.6 	
      Entire Agreement

This agreement and the agreements
referred to herein and delivered pursuant hereto (including, without limitation,
the Fee Letters) constitute the entire agreement between the parties hereto and
supersede any prior agreements, undertakings, declarations, representations and
understandings, both written and verbal, in respect of the subject matter
hereof. 

	15.7 	
      Further Assurances

The Borrower shall, and shall
cause the Guarantors to, from time to time and at all times hereafter, upon
every reasonable request of the Administrative Agent, make, do, execute, and deliver or cause to be made, done, executed and delivered
all such further acts, deeds, assurances and things as may be necessary in the
opinion of the Administrative Agent for more effectually implementing and
carrying out the true intent and meaning of the Credit Documents or any
agreement delivered pursuant hereto or thereto and such additional security,
legal opinions, consents, approvals, acknowledgements, undertakings,
non-disturbance agreements, directions and negotiable documents of title in
connection with the property and assets of the Obligors, in form and substance
satisfactory to the Administrative Agent, as the Administrative Agent may from
time to time request, to ensure (i) that all Secured Assets are subject to a
Lien in favour of the Administrative Agent or, as applicable, the Mexican
Collateral Agent and (ii) the intended first ranking priority of such Liens
(subject to Permitted Liens which by their nature or by reason of the
Intercreditor Agreement would constitute prior ranking security). 

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	15.8 	
Judgment Currency

	 	(a) 	
      If, for the purpose of obtaining or enforcing judgment
      against the Borrower in any court in any jurisdiction, it becomes
      necessary to convert into a particular currency (such currency being
      hereinafter in this Section 15.8 referred to as the “Judgment
      Currency”) an amount due in another currency (such other currency
      being hereinafter in this Section 15.8 referred to as the “Indebtedness
      Currency”) under this agreement, the conversion shall be made at the
      rate of exchange prevailing on the Banking Day immediately
    preceding:

	 	(i) 	
      the date of actual payment of the amount due, in the case
      of any proceeding in the courts of the Province of Ontario or in the
      courts of any other jurisdiction that will give effect to such conversion
      being made on such date; or

	 	 	 
	 	(ii) 	
      the date on which the judgment is given, in the case of
      any proceeding in the courts of any other jurisdiction (the date as of
      which such conversion is made pursuant to this Section 15.8(a)(ii) being
      hereinafter in this Section 15.8 referred to as the “Judgment
      Conversion Date”).

	 	(b) 	
      If, in the case of any proceeding in the court of any
      jurisdiction referred to in Section 15.8(a)(ii), there is a change in the
      rate of exchange prevailing between the Judgment Conversion Date and the
      date of actual payment of the amount due, the Borrower shall pay to the
      appropriate judgment creditor or creditors such additional amount as may
      be necessary to ensure that the amount paid in the Judgment Currency, when
      converted at the rate of exchange prevailing on the date of payment, will
      produce the amount of the Indebtedness Currency which could have been
      purchased with the amount of Judgment Currency stipulated in the judgment
      or judicial order at the rate of exchange prevailing on the Judgment
      Conversion Date.

	 	 	 
	 	(c) 	
      Any amount due from the Borrower under the provisions of
      Section 15.8(b) shall be due to the appropriate judgment creditor or
      creditors as a separate debt and shall not be affected by judgment being
      obtained for any other amounts due under or in respect of this
      agreement.

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	 	(d) 	
      The term “rate of exchange” in this Section 15.8 means
      the noon spot rate of exchange for Canadian interbank transactions applied
      in converting the Indebtedness Currency into the Judgment Currency
      published by the Bank of Canada for the day in
question.

	15.9 	
      Confidentiality

Each Finance Party agrees to use
commercially reasonable efforts to ensure that financial statements or other
information relating to the Obligors which may be delivered to it pursuant to
this agreement and which are not publicly filed or otherwise made available to
the public generally will be treated confidentially by such Finance Party and
that such financial statements or other information will not, except with the
written consent of the Borrower, be distributed or otherwise made available by
any Finance Party to any Person other than its affiliates or its directors,
officers, employees, authorized agents, counsel, auditors or other
representatives (provided the other representatives have agreed or are under a
duty to keep all information confidential) who that Finance Party considers
appropriate to have such information. Each Finance Party is authorized to
deliver a copy of any financial statements or any other information which may be
delivered to it pursuant to this agreement, to (i) another Finance Party, (ii)
any actual or potential Transferee provided prior written notice is given to the
Borrower and the Transferee agrees to keep all such information confidential and
(iii) any Official Body having jurisdiction over such Finance Party in order to
comply with any Applicable Law, regulation or legal process; provided, however,
that the foregoing confidentiality provisions shall not apply to information
which is already known to the relevant Finance Party at the time of disclosure
or is lawfully obtained by such Finance Party after disclosure. 

[The remainder of this page is intentionally left blank.]

Credit Agreement - Primero Mining 

SCHEDULE A 
PRICING GRID 

Applicable Margin 

	  	Total Net 	BA 	Prime Rate 	Standby Fee 
	  	Debt 	Acceptance 	Margin; 	Rate (% p.a.) 
	  	Leverage 	Fee Rate; 	Alternate 	  
	  	Ratio 	LIBOR 	Base Rate 	  
	  	  	Margin; 	Canada 	  
	  	  	Letter Fee 	Margin (% 	  
	  	  	Rate (% 	p.a.) 	  
	  	  	p.a.) 	  	  
	Level I 	< 1.50x 	2.00 	1.00 	0.4500 
	Level II 	> 1.50x and < 2.50x 	2.50 	1.50 	0.5625 
	Level III 	> 2.50x 	3.00 	2.00 	0.6750 

Credit Agreement - Primero Mining 

SCHEDULE B 
LENDERS AND INDIVIDUAL COMMITMENTS

	Lender 	Individual Commitment
  
	Bank of Montreal 	$37,500,000 
	The Bank of Nova Scotia 	$37,500,000 

Credit Agreement - Primero Mining 

SCHEDULE C 
COMPLIANCE CERTIFICATE 

	TO: 	BANK OF MONTREAL 

I, ____________________, the
[senior financial officer] of Primero Mining Corp. (the "Borrower"),
hereby certify that: 

	1. 	
      I am a duly appointed senior financial officer of the
      Borrower named in the credit agreement made as of May 23, 2014, as amended
      (the “Credit Agreement”) between, inter alia, the Borrower,
      the Lenders named therein and Bank of Montreal, as administrative agent of
      the Lenders, and as such I am providing this Certificate for and on behalf
      of the Borrower pursuant to the Credit Agreement.

	 	
       

	2. 	
      I am familiar with and have examined the provisions of
      the Credit Agreement including, without limitation, those of Article 10,
      Article 11 and Article 13 therein.

	 	
       

	3. 	
      To the best of my knowledge, information and belief and
      after due inquiry, no Default has occurred and is
  continuing.

As at or for the relevant period ending
_______________________, the amounts and financial ratios as contained in
Sections 11.1 of the Credit Agreement are as follows and detailed calculations
thereof are attached hereto: 

	 	  	 	Actual 	Required Amount or 
	 	  	 	Amount or 	Percentage 
	 	  	 	Percentage 	  
	 	(a) 	 Tangible Net Worth 	_______________	_______________
	 	(b) 	 Total Net Debt Leverage Ratio 	_______________	< 3.50:1 
	 	(c) 	 Senior Net Debt Leverage Ratio 	_______________	< 2.00:1 
	 	(c) 	 Interest Coverage Ratio 	_______________	> 4.50:1

	4. 	
      Unless the context otherwise requires, capitalized terms
      in the Credit Agreement which appear herein without definitions shall have
      the meanings ascribed thereto in the Credit
Agreement.

DATED this _______day of
_____________, 20____. 

	 	 
	 	(Signature) 
	 	 
	 	(Name - please print) 
	 	 
	 	(Title of Senior Financial Officer)
  

Credit Agreement - Primero Mining 

SCHEDULE D 
FORM OF ASSIGNMENT 

Dated __________, 20___ 

Reference is made to the Credit
Agreement made as of May 23, 2014 (as amended, the “Credit Agreement”)
between, inter alia, Primero Mining Corp., as borrower, the Lenders named
therein and Bank of Montreal, as administrative agent of the Lenders (in that
capacity, the “Administrative Agent”). Terms defined in the Credit
Agreement are used herein as therein defined. 

_________________ (the
“Assignor”) and _________________ (the “Assignee”) agree as
follows: 

(a)     The Assignor hereby sells and
assigns to the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, a ______ % interest in and to all of the Assignor’s rights and
obligations under the Credit Agreement as of the Effective Date (as defined
below) (including, without limitation, such percentage interest in the
Assignor’s Individual Commitment as in effect on the Effective Date, the credit
extended by the Assignor and outstanding on the Effective Date and the
corresponding rights and obligations of the Assignor under all of the Credit
Documents). 

(b)     The Assignor (i) represents and
warrants that as of the date hereof its Individual Commitment is $___________
(without giving effect to assignments thereof which have not yet become
effective, including, but not limited to, the assignment contemplated hereby),
and the aggregate outstanding amount of credit extended by it is $___________
(without giving effect to assignments thereof which have not yet become
effective, including, but not limited to, the assignment contemplated hereby);
(ii) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear
of any adverse claim; (iii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Documents or any other instrument or document furnished pursuant thereto; (iv)
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of any Obligor or the performance or observance by
the Obligors of any of their obligations under the Credit Documents or any other
instrument or document furnished pursuant thereto; and (v) gives notice to the
Administrative Agent and the Borrower of the assignment to the Assignee
hereunder. 

(c)     The effective date of this
Assignment (the “Effective Date”) shall be the later of ___________ and
the date on which a copy of a fully executed copy of this Assignment has been
delivered to the Borrower and the Administrative Agent in accordance with
Section 15.5(c) of the Credit Agreement. 

(e)     The Assignee hereby agrees to the
specific Individual Commitment of $___________ and to the address and
telefacsimile number set out after its name on the signature page hereof for the
purpose of notices as provided in Section 15.1 of the Credit Agreement. 

Credit Agreement - Primero Mining 

(f) As of the Effective Date (i) the Assignee shall, in
addition to any rights and obligations under the Credit Documents held by it
immediately prior to the Effective Date, have the rights and obligations under
the Credit Documents that have been assigned to it pursuant to this Assignment
and (ii) the Assignor shall, to the extent provided in this Assignment,
relinquish its rights and be released from its obligations under the Credit
Documents. 

(g) The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Documents for periods prior to the
Effective Date directly between themselves. 

This Assignment shall be governed
by, and construed in accordance with, the laws of the Province of Ontario and
the laws of Canada applicable therein. 

	 	[ASSIGNOR] 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Title: 
	 	 	 
	 	[ASSIGNEE] 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Title: 
	 	 	 
	 	Address  	
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Attention:  	
	 	Telefax:  	

Credit Agreement - Primero Mining 

Acknowledged and agreed to as of this ___________day of
___________ , 20__. 

	BANK OF MONTREAL, as Administrative 
	Agent and Issuing Lender 

	By:  		 
	 	Name: 	 
	 	Title: 	 

Acknowledged and agreed to as of this _________day of
_____________ , 20__. 

1PRIMERO MINING CORP. 

	By:  	 	 
	 	Name: 	 
	 	Title: 	 

____________________________________
1 Only
required if no Default has occurred and is continuing. 

Credit Agreement - Primero Mining 

SCHEDULE E 
FORM OF DRAWDOWN NOTICE 

	TO: 	Bank of Montreal 
	  	  
	RE: 	
      Credit Agreement made as of May 23, 2014 (as amended to
      the date hereof, the “Credit Agreement”) between, inter
      alia, Primero Mining Corp., as borrower, the Lenders named therein and
      Bank of Montreal, as administrative agent of the Lenders

Pursuant to the terms of the
Credit Agreement, the undersigned hereby irrevocably notifies you that it wishes
to draw down under the Credit Facility on [date of drawdown] as follows:

	 	Availment Option:
      ___________________________________________________
	 	 
	 	Amount:
      ___________________________________________________
	 	 
	 	If Bankers’ Acceptance, term:
      ________________________
	 	 
	 	If LIBOR Loan, Interest Period:
      ________________________
	 	 
	 	If Letter: 

	 	Currency and amount:
  ________________________
	 	 
	 	Named beneficiary:
  ________________________
	 	 
	 	Maturity date:
  ____________________________
	 	 
	 	Other terms:
  ____________________________

[You are hereby irrevocably authorized and directed to pay the
proceeds of the drawdown to _______________ and this shall be your good and
sufficient authority for so doing.] 

Credit Agreement - Primero Mining 

No Default or Event of Default
has occurred and is continuing or will arise immediately after giving effect to
or as a result of the extension of credit requested hereby. 

All capitalized terms defined in
the Credit Agreement and used herein shall have the meanings ascribed thereto in
the Credit Agreement. 

DATED the ______day of
_______________, 20___. 

	 	PRIMERO MINING CORP. 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Credit Agreement - Primero Mining 

SCHEDULE F 
FORM OF ROLLOVER NOTICE 

	TO: 	Bank of Montreal 
	  	  
	RE: 	
      Credit Agreement made as of May 23, 2014 (as amended to
      the date hereof, the “Credit Agreement”) between, inter
      alia, Primero Mining Corp., as borrower, the Lenders named therein and
      Bank of Montreal, as administrative agent of the Lenders

Pursuant to the terms of the
Credit Agreement, the undersigned hereby irrevocably requests a rollover of
outstanding credit under the Credit Facility on [date of rollover] as
follows: 

LIBOR Loans 

	 	Maturity Date of Maturing LIBOR Loan 	_____________________  
	 	Principal Amount of Maturing LIBOR 	$_____________________ 
	 	Loan 	  
	 	Portion Thereof to be Replaced 	$_____________________ 
	 	Interest Period of New LIBOR Loan 	__________ months 

Bankers’ Acceptances 

	 	Maturity Date of Maturing BAs 	_____________________  
	 	Face Amount of Maturing BAs 	$_______________________ 
	 	Portion Thereof to be Replaced 	$_______________________ 
	 	Term of New BAs 	__________ days 

No Default or Event of Default
has occurred and is continuing or will arise immediately after giving effect to
or as a result of the extension of credit requested hereby. 

All capitalized terms defined in
the Credit Agreement and used herein shall have the meaning ascribed thereto in
the Credit Agreement. 

DATED the _________day of
________________, 20____. 

	 	PRIMERO MINING CORP. 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Credit Agreement - Primero Mining 

SCHEDULE G 
FORM OF CONVERSION NOTICE 

	TO: 	
      Bank of Montreal 

	  	
      

	RE: 	
      Credit Agreement made as of May 23, 2014 (as amended to
      the date hereof, the “Credit Agreement”) between, inter
      alia, Primero Mining Corp., as borrower, the Lenders named therein and
      Bank of Montreal, as administrative agent of the Lenders

Pursuant to the terms of the
Credit Agreement, the undersigned hereby irrevocably requests a conversion of
outstanding credit under the Credit Facility on [date of conversion] as
follows: 

	Converting From 	  	Converting Into 	  
	  	  	  	  
	Prime Rate Loan 	  	Prime Rate Loan 	  
	  	  	  	  
	Principal amount Of 
Prime Rate Loan to 
be converted
    	$_____________ 	Principal amount of 
new Prime Rate Loan 	$____________ 
	  	  	  	  
	Bankers’ Acceptances 	 	Bankers’ Acceptances 	 
	  	  	  	  
	Maturity date of 
maturing BAs 	_____________________	Face amount of 
new BAs 	$____________ 
	  	  	  	  
	Face amount of 
of maturing BAs 	$_______________ 	Term of new BAS 	__________ days 
	  	  	  	  
	Portion thereof to 
Be converted 	$_______________ 		
	  	  	  	  
	LIBOR Loan 	  	LIBOR Loan 	  
	  	  	  	  
	Maturity date of 
maturing LIBOR Loan 	_____________________	Principal amount of 
new LIBOR Loan 	$_____________ 
	 	 	 	 
	Principal amount of 
maturing LIBOR Loan 	$_____________ 	Interest 	__________ months 
	 	 	 	 
	Portion thereof to 
be converted 	$_____________ 	Period of 
new LIBOR Loan 	
	  	  	  	  
	Base Rate Loan 	  	Base Rate Loan 	  
	  	  	  	  
	Principal Amount of 
Base Rate Loan to 
be converted
    	$_____________ 	Principal amount of 
new Base Rate Loan 	$_____________ 

Credit Agreement - Primero Mining 

No Default or Event of Default
has occurred and is continuing or will arise immediately after giving effect to
or as a result of the extension of credit requested hereby. 

All capitalized terms defined in
the Credit Agreement and used herein shall have the meaning ascribed thereto in
the Credit Agreement. 

DATED the ________day of
_____________, 20____. 

	 	PRIMERO MINING CORP. 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Credit Agreement - Primero Mining 

SCHEDULE H 
CORPORATE STRUCTURE 

Credit Agreement - Primero Mining 

SCHEDULE I 
SECURITY DOCUMENTS 

Primero Mining Corp. 

	 	(a) 	
      Downstream Guarantee;

	 	 	 
	 	(b) 	
      General Security and Pledge Agreement;

	 	 	 
	 	(c) 	
      Uncertificated Issuer Control Agreement;

	 	 	 
	 	(d) 	
      Omnibus Obligor Subordination and Postponement Agreement
      granted by each of the Companies;

	 	 	 
	 	(e) 	
      Luxembourg Share Pledge Agreement with respect to Primero
      Luxembourg;

	 	 	 
	 	(f) 	
      Barbadian Charge over Shares (over shares in shares in
      Silver Trading);

	 	 	 
	 	(g) 	
      Mexican Amended and Restated Share Pledge Agreement
      (Convenio Modificatorio y de Reexpresión al Contrato de Prenda sobre
      Acciones) with respect to shares held by the Borrower and Eduardo Luna
      Arellano (“ELA”) in PEM (First Priority);

	 	 	 
	 	(h) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by the Borrower and Kings
      in SAM (First Priority); and

	 	 	 
	 	(i) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by the Borrower and Kings
      in SAO (First Priority).

Primero Mining Luxembourg 

	 	(a) 	
      Guarantee;

	 	 	 
	 	(b) 	
      Luxembourg Account Pledge Agreement;

	 	 	 
	 	(c) 	
      Luxembourg Notice of Pledge to ING with respect to
      Luxembourg Accounts; and

	 	 	 
	 	(d) 	
      Mexican Mercantile Pledge Agreement (Contrato de
      Prenda Mercantil) with respect to promissory notes held by PML in PEM
      (First Priority).

Silver Trading (Barbados) Limited 

	 	(a) 	
      Guarantee; and

	 	 	 
	 	(b) 	
      Barbadian Debenture/Mortgage.

Primero Gold Canada Inc. 

	 	(a) 	
      Guarantee;

	 	 	 
	 	(b) 	
      General Security and Pledge
Agreement;

Credit Agreement - Primero Mining 

	 	(c) 	
      Debenture with respect to the (i) Black Fox Mine and (ii)
      Grey Fox Project; and

	 	 	 
	 	(d) 	
      Debenture Deliver Agreement with respect to the (i) Black
      Fox Mine and (ii) Grey Fox Project.

Primero Empresa Minera, S.A. de C.V. 

	 	(a) 	
      Mexican Guarantee (Fianza);

	 	 	 
	 	(b) 	
      Mexican Amended and Restated Mortgage Agreement
      (Convenio Modificatorio y de Reexpresión al Contrato de Hipoteca)
      with respect to Real Estate Property (First Priority);

	 	 	 
	 	(c) 	
      Mexican Amended and Restated Mortgage Agreement
      (Convenio Modificatorio y de Reexpresión al Contrato de Hipoteca)
      with respect to Mining Concessions (First Priority) (re: San
      Dimas);

	 	 	 
	 	(d) 	
      Mexican Amended and Restated Mortgage Agreement
      (Convenio Modificatorio y de Reexpresión al Contrato de Hipoteca)
      with respect to Mining Concessions (First Priority) (re:
    Ventanas);

	 	 	 
	 	(e) 	
      Mexican Amended and Restated Non Possessory Pledge
      Agreement (Prenda sin Transmisión de Posesión; Asset Pledge) with
      respect to PEM’s Assets (First Priority);

	 	 	 
	 	(f) 	
      Mexican Amended and Restated Share Pledge Agreement
      (Convenio Modificatorio y de Reexpresión al Convenio Modificatorio y de
      Reexpresión al Contrato de Prenda sobre Acciones) with respect to
      shares held by PEM and ELA in Primero Compania Minera, S.A. de C.V. (First
      Priority);

	 	 	 
	 	(g) 	
      Mexican Amended and Restated Share Pledge Agreement
      (Convenio Modificatorio y de Reexpresión al Contrato de Prenda sobre
      Acciones) with respect to shares held by PEM and ELA in Primero
      Servicios Mineros, S.A. de C.V. (First Priority);

	 	 	 
	 	(h) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by PEM and Primero
      Servicios Mineros, S.A. de C.V. in Primero Auxiliares de Administración,
      S.A. de C.V. (First Priority); and

	 	 	 
	 	(i) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by PEM and Cuauhtémoc
      Federico Simental Loera in Primero Transportes Aéreos, S.A. de C.V. (First
      Priority).

San Anton Resource Corporation (“SARC”)

	 	(a) 	
      Guarantee;

	 	 	 
	 	(b) 	
      General Security and Pledge Agreement;
  and

Credit Agreement - Primero Mining 

	 	(c) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by SARC and Cerro in Kings
      (First Priority).

Cerro Resources Pty Ltd. (“Cerro”) 

	 	(a) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by Cerro and SARC in Kings
      (First Priority).

Kings-San Anton, S.A. de C.V. (“Kings”)

	 	(a) 	
      Mexican Guarantee (Fianza);

	 	 	 
	 	(b) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by Kings and the Borrower
      in SAM (First Priority); and

	 	 	 
	 	(c) 	
      Mexican Share Pledge Agreement (Contrato de Prenda
      sobre Acciones) with respect to shares held by Kings and the Borrower
      in SAO (First Priority).

San Anton de las Minas, S.A. de C.V. (“SAM”)

	 	(a) 	
      Mexican Guarantee (Fianza);

	 	 	 
	 	(b) 	
      Mexican Mortgage Agreement (Contrato de Hipoteca)
      with respect to Real Estate Property (El Gallo) (First Priority);
    and

	 	 	 
	 	(c) 	
      Mexican Non Possessory Pledge Agreement (Prenda sin
      Transmisión de Posesión; Asset Pledge) with respect to Mining
      Concessions (El Gallo) (First Priority).

San Anton del Oro, S.A. de C.V. (“SAO”)

	 	(a) 	
      Mexican Guarantee (Fianza); and

	 	 	 
	 	(b) 	
      Mexican Mortgage Agreement (Contrato de Hipoteca)
      with respect to Real Estate Property (El Gallo) (First
  Priority).

Credit Agreement - Primero Mining 

SCHEDULE J 
QUALIFIED AFFILIATE INSTRUMENT OF
ADHESION 

	TO: 	BANK OF MONTREAL, as Administrative
      Agent 
	  	  
	AND TO: 	THE OTHER PARTIES TO THE CREDIT AGREEMENT
      REFERRED TO BELOW 

Reference is made to the credit
agreement dated as of May 23, 2014 by and among, inter alia, Primero
Mining Corp., as Borrower, the Lenders who may from time to time be parties
thereto, and Bank of Montreal, as Administrative Agent (such credit agreement,
as amended, modified, supplemented, replaced or restated from time to time,
being the “Credit Agreement”. The terms defined therein and not otherwise
defined herein being used herein as therein defined). 

WHEREAS the Credit Agreement
provides that an Affiliate of a Lender may become a Qualified Affiliate under
the Credit Agreement if it executes this instrument and delivers it to the
Administrative Agent; 

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the undersigned, the undersigned hereby represents, warrants and
covenants as follows: 

	1. 	
      By executing this instrument, the undersigned hereby
      covenants and agrees to be bound by the terms and conditions of the Credit
      Agreement as a Qualified Affiliate, including all amendments, supplements
      and additions thereto, deletions therefrom and restatements thereof,
      solely as relates to the terms and conditions set forth in Article 14 of
      the Credit Agreement.

	 	 
	2. 	
      The undersigned hereby acknowledges that it has been
      provided with a copy of the Credit Agreement.

DATED this ______day of
____________, ______. 

	 	[INSERT NAME OF QUALIFIED
  
	 	AFFILIATE] 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Credit Agreement - Primero Mining 

SCHEDULE K 
EJIDOS LITIGATION 

FILE No. 176/2008 FOURTH CIVIL COURT 

PLAINTIFF: Guarisamey Ejido, San Dimas Municipality,
Durango.

DEFENDANT: James W. Swent and the person in charge of
the Public Property Registry in Tayoltita, San Dimas. It appears that the deeds
to the property (dated in the 1930s) identify James W. Swent as the owner. James
W. Swent is deceased.

COMMENTS: The initial proceeding was brought without the
knowledge of Desarollos Mineros San Luis S.A. de C.V., the legal owner of the
property at the time, and resulted in an initial order in favour of the
plaintiff. The order covers land with an area of 1,254 hectares. The order was
based on a deed made on behalf of Mr. James W. Swent, registered on June 24,
1932. In the side notes of the public deeds there are no notations indicating
that the plaintiff is the owner of the property. Based on a map provided to the
court by the Ejido, the notary public established a new public deed covering
1,890 hectares, showing the Guarisamey Ejido as the owner. This land is
important since it contains several roads, part of the Tayoltita’s airstrip and
the powder magazine.

PEM will have to initiate a lawsuit to reverse the order in
favour of the Guarisamey Ejido. Currently PEM is gathering facts. One important
finding is that the 1,890 hectares of land covered by the new deed is the
historical home of the Ejido Las Huertas, which casts the legitimacy of the
Guarisamey Ejido’s claim into question. 

File No. 797/2009 Seventh District Agricultural Court in
Durango 

PLAINTIFF: San Dimas Ejido. 

DEFENDANT: Desarrollos Mineros San Luis, S.A. de C.V.

COMMENTS: The Ejidos sued Desarrollos Mineros San
Luis, S.A. de C.V. claiming restitution of about 507 hectares located in an area
known as “La Abra”, based on their interpretation of a presidential decree
granting the Ejidos the right to use the land. The Ejidos also offered file No.
264/2010 (see below) as evidence, although the land claimed in each case is
different. Desarrollos Mineros San Luis, S.A. de C.V. responded to the claim,
offering a different interpretation of the presidential decree and calling
Maderera Industrial San Dimas, another of Goldcorp’s subsidiaries, to the trial
because Maderera Industrial San Dimas used to be the owner of part of the
claimed land. 

The court resolved in favor of Desarrollos Mineros San Luis,
S.A. de C.V. in March, 2013. 

Credit Agreement - Primero Mining 

FILE No. 264/2010 FOURTH CIVIL COURT 

PLAINTIFF: Guamúchil Ejido, San Dimas Municipality,
Durango State. 

DEFENDANT: San Luis Mining Company (“SLMC”) and the
person in charge for the Public Property Registry in Tayoltita, Durango. 

COMMENTS: The trial started in 2010,
approximately the same time as Primero was acquiring the San Dimas mine. The
Ejido is claiming to own the land through the concepts of “adverse possession”
or “acquisition by prescription”, which are methods of acquiring ownership
rights to property, against the owner and other third parties, through
possession of the property for an uninterrupted period of time. Under the
Agrarian Law in Mexico “prescriptive rights” can be used to acquire ownership to
property. The Guamúchil Ejido is claiming approximately 5,000 hectares of land
known as “San Dimas” and “Lechuguilla”, which according to the Ejido were
included in a public deed dated on May 10, 1899 that identified SLMC as the
owner. The 1899 deed is still legally active in the Public Property Registry in
Tayoltita. Primero’s attorneys are unable to ascertain at this time whether SLMC
is an existing legal entity. 

Since PEM is not a party to the proceeding, PEM has been
advised to allow the proceeding to conclude and, in the event that the decision
is in favour of the Ejido, to seek an annulment on the basis that it is in
possession of the property and is the legitimate owner. If these legal
proceedings (or any subsequent challenges to them) are not decided in favour of
PEM, then the San Dimas mine could face higher operating costs associated with
agreed or mandated payments that would be payable to the local Ejidos in respect
of use of the properties.

FILE No. 477/2010 FOURTH CIVIL COURT. 

PLAINTIFF: Guarizamey Ejido, San Dimas Municipality,
Durango State. 

DEFENDANT: James W. Swent and the person in charge of
the Public Property Registry in Tayoltita, San Dimas (see note above in File No
176/2008 regarding James W. Swent). 

COMMENTS: The Ejido is claiming “acquisition by
prescription” (see File No 264/2010 above) of the land that configures
Guarizamey, municipality of San Dimas of this State, with an area of 634
hectares. The action was brought against James W. Swent as he appears as the
owner in a public deed dated in 1899 (this claim is similar to File No
264/2010). The 1899 public deed does not have any boundaries to define where the
piece of land known as Guarizamey is located, but the Ejido maintain it is
within Primero’s properties. Since Mr. Swent couldn’t respond to the suit (as he
is deceased) he was found to be in contempt of court.

Since PEM is not a party to the proceeding it has been advised
to allow the proceeding to conclude and, in the event that the decision is in
favour of the Ejido, to seek an annulment on the basis that it is in possession
of the property and is the legitimate owner. If these legal proceedings (or any
subsequent challenges to them) are not decided in favour of PEM, then the San
Dimas mine could face higher operating costs associated with agreed or mandated
payments that would be payable to the local Ejidos in respect of use of the
properties.

Credit Agreement - Primero Mining 

Execution Version 

FIRST AMENDING AGREEMENT AND CONSENT 

THIS AGREEMENT made as of the
22nd day of December, 2014. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the
laws of the Province of British Columbia 

(herein called the “Borrower”)

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the “Administrative
Agent”) 

- and-

BANK OF MONTREAL and BANK OF NOVA
SCOTIA 

(herein called the “Lenders”
and individually, a “Lender”) 

WHEREAS the Borrower and
the Administrative Agent entered into a credit agreement made as of May 23, 2014
(the “Credit Agreement”) and pursuant to which the Lenders established a
certain credit facility in favour of the Borrower; 

AND WHEREAS the parties
hereto wish to amend certain provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT
WITNESSES that, in consideration of the mutual covenants and agreements
contained herein, the parties covenant and agree as follows: 

ARTICLE 1 
DEFINED TERMS 

1.1         
Capitalized Terms. All capitalized terms which are used herein
without being specifically defined herein shall have the meaning ascribed
thereto in the Credit Agreement as amended hereby. 

ARTICLE 2 
AMENDMENTS 

2.1         
General Rule. Subject to the terms and conditions herein contained,
the Credit Agreement is hereby amended to the extent necessary to give effect to
the provisions of this agreement and to incorporate the provisions of this
agreement into the Credit Agreement. 

First Amending Agreement and Consent 

- 2 - 

2.2         
Tangible Net Worth. Section 11.1(a) of the Credit Agreement is hereby
amended by deleting the reference therein to “U.S.$763,419,000” and replacing it
with “U.S.$684,250,000”. 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

3.1         
Representations and Warranties. To induce the Lenders and the
Administrative Agent to enter into this agreement, the Borrower hereby
represents and warrants to the Lenders and the Administrative Agent that the
representations and warranties of the Borrower which are contained in Section
10.1 of the Credit Agreement, are true and correct. The Borrower hereby
represents and warrants that no Default has occurred and is continuing. 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

4.1         
Conditions Precedent. This agreement shall not be effective until (i)
the parties hereto shall have executed and delivered this agreement and (ii)
each Obligor has entered into a confirmation of the Credit Documents to which it
is a party, in form and substance satisfactory to the Lenders. 

ARTICLE 5 
MISCELLANEOUS 

5.1         
Future References to the Credit Agreement. On and after the date of
this agreement, 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 any related document to the “Credit Agreement”,
“thereunder”, “thereof”, or words of the like import relating to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended
hereby. The Credit Agreement, as amended hereby, is and shall continue to be in
full force and effect and is hereby in all respects ratified and confirmed. 

5.2         
Governing Law. This agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario. 

5.3         
Enurement. This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

5.4         
Conflict. If any provision of this agreement is inconsistent or
conflicts with any provision of the Credit Agreement, the relevant provision of
this agreement shall prevail and be paramount. 

5.5         
Counterparts. This agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original and all of which
taken together shall be deemed to constitute one and the same agreement.
Delivery of an executed signature page of this agreement by facsimile
transmission or by e-mail in pdf format shall be as effective as delivery of a
manually executed counterpart thereof. 

First Amending Agreement and Consent 

- 3 - 

5.6         
Consent. Pursuant to a request letter from the Borrower addressed to
the Administrative Agent scheduled hereto as Exhibit 1, the Borrower has
requested that the Lenders consent to the partition and conveyance (the
“Proposed Conveyance”) of certain real property interests constituting
Secured Assets (the “Tayoltita Lands”) and the release of such Secured
Assets from the Security. Pursuant to Section 11.3(c) of the Credit Agreement,
the Proposed Conveyance is, absent the written consent of the Majority Lenders,
a prohibited transaction. For good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Lenders hereby (i) consent to
the Proposed Conveyance and (ii) authorize the Administrative Agent to execute
and deliver a direction, concurrently with or subsequent to the execution and
delivery of an identical direction by each other Secured Creditor (as defined in
the Intercreditor Agreement), all in accordance with Section 3.6 of the
Intercreditor Agreement, to direct the Mexican Collateral Agent execute a
release and discharge of the Security over the Tayoltita Lands. 

5.7         
Confirmation of Security. The Borrower confirms and agrees that the
Liens and other obligations expressed to be created under or pursuant to each
Security Document to which it is a party shall be binding upon the Borrower and
its collateral (as described in each such Security Document) shall be unaffected
by and shall continue in full force and effect notwithstanding the amendment of
the Credit Agreement as constituted hereby and the execution and delivery and
effectiveness of this Agreement shall not in any manner whatsoever reduce,
release, discharge, impair or otherwise prejudice or change the rights of the
Finance Parties arising under, by reason of or otherwise in respect of such
Liens and other obligations constituted by each such Security Document. For the
avoidance of doubt, the Borrower hereby confirms that each Security Document to
which it is a party secures its Secured Obligations and that each such Security
Document continues in full force and effect. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

First Amending Agreement and Consent 

IN WITNESS WHEREOF the
parties hereto have executed this agreement. 

	 	PRIMERO MINING CORP. 
	 	 
	 	 

 

First Amending Agreement and Consent 

	 	BANK OF MONTREAL, as Administrative
  
	 	Agent 
	 	 

 

	 	BANK OF MONTREAL, as Lender 
	 	 
	 	 

 

First Amending Agreement and Consent 

	 	THE BANK OF NOVA SCOTIA, as Lender

	 	 

 

Ursl Amending Agreement and Consent 

EXHIBIT 1 
PRIMERO CONSENT REQUEST LETTER 

(See attached) 

First Amending Agreement and Consent 

First Amending Agreement and Consent 

First Amending Agreement and Consent 

SECOND AMENDING AGREEMENT 

THIS AGREEMENT made as of the
5th day of February, 2015. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the 
laws of the Province of British Columbia 

(herein called the “Borrower”)

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the “Administrative
Agent”) 

- and-

BANK OF MONTREAL and BANK OF NOVA
SCOTIA 

(herein called the “Lenders”
and individually, a “Lender”) 

WHEREAS the Borrower and
the Administrative Agent entered into a credit agreement made as of May 23, 2014
(as amended pursuant to a first amending agreement dated December 22, 2014, the
“Credit Agreement”) and pursuant to which the Lenders established a
certain credit facility in favour of the Borrower; 

AND WHEREAS the parties
hereto wish to amend certain provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT
WITNESSES that, in consideration of the mutual covenants and agreements
contained herein, the parties covenant and agree as follows: 

ARTICLE 1 
DEFINED TERMS 

1.1         
Capitalized Terms. All capitalized terms which are used herein
without being specifically defined herein shall have the meaning ascribed
thereto in the Credit Agreement as amended hereby. 

Second Amending Agreement 

- 2 - 

ARTICLE 2 
AMENDMENTS 

2.1         
General Rule. Subject to the terms and conditions herein contained,
the Credit Agreement is hereby amended to the extent necessary to give effect to
the provisions of this agreement and to incorporate the provisions of this
agreement into the Credit Agreement. 

2.2         
Definitions. Section 1.1 of the Credit Agreement is hereby amended as
follows:

	 	(a) 	
      The following new definitions added in alphabetical
      order:

	 	 	 
	 		
      “Convertible Debentures” means the 5.75%
      convertible unsecured subordinated debentures issued or to be issued by
      the Borrower (i) on terms substantively similar, in the opinion of the
      Lenders, acting reasonably, to those terms set forth in the preliminary
      short form prospectus dated January 26, 2015 of the Borrower, and (ii)
      pursuant to the Debenture Indenture in the aggregate principal amount of
      amount of up to $75,000,000 (or up to $86,250,000 if the over-allotment
      option referred to in such short form prospectus is exercised in full) and
      which mature on or after February 28, 2020.

	 	 	 
	 		
      “Debenture Indenture” means the debenture
      indenture to be dated on or about February 9, 2015 among the Borrower, as
      issuer and Computershare Trust Company of Canada, as trustee and pursuant
      to which the Convertible Debentures will be issued.”

	 	 	 
	 	(b) 	
      the definition of “Permitted Indebtedness” is
      hereby deleted in its entirety and replaced by the
  following:

“Permitted Indebtedness” means
any one or more of the following: 

	 	(a) 	
      the Secured Obligations;

	 	 	 
	 	(b) 	
      Indebtedness of the Obligors arising under Capital Leases
      and Purchase Money Indebtedness of the Obligors; provided that, at any
      particular time, the aggregate amount of such Indebtedness does not exceed
      $10,000,000;

	 	 	 
	 	(c) 	
      Indebtedness of the Obligors under Other Capital Leases
      provided that, at any particular time, the aggregate amount of such
      Indebtedness does not exceed $30,000,000 (for the avoidance of doubt, such
      amount being in excess to the amount referenced in paragraph (b),
      above);

	 	 	 
	 	(d) 	
      at all times that the Intercreditor Documents remain in
      full force and effect, Indebtedness of the Obligors existing at the date
      hereof including Indebtedness under the SLW Silver Purchase Agreement, the
      Borrower Silver Purchase Guarantee, the PEM Silver Purchase Guarantee and
      the Goldcorp Indemnity Agreement;

	 	 	 
	 	(e) 	
      vendor-take-back Indebtedness incurred pursuant to a
      Permitted Acquisition which has no recourse to any entity which has any
      direct or indirect ownership interest in the San Dimas Mine and where the
      recourse of such Indebtedness is limited to (i) the acquired assets, (ii)
      the acquired entity, or (iii) the relevant Obligor’s equity
interest in the acquired entity, in each case provided that the Borrower has
provided evidence satisfactory to the Lenders that (x) no Default or Event of
default has occurred and is continuing at the time of or would arise as a result
of the incurring of such Indebtedness and (y) the Borrower would be in
compliance with all of the financial covenants in Section 11.1 on a pro forma
basis after giving effect to the incurring of such Indebtedness; 

Second Amending Agreement 

- 3 -

	 	(f) 	
      at all times that the Postponement and Subordination
      Undertaking remains in full force and effect, Indebtedness of the Obligors
      to any other Obligor or to any other Company;

	 	 	 
	 	(g) 	
      trade payables and other accrued liabilities of the
      Obligors incurred in the ordinary course of business and payable in
      accordance with customary practices;

	 	 	 
	 	(h) 	
      an unsecured overdraft facility in the maximum amount of
      $10,000,000 obtained in the ordinary course of business;

	 	 	 
	 	(i) 	
      unsecured Risk Management Agreements with non-Lenders
      obtained in the ordinary course of business, including any guarantees
      given in relation to the same; provided that, at any particular time, the
      aggregate amount of such Indebtedness under such unsecured Risk Management
      Agreements does not exceed $10,000,000;

	 	 	 
	 	(j) 	
      at all times that the Sandstorm Subordination Agreement
      remains in full force and effect, Indebtedness of Primero Gold under the
      Sandstorm Gold Purchase Agreement;

	 	 	 
	 	(k) 	
      any guarantee or indemnity in respect of Permitted
      Indebtedness; and

	 	 	 
	 	(l) 	
      Indebtedness which in the aggregate does not exceed
      $200,000,000 incurred under: (i) the Convertible Debentures; and (ii) any
      other unsecured instrument(s) or contract(s) for borrowed money or
      Indebtedness not referred to in clauses (a) to (k) above which does not
      have a maturity or any scheduled repayment due prior to the third
      anniversary of the Maturity Date and is otherwise on terms no more onerous
      than the Secured Obligations;

in each case, provided that no Default
or Event of Default has occurred and is continuing at the time of the incurrence
of such Indebtedness or would arise immediately after the incurrence of such
Indebtedness. 

	 	(c) 	
      the definition of “Restricted Payment” is hereby
      amended by adding the following paragraph immediately after paragraph (c)
      thereof:

“For greater certainty, neither (i)
the payment of cash in lieu of the delivery of any fractional common share by
the Borrower in connection with any conversion, redemption or repayment upon
maturity of the Convertible Debentures from time to time, nor (ii) the delivery
of common shares or other similar equity securities by the Borrower in
connection with any conversion, retirement, redemption, repurchase or repayment
of, or payment of interest on, the Convertible Debentures from time to time will
constitute a Restricted Payment.”

Second Amending Agreement 

- 4 - 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

3.1         
Representations and Warranties. To induce the Lenders and the
Administrative Agent to enter into this agreement, the Borrower hereby
represents and warrants to the Lenders and the Administrative Agent that the
representations and warranties of the Borrower which are contained in Section
10.1 of the Credit Agreement, are true and correct on each of the date hereof
and the date of the effectiveness of the amendment contemplated in Article 2, as
if made on the date hereof and the date of the effectiveness of the amendment
contemplated in Article 2, respectively. The Borrower hereby represents and
warrants that no Default has occurred and is continuing nor will a Default arise
as a result of the execution and delivery of this agreement or the incurrence of
the Indebtedness under the Convertible Debentures. 

ARTICLE 4 
CONDITION PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

4.1         
Condition Precedent. This agreement shall not be effective until (i)
the parties hereto shall have executed and delivered this agreement and (ii) the
Convertible Debentures (as defined in Section 2.2(a) above) are first issued by
the Borrower. 

ARTICLE 5 
MISCELLANEOUS 

5.1         
Future References to the Credit Agreement. On and after the date of
this agreement, 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 any related document to the “Credit Agreement”,
“thereunder”, “thereof”, or words of the like import relating to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended
hereby. The Credit Agreement, as amended hereby, is and shall continue to be in
full force and effect and is hereby in all respects ratified and confirmed.

5.2         
Governing Law. This agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario. 

5.3         
Enurement. This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

5.4         
Conflict. If any provision of this agreement is inconsistent or
conflicts with any provision of the Credit Agreement, the relevant provision of
this agreement shall prevail and be paramount. 

5.5         
Counterparts. This agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original and all of which
taken together shall be deemed to constitute one and the same agreement.
Delivery of an executed signature page of this agreement by facsimile
transmission or by e-mail in pdf format shall be as effective as delivery of a
manually executed counterpart thereof. 

Second Amending Agreement 

- 5 - 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

Second Amending Agreement 

IN WITNESS WHEREOF the parties
hereto have executed this agreement. 

	 	PRIMERO MINING CORP. 
	 	 
	 	 

 

Second Amending Agreement 

	 	BANK OF MONTREAL, as Administrative 
	 	Agent 
	 	 
	 	 

 

	 	BANK OF MONTREAL, as Lender 
	 	 
	 	 

 

Second Amending Agreement 

	 	THE BANK OF NOVA SCOTIA, as Lender 
	 	 
	 	 

 

Second Amending Agreement 

Execution Version 

FOURTH AMENDING AGREEMENT 

THIS AGREEMENT made as of the
28th day of December, 2016. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the 
laws of the Province of British Columbia 

(herein called the “Borrower”)

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the “Administrative
Agent”) 

- and-

BANK OF MONTREAL and BANK OF NOVA
SCOTIA 

(herein called the “Lenders”
and individually, a “Lender”) 

WHEREAS the Borrower and
the Administrative Agent entered into a credit agreement made as of May 23, 2014
(as amended pursuant to a first amending agreement dated December 22, 2014, a
second amending agreement dated February 5, 2015 and a third amending agreement
dated December 31, 2015, the “Credit Agreement”) and pursuant to which
the Lenders established a certain credit facility in favour of the Borrower;

AND WHEREAS the parties
hereto wish to amend certain provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT
WITNESSES that, in consideration of the mutual covenants and agreements
contained herein, the parties covenant and agree as follows: 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are
used herein without being specifically defined herein shall have the meaning
ascribed thereto in the Credit Agreement as amended hereby. 

Fourth Amending Agreement 

- 2 - 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and
conditions herein contained, the Credit Agreement is hereby amended to the
extent necessary to give effect to the provisions of this agreement and to
incorporate the provisions of this agreement into the Credit Agreement.

	2.2 	
      Defined Terms.

Section 1.1 of the Credit
Agreement is hereby amended by adding the following new definitions in
alphabetical order: 

““Cash on Hand” means, at any
particular time, the aggregate amount of the Borrower’s unrestricted Cash at
such time (for the avoidance of doubt, Cash secured by the Security Documents
shall be considered unrestricted Cash). 

“CIM Definition Standards”
means definition standards on mineral resources and reserves established by the
Canadian Institute of Mining, Metallurgy and Petroleum, as updated from time to
time. 

“Life of Mine” means, in
respect of each of the San Dimas Mine and/or the Black Fox Mine, as applicable,
the period during which all Reserves and Resources at each such mine as reported
in the Borrower’s most recent reserve statement or mine plan or other project
description filed from time to time with Official Bodies in respect of such mine
is projected to be extracted through planned mining activities at or in
connection with such mine. 

“Mine Plan” means (i) in
respect of the San Dimas Mine and/or the Black Fox Mine, as applicable, the
individual mine plan in form and substance satisfactory to the Lenders, acting
reasonably, for such mine’s relevant Life of Mine and (ii) the consolidated
annual budget of the Borrower for such mine which shall include projected
exploration and corporate expenses (including sales, general and administrative
expenses), delivered by or on behalf of the Borrower to the Lenders. 

“Reserves” means “Proven
Mineral Reserves” and “Probable Mineral Reserves” as such terms are
defined in the CIM Definition Standards. 

“Resources” means “Measured
Mineral Resources” and “Indicated Mineral Resources” as such terms
are defined in the CIM Definition Standards.” 

	2.3 	
      Tangible Net Worth.

Section 11.1(a) of the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

Fourth Amending Agreement 

- 3 - 

	 	“(a) 	
      Tangible Net Worth. The Borrower shall at all
      times maintain Tangible Net Worth in an amount greater than or equal to
      the greater of 

	 	(i) 	
      U.S. $586,000,000 less an amount equal to 115% of the
      impairment charge, if any, booked by the Borrower in accordance with GAAP
      in respect of its fixed assets for the Fiscal Year ending December 31,
      2016; and

	 	 	 
	 	(ii) 	
      U.S. $340,000,000

plus (in either case) 50% of the
aggregate positive Net Income for the Fiscal Quarters during the period from
January 1, 2017 to the last day of the Fiscal Quarter which has been most
recently completed at such time. For the purpose of the foregoing, if the Net
Income for a particular Fiscal Quarter is negative, the Net Income for such
Fiscal Quarter shall be deemed to be zero.” 

	2.4 	
      Total Net Debt Leverage
Ratio.

Section 11.1(b) of the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

	 	“(b) 	
      Total Net Debt Leverage Ratio. The Borrower shall
      at all times maintain the Total Net Debt Leverage Ratio in an amount less
      than or equal to 

	 	(i) 	
      3.50 to 1 at all times up to and including the Fiscal
      Quarter ending September 30, 2016;

	 	 	 
	 	(ii) 	
      4.25 to 1 at all times during the Fiscal Quarter ending
      December 31, 2016; and

	 	 	 
	 	(iii) 	
      3.50 to 1 at all times thereafter from and including
      March 31, 2017

and shall calculate such ratio as at
the last day of each Fiscal Quarter.” 

	2.5 	
      Senior Net Debt Leverage
Ratio.

Section 11.1(c) of the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

	 	“(c) 	Senior Net Debt Leverage Ratio. The
      Borrower shall at all times maintain the Senior Net Debt Leverage Ratio in
      an amount less than or equal to 

	 	(i) 	
      2.0 to 1 at all times up to and including the Fiscal
      Quarter ending September 30, 2016;

	 	 	 
	 	(ii) 	
      2.50 to 1 at all times during the Fiscal Quarter ending
      December 31, 2016; and

Fourth Amending Agreement 

- 4 - 

	 	(iii) 	
      2.0 to 1 at all times thereafter from and including March
      31, 2017

and shall calculate such ratio as at
the last day of each Fiscal Quarter.” 

	2.6 	
      Mine Plans.

The following new Section
11.2(u) of the Credit Agreement is hereby added immediately following Section
11.2(t): 

“Mine Plans. The Borrower
shall, on or before January 31, 2017, deliver to the Administrative Agent a Mine
Plan in respect of each of the San Dimas Mine and the Black Fox Mine.” 

	2.7 	
      Conditions Precedent to All
  Credit.

	 	(a) 	
      Section 12.1(b) is hereby amended by deleting the
      reference to “and”;

	 	 	 
	 	(b) 	
      Section 12.1(c) is hereby amended by deleting the
      reference “.” and replacing it with “; and”.

	 	 	 
	 	(c) 	
      the following new Section 12.1(d) of the Credit Agreement
      is hereby added immediately following Section
12.1(c):

	 	“(d) 	the Borrower shall have provided satisfactory
      evidence to the Administrative Agent, acting reasonably, that it has less
      than, or will have less than, $15,000,000 Cash on Hand on the date such
      credit is requested to be extended.” 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and
Warranties.

To induce the Lenders and the
Administrative Agent to enter into this agreement, the Borrower hereby
represents and warrants to the Lenders and the Administrative Agent that the
representations and warranties of the Borrower which are contained in Section
10.1 of the Credit Agreement, are true and correct on each of the date hereof
and the date of the effectiveness of the amendment contemplated in Article 2, as
if made on the date hereof and the date of the effectiveness of the amendment
contemplated in Article 2, respectively. The Borrower hereby represents and
warrants that no Default has occurred and is continuing nor will a Default arise
as a result of the execution and delivery of this agreement. 

ARTICLE 4 
CONDITION PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Condition Precedent.

This agreement shall not be
effective until the parties hereto shall have executed and delivered this
agreement. 

Fourth Amending Agreement 

- 5 - 

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this
agreement, 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 any related document to the “Credit Agreement”,
“thereunder”, “thereof”, or words of the like import relating to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended
hereby. The Credit Agreement, as amended hereby, is and shall continue to be in
full force and effect and is hereby in all respects ratified and confirmed.

	5.2 	
      Governing Law.

This agreement shall be governed
by and construed in accordance with the laws of the Province of Ontario.

	5.3 	
      Enurement.

This agreement shall enure to the
benefit of and shall be binding upon the parties hereto and their respective
successors and permitted assigns. 

	5.4 	
      Conflict.

If any provision of this
agreement is inconsistent or conflicts with any provision of the Credit
Agreement, the relevant provision of this agreement shall prevail and be
paramount. 

	5.5 	
      Counterparts.

This agreement may be executed in
one or more counterparts, each of which shall be deemed to be an original and
all of which taken together shall be deemed to constitute one and the same
agreement. Delivery of an executed signature page of this agreement by facsimile
transmission or by e-mail in pdf format shall be as effective as delivery of a
manually executed counterpart thereof. 

	5.6 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each
Obligor confirms and agrees that the Liens and other obligations expressed to be
created under or pursuant to each Finance Document to which it is a party shall
be binding upon such Obligor and its collateral (as described in each such
Security Document) shall be unaffected by and shall continue in full force and
effect notwithstanding the amendment of the Credit Agreement as constituted
hereby and the execution and delivery and effectiveness of this amendment shall
not in any manner whatsoever reduce, release, discharge, impair or otherwise
prejudice or change the rights of the Finance Parties arising under, by reason
of or otherwise in respect of such Liens and other obligations constituted by
each such Finance Document. For the avoidance of doubt, each Obligor hereby
confirms that each Security Document to which it is a party secures its
Secured Obligations and that each such Security Document continues in full force
and effect. 

Fourth Amending Agreement 

- 6 -

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

Fourth Amending Agreement 

	 	BANK OF MONTREAL, as
      Administrative 
	 	Agent 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

	 	BANK OF MONTREAL, as Lender
  
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Fourth Amending Agreement 

	 	THE BANK OF NOVA SCOTIA, as
      Lender 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	 	 
	 	By:  	
	 	 	Name: 
	 	 	Title: 

Fourth Amending Agreement 

Execution Version

SIXTH AMENDING AGREEMENT

THIS AGREEMENT made as of the
2nd day of October, 2017. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the laws of the Province of British Columbia 

(herein called the “Borrower”)

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the “Administrative
Agent”) 

- and-

BANK OF MONTREAL and THE BANK OF
NOVA SCOTIA 

(herein called the “Lenders”
and individually, a “Lender”) 

WHEREAS the Borrower and the Administrative Agent
entered into a credit agreement made as of May 23, 2014 (as amended pursuant to
a first amending agreement dated December 22, 2014, a second amending agreement
dated February 5, 2015, a third amending agreement dated December 31, 2015, a
fourth amending agreement dated December 28, 2016 and a fifth amending agreement
dated March 30, 2017, the “Credit Agreement”) and pursuant to which the
Lenders established a certain credit facility in favour of the Borrower; 

AND WHEREAS the parties hereto wish to amend certain
provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements contained herein, the
parties covenant and agree as follows: 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are used herein without being
specifically defined herein shall have the meaning ascribed thereto in the
Credit Agreement as amended hereby. 

		Sixth Amending Agreement

- 2 - 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and conditions herein contained, the
Credit Agreement is hereby amended to the extent necessary to give effect to the
provisions of this agreement and to incorporate the provisions of this agreement
into the Credit Agreement. 

	2.2 	
      Defined Terms.

Section 1.1 of the Credit Agreement is
hereby amended as follows: 

	 	(a) 	
      the definition of “Material Properties” is hereby
      deleted in its entirety and replaced with the following:

	 	 	 
	 		
      ““Material Properties” means, at any particular
      time, the San Dimas Mine, the Black Fox Mine, the Grey Fox Project, the
      Cerro de Gallo Project and the Ventanas Property except to the extent the
      relevant property is sold pursuant to a Permitted Disposition.”

	 	 	 
	 	(b) 	
      the definition of “Permitted Dispositions” is
      hereby deleted in its entirety and replaced with the following:

	 	 	 
	 		
      ““Permitted Dispositions” means any one or more of
      the following:

	 	(a) 	
      Dispositions of inventory, product or produced or
      unprocessed minerals, metals or other mineral or extracted materials
      Disposed of in the ordinary course of business;

	 	 	 
	 	(b) 	
      Dispositions of worn out, unserviceable or obsolete
      equipment in the ordinary course of business;

	 	 	 
	 	(c) 	
      Dispositions of publicly traded securities Disposed of
      for their fair market value; and

	 	 	 
	 	(d) 	
      a Disposition of the Black Fox Mine and the Grey Fox
      Project in accordance with the Asset Purchase Agreement, provided that, at
      the time of such Disposition, (i) the Closing Date Liabilities do not
      exceed the Closing Date Assets (as such terms are defined in the Asset
      Purchase Agreement) by more than $4,000,000.00 and (ii) the aggregate
      amount of Primero Cash Collateral (as defined in the Asset Purchase
      Agreement) is less than or equal to
CAD$6,145,465.00;

in each case, further provided that a
Disposition will be deemed not to be a Permitted Disposition if (i) the asset
Disposed of is an asset of a Material Property (other than the Disposition of
(A) the Black Fox Mine and Grey Fox Project pursuant to paragraph (d), above,
(B) the Ventanas Property to an Obligor and (C) the Disposition of worn out,
unserviceable or obsolete equipment Disposed of in the ordinary course of
business) and/or (ii) a Default or Event of Default has occurred and is
continuing at the time of such Disposition or would arise immediately after such
Disposition as a result thereof.”

		Sixth Amending Agreement

- 3 - 

	 	(c) 	
      the definition of “Prepayment Trigger Event” is
      hereby deleted in its entirety and replaced with the following:

	 	 	 
	 		
      ““Prepayment Trigger Events” means the Black Fox
      Prepayment Trigger Event and the Insurance Prepayment Trigger Event and
      “Prepayment Trigger Event” means any one of the
  foregoing.”

	 	 	 
	 	(d) 	
      the following new definitions are hereby added in
      alphabetical order:

““Asset Purchase Agreement”
means the Asset Purchase Agreement dated as of August 25, 2017 between McEwen
Mining Inc. and the Borrower (which has been assigned by McEwen Mining Inc. to
its wholly-owned subsidiary 10393444 Canada Inc. as of October 2, 2017). 

“Blackfox Prepayment Trigger
Event” means the Disposition of the Black Fox Mine and the Grey Fox Project
by the Borrower. 

“Blackfox Repayment Amount”
means an amount equal to (a) the Purchase Price (as defined in the Asset
Purchase Agreement) received by the Borrower (or any Affiliate) on the date of
the Blackfox Prepayment Trigger Event, plus (b) all Closing Date Assets (as
defined in the Asset Purchase Agreement), minus (c) all Closing Date Liabilities
(as defined in the Asset Purchase Agreement), minus (d) the amounts set forth in
paragraphs (a) and (b) of the definition of Net Cash Proceeds; provided that (i)
the aggregate amount of parts (a), (b) and (c) above shall not be less than
$27,500,000 and (ii) the aggregate amount of part (d) above shall not be greater
than $2,500,000. 

“Closing Date Blackfox Repayment
Amount” means $25,000,000. 

“Insurance Prepayment Trigger
Event” means the receipt by any Company of any insurance proceeds in excess
of $5,000,000 or the Exchange Equivalent thereof, where such proceeds or any
portion thereof have not been used or committed by such Company to repair or
replace the subject assets within six months of such Company’s receipt thereof.

“Primero Cash Collateral” means
CAD$6,145,465, representing the cash collateral provided by Primero in
connection with the Primero Financial Assurance (as defined in the Asset
Purchase Agreement).” 

	2.3 	
      Reduction of Credit Limit.

Section 2.3 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following: 

	 	Sixth Amending Agreement

- 4 - 

“The Borrower may, from time to time
and at any time, by notice in writing to the Administrative Agent, permanently
reduce the amount of the Credit Limit in whole or in part to the extent the
Credit Facility is not being utilized at the time such notice is given, provided
that such reduction shall not become effective until five Banking Days after
such notice has been given. The amount of the Credit Limit will be permanently
reduced with respect to repayment or prepayment made in accordance with Section
9.1 or Section 9.4. The Credit Limit shall also be permanently reduced, at the
time of any Insurance Prepayment Trigger Event, by the amount, if any, of the
Net Cash Proceeds resulting from such Insurance Prepayment Trigger Event not
deployed by the Borrower, as a mandatory prepayment under the Credit Facility
pursuant to Section 9.4. The Credit Limit shall also be permanently reduced,
commencing at the time of a Blackfox Prepayment Trigger Event, by any amount
received by the Borrower (or any Affiliate thereof) representing all or part of
the Blackfox Repayment Amount (including the Closing Date Blackfox Repayment
Amount), such reduction to be made as of the date on which each such amount is
received by the Agent. Any repayment or prepayment of credit outstanding under
the Credit Facility (other than as set forth above), including the repayment of
credit outstanding under the Credit Facility with the proceeds of Primero Cash
Collateral in accordance with Section 9.4(b), shall not cause a permanent
reduction in the amount of the Credit Limit. Any repayment of outstanding credit
which forms part of any conversion from one type of credit to another type of
credit under Article 3 or Article 6 or of any rollover under Article 5 shall not
cause any reduction in the amount of the Credit Limit. Upon any permanent
reduction of the amount of the Credit Limit, the Individual Commitment of each
Lender shall thereupon be reduced by an amount equal to such Lender’s Pro Rata
Share of such permanent reduction of the amount of the Credit Limit.” 

	2.4 	
      Mine Plans.

Section 11.2(u) of the Credit Agreement is hereby deleted in
its entirety and replaced with the following: 

“(u)     Mine Plans. The Borrower
shall, on or before January 31, 2017, deliver to the Administrative Agent a Mine
Plan in respect of the San Dimas Mine and, if still owned by the Borrower on
such date, the Black Fox Mine.”

	2.5 	
      Mandatory Prepayments.

Section 9.4 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following: 

“9.4 Mandatory Prepayments 

	 	(a) 	
      The Borrower shall, within five Banking Days of the
      occurrence of a Prepayment Trigger Event (other than a Blackfox Prepayment
      Trigger Event), prepay outstanding credit under the Credit Facility in an
      amount equal to 100% of the Net Cash Proceeds in respect of such
      Prepayment Trigger Event. The Borrower shall, within one Banking Day of the Closing Date (as defined in
      the Asset Purchase Agreement), prepay outstanding credit under the Credit
      Facility in an amount equal to 100% of the Closing Date Blackfox Repayment
      Amount. The Borrower shall also, forthwith upon determination of the final
      amount of the Blackfox Repayment Amount, prepay outstanding credit under
      the Credit Facility in an amount equal to 100% of the amount, if any, by
      which the Blackfox Repayment Amount, as finally determined, exceeds the
      Closing Date Blackfox Repayment Amount, such payment to be made by the
      Borrower within one Banking Day of receipt of any such amount. Amounts
      which are prepaid as aforesaid under the Credit Facility may not be
  reborrowed and shall permanently reduce the Credit Limit.

		Sixth Amending Agreement

- 5 - 

	 	(b) 	
      The Borrower shall, within two Banking Days of receipt of
      any Primero Cash Collateral, prepay outstanding credit under the Credit
      Facility in an amount equal to 100% of such Primero Cash Collateral
      received by the Borrower (or its Affiliate, as applicable), minus, if
      applicable, the amount by which the Closing Date Blackfox Repayment Amount
      was greater than the Blackfox Repayment Amount, as finally determined.
      Amounts which are prepaid pursuant to this Section 9.4(b) may be
      reborrowed pursuant hereto in accordance with the terms hereof.

	 	 	 
	 	(c) 	
      Section 8.4 shall be complied with in connection with any
      prepayment pursuant to this Section 9.4.”

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and
Warranties.

To induce the Lenders and the Administrative Agent to enter
into this agreement, the Borrower hereby represents and warrants to the Lenders
and the Administrative Agent that the representations and warranties of the
Borrower which are contained in Section 10.1 of the Credit Agreement, are true
and correct on each of the date hereof and the date of the effectiveness of the
amendment contemplated in Article 2, as if made on the date hereof and the date
of the effectiveness of the amendment contemplated in Article 2, respectively.
The Borrower hereby represents and warrants that no Default has occurred that
will be continuing after giving effect to this agreement, nor will a Default
arise as a result of the execution and delivery of this agreement. 

		Sixth Amending Agreement

- 6 - 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Conditions Precedent.

This agreement shall become effective upon the execution and
delivery of this Agreement by each of the parties hereto and the execution and
delivery by Wheaton Precious Metals Corp. of the consent and agreement attached
hereto. 

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this agreement, 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 any related
document to the “Credit Agreement”, “thereunder”, “thereof”, or words of the
like import relating to the Credit Agreement, shall mean and be a reference to
the Credit Agreement as amended hereby. The Credit Agreement, as amended hereby,
is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. 

	5.2 	
      Governing Law.

This agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. 

	5.3 	
      Enurement.

This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

	5.4 	
      Counterparts.

This agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original and all of which taken together
shall be deemed to constitute one and the same agreement. Delivery of an
executed signature page of this agreement by facsimile transmission or by e-mail
in pdf format shall be as effective as delivery of a manually executed
counterpart thereof. 

		Sixth Amending Agreement

- 7 - 

	5.5 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each Obligor confirms and agrees that
the Liens and other obligations expressed to be created under or pursuant to
each Finance Document to which it is a party shall be binding upon such Obligor
and its collateral (as described in each such Security Document) shall be
unaffected by and shall continue in full force and effect notwithstanding the
amendment of the Credit Agreement as constituted hereby and the execution and
delivery and effectiveness of this amendment shall not in any manner whatsoever
reduce, release, discharge, impair or otherwise prejudice or change the
rights of the Finance Parties arising under, by reason of or otherwise in
respect of such Liens and other obligations constituted by each such Finance
Document. For the avoidance of doubt, each Obligor hereby confirms that each
Security Document to which it is a party secures its Secured Obligations and
that each such Security Document continues in full force and effect. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

		Sixth Amending Agreement

NINTH AMENDING AGREEMENT 

TIIIS AGREEMENT made as of the
30 th day of November, 2017. 

BETWEEN: 

PRIMER() MINING CORP, a
corporation existing under the laws of the Province of British Columbia 

(herein called the "Borrower")

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the "Administrative
Agent") 

- and- 

BANK OF MONTREAL and THE BANK OF
NOVA SCOTIA 

(herein called the "Lenders"
and individually, a "Lender") 

WHEREAS the Borrower and the Administrative Agent
entered into a credit agreement made as of May 23, 2014 (as amended pursuant to
a first amending agreement dated December 22, 2014, a second amending agreement
dated February 5, 2015, a third amending agreement dated December 31, 2015, a
fourth amending agreement dated December 28, 2016, a fifth amending agreement
dated March 30, 2017, a sixth amending agreement dated October 2, 2017, a
seventh amending agreement dated November 23, 2017 and an eighth amending
agreement dated November 23, 2017, the "Credit Agreement") and pursuant
to which the Lenders established a certain credit facility in favour of the
Borrower; 

AND WHEREAS the parties hereto wish to amend certain
provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements contained herein, the
parties covenant and agree as follows: 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are used herein without being
specifically defined herein shall have the meaning ascribed thereto in the
Credit Agreement as amended hereby. 

	 	Ninth Amending Agreement

- 2 - 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and conditions herein contained, the
Credit Agreement is hereby amended to the extent necessary to give effect to the
provisions of this agreement and to incorporate the provisions of this agreement
into the Credit Agreement. 

	2.2 	
      Defined Terms.

The definition of "Maturity Date" in Section 1.1 of the Credit
Agreement is hereby amended by deleting the reference therein to "December 1,
2017" and replacing it with "December 15, 2017". 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and
Warranties.

To induce the Lenders and the Administrative Agent to enter
into this agreement, the Borrower hereby represents and warrants to the Lenders
and the Administrative Agent that the representations and warranties of the
Borrower which are contained in Section 10.1 of the Credit Agreement, are true
and correct on each of the date hereof and the date of the effectiveness of the
amendment contemplated in Article 4, as if made on the date hereof and the date
of the effectiveness of the amendment contemplated in Article 4, respectively.
The Borrower hereby represents and warrants that no Default has occurred that
will be continuing after giving effect to this agreement, nor will a Default
arise as a result of the execution and delivery of this agreement. 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Conditions Precedent.

This agreement shall become effective upon satisfaction of the
following conditions precedent: 

	 	(a) 	
      the execution and delivery of this Agreement by each of
      the parties hereto and the execution and delivery by Wheaton Precious
      Metals Corp. of the consent and agreement attached hereto;

	 	 	 
	 	(b) 	
      the Borrower and PML shall have executed and delivered to
      the Administrative Agent, as applicable, confirmation letters in respect
      of each Security Document governed by the laws of Luxembourg to which it
      is a party;

	 	 	 
	 	(c) 	
      all fees of legal counsel to the Administrative Agent
      shall have been paid; and

	 	 	 
	 	(d) 	
      the Administrative Agent has received, in form and
      substance satisfactory to it:

	 	Ninth Amending Agreement

- 3 - 

	 	(i) 	
      a duly certified copy of the resolution of the board of
      directors of the Borrower authorizing it to execute, deliver and perform
      its obligations under this Agreement and under the Credit Agreement, as
      amended by this Agreement; and

	 	 	 
	 	(ii) 	
      an opinion of counsel to the Borrower addressed to the
      Administrative Agent and the other Finance Parties, relating to the status
      and capacity of the Borrower, the due authorization, execution and
      delivery of this Agreement and the validity and enforceability of this
      Agreement and the Credit Agreement, as amended by this Agreement, and such
      other matters as the Administrative Agent may reasonably
  request.

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this agreement, 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 any related
document to the "Credit Agreement", "thereunder", "thereof', or words of the
like import relating to the Credit Agreement, shall mean and be a reference to
the Credit Agreement as amended hereby. The Credit Agreement, as amended hereby,
is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. 

	5.2 	
      Governing Law.

This agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. 

	5.3 	
      Enurement.

This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

	5.4 	
      Counterparts.

This agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original and all of which taken together
shall be deemed to constitute one and the same agreement. Delivery of an
executed signature page of this agreement by facsimile transmission or by e-mail
in pdf format shall be as effective as delivery of a manually executed
counterpart thereof. 

	 	Ninth Amending Agreement

- 4 - 

	5.5 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each Obligor confirms and agrees that
the Liens and other obligations expressed to be created under or pursuant to
each Finance Document to which it is a party shall be binding upon such Obligor
and its collateral (as described in each such Security Document) shall be unaffected by and shall continue in
full force and effect notwithstanding the amendment of the Credit Agreement as
constituted hereby and the execution and delivery and effectiveness of this
amendment shall not in any manner whatsoever reduce, release, discharge, impair
or otherwise prejudice or change the rights of the Finance Parties arising
under, by reason of or otherwise in respect of such Liens and other obligations
constituted by each such Finance Document. For the avoidance of doubt, each
Obligor hereby confirms that each Security Document to which it is a party
secures its Secured Obligations and that each such Security Document continues
in full force and effect. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

		Ninth Amending Agreement

TENTH AMENDING AGREEMENT 

THIS AGREEMENT made as of the
15th day of December, 2017. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the laws of the Province of British Columbia 

(herein called the "Borrower")

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the "Administrative
Agent") 

- and- 

BANK OF MONTREAL and THE BANK OF
NOVA SCOTIA 

(herein called the "Lenders"
and individually, a "Lender") 

WHEREAS the Borrower and the Administrative Agent
entered into a credit agreement made as of May 23, 2014 (as amended pursuant to
a first amending agreement dated December 22, 2014, a second amending agreement
dated February 5, 2015, a third amending agreement dated December 31, 2015, a
fourth amending agreement dated December 28, 2016, a fifth amending agreement
dated March 30, 2017, a sixth amending agreement dated October 2, 2017, a
seventh amending agreement dated November 23, 2017, an eighth amending agreement
dated November 23, 2017 and a ninth amending agreement dated November 30, 2017,
the "Credit Agreement") and pursuant to which the Lenders established a certain
credit facility in favour of the Borrower; 

AND WHEREAS the parties hereto wish to amend certain
provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements contained herein, the
parties covenant and agree as follows: 

	 	Tenth Amending Agreement

- 2 - 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are used herein without being
specifically defined herein shall have the meaning ascribed thereto in the
Credit Agreement as amended hereby. 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and conditions herein contained, the
Credit Agreement is hereby amended to the extent necessary to give effect to the
provisions of this agreement and to incorporate the provisions of this agreement
into the Credit Agreement. 

	2.2 	
      Defined Terms.

The definition of "Maturity Date" in Section 1.1 of the
Credit Agreement is hereby amended by deleting the reference therein to
"December 15, 2017" and replacing it with "December 22, 2017". 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and
Warranties.

To induce the Lenders and the Administrative Agent to enter
into this agreement, the Borrower hereby represents and warrants to the Lenders
and the Administrative Agent that the representations and warranties of the
Borrower which are contained in Section 10.1 of the Credit Agreement, are true
and correct on each of the date hereof and the date of the effectiveness of the
amendment contemplated in Article 4, as if made on the date hereof and the date
of the effectiveness of the amendment contemplated in Article 4, respectively.
The Borrower hereby represents and warrants that no Default has occurred that
will be continuing after giving effect to this agreement, nor will a Default
arise as a result of the execution and delivery of this agreement. 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Conditions Precedent.

This agreement shall become effective upon satisfaction of the
following conditions precedent: 

	 	(a) 	
      the execution and delivery of this Agreement by each of
      the parties hereto and the execution and delivery by Wheaton Precious
      Metals Corp. of the consent and agreement attached
  hereto;

	 	Tenth Amending Agreement

- 3 - 

	 	(b) 	
      the Borrower and PML shall have executed and delivered to
      the Administrative Agent, as applicable, confirmation letters in respect
      of each Security Document governed by the laws of Luxembourg to which it
      is a party;

	 	 	 
	 	(c) 	
      all fees of legal counsel to the Administrative Agent
      shall have been paid; and

	 	 	 
	 	(d) 	
      the Administrative Agent has received, in form and
      substance satisfactory to it:

	 	(i) 	
      a duly certified copy of the resolution of the board of
      directors of the Borrower authorizing it to execute, deliver and perform
      its obligations under this Agreement and under the Credit Agreement, as
      amended by this Agreement; and

	 	 	 
	 	(ii) 	
      an opinion of counsel to the Borrower addressed to the
      Administrative Agent and the other Finance Parties, relating to the status
      and capacity of the Borrower, the due authorization, execution and
      delivery of this Agreement and the validity and enforceability of this
      Agreement and the Credit Agreement, as amended by this Agreement, and such
      other matters as the Administrative Agent may reasonably
  request.

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this agreement, 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 any related
document to the "Credit Agreement", "thereunder", "thereof', or words of the
like import relating to the Credit Agreement, shall mean and be a reference to
the Credit Agreement as amended hereby. The Credit Agreement, as amended hereby,
is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. 

	5.2 	
      Governing Law.

This agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. 

	5.3 	
      Enurement.

This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

	5.4 	
      Counterparts.

This agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original and all of which taken together
shall be deemed to constitute one and the same agreement. Delivery of an
executed signature page of this agreement by facsimile transmission or by e-mail in pdf format shall be as effective
as delivery of a manually executed counterpart thereof. 

	 	Tenth Amending Agreement

- 4 - 

	5.5 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each Obligor confirms and agrees that
the Liens and other obligations expressed to be created under or pursuant to
each Finance Document to which it is a party shall be binding upon such Obligor
and its collateral (as described in each such Security Document) shall be
unaffected by and shall continue in full force and effect notwithstanding the
amendment of the Credit Agreement as constituted hereby and the execution and
delivery and effectiveness of this amendment shall not in any manner whatsoever
reduce, release, discharge, impair or otherwise prejudice or change the rights
of the Finance Parties arising under, by reason of or otherwise in respect of
such Liens and other obligations constituted by each such Finance Document. For
the avoidance of doubt, each Obligor hereby confirms that each Security Document
to which it is a party secures its Secured Obligations and that each such
Security Document continues in full force and effect. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

	 	Tenth Amending Agreement

ELEVENTH AMENDING AGREEMENT 

THIS AGREEMENT made as of the
22" day of December, 2017. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the laws of the Province of British Columbia 

(herein called the "Borrower") 

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the "Administrative
Agent") 

- and- 

BANK OF MONTREAL and THE BANK OF
NOVA SCOTIA 

(herein called the "Lenders"
and individually, a "Lender") 

WHEREAS the Borrower and the Administrative Agent
entered into a credit agreement made as of May 23, 2014 (as amended pursuant to
a first amending agreement dated December 22, 2014, a second amending agreement
dated February 5, 2015, a third amending agreement dated December 31, 2015, a
fourth amending agreement dated December 28, 2016, a fifth amending agreement
dated March 30, 2017, a sixth amending agreement dated October 2, 2017, a
seventh amending agreement dated November 23, 2017, an eighth amending agreement
dated November 23, 2017, a ninth amending agreement dated November 30, 2017 and
a tenth amending agreement dated December 15, 2017, the "Credit
Agreement") and pursuant to which the Lenders established a certain credit
facility in favour of the Borrower; 

AND WHEREAS the parties hereto wish to amend certain
provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements contained herein, the
parties covenant and agree as follows: 

		Eleventh Amending Agreement
  

- 2 - 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are used herein without being
specifically defined herein shall have the meaning ascribed thereto in the
Credit Agreement as amended hereby. 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and conditions herein contained, the
Credit Agreement is hereby amended to the extent necessary to give effect to the
provisions of this agreement and to incorporate the provisions of this agreement
into the Credit Agreement. 

	2.2 	
      Defined Terms.

The definition of "Maturity Date" in Section 1.1 of the
Credit Agreement is hereby amended by deleting the reference therein to
"December 22, 2017" and replacing it with "January 11, 2018". 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and Warranties.

To induce the Lenders and the Administrative Agent to enter
into this agreement, the Borrower hereby represents and warrants to the Lenders
and the Administrative Agent that the representations and warranties of the
Borrower which are contained in Section 10.1 of the Credit Agreement, are true
and correct on each of the date hereof and the date of the effectiveness of the
amendment contemplated in Article 4, as if made on the date hereof and the date
of the effectiveness of the amendment contemplated in Article 4, respectively.
The Borrower hereby represents and warrants that no Default has occurred that
will be continuing after giving effect to this agreement, nor will a Default
arise as a result of the execution and delivery of this agreement. 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Conditions Precedent.

This agreement shall become effective upon satisfaction of the
following conditions precedent: 

	 	(a) 	
      the execution and delivery of this Agreement by each of
      the parties hereto and the execution and delivery by Wheaton Precious
      Metals Corp. of the consent and agreement attached
  hereto;

	 	Eleventh Amending Agreement
  

- 3 - 

	 	(b) 	
      the Borrower and PML shall have executed and delivered to
      the Administrative Agent, as applicable, confirmation letters in respect
      of each Security Document governed by the laws of Luxembourg to which it
      is a party;

	 	 	 
	 	(c) 	
      all fees of legal counsel to the Administrative Agent
      shall have been paid; and

	 	 	 
	 	(d) 	
      the Administrative Agent has received, in form and
      substance satisfactory to it:

	 	(i) 	
      a duly certified copy of the resolution of the board of
      directors of the Borrower authorizing it to execute, deliver and perform
      its obligations under this Agreement and under the Credit Agreement, as
      amended by this Agreement; and

	 	 	 
	 	(ii) 	
      an opinion of counsel to the Borrower addressed to the
      Administrative Agent and the other Finance Parties, relating to the status
      and capacity of the Borrower, the due authorization, execution and
      delivery of this Agreement and the validity and enforceability of this
      Agreement and the Credit Agreement, as amended by this Agreement, and such
      other matters as the Administrative Agent may reasonably
  request.

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this agreement, 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 any related
document to the "Credit Agreement", "thereunder", "thereof', or words of the
like import relating to the Credit Agreement, shall mean and be a reference to
the Credit Agreement as amended hereby. The Credit Agreement, as amended hereby,
is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. 

	5.2 	
      Governing Law.

This agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. 

	5.3 	
      Enurement.

This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

	5.4 	
      Counterparts.

This agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original and all of which taken together
shall be deemed to constitute one and the same agreement. Delivery of an
executed signature page of this agreement by facsimile transmission or by e-mail in pdf format shall be as effective
as delivery of a manually executed counterpart thereof. 

		Eleventh Amending Agreement

- 4 - 

	5.5 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each Obligor confirms and agrees that
the Liens and other obligations expressed to be created under or pursuant to
each Finance Document to which it is a party shall be binding upon such Obligor
and its collateral (as described in each such Security Document) shall be
unaffected by and shall continue in full force and effect notwithstanding the
amendment of the Credit Agreement as constituted hereby and the execution and
delivery and effectiveness of this amendment shall not in any manner whatsoever
reduce, release, discharge, impair or otherwise prejudice or change the rights
of the Finance Parties arising under, by reason of or otherwise in respect of
such Liens and other obligations constituted by each such Finance Document. For
the avoidance of doubt, each Obligor hereby confirms that each Security Document
to which it is a party secures its Secured Obligations and that each such
Security Document continues in full force and effect. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

		Eleventh Amending Agreement
  

TWELFTII AMENDING AGREEMENT 

THIS AGREEMENT made as of the
12 day of January, 2018. 

BETWEEN: 

PRIMERO MINING CORP, a
corporation existing under the laws of the Province of British Columbia 

(herein called the "Borrower")

- and - 

BANK OF MONTREAL, a Canadian
chartered bank 

(herein called the "Administrative
Agent") 

- and- 

BANK OF MONTREAL and THE BANK OF
NOVA SCOTIA 

(herein called the "Lenders"
and individually, a "Lender") 

WHEREAS the Borrower and the Administrative Agent
entered into a credit agreement made as of May 23, 2014 (as amended pursuant to
a first amending agreement dated December 22, 2014, a second amending agreement
dated February 5, 2015, a third amending agreement dated December 31, 2015, a
fourth amending agreement dated December 28, 2016, a fifth amending agreement
dated March 30, 2017, a sixth amending agreement dated October 2, 2017, a
seventh amending agreement dated November 23, 2017, an eighth amending agreement
dated November 23, 2017, a ninth amending agreement dated November 30, 2017, a
tenth amending agreement dated December 15, 2017 and an eleventh amending
agreement dated December 22, 2017, the "Credit Agreement") and pursuant
to which the Lenders established a certain credit facility in favour of the
Borrower; 

AND WHEREAS the parties hereto wish to amend certain
provisions of the Credit Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements contained herein, the
parties covenant and agree as follows: 

	 	Twelfth Amending Agreement
  

- 2 - 

ARTICLE 1 
DEFINED TERMS 

	1.1 	
      Capitalized Terms.

All capitalized terms which are used herein without being
specifically defined herein shall have the meaning ascribed thereto in the
Credit Agreement as amended hereby. 

ARTICLE 2 
AMENDMENTS 

	2.1 	
      General Rule.

Subject to the terms and conditions herein contained, the
Credit Agreement is hereby amended to the extent necessary to give effect to the
provisions of this agreement and to incorporate the provisions of this agreement
into the Credit Agreement. 

	2.2 	
      Defined Terms.

	 	(a) 	
      The definition of "Maturity Date" in Section 1.1
      of the Credit Agreement is hereby deleted and replaced with the following:
      

	 	  	
      

			
      ""Maturity Date" means the date which is the
      earlier of (i) the Effective Date, (ii) the Termination Date and (iii)
      April 30, 2018."; 

	 	  	
      

	 	(b) 	
      The following defined terms are hereby added to Section
      1.1 of the Credit Agreement in alphabetical order:

	 	'Acquiror" means 	First Majestic Silver Corp. 	 

"Arrangement Agreement" means
the arrangement agreement dated January  11
, 2018 entered into between Primero and
Acquiror. 

"Effective Date" means the date
on which all Shares issued by the Borrower are owned by the Acquiror pursuant to
a plan of arrangement under the provisions of Division 5 of Part 9 of the
Business Corporation Act (British Columbia). 

"Termination Date" means the
date which is seven Banking Days after the Arrangement Agreement has been
terminated by one or both of the parties to the Arrangement Agreement." 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 

	3.1 	
      Representations and
Warranties.

To induce the Lenders and the Administrative Agent to enter
into this agreement, the Borrower hereby represents and warrants to the Lenders
and the Administrative Agent that the representations and warranties of the
Borrower which are contained in Section 10.1 of the Credit Agreement, are true and correct on each of the date
hereof and the date of the effectiveness of the amendment contemplated in
Article 4, as if made on the date hereof and the date of the effectiveness of
the amendment contemplated in Article 4, respectively. The Borrower hereby
represents and warrants that no Default has occurred that will be continuing
after giving effect to this agreement, nor will a Default arise as a result of
the execution and delivery of this agreement. 

	 	Twelfth Amending Agreement

- 3 - 

ARTICLE 4 
CONDITIONS PRECEDENT TO EFFECTIVENESS OF
AGREEMENT 

	4.1 	
      Conditions Precedent.

This agreement shall become effective upon satisfaction of the
following conditions precedent: 

	 	(a) 	
      the execution and delivery of this Agreement by each of
      the parties hereto and the execution and delivery by Wheaton Precious
      Metals Corp. of the consent and agreement attached hereto;

	 	 	 
	 	(b) 	
      the Borrower and PML shall have executed and delivered to
      the Administrative Agent, as applicable, confirmation letters in respect
      of each Security Document governed by the laws of Luxembourg to which it
      is a party;

	 	 	 
	 	(c) 	
      all fees of legal counsel to the Administrative Agent
      shall have been paid;

	 	 	 
	 	(d) 	
      the Lenders and Wheaton Precious Metals Corp. shall have
      received an executed copy of the Arrangement Agreement; and

	 	 	 
	 	(e) 	
      the Administrative Agent has received, in form and
      substance satisfactory to it:

	 	(i) 	
      a duly certified copy of the resolution of the board of
      directors of the Borrower authorizing it to execute, deliver and perform
      its obligations under this Agreement and under the Credit Agreement, as
      amended by this Agreement; and

	 	 	 
	 	(ii) 	
      an opinion of counsel to the Borrower addressed to the
      Administrative Agent and the other Finance Parties, relating to the status
      and capacity of the Borrower, the due authorization, execution and
      delivery of this Agreement and the validity and enforceability of this
      Agreement and the Credit Agreement, as amended by this Agreement, and such
      other matters as the Administrative Agent may reasonably
  request.

	 	Twelfth Amending Agreement
  

- 4 - 

ARTICLE 5 
MISCELLANEOUS 

	5.1 	
      Future References to the Credit
  Agreement.

On and after the date of this agreement, 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 any related
document to the "Credit Agreement", "thereunder", "thereof', or words of the
like import relating to the Credit Agreement, shall mean and be a reference to
the Credit Agreement as amended hereby. The Credit Agreement, as amended hereby,
is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. 

	5.2 	
      Governing Law.

This agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. 

	5.3 	
      Enurement.

This agreement shall enure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns. 

	5.4 	
      Counterparts.

This agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original and all of which taken together
shall be deemed to constitute one and the same agreement. Delivery of an
executed signature page of this agreement by facsimile transmission or by e-mail
in pdf format shall be as effective as delivery of a manually executed
counterpart thereof. 

	5.5 	
      Confirmation of Finance
  Documents.

By its acknowledgment, each Obligor confirms and agrees that
the Liens and other obligations expressed to be created under or pursuant to
each Finance Document to which it is a party shall be binding upon such Obligor
and its collateral (as described in each such Security Document) shall be
unaffected by and shall continue in full force and effect notwithstanding the
amendment of the Credit Agreement as constituted hereby and the execution and
delivery and effectiveness of this amendment shall not in any manner whatsoever
reduce, release, discharge, impair or otherwise prejudice or change the rights
of the Finance Parties arising under, by reason of or otherwise in respect of
such Liens and other obligations constituted by each such Finance Document. For
the avoidance of doubt, each Obligor hereby confirms that each Security Document
to which it is a party secures its Secured Obligations and that each such
Security Document continues in full force and effect. 

	 	Twelfth Amending Agreement
  

-5 - 

	5.6 	
      Effective Date.

Notwithstanding the date on which this agreement or the consent
appended hereto is executed and/or delivered, this agreement shall be to have
effect from and as of January  11 , 2018. 

[REMAINDER OF PAGE INTENTIONALLY BLANK] 

	 	Twelfth Amending Agreement

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