Document:

Exhibit 10.10

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement is dated as of                   , 201  (this “Agreement”) and is between ClubCorp Holdings, Inc., a Nevada corporation (the “Company”), and [Name of director/officer]  (“Indemnitee”).

 

Background

 

The Company believes that in order to attract and retain highly competent persons to serve as directors or in other capacities, including as officers, it must provide such persons with adequate protection through indemnification against the risks of claims and actions against them arising out of their services to and activities on behalf of the Company.

 

The Company desires and has requested Indemnitee to serve, or to continue to serve, as a [director] [officer] of the Company and, in order to induce the Indemnitee to serve, or to continue to serve, as a [director] [officer] of the Company, the Company is willing to grant the Indemnitee the indemnification provided for herein.  Indemnitee is willing to so serve, or to continue to serve, on the basis that such indemnification be provided.

 

The parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.

 

In consideration of Indemnitee’s service to the Company and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Section 1. Indemnification.

 

To the fullest extent permitted by applicable law:

 

(a) The Company shall indemnify Indemnitee if Indemnitee was or is a party to, is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including any and all appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted by Indemnitee in any such capacity.

 

(b) The indemnification provided by this Section 1 shall be from and against all loss and liability suffered and expenses (including attorneys’ fees, costs and expenses), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding, including any appeals.

 

Section 2. Advance Payment of Expenses.  To the fullest extent permitted by applicable law, expenses (including attorneys’ fees, costs and expenses) incurred by Indemnitee in appearing at, participating in or defending any action, suit or proceeding or in connection with any enforcement action as contemplated by Section 3(e), shall be paid by the Company in advance of the final disposition of such action, suit or proceeding within 30 days after receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time.  The Indemnitee hereby undertakes to repay any amounts so advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled under this Agreement and applicable law to be indemnified by the Company in respect thereof.  No other form of

 

 

undertaking shall be required of Indemnitee other than the execution of this Agreement.  This Section 2 shall be subject to Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 6.

 

Section 3. Procedure for Indemnification; Notification and Defense of Claim.

 

(a) Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding, Indemnitee shall, if any indemnification, advancement or other claim in respect thereof is to be sought from or made against the Company hereunder, notify the Company in writing of the commencement thereof.  The failure to promptly notify the Company of the commencement of any action, suit or proceeding, or of Indemnitee’s request for indemnification, shall not relieve the Company from any liability that it may have to Indemnitee hereunder, and shall not constitute a waiver or release by Indemnitee or of any rights hereunder or otherwise.  Any notice by Indemnitee under this Section 3 should include such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to enable the Company to determine whether and to what extent Indemnitee is entitled to indemnification.

 

(b) With respect to any action, suit or proceeding of which the Company is so notified as provided in this Agreement, the Company shall, subject to the last two sentences of this paragraph, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any subsequently-incurred fees of separate counsel engaged by Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by Indemnitee has been previously authorized in writing by the Company, which authorization will not be unreasonably withheld or delayed.  Notwithstanding the foregoing, if Indemnitee, based on the advice of his or her counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the basis for such conclusion) that, in the conduct of any such defense, there is an actual or potential conflict of interest or position (other than such potential conflicts that are objectively immaterial or remote) between the Company and Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of Indemnitee, to assume such defense.  In addition, the Company will not be entitled, without the written consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

 

(c) To the fullest extent permitted by the applicable law,  the Company’s assumption of the defense of an action, suit or proceeding in accordance with Section 3(b) will constitute an irrevocable acknowledgement by the Company that the Company shall indemnify Indemnitee, pursuant to Section 1, for any loss and liability suffered by Indemnitee and expenses (including attorneys’ fees, costs and expenses), judgments, fines and amounts paid in settlement by or for the account of Indemnitee incurred in connection therewith.

 

(d) The determination whether to grant Indemnitee’s indemnification request shall be made promptly and in any event within 30 days following the Company’s receipt of a request for indemnification in accordance with Section 3(a).  If the Company determines that Indemnitee is entitled to such indemnification or, as contemplated by Section 3(c) the Company has acknowledged such entitlement, the Company shall make payment to Indemnitee of the indemnifiable amount within such 30 day period.  If the Company is not deemed to have so acknowledged such entitlement or the Company’s determination of whether to grant Indemnitee’s indemnification request shall not have been made within such 30 day period, the requisite determination of entitlement to indemnification shall, subject to Section 6, nonetheless be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) an intentional misstatement by Indemnitee of a material fact in connection with the request for indemnification or (ii) a specific finding (which has become final) by a court of competent jurisdiction that all or any part of such indemnification is expressly prohibited by law.

 

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(e) In the event that (i) the Company determines in accordance with this Section 3 that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company denies a request for indemnification, in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described above, (iii) payment of indemnification is not made within such 30 day period, (iv) advancement of expenses is not timely made in accordance with Section 2, or (v) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses.  Indemnitee’s expenses (including attorneys’ fees, costs and expenses) incurred in connection with successfully establishing Indemnitee’s right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company to the fullest extent permitted by applicable law.

 

(f) Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a request therefor in accordance with Section 2 or Section 3, as the case may be.  The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of expenses unless the Company overcomes such presumption by clear and convincing evidence.

 

Section 4. Insurance and Subrogation.

 

(a) The Company shall use its reasonable best efforts to purchase and maintain a policy or policies of insurance with reputable insurance companies with A.M. Best ratings of “A” or better, providing Indemnitee with coverage for any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or arising out of Indemnitee’s status as such, whether or not the Company would have the power or authority to indemnify Indemnitee against such liability and expenses.  Such insurance policies shall have coverage terms and policy limits at least as favorable to Indemnitee as the insurance coverage provided to any other director or officer of the Company.  If the Company has such insurance in effect at the time the Company receives from Indemnitee any notice of the commencement of an action, suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the applicable policy.  The Company shall thereafter take all necessary or advisable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

 

(b) Subject to Section 13, in the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with respect to any insurance policy.  Indemnitee shall execute all papers required and take all reasonable action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Company shall pay or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

 

(c) Subject to Section 13, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and ERISA excise taxes or penalties) if and to the extent that Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise.

 

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Section 5. Certain Definitions. For purposes of this Agreement, the following definitions shall apply:

 

(a) The term “action, suit or proceeding” shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action, suit, arbitration, alternative dispute mechanism or proceeding, whether civil, criminal, administrative or investigative.

 

(b) The term “by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise” shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act.

 

(c) The term “expenses” shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees, costs and expenses, and related disbursements, appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder.

 

(d) The term “judgments, fines and amounts paid in settlement” shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan).

 

Section 6. Limitation on Indemnification.  Notwithstanding any other provision herein to the contrary, the Company shall not be obligated pursuant to this Agreement:

 

(a) Claims Initiated by Indemnitee.  To indemnify or advance expenses to Indemnitee with respect to an action, suit or proceeding (or part thereof) initiated voluntarily by Indemnitee (except with respect to any compulsory counterclaim brought by Indemnitee or an action, suit or proceeding brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement), unless such action, suit or proceeding (or part thereof) was authorized or consented to by the Board of Directors of the Company.

 

(b) Section 16(b) Matters.  To indemnify Indemnitee on account of any suit in which judgment is rendered against Indemnitee for disgorgement of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.

 

(c) Prohibited by Law.  To indemnify Indemnitee in any circumstance where such indemnification has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to be prohibited by law.

 

Section 7. Certain Settlement Provisions.  The Company shall have no obligation to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Company’s prior written consent.  The Company shall not settle any action, suit or proceeding in any manner that would impose any fine or other obligation on Indemnitee without Indemnitee’s prior written consent.  Neither the Company nor Indemnitee will unreasonably withhold his, her, its or their consent to any proposed settlement.

 

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Section 8. Savings Clause.  If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee if Indemnitee was or is a party to, is threatened to be made a party to, or is otherwise involved in any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity, from and against all loss and liability suffered and expenses (including attorneys’ fees, costs and expenses), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated.

 

Section 9. Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the Company shall, to the fullest extent permitted by law, contribute to the payment of all of Indemnitee’s loss and liability suffered and expenses (including attorneys’ fees, costs and expenses), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee in connection with any action, suit or proceeding, including any appeals, in an amount that is just and equitable in the circumstances; provided that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in Section 4(c), 6 or 7.

 

Section 10. Form and Delivery of Communications.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt, or (d) sent by email or facsimile transmission, with receipt of oral confirmation that such transmission has been received.  Notice to the Company shall be directed to Ingrid Keiser, Attention: General Counsel, email:  Ingrid.Keiser@clubcorp.com,  facsimile: (972) 888-6271, confirmation number: (972) 888-7234.  Notice to Indemnitee shall be directed to [XXXXXX], email:  [XXX@XXX.com],  facsimile: [(XXX)-XXX-XXXX], confirmation number: [(XXX)-XXX-XXXX].

 

Section 11. Nonexclusivity.  The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, in any court in which a proceeding is brought, the Company’s articles of incorporation or bylaws, other agreements or arrangements, or otherwise, and Indemnitee’s rights hereunder shall inure to the benefit of the heirs, executors and administrators of Indemnitee.  No amendment or alteration of the Company’s articles of incorporation or bylaws or any other agreement or arrangement shall limit or otherwise adversely affect the rights provided to Indemnitee under this Agreement.

 

Section 12. No Construction as Employment Agreement.  Nothing contained herein shall be construed as giving Indemnitee any right to be retained as a director of the Company or in the employ of the Company.  For the avoidance of doubt, the indemnification and advancement of expenses provided under this Agreement shall continue as to the Indemnitee even though he or she may have ceased to be a director, officer, employee or agent of the Company.

 

Section 13. Jointly Indemnifiable Claims.  (a) Given that certain jointly indemnifiable claims may arise due to the service of the Indemnitee as a director and/or officer of the Company at the request of the Indemnitee-related entities (as defined below), the Company acknowledges and agrees that the Company shall

 

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be fully and primarily responsible for the payment to the Indemnitee in respect of indemnification or advancement of expenses in connection with any such jointly indemnifiable claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any right of recovery the Indemnitee may have from the Indemnitee-related entities.  Under no circumstance shall the Company be entitled to any right of subrogation or contribution by the Indemnitee-related entities and no right of advancement or recovery the Indemnitee may have from the Indemnitee-related entities shall reduce or otherwise alter the rights of the Indemnitee or the obligations of the Company hereunder.  In the event that any of the Indemnitee-related entities shall make any payment to the Indemnitee in respect of indemnification or advancement of expenses with respect to any jointly indemnifiable claim, the Indemnitee-related entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee against the Company, and Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable the Indemnitee-related entities effectively to bring suit to enforce such rights.  The Company and Indemnitee agree that each of the Indemnitee-related entities shall be third-party beneficiaries with respect to this Section 13(a), entitled to enforce this Section 13(a) as though each such Indemnitee-related entity were a party to this Agreement.

 

(b) For purposes of this Section 13, the following terms shall have the following meanings:

 

(i)                                     The term “Indemnitee-related entities” means any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise Indemnitee has agreed, on behalf of the Company or at the Company’s request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement) from whom an Indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part, the Company may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance policy).

 

(ii)                                  The term “jointly indemnifiable claims” shall be broadly construed and shall include, without limitation, any action, suit or proceeding for which the Indemnitee shall be entitled to indemnification or advancement of expenses from both the Company and any Indemnitee-related entity pursuant to applicable law, any agreement or the certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable organizational documents of the Company or the Indemnitee-related entities, as applicable.

 

Section 14. Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by applicable law.

 

Section 15. Entire Agreement.  This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.

 

Section 16. Modification and Waiver.  No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.  For the avoidance of doubt, this Agreement may not be modified or terminated by the Company without Indemnitee’s prior written consent.

 

Section 17. Successor and Assigns.  All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all

 

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of the business or assets of the Company, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

Section 18. Service of Process and Venue.  The Company hereby irrevocably and unconditionally (a) agrees that any action or proceeding arising out of or in connection with this Agreement may be brought in the federal or state courts located in Clark County, Nevada (the “Nevada Courts”), (b) consents to submit to the non-exclusive jurisdiction of the Nevada Courts for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) appoints, to the extent the Company is not otherwise subject to service of process in the State of Nevada, [name] [address] as its agent in the State of Nevada for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon the Company personally within the State of Nevada, (d) waives any objection to the laying of venue of any such action or proceeding in the Nevada Courts, and (e) waives, and agrees not to plead or to make, any claim that any such action or proceeding brought in the Nevada Courts has been brought in an improper or inconvenient forum.

 

Section 19. Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.  If, notwithstanding the foregoing, a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Nevada govern indemnification by the Company of Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

 

Section 20. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

 

Section 21.  Headings and Section References.  The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Section references are to this Agreement unless otherwise specified.

 

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This Indemnification Agreement has been duly executed and delivered to be effective as of the date first stated above.

 

	
 
    	
 
    	
CLUBCORP   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
INDEMNITEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    

 

8Exhibit 4.01

 

Execution Version

 

AGNICO-EAGLE MINES LIMITED

as Borrower

 

- and -

 

THE GUARANTORS FROM TIME TO TIME

PARTY TO THIS AGREEMENT

as Guarantors

 

- and -

 

THE LENDERS FROM TIME TO TIME
 PARTY TO THIS AGREEMENT

 

- and -

 

THE BANK OF NOVA SCOTIA

as Joint Lead Arranger and Administrative Agent

 

- and -

 

THE TORONTO-DOMINION BANK

as Joint Lead Arranger and Syndication Agent

 

- and -

 

BANK OF MONTREAL

CANADIAN IMPERIAL BANK OF COMMERCE

SOCIÉTÉ GÉNÉRALE (CANADA BRANCH)

as Co-Documentation Agents

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF JUNE 22, 2010

US$1,200,000,000 CREDIT FACILITIES

 

 

BORDEN LADNER GERVAIS LLP

 

DAVIES WARD PHILLIPS & VINEBERG LLP

 

 

TABLE OF CONTENTS

 

	
1.     INTERPRETATION
    	
2
    
	
1.1
    	
Definitions
    	
2
    
	
1.2
    	
Interpretation
    	
36
    
	
1.3
    	
Currency
    	
36
    
	
1.4
    	
Generally Accepted   Accounting Principles
    	
36
    
	
1.5
    	
Division and Titles
    	
37
    
	
1.6
    	
Calculations
    	
37
    
	
1.7
    	
Assignment and Assumption
    	
37
    
	
1.8
    	
Amendment and Restatement
    	
37
    
	
1.9
    	
First Credit Agreement
    	
38
    
	
2.     THE CREDIT
    	
38
    
	
2.1
    	
Amounts of Credit Facility
    	
38
    
	
2.2
    	
Availment Options under   Credit Facility
    	
38
    
	
2.3
    	
Revolving Credit Facility
    	
39
    
	
2.4
    	
Purpose/Use of the Credit   Facility
    	
39
    
	
2.5
    	
Term and Repayment
    	
39
    
	
2.6
    	
Voluntary Prepayments and   Voluntary Cancellations
    	
41
    
	
2.7
    	
Interest Rates
    	
42
    
	
2.8
    	
Annual Agency Fees
    	
44
    
	
2.9
    	
Exchange Rate Fluctuations
    	
44
    
	
3.     ADVANCES, CONVERSIONS AND OPERATION   OF ACCOUNTS
    	
44
    
	
3.1
    	
Notice of Borrowing - Direct   Advances
    	
44
    
	
3.2
    	
Canadian Dollar-Libor Funded   Advances
    	
45
    
	
3.3
    	
LIBOR Advances and   Conversions
    	
45
    
	
3.4
    	
Letters of Credit
    	
45
    
	
3.5
    	
Swing Line Advances
    	
51
    
	
3.6
    	
Defaulting Lenders
    	
55
    
	
3.7
    	
Evidence of Indebtedness
    	
55
    
	
3.8
    	
Apportionment of Advances
    	
56
    
	
3.9
    	
Notices Irrevocable
    	
56
    
	
3.10
    	
Limits on BA Advances   and Libor Advances
    	
56
    
	
4.     CALCULATION OF INTEREST AND FEES
    	
56
    
	
4.1
    	
Calculation of Interest on   Prime Rate Advances and US Base Rate Advances
    	
56
    
	
4.2
    	
Payment of Interest on Prime   Rate Advances and US Base Rate Advances
    	
57
    
	
4.3
    	
Calculation of Interest on   Libor Basis
    	
57
    
	
4.4
    	
Payment of Interest on Libor   Basis
    	
57
    
	
4.5
    	
Fixing of LIBOR
    	
57
    
	
4.6
    	
Interest on Miscellaneous   Amounts
    	
57
    
	
4.7
    	
Default Interest
    	
58
    
	
4.8
    	
Maximum Interest Rate
    	
58
    
	
4.9
    	
Interest Act
    	
58
    
	
5.     BANKERS’ ACCEPTANCES
    	
59
    
	
5.1
    	
Advances by Bankers’   Acceptances and Conversions into Bankers’ Acceptances
    	
59
    
	
5.2
    	
Acceptance Procedure
    	
60
    

 

 

	
5.3
    	
Purchase of Bankers’   Acceptances and Discount Notes
    	
61
    
	
5.4
    	
Maturity Date of Bankers’   Acceptances
    	
61
    
	
5.5
    	
Deemed Conversions on the   Maturity Date of Bankers’ Acceptances
    	
62
    
	
5.6
    	
Conversion and Extension   Mechanism
    	
62
    
	
5.7
    	
No Prepayment of Bankers’   Acceptances
    	
62
    
	
5.8
    	
Apportionment Amongst the   Lenders
    	
62
    
	
5.9
    	
Days of Grace
    	
63
    
	
5.10
    	
Obligations Absolute
    	
63
    
	
5.11
    	
Depository   Bills and Notes Act
    	
63
    
	
6.     ILLEGALITY, INCREASED   COSTS, INDEMNIFICATION AND MARKET DISRUPTIONS
    	
64
    
	
6.1
    	
Illegality
    	
64
    
	
6.2
    	
Increased Costs
    	
64
    
	
6.3
    	
Taxes
    	
66
    
	
6.4
    	
Breakage Costs, Failure to   Borrow or Repay After Notice
    	
68
    
	
6.5
    	
Mitigation Obligations:   Replacement of Lenders
    	
69
    
	
6.6
    	
Market for Bankers’   Acceptances and Libor Advances
    	
71
    
	
7.     PROVISIONS RELATING TO PAYMENTS
    	
71
    
	
7.1
    	
Payment of Losses Resulting   From a Prepayment
    	
71
    
	
7.2
    	
Imputation of Prepayments
    	
71
    
	
7.3
    	
Currency of Payments
    	
71
    
	
7.4
    	
Payments by the Borrower to   the Agent
    	
72
    
	
7.5
    	
Payment on a Business Day
    	
72
    
	
7.6
    	
Payments by the Lenders to   the Agent
    	
72
    
	
7.7
    	
Netting
    	
72
    
	
7.8
    	
Application of Payments
    	
72
    
	
7.9
    	
No Set-Off or Counterclaim   by Borrower
    	
73
    
	
7.10
    	
Debit Authorization
    	
73
    
	
8.     GUARANTEES
    	
73
    
	
8.1
    	
Guarantees
    	
73
    
	
8.2
    	
Additional Guarantors;   Release
    	
74
    
	
8.3
    	
Obligations Supported by the   Guarantees
    	
74
    
	
8.4
    	
Other Supported Obligations
    	
74
    
	
8.5
    	
Limitation
    	
75
    
	
9.     CONDITIONS PRECEDENT
    	
75
    
	
9.1
    	
Conditions to Effectiveness
    	
75
    
	
9.2
    	
Conditions Precedent to each   Advance
    	
77
    
	
9.3
    	
Waiver of Conditions   Precedent
    	
77
    
	
10.   REPRESENTATIONS AND WARRANTIES
    	
78
    
	
10.1
    	
Existence, Power and   Authority
    	
78
    
	
10.2
    	
Loan Documents
    	
78
    
	
10.3
    	
Conduct of Business
    	
79
    
	
10.4
    	
Litigation
    	
79
    
	
10.5
    	
Financial Statements and   Information
    	
79
    
	
10.6
    	
Subsidiaries, etc.
    	
80
    

 

 

	
10.7
    	
Title to Property
    	
81
    
	
10.8
    	
Taxes
    	
81
    
	
10.9
    	
Insurance
    	
81
    
	
10.10
    	
No Material Adverse Effect
    	
81
    
	
10.11
    	
Pension Matters
    	
81
    
	
10.12
    	
Ranking and Priority
    	
82
    
	
10.13
    	
Absence of Default
    	
82
    
	
10.14
    	
Environment
    	
82
    
	
10.15
    	
Mines
    	
83
    
	
10.16
    	
Complete and Accurate   Information
    	
83
    
	
10.17
    	
Survival of Representations   and Warranties
    	
84
    
	
11.   FINANCIAL COVENANTS
    	
84
    
	
11.1
    	
Total Net Debt to EBITDA   Ratio
    	
84
    
	
11.2
    	
Tangible Net Worth
    	
84
    
	
12.   AFFIRMATIVE COVENANTS
    	
84
    
	
12.1
    	
Existence and Good Standing
    	
85
    
	
12.2
    	
Permits
    	
85
    
	
12.3
    	
Books and Records
    	
85
    
	
12.4
    	
Property
    	
85
    
	
12.5
    	
Material Contracts
    	
85
    
	
12.6
    	
Financial Information
    	
86
    
	
12.7
    	
Compliance with Applicable   Law
    	
86
    
	
12.8
    	
Insurance
    	
86
    
	
12.9
    	
Payment of Taxes
    	
86
    
	
12.10
    	
Access and Inspection
    	
87
    
	
12.11
    	
Maintenance of Accounts
    	
87
    
	
12.12
    	
Performance of Obligations
    	
87
    
	
12.13
    	
Litigation
    	
87
    
	
12.14
    	
Payment of Fees and Other   Expenses
    	
87
    
	
12.15
    	
Priority of Obligations
    	
88
    
	
13.   REPORTING AND NOTICE REQUIREMENTS
    	
88
    
	
13.1
    	
Financial and Other   Reporting
    	
89
    
	
13.2
    	
Requirements for Notice
    	
90
    
	
14.   NEGATIVE COVENANTS
    	
90
    
	
14.1
    	
Debt
    	
91
    
	
14.2
    	
Liens
    	
91
    
	
14.3
    	
Investments
    	
91
    
	
14.4
    	
Distributions
    	
91
    
	
14.5
    	
Asset Dispositions
    	
92
    
	
14.6
    	
Derivative Instruments
    	
92
    
	
14.7
    	
Line of Business
    	
93
    
	
14.8
    	
Affiliate Transactions
    	
93
    
	
14.9
    	
Subordinated Debt
    	
93
    
	
14.10
    	
Business Combination,   Reorganization, etc.
    	
93
    

 

 

	
15.   EVENTS OF DEFAULT AND ENFORCEMENT
    	
94
    
	
15.1
    	
Events of Default
    	
94
    
	
15.2
    	
Remedies
    	
97
    
	
15.3
    	
Notice
    	
98
    
	
15.4
    	
Escrowed Funds for Letters   of Credit and Bankers’ Acceptances
    	
98
    
	
15.5
    	
Costs
    	
99
    
	
15.6
    	
Relations with the Obligors
    	
99
    
	
15.7
    	
Application of Proceeds
    	
99
    
	
16.   THE AGENT AND THE LENDERS
    	
100
    
	
16.1
    	
Authorization of Agent
    	
100
    
	
16.2
    	
Agent’s Responsibility
    	
100
    
	
16.3
    	
Rights of Agent as Lender
    	
102
    
	
16.4
    	
Indemnity by Lenders
    	
102
    
	
16.5
    	
Notice by Agent to Lenders
    	
103
    
	
16.6
    	
Protection of Agent -   Advances and Payments
    	
103
    
	
16.7
    	
Notice by Lenders to Agent
    	
103
    
	
16.8
    	
Sharing Among the Lenders
    	
104
    
	
16.9
    	
Procedure With Respect to   Advances
    	
105
    
	
16.10
    	
Non-Payment by Lenders
    	
105
    
	
16.11
    	
Accounts Kept by Each Lender
    	
106
    
	
16.12
    	
Binding Determinations
    	
106
    
	
16.13
    	
Amendment of Article 16
    	
106
    
	
16.14
    	
Decisions, Amendments and   Waivers of the Lenders
    	
106
    
	
16.15
    	
Authorized Waivers,   Variations and Omissions
    	
107
    
	
16.16
    	
Provisions for the Benefit   of Lenders Only
    	
107
    
	
16.17
    	
Assignment by Agent to an   Affiliate
    	
107
    
	
16.18
    	
Collective Action of the   Lenders
    	
107
    
	
16.19
    	
Resignation of Agent
    	
108
    
	
17.   CURRENCY CONVERSION, ETC.
    	
109
    
	
17.1
    	
Rules of Conversion
    	
109
    
	
17.2
    	
Determination of Equivalent   Amount in another Currencies
    	
109
    
	
18.   ASSIGNMENT
    	
110
    
	
18.1
    	
Assignment by the Borrower
    	
110
    
	
18.2
    	
Assignments and Transfers by   the Lenders
    	
110
    
	
18.3
    	
Register
    	
112
    
	
18.4
    	
Electronic Execution of   Assignments
    	
112
    
	
18.5
    	
Participations
    	
112
    
	
18.6
    	
Limitations Upon Participant   Rights
    	
113
    
	
18.7
    	
Promissory Notes
    	
113
    
	
19.   MISCELLANEOUS
    	
113
    
	
19.1
    	
Notices
    	
113
    
	
19.2
    	
Amendment and Waiver
    	
114
    
	
19.3
    	
Lender Replacement
    	
115
    
	
19.4
    	
Independent Engineer and   Other Consultants
    	
118
    
	
19.5
    	
Entire Agreement
    	
118
    
	
19.6
    	
Indemnification and Set-Off
    	
118
    

 

 

	
19.7
    	
Benefit of Agreement
    	
119
    
	
19.8
    	
Counterparts
    	
119
    
	
19.9
    	
This Agreement to Govern
    	
119
    
	
19.10
    	
Applicable Law
    	
119
    
	
19.11
    	
Severability
    	
119
    
	
19.12
    	
Further Assurances
    	
120
    
	
19.13
    	
Good Faith and Fair   Consideration
    	
120
    
	
19.14
    	
Responsibility of the   Lenders
    	
120
    
	
19.15
    	
Indemnity
    	
120
    
	
19.16
    	
Confidentiality
    	
121
    
	
19.17
    	
Reinstatement
    	
122
    
	
19.18
    	
Submission to Jurisdiction
    	
123
    
	
19.19
    	
Waiver of Venue
    	
123
    
	
19.20
    	
Waiver of Jury Trial
    	
123
    
	
19.21
    	
Language
    	
123
    
	
19.22
    	
Third Party Beneficiaries
    	
124
    
	
19.23
    	
Formal Date
    	
124
    
	
19.24
    	
Swedish Companies Act
    	
124
    
	
19.25
    	
Finnish Companies Act
    	
124
    
	
EXHIBIT A   - COMMITMENTS
    	
 
    
	
EXHIBIT B   - ASSIGNMENT AND ASSUMPTION AGREEMENT
    	
 
    
	
EXHIBIT C   - LOAN MARKET DATA TEMPLATE
    	
 
    
	
EXHIBIT D   - NOTICE OF BORROWING AND CERTIFICATE
    	
 
    
	
EXHIBIT E   - COMPLIANCE CERTIFICATE
    	
 
    
	
EXHIBIT F   - ADDITIONAL GUARANTOR AGREEMENT
    	
 
    
	
SCHEDULE   A - PERMITTED LIENS
    	
 
    
	
SCHEDULE   B - OTHER SUPPORTED OBLIGATIONS
    	
 
    
	
SCHEDULE   C - LITIGATION
    	
 
    
	
SCHEDULE   D - EQUITY INTERESTS AND ORGANIZATION STRUCTURE
    	
 
    

 

 

AMENDED AND RESTATED CREDIT AGREEMENT entered into as of the 22nd day of June, 2010

 

B E T W E E N:

 

AGNICO-EAGLE MINES LIMITED

as Borrower

 

- and -

 

1715495 ONTARIO INC.

1641315 ONTARIO INC.

AGNICO-EAGLE SWEDEN AB

AGNICO-EAGLE AB

RIDDARHYTTAN RESOURCES AB

AGNICO-EAGLE FINLAND OY

AGNICO EAGLE MEXICO S.A. DE C.V.

TENEDORA AGNICO EAGLE MEXICO S.A. DE C.V.

AGNICO-EAGLE MINES MEXICO COOPERATIE U.A.

AGNICO-EAGLE MINES SWEDEN COOPERATIE U.A.

as Guarantors

 

- and -

 

THE LENDERS LISTED ON EXHIBIT A

TO THIS AGREEMENT FROM TIME TO TIME

as Lenders

 

- and -

 

THE BANK OF NOVA SCOTIA

as Administrative Agent

 

WHEREAS certain of the parties entered into a credit agreement dated as of September 4, 2008, which credit agreement was amended and restated as of June 15, 2009 and further amended by notice and amendment no. 1 to amended and restated credit agreement dated as of April 6, 2010 (the “Existing Credit Agreement”);

 

AND WHEREAS the Borrower has requested certain amendments to the credit facilities available under the Existing Credit Agreement, as set forth herein;

 

 

AND WHEREAS the parties hereto are entering into this Agreement to provide for the terms of such amended credit facilities by amending and restating the Existing Credit Agreement.

 

NOW THEREFORE for valuable consideration and intending to be legally bound by this Agreement, the parties agree that the Existing Credit Agreement is amended and restated as follows:

 

1.             INTERPRETATION

 

1.1           Definitions

 

The following words and expressions, when used in this Agreement, unless the contrary is stipulated, have the following meaning:

 

1.1.1              “Acceptance Date” has the meaning defined in Section 5.1.1;

 

1.1.2              “Accepting Lender Notice” has the meaning defined in Section 19.3.2;

 

1.1.3              “Acquisition Deadline” has the meaning defined in Section 19.3.3.1;

 

1.1.4              “Acquisition Notice” has the meaning defined in Section 19.3.3.1;

 

1.1.5              “Acquisition Request Notice” has the meaning defined in Section 19.3.3;

 

1.1.6              “Advance” means any advance by the Lenders under this Agreement including (a) direct advances of funds by way of Prime Rate Advances, Swing Line Advances, US Base Rate Advances and Libor Advances, (b) indirect advances by way of BA Advances and the issuance of Letters of Credit, (c) any deemed “Advance” hereunder and (d) any renewal, extension, rollover or conversion of any “Advance”; and any reference relating to the amount of “Advances” outstanding under this Agreement means the sum (without duplication) of all outstanding Prime Rate Advances, Swing Line Advances, US Base Rate Advances and Libor Advances, plus the face amount of all outstanding Bankers’ Acceptances and Letters of Credit;

 

1.1.7              “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;

 

1.1.8              “Agency Fee Letter” means the confidential letter agreement dated June 22, 2010 between the Agent and the Borrower, providing for the payment of certain agency fees in relation to the Credit Facility;

 

2

 

1.1.9              “Agent” means The Bank of Nova Scotia, in its capacity as administrative agent for the Lenders;

 

1.1.10            “Agreement”, “herein”, “hereby”, “hereto” “hereunder” or similar expressions mean this agreement, the recitals hereto and any schedules hereto, as amended, supplemented, restated and replaced from time to time in accordance with the provisions hereof, and not any particular article, section, subsection, paragraph or clause or other portion hereof;

 

1.1.11            “Applicable Law” means (a) any domestic or foreign statute, law (including common and civil law), treaty, code, ordinance, rule, regulation, restriction or by-law (zoning or otherwise), (b) any judgment, order, writ, injunction, decision, ruling, decree or award or (c) any regulatory policy, practice, guideline or directive; in each case, applicable to and binding on the Person referred to in the context in which the term is used or the Property of such Person as a legally enforceable requirement;

 

1.1.12            “Applicable Margin” means the relevant percentage set forth in the relevant row of the table in Section 2.7.1;

 

1.1.13            “Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment; provided however, that if the Commitments have terminated or expired, the “Applicable Percentage” shall be, with respect to any Lender, the percentage of total Credit Exposure of all Lenders represented by such Lender’s Credit Exposure;

 

1.1.14            “Approved Fund” means any Person (other than a natural Person) that (a) is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the Ordinary Course and (b) is administered or managed by a Lender, an Affiliate of a Lender or an entity or an Affiliate of an entity that administers or manages a Lender;

 

1.1.15            “Approving Lenders” has the meaning defined in Section 19.3.2;

 

1.1.16            “Arm’s Length” has the meaning given to that term for the purposes of the Income Tax Act (Canada) on the date hereof;

 

1.1.17            “Asset Disposition” means, with respect to any Obligor, the sale, lease, transfer, assignment or other disposition or alienation of all or any part of the Property now held or subsequently acquired by it (including Equity Interests), or the entering into of any sale-leaseback transaction with respect to its Property or any part thereof;

 

1.1.18            “Assignee” means an Eligible Assignee who has entered into an Assignment and Assumption Agreement;

 

3

 

1.1.19            “Assignment” means an assignment of all or a portion of a Lender’s rights and obligations under this Agreement in accordance with Sections 18.2 and 18.3;

 

1.1.20            “Assignment and Assumption Agreement” means an agreement substantially in the form of Exhibit B;

 

1.1.21            “Associate” has the meaning given to that term in the Business Corporations Act (Ontario) on the date hereof;

 

1.1.22            “Available Amount” has the meaning defined in Section 19.3.3.1;

 

1.1.23            “Available Proceeds” has the meaning defined in Section 5.2.3.4;

 

1.1.24            “BA Advance” means an Advance in Canadian Dollars which the Borrower has elected to borrow by way of Bankers’ Acceptances;

 

1.1.25            “BA Lender” means a Lender which is a bank that accepts bankers’ acceptances issued in Canada;

 

1.1.26            “BA Proceeds” means (a) for a Bankers’ Acceptance, an amount calculated on the applicable Drawdown Date by multiplying: (i) the face amount of the Bankers’ Acceptance by (ii) the following fraction:

 

	
 
    	
1
    
	
 
    	
(1 + (Bankers’ Acceptance   Discount Rate × Designated Period (in days) ÷ 365))
    

 

with such fraction being rounded up or down to the fourth decimal place and .00005 being rounded up, and (b) with respect to Non-BA Lenders, the face amount of Discount Notes issued to them, less a discount established in the same manner as provided in clause (a) above (with references to “Bankers’ Acceptances” being replaced by references to “Discount Notes”);

 

1.1.27            “BA Request” has the meaning defined in subsection 5.1.1;

 

1.1.28            “Bankers’ Acceptance” means a non-interest bearing draft or bill of exchange in Canadian Dollars drawn by the Borrower and accepted by a Lender in accordance with the provisions of Article 5 and includes a Discount Note where the context permits.  In cases where the Lenders elect to use a clearinghouse as contemplated by the Depository Bills and Notes Act (Canada), “Bankers’ Acceptance” shall mean a depository bill (as defined in such Act) in Canadian Dollars signed by the Borrower and accepted by a Lender.  Drafts or bills of exchange that become depository bills may nevertheless be referred to herein as “drafts”;

 

4

 

 

1.1.29            “Bankers’ Acceptance Discount Rate” means, as determined by the Agent (a) in respect of Bankers’ Acceptances to be purchased by the Lenders which are Schedule I banks under the Bank Act (Canada), the average rate for Canadian Dollar bankers’ acceptances (rounded up to the nearest 1/100 of 1%) having Designated Periods of one, two, three, or six months quoted on Reuters Service, page CDOR “Canadian Interbank Bid BA Rates” (the “CDOR Rate”), having an identical Designated Period to that of the Bankers’ Acceptances to be issued on such day and (b) in respect of Bankers’ Acceptances to be purchased by the Lenders which are Schedule II banks under the Bank Act (Canada) or Schedule III banks under the Bank Act (Canada) which are not subject to the restrictions and requirements referred to in Section 524(2) thereof, and in respect of Discount Notes, the average of the rates for Canadian Dollar bankers’ acceptances quoted by the Schedule II Reference Lenders (rounded up to the nearest 1/100 of 1%), provided that such average rate may not exceed the rate determined under clause (a) by more than 0.10% per annum (in each of cases (a) and (b), the “Discount Rates”).  In all cases, the Discount Rates shall be quoted at approximately 10:00 a.m. on the Drawdown Date calculated on the basis of a year of 365 days.

 

In the absence of any such determination, the “Bankers’ Acceptance Discount Rate” which would have been determined in accordance with clause (a) or clause (b) above, respectively, shall be equal to the average of the discount rates for bankers’ acceptances (rounded up to the nearest 1/100 of 1%) of:

 

(i)            in the case of clause (a), the Schedule I Reference Lenders; and

 

(ii)           in the case of clause (b), the Schedule II Reference Lenders;

 

calculated on the basis of a year of 365 days, established in accordance with their normal practices at 10:00 a.m. on the Drawdown Date, for bankers’ acceptances accepted by the Schedule I Reference Lenders or the Schedule II Reference Lenders, as the case may be, in amounts equal to the amount of the BA Advances to be made that day by the Schedule I Reference Lenders or the Schedule II Reference Lenders, as the case may be, having an identical Designated Period to that of the proposed Bankers’ Acceptances to be issued on such day, provided that the “Bankers’ Acceptance Discount Rate” replacing the rate which would have been determined under clause (b) above shall not exceed the “Bankers’ Acceptance Discount Rate” which would have been determined in accordance with clause (a) above by more than 0.10% per annum;

 

1.1.30            “Banking Day” means any Business Day except any Business Day in New York, New York which is a holiday or a day upon which banks

 

5

 

are authorized or required by Applicable Law or by local proclamation to be closed in New York, New York, provided that, for LIBOR Advances, such Business Day is also a day on which prime banks accept deposits in London, England in the London interbank market;

 

1.1.31            “Borrower” means Agnico-Eagle Mines Limited, an Ontario corporation;

 

1.1.32            “Branch” means the Global Wholesale Services — Loan Operations department of The Bank of Nova Scotia at 720 King Street West, Third Floor, Toronto, Ontario, M5V 2T3 or such other branch as is designated from time to time by the Agent, provided that notice of such designation has been received or deemed to have been received in accordance with the Agreement;

 

1.1.33            “Business Combination” has the meaning defined in Section 14.10.1.4.

 

1.1.34            “Business Day” means any day, except Saturdays, Sundays and any other day which in Toronto, Ontario or Montreal, Quebec is a holiday or a day upon which banks are authorized or required by Applicable Law or by local proclamation to be closed in Toronto, Ontario or Montreal, Quebec;

 

1.1.35            “Canadian Dollar-Libor Funded Lenders” means any Lender that funds its Canadian dollars from the London interbank market and which the Borrower has accepted in writing as a “Canadian Dollar-Libor Funded Lender”, and “Canadian Dollar-Libor Funded Lender” means any of the “Canadian Dollar-Libor Funded Lenders”;

 

1.1.36            “Canadian Dollar-Libor Term” means the interest period equal to the shortest interest period displayed on the Libor01 page of Reuters Service for C$1,000,000 at or about 11:00 a.m. (London time) on the date of determination;

 

1.1.37            “Canadian Dollars” or “C$” means the lawful currency of Canada;

 

1.1.38            “Capital Lease” means any lease which is required to be capitalized on a balance sheet of the lessee in accordance with GAAP;

 

1.1.39            “Capital Lease Obligations” means, as to any Person, an obligation of such Person to pay rent or other amounts under a Capital Lease and the amount of such obligation shall be the capitalized amount thereof, determined in accordance with GAAP;

 

1.1.40            “Capital Reorganization” means any change in the issued and outstanding Equity Interests of a Person involving the reclassification

 

6

 

of such Equity Interests or the conversion of such Equity Interests into, or exchange of such Equity Interests for, cash, securities or other property;

 

1.1.41            “Cash Equivalents” means, as of the date of any determination thereof, instruments of the following types:

 

1.1.41.1             obligations of, or unconditionally guaranteed by, the governments of Canada or the USA, or any agency of either of them backed by the full faith and credit of the governments of Canada or the USA, respectively, maturing not more than one year from the date of acquisition;

 

1.1.41.2             marketable direct obligations of the governments of one of the provinces of Canada, one of the states of the USA, or any agency thereof, or of any county, department, municipality or other political subdivision of Canada or the USA, the payment or guarantee of which constitutes a full faith and credit obligation of such province, state, municipality or other political subdivision, which matures not more than one year from the date of acquisition and which, at the time of acquisition, is accorded a short-term credit rating of at least A-1 by S&P, at least P-1 by Moody’s or at least R-1(middle) by DBRS;

 

1.1.41.3             commercial paper, bonds, notes, debentures and bankers’ acceptances issued by a Person residing in Canada or the USA and not referred to in subsections 1.1.41.1, 1.1.41.2 or 1.1.41.4, and maturing not more than one year from the date of issuance which, at the time of acquisition, is accorded a short-term credit rating of at least A-1 by S&P, at least P-1 by Moody’s or at least R-1(middle) by DBRS, and, in respect of Canadian asset-backed commercial paper that is based on a DBRS rating, provided further that such asset-backed commercial paper is issued by a Person appearing on the list of “Global Liquidity Standard for ABCP Issuers” published and maintained by DBRS (for so long as such list is in existence and is continually being updated);

 

1.1.41.4             (a) certificates of deposit maturing not more than one year from the date of issuance thereof, issued by a bank or trust company organized under the laws of the USA, any state thereof, or Canada or any province thereof or (b) Principal Currency certificates of deposit maturing not more than one year from the date of acquisition and issued by a bank in a Principal Jurisdiction; in all cases having capital, surplus

 

7

 

and undivided profits aggregating at least US$500,000,000 (or the equivalent thereof in Canadian Dollars or in the currency of such Principal Jurisdiction) and whose short-term credit rating is, at the time of acquisition, accorded a short-term credit rating of at least A-1 by S&P, at least P-1 by Moody’s or at least R-1(middle) by DBRS;

 

1.1.41.5             any repurchase agreement having a term of 30 days or less entered into with any Lender or any Person satisfying the criteria set forth in subsection 1.1.41.4 which is secured by a fully perfected security interest in any obligation of the type described in subsection 1.1.41.1 or 1.1.41.2 and has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such commercial banking institution thereunder; and

 

1.1.41.6             investments in any security issued by an investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8) that is a money market fund in compliance with all applicable requirements of SEC Rule 2a-7 (17 CFR 270.2a-7);

 

1.1.42            “CDS” has the meaning defined in Section 5.11;

 

1.1.43            “CDS & Co.” has the meaning defined in Section 5.11;

 

1.1.44            “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 Applicable Law, (b) any change in any Applicable Law or in the administration, interpretation or application thereof by any Governmental Authority, including any such change resulting from any quashing by a Governmental Authority of an interpretation of any Applicable Law or (c) the making or issuance of any Applicable Law by any Governmental Authority;

 

1.1.45            “Change of Control” means:

 

(a)               the acquisition, directly or indirectly, by any means whatsoever, by any Person, or group of Persons acting jointly or in concert, (collectively, an “offeror”) of beneficial ownership of, or the power to exercise control or direction over, or securities convertible or exchangeable into, any securities of the Borrower carrying in aggregate (assuming the exercise of all such conversion or exchange rights in favour of the offeror) more than 50% of the aggregate votes represented by the voting stock then issued and outstanding or otherwise

 

8

 

entitling the offeror to elect a majority of the board of directors of the Borrower; or

 

(b)              the replacement by way of election or appointment at any time of one-half or more of the total number of the then incumbent members of the board of directors of the Borrower, or the election or appointment of new directors comprising one-half or more of the total number of members of the board of directors in office immediately following such election or appointment; unless, in any such case, the nomination of such directors for election or their appointment is approved by the board of directors of the Borrower in office immediately preceding such nomination or appointment in circumstances where such nomination or appointment is made other than as a result of a dissident public proxy solicitation, whether actual or threatened;

 

1.1.46            “Claim” has the meaning defined in Section 19.15;

 

1.1.47            “Closing Date” means September 4, 2008;

 

1.1.48            “Commitment” means the portion of the Credit Facility which a Lender has agreed to Advance to the Borrower as set out in Exhibit A and, where the context requires, the maximum amount of Advances which such Lender has covenanted to make, which Exhibit shall be amended and distributed to all parties by the Agent from time to time as such commitments change in accordance with this Agreement;

 

1.1.49            “Compliance Certificate” means a certificate in the form of Exhibit E executed by the chief financial officer or another senior officer of the Borrower;

 

1.1.50            “Consolidated Hedging Exposure” means the aggregate of all amounts that would be payable to all Persons by the Borrower and its Subsidiaries or to the Borrower and its Subsidiaries, on the date of determination, taking into account all legally enforceable netting arrangements, pursuant to each ISDA Master Agreement between the Borrower and each such Person and each Subsidiary and each such Person, as if all Derivative Instruments under such ISDA Master Agreements were being terminated on that day;

 

1.1.51            “Constating Documents” means, with respect to any Person, its articles or certificate of incorporation, amendment, amalgamation, continuance or association, memorandum of association, declaration of trust, partnership agreement, limited liability company agreement or other similar document, as applicable, and all unanimous shareholder agreements, other shareholder agreements, voting trust agreements and

 

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similar arrangements applicable to the Person’s Equity Interests which bind such Person, and by-laws, all as amended, supplemented, restated or replaced from time to time;

 

1.1.52            “Contingent Obligation” of any Person means all contingent liabilities required to be included or noted in the financial statements of such Person in accordance with GAAP;

 

1.1.53            “Continuing Lenders” means the Lenders which were party to the Existing Credit Agreement;

 

1.1.54            “Contract” means any agreement, contract, indenture, lease, deed of trust, licence, option, undertaking, promise or any other commitment or obligation, whether oral or written, express or implied, other than a Permit;

 

1.1.55            “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 and “Controlling” and “Controlled” have corresponding meanings;

 

1.1.56            “Core Business” means the development, construction and operation of mining properties and any operation relating to mining, including the manufacturing, processing or refining of products produced from mining operations and properties, and the sale of products produced from or in connection with mining operations and properties, and the financing related thereto;

 

1.1.57            “Credit Exposure” means with respect to any Lender at any time, the sum of (a) the outstanding Advances (excluding, as applicable, Swing Line Loans and Letters of Credit) of such Lender, plus (b) such Lender’s Applicable Percentage of all Letter of Credit Obligations, plus (c) such Lender’s Applicable Percentage of the outstanding Swing Line Loans at such time;

 

1.1.58            “Credit Facility” has the meaning defined in Section 2.1;

 

1.1.59            “DBRS” means DBRS Limited;

 

1.1.60            “Debt” means, with respect to a Person, without duplication, the aggregate of the following amounts, each calculated in accordance with GAAP, unless the context otherwise requires:

 

1.1.60.1           all obligations that would be considered to be indebtedness for borrowed money (including, without limitation, by way of overdraft and drafts or orders accepted representing extensions of credit), and all obligations (whether or not

 

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with respect to the borrowing of money) that are evidenced by bonds, debentures, notes or other similar instruments;

 

1.1.60.2             reimbursement obligations under bankers’ acceptances and contingent obligations of such Person in respect of any letter of credit, letters of guarantee, bank guarantee, surety bond, performance bond and similar instruments;

 

1.1.60.3             all liabilities upon which interest charges are paid or are customarily paid by that Person;

 

1.1.60.4             any Equity Interests of that Person (or of any Subsidiary of that Person) which Equity Interests, by their terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, prior to the Maturity Date, for cash or securities constituting Debt (read without reference to this subsection 1.1.60.4) unless the issuer of such Equity Interests has by the terms of such Equity Interests the option of repaying such amounts or retiring or exchanging such Equity Interests with Equity Interests not convertible or exchangeable or redeemable for Debt (read without reference to this subsection 1.1.60.4);

 

1.1.60.5             all Capital Lease Obligations, obligations under Synthetic Leases, obligations under sale and leaseback transactions (unless the lease component of the sale and leaseback transaction is an operating lease) and indebtedness under arrangements relating to purchase money liens and other obligations in respect of the deferred purchase price of property and services; and

 

1.1.60.6             the amount of the contingent obligations under any guarantee (other than by endorsement of negotiable instruments for collection or deposit in the Ordinary Course) or other agreement assuring payment or performance of any obligation in any manner of any part or all of an obligation of another Person of the type included in subsections 1.1.60.1 through 1.1.60.5 above;

 

other than trade payables incurred in the Ordinary Course and payable in accordance with customary practices;

 

1.1.61            “Declining Lenders” has the meaning defined in Section 19.3.2;

 

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1.1.62            “deemed interest period” has the meaning defined in Section 4.9.1;

 

1.1.63            “Default” means an event or circumstance, the occurrence or non-occurrence of which would, with the giving of a notice, lapse of time or combination thereof or other condition subsequent, constitute an Event of Default;

 

1.1.64            “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Advances or fund its participating interests in Swing Line Advances required to be funded by it hereunder within three Business Days of the date required to be funded by it hereunder unless such failure has been cured, (b) has otherwise failed to pay over to the Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, (c) has been determined by a court of competent jurisdiction or regulator to be insolvent or is unable to meet its obligations or pay its debts as they generally become due, (d) is the subject of a bankruptcy or insolvency proceeding or (e) is subject to or is seeking the appointment of an administrator, regulator, conservator, liquidator, receiver, trustee, custodian or other similar official over any portion of its assets or business;

 

1.1.65            “depository bills” has the meaning defined in Section 5.11;

 

1.1.66            “Derivative Instrument” means an agreement entered into from time to time by a Person in order to control, fix or regulate currency exchange, commodity price or interest rate fluctuations, including a rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions and any combination of these transactions);

 

1.1.67            “Derivative Obligations” means the Obligor Hedging Exposure owed to one or more Lenders or Affiliates of a Lender under Derivative Instruments;

 

1.1.68            “Designated Period” means, with respect to a Libor Advance or a BA Advance, a period designated by the Borrower in accordance with, as applicable, Sections 3.3, 5.1 and 5.4;

 

1.1.69            “Desired Acquisition Amount” has the meaning defined in Section 19.3.3.1;

 

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1.1.70            “Discount Note” means a non-interest bearing promissory note denominated in Canadian Dollars issued by the Borrower to a Non-BA Lender, such note to be in the form customarily used by such Non-BA Lender;

 

1.1.71            “Distribution” means:

 

1.1.71.1             the retirement, redemption, retraction, purchase, or other acquisition of any Equity Interests of an Obligor or Related Party Debt of an Obligor, except where the consideration for retirement, redemption, retraction, purchase or other acquisition is made in Equity Interests of an Obligor, so long as no Change of Control occurs as a result;

 

1.1.71.2             the declaration or payment of any dividend, return of capital or other distribution (in cash, securities or other Property or otherwise) of, on or in respect of, any Equity Interests of an Obligor;

 

1.1.71.3             any payment or repayment of or on account of Related Party Debt of an Obligor, including in respect of principal, interest, bonus, premium or otherwise;

 

1.1.71.4             any payment of management or similar fees to any Related Party which is not an Obligor, except on a commercially reasonable basis as if the payor were dealing with such Related Party at Arm’s Length, provided that such payment constitutes direct or indirect funding of payroll obligations of such Related Party; and

 

1.1.71.5             any other payment or distribution (in cash, securities or other Property, or otherwise) of, on or in respect of any Equity Interests of an Obligor or Related Party Debt of an Obligor;

 

1.1.72            “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 of Credit;

 

1.1.73            “Drawdown Date” means the date, which shall be a Business Day, of any Advance and includes, for avoidance of doubt, the date of any rollover, conversion, renewal or extension of any existing Advance;

 

1.1.74            “EBITDA” means, for any period, on a consolidated basis, an amount equal to the Borrower’s revenue from the sale of product from mines, less:

 

1.1.74.1           onsite and offsite cash operating costs for such period;

 

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1.1.74.2             cash general and administrative expenses for such period;

 

1.1.74.3             cash capital taxes for such period; and

 

1.1.74.4             cash reclamation expenditures for such period;

 

each component of which is to be calculated in accordance with GAAP consistently applied;

 

1.1.75            “Effective Date” means the date on which all of the conditions specified in Section 9.1 are satisfied or waived in accordance with Section 9.3, as confirmed in a written notice from the Agent to the Borrower;

 

1.1.76            “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) in respect of each of which the consent of any party whose consent is required under subsection 18.2.2 has been obtained; provided that notwithstanding the foregoing, “Eligible Assignee” shall not include any Obligor or any Affiliate of an Obligor;

 

1.1.77            “Environmental Claims” means any claims (including, without limitation, third party claims, whether for personal injury or real or personal property damage or otherwise), actions, administrative proceedings (including informal proceedings), judgments, Liens, damages, punitive damages, penalties, fines, costs, liabilities (including sums paid in settlement of claims), interest or losses, including reasonable legal fees and expenses (including any such fees and expenses incurred in enforcing the Loan Documents or collecting any sums due under same), consultant fees, and expert fees, together with all other costs and expenses of any kind or nature that arise directly or indirectly from or in connection with any Environmental Laws, or any failure or breach in respect thereof, that is or allegedly is applicable to any Obligor, its respective Properties, operations or actions to the extent the same arose out of the relationships and arrangements created and contemplated hereby;

 

1.1.78            “Environmental Laws” means all Applicable Laws, now or hereafter in effect, to the extent relating to pollution or protection of the environment or property and public health and relating to (a) emissions, discharges, releases or threatened releases of any Hazardous Substance into the environment (including ambient air, surface water, ground water, land surface or subsurface strata), (b) the manufacture, processing, distribution, use, generation, treatment, storage, disposal, transport, removal or handling of any Hazardous Substance, (c) underground storage tanks and related piping, and emissions, discharges and releases or threatened releases of Hazardous Substances

 

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and (d) the modification, maintenance, use or removal of any land, wetland or waterway (including anything beneath the surface thereof);

 

1.1.79            “Equity Interests” means, with respect to any Person, all shares, interests, units, trust units, partnership, membership or other interests, participations or other equivalent rights in the Person’s equity or capital, however designated, whether voting or non voting, whether now outstanding or issued after the Effective Date, together with warrants, options or other rights to acquire any such equity interests of such Person and securities convertible into or exchangeable for any such equity interests of such Person;

 

1.1.80            “Euro” or “€” means the single currency, denominated in Euro units, of certain member states of the European Union that adopt such single currency as its currency in accordance with legislation of the European Union relating to European Economic and Monetary Union;

 

1.1.81            “Event of Default” means an event or circumstance described in Section 15.1;

 

1.1.82            “Excluded Taxes” means, with respect to the Agent, any Lender, the Issuing Lender or any other recipient of any payment to be made by or on account of any obligation under the Loan Documents, (a) taxes imposed on or measured by its overall net income or capital, and franchise taxes imposed on it (in lieu of net income taxes) by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located, or in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes or any similar tax imposed by the jurisdiction in which the applicable lending office of the Lender is located and (c) in the case of any payment made by the Borrower to a Foreign Lender (other than (i) an Assignee pursuant to a request by the Borrower under subsection 6.5.2, (ii) an Assignee pursuant to an Assignment made when an Event of Default has occurred which is continuing or (iii) any other Assignee to the extent that the Borrower has expressly agreed that any withholding tax shall be an Indemnified Tax), any withholding tax that is imposed during the time such Foreign Lender is a party hereto (or designates a new lending office) on amounts payable from time to time by the Borrower to such Foreign Lender, except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts with respect to such withholding tax pursuant to Section 6.3.  For greater certainty, for purposes of item (c) above, a withholding tax includes any Tax that a Foreign Lender is required to pay pursuant to Part XIII of the Income Tax Act (Canada) or any successor provision thereto;

 

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1.1.83            “Existing Credit Agreement” has the meaning defined in the recitals hereto;

 

1.1.84            “Federal Funds Effective Rate” means, for any period, a fluctuating interest rate per annum equal, for each day during such period, to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by USA federal funds brokers as published for such day (or, if such day is not a Banking Day, for the immediately preceding Banking Day) by the Federal Reserve Bank of New York or, for any day on which such rate is not so published for such day by the Federal Reserve Bank of New York, the average of the quotations for such day for such transactions received by the Agent from three Federal Funds brokers of recognized standing selected by the Agent.  If for any reason the Agent shall have determined, acting reasonably, that it is unable to ascertain the Federal Funds Effective Rate for any reason, including without limitation, the inability or failure of the Agent to obtain sufficient bids or publications in accordance with the terms hereof, The Bank of Nova Scotia’s announced US Base Rate will apply;

 

1.1.85            “Fee Letter” means the confidential letter agreement dated June 22, 2010 between The Bank of Nova Scotia and The Toronto-Dominion Bank, as joint lead arrangers, on the one hand, and the Borrower, on the other hand, providing for the payment of certain fees in relation to the Credit Facility;

 

1.1.86            “First Credit Agreement” means the amended and restated credit agreement dated as of June 15, 2009 between Agnico-Eagle Mines Limited, as borrower, the guarantors from time to time party thereto, The Bank of Nova Scotia, as administrative agent and co-lead arranger, Société Générale (Canada Branch), as co-lead arranger, and the lenders from time to time party thereto;

 

1.1.87            “First Currency” has the meaning defined in Section 17.1;

 

1.1.88            “Foreign Lender” means any Lender that is not organized under the laws of Canada, or a province or territory thereof, and that is not otherwise considered or deemed to be resident in Canada for income tax or withholding tax purposes;

 

1.1.89            “Former Swing Line Lender” has the meaning defined in Section 3.5.6;

 

1.1.90            “Fronting Fee” means the fee payable to the Issuing Lender in connection with the issuance or renewal of a Letter of Credit by the Issuing Lender, based on the percentage per annum set out in the Fronting Fee Letter;

 

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1.1.91                                     “Fronting Fee Letter” means the confidential letter agreement dated June 22, 2010 between The Bank of Nova Scotia, as Issuing Lender, and the Borrower, and any other confidential letter agreement between any other Issuing Lender and the Borrower, providing for the payment of fronting fees to the Issuing Lender;

 

1.1.92                                     “FX Rate” has the meaning defined in Section 17.1;

 

1.1.93                                     “GAAP” means the generally accepted accounting principles in effect from time to time in the USA;

 

1.1.94                                     “Goldex Mine” means the Borrower’s Goldex mining operations and property located in or around the City of Val-d’Or, Quebec, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which the Borrower has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.95                                     “Governmental Authority” means the government of Canada or any other nation, or of any political subdivision thereof, whether provincial, state or local, 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 and including a Minister of the Crown, Superintendent of Financial Institutions or other comparable authority or agency;

 

1.1.96                                     “Guaranteed Obligations” means the Loan Obligations, the Other Supported Obligations and all other indebtedness, liabilities and obligations of the Obligors under the Loan Documents;

 

1.1.97                                     “Guarantees” means the guarantees delivered or required to be delivered under Article 8;

 

1.1.98                                     “Guarantor” means each Subsidiary of the Borrower that has executed and delivered a Guarantee and has complied with the other applicable requirements of Article 8, and has not ceased to be a Guarantor pursuant to Article 8;

 

1.1.99                                     “Hazardous Substances” shall mean any (a) substance, waste, liquid, gaseous or solid matter, fuel, micro-organism, sound, vibration, ray, heat, odour, radiation, energy vector, plasma and organic or inorganic matter which is, alone or in any combination, hazardous, hazardous waste, hazardous material, toxic, a pollutant, a deleterious substance, a contaminant or a source of pollution or contamination and (b) any other 

 

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chemical, material or substance, the exposure to which is prohibited, limited or regulated by any Governmental Authority;

 

1.1.100                               “Impacted Lender” means any Lender as to which (a) the Agent, the Issuing Lender or the Swing Line Lender has a good faith belief that such Lender has defaulted in fulfilling its obligations under one or more other syndicated credit facilities, (b) an entity that controls the Lender has been determined by a court of competent jurisdiction or regulator to be insolvent or is unable to meet its obligations or pay its debts as they generally become due or (c) an entity that controls the Lender is the subject of a bankruptcy or insolvency proceeding;

 

1.1.101                               “Indemnified Party” has the meaning defined in Section 19.15;

 

1.1.102                               “Indemnified Taxes” means Taxes other than Excluded Taxes;

 

1.1.103                               “Information” has the meaning defined in Section 19.16.2;

 

1.1.104                               “Insolvency Proceeding” has the meaning defined in Section 15.1.11;

 

1.1.105                               “Intellectual Property” means patents, trademarks, service marks, trade names, copyrights, trade secrets, industrial designs and other similar rights;

 

1.1.106                               “Intercreditor Agreement” means an intercreditor agreement between the Agent and any holder of Subordinated Debt, in form and substance acceptable to the Lenders, acting reasonably;

 

1.1.107                               “Interest Payment Date” means the last Business Day of each month or, in relation to any Libor Advance, a day on which interest is required to be paid in accordance with Section 4.4;

 

1.1.108                               “Investments” means (a) any investment in or purchase of or other acquisition of any Equity Interests of any Person, (b) any purchase or other acquisition of a business or undertaking or division of any Person, including Property comprising the business, undertaking or division of any Person or (c) any loan or advance to, or guarantee of, or the provision of any other financial assistance of any kind to, or otherwise becoming liable for, any debts, liabilities or obligations of, any Person;

 

1.1.109                               “ISDA Master Agreement” means the 1992 ISDA Master Agreement (Multi-Currency - Cross Border) or the 2002 ISDA Master Agreement, each as published by the International Swaps and Derivatives Association, Inc. and, where the context permits or requires, includes all schedules, supplements, annexes and confirmations attached thereto or incorporated therein, as such agreement may be amended, supplemented or replaced from time to time;

 

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1.1.110                               “Issuing Lender” means The Bank of Nova Scotia and any other Lender appointed by the Borrower and accepted by such Lender, or any successor issuer of Letters of Credit appointed by the Borrower in accordance with Section 3.4.6.5;

 

1.1.111                               “Kittila Mine” means the Kittila mining operations and property located in or around Kittila, Finland, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which an Obligor has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.112                               “Lapa Mine” means the Borrower’s Lapa mining operations and property located approximately 11 kilometres east of the LaRonde Mine, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which the Borrower has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.113                               “LaRonde Mine” means the Borrower’s LaRonde mining operations and property located in or around Cadillac and Bousquet, Quebec, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which the Borrower has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.114                               “LC Indemnitees” has the meaning defined in Section 3.4.6.1;

 

1.1.115                               “Lender Swing Line Repayments” has the meaning defined in Section 3.5.6;

 

1.1.116                               “Lenders” means the Lenders listed on Exhibit A, together with each Eligible Assignee who enters into an Assignment and Assumption Agreement, and includes the Issuing Lender and the Swing Line Lender and “Lender” means any one of them;

 

1.1.117                               “Letter of Credit” means any documentary letter of credit, stand-by letter of credit and letter of guarantee issued by the Issuing Lender in accordance with the provisions hereof;

 

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1.1.118                               “Letter of Credit Fee” means the fee payable to the Agent for the account of the Lenders in connection with the issuance or renewal of each Letter of Credit issued by the Issuing Lender hereunder calculated in accordance with Section 3.4.2;

 

1.1.119                               “Letter of Credit Obligations” means, as at any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit plus the aggregate of all unreimbursed drawings under Letters of Credit which have not been converted to a Prime Rate Advance or a US Base Rate Advance;

 

1.1.120                               “LIBOR” means, with respect to any Designated Period of one, two, three or six months relating to a Libor Advance, the average rate for deposits in US$ for a period comparable to the Designated Period which is displayed on the Libor01 page of Reuters Service, or in case of the unavailability of such page, which is displayed on the British Bankers Association Libor Rates Telerate (page 3750 or other applicable page), in either case at or about 11:00 a.m. (London time), determined two Banking Days prior to the applicable Drawdown Date in accordance with Section 4.5; if neither of such quotes is available, then LIBOR shall be determined by the Agent as the average of the rates at which deposits in US$ for a period similar to the Designated Period and in amounts comparable to the amount of such Libor Advance are offered by the Schedule 1 Reference Lenders to prime banks in the London inter-bank market at or about 11:00 a.m. (London time) on the date of such determination;

 

1.1.121                               “Libor Advance” means, at any time, an Advance in US Dollars with respect to which the Borrower has elected to pay interest on the Libor Basis;

 

1.1.122                               “Libor Basis” means the basis of calculation of interest on each Advance made at LIBOR, in accordance with the provisions of Sections 2.7, 4.3 and 4.4;

 

1.1.123                               “Lien” means:

 

1.1.123.1                                with respect to any Property, any mortgage, deed of trust, lien, pledge, hypothec, hypothecation, encumbrance, charge, assignment, consignment, security interest, royalty interest, adverse claim, on or otherwise affecting the Property;

 

1.1.123.2                                the interest of a vendor or lessor under any conditional sale agreement, Capital Lease or title retention agreement relating to any Property;

 

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1.1.123.3                                any purchase option, call or similar right of a third party in respect of any Property having the effect of security for the payment or performance of any debt, liability or obligation;

 

1.1.123.4                                any netting arrangement or set-off arrangement (other than netting or set-off arising by operation of law in the Ordinary Course), defeasance arrangement or other similar arrangement having the effect of security for the payment or performance of any debt, liability or obligation; and

 

1.1.123.5                                any other Contract, trust or arrangement that secures payment or performance of any debt, liability or obligation;

 

and “Liens” shall have corresponding meaning;

 

1.1.124                               “Loan Documents” means this Agreement, the Guarantees and all other agreements, documents and instruments to which an Obligor is a party delivered under or in relation to the Credit Facility from time to time;

 

1.1.125                               “Loan Obligations” means all obligations of the Borrower to the Agent and Lenders under or in connection with this Agreement, including but not limited to the aggregate of Advances outstanding under this Agreement, together with interest thereon and all other debts and liabilities, present or future, direct or indirect, absolute or contingent, matured or not, at any time owing by the Borrower to the Agent and Lenders in any currency or remaining unpaid by the Borrower to the Agent and Lenders in any currency, in each case, under or in connection with this Agreement, whether arising from dealings between the Agent and Lenders and the Borrower or from any other dealings or proceedings by which the Agent and Lenders may be or become in any manner whatsoever creditors of the Borrower under or in connection with this Agreement, and wherever incurred, and whether incurred by the Borrower alone or with another or others and whether as principal or surety, and all interest, fees, commissions, legal and other costs, charges and expenses incurred under or in connection with this Agreement; provided, however, that “Loan Obligations” shall not include “Other Supported Obligations”.  In this definition, “the Agent and Lenders” shall be interpreted as “the Agent and Lenders, or any of them”;

 

1.1.126                               “Majority Lenders” means Lenders that represent at least 66 2/3% of the Commitments or, if the Commitments have expired or terminated, “Majority Lenders” shall mean Lenders to whom are owed at least 66 2/3% of outstanding Advances; provided that, the unfunded Commitments of, and the outstanding Advances held or deemed to be 

 

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held by, any Defaulting Lender shall be excluded for purposes of making a determination of Majority Lenders;

 

1.1.127                               “Material Adverse Effect” means any material adverse change in or material adverse effect on (a) the business, affairs, Property, liabilities or financial condition of the Obligors taken as a whole, (b) the ability of the Obligors, taken as a whole, to observe, perform or comply with their obligations under any of the Loan Documents or (c) the rights and remedies of, as applicable, the Agent or any of the Lenders under any of the Loan Documents;

 

1.1.128                               “Material Assets” means (a) the Mines and all other present and after-acquired property and assets used in connection with or relating to the Mines or any other operating mine, development stage mine project or facility for the extraction or processing of ore (including all corresponding underground and surface facilities and infrastructure and all related plant, buildings, fixtures, equipment, chattels and machinery), whether situate on or off such mine, development stage mine project or facility, and all replacements, substitutions and additions thereto, (b) the Material Subsidiaries, and (c) Related Party Debt;

 

1.1.129                               “Material Contracts” means any Contract (other than any Loan Document) to which an Obligor is or becomes a party at any time that, if terminated, would reasonably be expected to have a Material Adverse Effect;

 

1.1.130                               “Material Permit” means each Permit issued at any time to an Obligor that, if terminated, would reasonably be expected to have a Material Adverse Effect;

 

1.1.131                               “Material Subsidiary” means any Subsidiary of the Borrower (whether or not wholly-owned) (a) that, as of the end of any fiscal quarter of the Borrower, has total consolidated or unconsolidated assets having a book value of US$40,000,000 (or the equivalent amount in any other applicable currency at the applicable FX Rate) or more, or (b) that, as of the end of any fiscal quarter of the Borrower, has total consolidated or unconsolidated revenue for the last 12 months of US $20,000,000 (or the equivalent amount in any other applicable currency at the applicable FX Rate) or more;

 

1.1.132                               “Maturity Date” means June 22, 2014, or if such date has been extended in accordance with the terms of Section 2.5, such extended date;

 

1.1.133                               “Meadowbank Mine” means the Borrower’s Meadowbank mining operations and property located in or around the Kivalliq district of 

 

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Nunavut, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which the Borrower has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.134                               “Mexican Pledge” means the pledge by Tenedora Agnico Eagle Mexico S.A. de C.V. of the common shares of Agnico Eagle Mexico, S.A. de C.V. to Agnico-Eagle Mines Mexico Cooperatie U.A. to secure an interest-bearing loan made by Agnico-Eagle Mines Mexico Cooperatie U.A. to Agnico Eagle Mexico, S.A. de C.V.;

 

1.1.135                               “Mines” means the Goldex Mine, the Kittila Mine, the LaRonde Mine, the Lapa Mine, the Meadowbank Mine and the Pinos Altos Mine;

 

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

 

1.1.137                               “Net Cash Proceeds” means, with respect to any Asset Disposition, the gross amount of proceeds payable in cash or Cash Equivalents to the Obligors, or any one or more of them, arising from such Asset Disposition, less:

 

1.1.137.1                                amounts paid to discharge Permitted Liens on the Property being disposed of or indebtedness (excluding intercompany indebtedness) relating to or incurred in connection with such Property;

 

1.1.137.2                                the amount of Taxes arising from in connection with or as a result of such Asset Disposition which cannot be offset against losses, depreciation or otherwise in the same taxation period such that same must actually be paid or payable in cash in respect of the then-current fiscal year; and

 

1.1.137.3                                reasonable out-of-pocket costs, fees and expenses incurred in connection with such Asset Disposition, including commissions, but excluding any such amounts paid to Affiliates of any Obligor unless such amounts are in respect of services rendered at arm’s length terms;

 

1.1.138                               “New  Lender” means the Lenders which were not party to the Existing Credit Agreement;

 

1.1.139                               “Non-BA Lender” means a Lender which does not accept bankers’ acceptances issued in Canada;

 

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1.1.140                               “Note Purchase Agreement” means the note purchase agreement entered into by the Borrower with the purchasers party thereto on April 7, 2010;

 

1.1.141                               “Notes” means notes issued pursuant to the Note Purchase Agreement;

 

1.1.142                               “Notice of Borrowing” means a notice substantially in the form of Exhibit D transmitted to the Agent by the Borrower in accordance with, as applicable, Sections 3.1, 3.3 or subsection 5.1.1;

 

1.1.143                               “Obligor Hedging Exposure” means the aggregate of all amounts that would be payable to all Persons by the Obligors or to the Obligors by other Persons, on the date of determination, taking into account all legally enforceable netting arrangements, pursuant to each ISDA Master Agreement between each Obligor and any such Person, as if all Derivative Instruments under such ISDA Master Agreements were being terminated on that day;

 

1.1.144                               “Obligors” means the Borrower and the Guarantors;

 

1.1.145                               “Ordinary Course” means, with respect to an action taken by a Person, that the action is taken in the usual course of the normal day-to-day operations of the Person;

 

1.1.146                               “Other Derivative Counterparty” means, at any time, a Person which is not a Lender or an Affiliate of a Lender and which is party to a Derivative Instrument with an Obligor;

 

1.1.147                               “Other Supported Agreements” means all agreements or arrangements (including guarantees) entered into or made from time to time by any Obligor (unless otherwise specified) in connection with (a) cash consolidation, cash management and electronic funds transfer arrangements between an Obligor and any Lender or Affiliate of a Lender and (b) doré purchase agreements between an Obligor and any Lender or Affiliate of a Lender;

 

1.1.148                               “Other Supported Obligations” means all obligations of the Obligors to the Other Supported Parties under or in connection with the Other Supported Agreements and all debts and liabilities, present or future, direct or indirect, absolute or contingent, matured or not, at any time owing by the Obligors to the Other Supported Parties in any currency or remaining unpaid by the Obligors to the Other Supported Parties in any currency under or in connection with the Other Supported Agreements, whether arising from dealings between the Other Supported Parties and the Obligors or from any other dealings or proceedings by which the Other Supported Parties may be or become in any manner whatever creditors of the Obligors under or in connection with the Other Supported Agreements, and wherever incurred, and 

 

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whether incurred by an Obligor alone or with another or others and whether as principal or surety, and all interest, fees, commissions, legal and other costs, charges and expenses; provided, however, that “Other Supported Obligations” shall not include Loan Obligations.  In this definition, “the Other Supported Parties” shall be interpreted as “the Other Supported Parties, or any of them,” and “Obligors” shall be interpreted as “Obligors, and each of them”;

 

1.1.149                               “Other Supported Party” means, at any time the Agent or a Lender or an Affiliate of the Agent or a Lender which at such time is a creditor under or in connection with an Other Supported Agreement;

 

1.1.150                               “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 Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document;

 

1.1.151                               “Participant” has the meaning defined in Section 18.5;

 

1.1.152                               “Pension Plan” means (a) a “pension plan” or “plan” which is a “registered pension plan” as defined in the Income Tax Act (Canada) or pension benefits standards legislation in any jurisdiction of Canada and is applicable to employees or former employees resident in Canada of any Obligor and (b) any other defined benefit, supplemental pension benefit plan or similar arrangement applicable to any employee or former employee of any Obligor;

 

1.1.153                               “Permits” means licences, certificates, authorizations, consents, registrations, exemptions, permits, attestations, approvals, characterization or restoration plans, depollution program and any other approvals required by or issued pursuant to any Applicable Law, in each case, with respect to a Person or its Property, which are made, issued or approved by a Governmental Authority;

 

1.1.154                               “Permitted Debt” means, with respect to any Person:

 

1.1.154.1                                the Loan Obligations;

 

1.1.154.2                                the Other Supported Obligations to the extent they constitute Debt;

 

1.1.154.3                                the Guarantees;

 

1.1.154.4                                guarantees or other unsecured agreements to assure payment or performance granted to Lenders or Affiliates of Lenders in respect of obligations under Derivative 

 

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Instruments entered into between any Obligor and any Lender or Affiliate of any Lender;

 

1.1.154.5                                guarantees or other unsecured agreements to assure payment or performance granted to Lenders or Affiliates of Lenders by any Obligor in respect of obligations under Other Supported Agreements entered into between any other Obligor and any Lender or any Affiliate of any Lender;

 

1.1.154.6                                Debt secured by Permitted Liens (except Permitted Liens under subsection 1.1.155.16);

 

1.1.154.7                                Debt owed by one or more Obligors to one or more other Obligors;

 

1.1.154.8                                unsecured Debt so long as (a) no Event of Default has occurred and is continuing immediately prior to the incurrence of such Debt or would occur as a result of the incurrence or assumption of such Debt, (b) such Debt does not require principal payments until at least 12 months following the then existing Maturity Date at the time such Debt is incurred and (c) the terms and conditions of any such Debt is Not More Onerous.  The terms of any Debt other than Debt under the Loan Documents (the “Other Debt”) will be “Not More Onerous” if (i) each financial ratio (each, an “Other Financing Ratio”) to be maintained by the Borrower in any agreement (an “Other Financing Document”) governing the Other Debt (A) is calculated in the same manner as a financial ratio in this Agreement and the numerical threshold to be satisfied or complied with is the same or less onerous or (B) is the same or similar to a financial ratio (the “Credit Agreement Ratio”) in this Agreement and is calculated in a manner that would prevent the Borrower from being in compliance with the Credit Agreement Ratio and not the Other Financing Ratio; (ii) the cure period for a payment default in respect of obligations under an Other Financing Document of the same type (principal, interest or interest equivalents, fees or costs each being a different type) is not shorter than the cure period (if any) for the comparable payment default under this Agreement; (iii) the cure period for covenants not the subject of a separate independent event of default under the Other Financing Document is not shorter than the General Covenant Cure Period after notice of the default is given to the Borrower under the Other Financing Document; (iv) the financial threshold triggering an event

 

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of default in an Other Financing Document is not less than the Monetary Threshold; and (v) there is no cross-default event of default under the Other Financing Document that, if triggered, would not be similarly triggered under Section 15.1.6. “General Covenant Cure Period” means, at any particular time, 30 days or such other cure period as may be identified in Section 15.1.3 at such time. “Monetary Threshold” means, at any particular time, US$50,000,000 (or such other monetary threshold as may be identified in Section 15.1.6) or the equivalent thereof in any other currency;

 

1.1.154.9           Subordinated Debt;

 

1.1.154.10         Debt acquired as a result of a purchase or acquisition described in subsections (a) or (b) of the definition of Investments which purchase or acquisition is permitted hereunder, so long as the principal amount of such Debt does not increase;

 

1.1.154.11         Debt under the agreement dated January 7, 2007 between Agnico-Eagle AB and Nordea Bank Finland Plc, in an amount not to exceed €10,000,000;

 

1.1.154.12       unsecured Debt incurred at a time when no Default or Event of Default has occurred and is continuing in respect of letters of credit, letters of guarantee, surety bonds, performance bonds or guarantees and similar types of instruments issued in the Ordinary Course or in connection with an Obligor’s Core Business; but excluding any of the foregoing incurred to secure or support indebtedness for borrowed money (including, without limitation, by way of overdraft and drafts or orders accepted representing extensions of credit in respect of borrowed money) or under Derivative Instruments with Other Derivative Counterparties;

 

1.1.154.13       all indebtedness, liabilities and obligations of the Borrower and its Subsidiaries under and in respect of the Note Purchase Agreement and the Notes;

 

1.1.154.14       any Debt in addition to that described in subsections 1.1.154.1 through 1.1.154.13 above in an aggregate amount at any particular time of not more than US$50,000,000, so long as no Default or Event of Default has occurred and is continuing immediately prior to the incurrence of such

 

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Debt or would occur as a result of the incurrence or assumption of such Debt;

 

1.1.155          “Permitted Liens” means, with respect to any Person:

 

1.1.155.1           Liens for taxes, duties or other governmental charges not yet due or which are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of such Person, in conformity with GAAP;

 

1.1.155.2           carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, or other like Liens arising in the Ordinary Course and not overdue for a period of more than 60 days or which are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of such Person, in conformity with GAAP;

 

1.1.155.3           pledges or deposits in connection with workers’ compensation, employment insurance and other social security legislation and other obligations of a like nature incurred in the Ordinary Course;

 

1.1.155.4           deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the Ordinary Course;

 

1.1.155.5           easements, servitudes, rights-of-way, restrictions, exceptions, minor title defects and other similar encumbrances (including for public utilities) which, in the aggregate, do not materially interfere with such Person or its business or the use of the affected property by such Person;

 

1.1.155.6           reservations, limitations, provisos and conditions in any original grant from the Crown, or any state, government or any freehold lessor, of any of the real properties of such Person and statutory exceptions to title or reservations of rights which do not in the aggregate materially interfere with such Person or its business or the use of the affected real property by such Person;

 

1.1.155.7           any obligations or duties affecting any of the Property of such Person or its Subsidiaries to any municipality or other Governmental Authority with respect to any franchise,

 

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grant, licence or permit which do not materially impair the use of such Property for the purposes for which it is held;

 

1.1.155.8           Liens created in connection with Capital Leases or securing Capital Lease Obligations;

 

1.1.155.9           any Liens for unpaid royalties or duties not yet due pursuant to mining leases, claims or other mining rights running in favour of any Governmental Authority;

 

1.1.155.10         without duplicating subsections 1.1.155.8 and 1.1.155.11, Liens on equipment and the proceeds thereof (and on no other Property) created or assumed to finance the acquisition thereof or secure the unpaid purchase price of such equipment;

 

1.1.155.11         Liens that (i) exist at the time such Person is, or the assets subject to such Liens are, acquired by an Obligor and (ii) extend only to the assets acquired or the assets of the Person acquired, as applicable;

 

1.1.155.12         royalty agreements or other rights or claims to royalties on or affecting any Property owned on the Effective Date by an Obligor or acquired by the Obligor, whether or not in existence at the time of such acquisition;

 

1.1.155.13         pledges or deposits of cash or cash equivalent instruments made at a time when no Default or Event of Default has occurred and is continuing for purposes of securing obligations to (i) financial institutions issuing letters of credit to secure obligations under Pension Plans, retirement plans or for government reclamation costs, or (ii) issuers of letters of credit, letters of guarantee, surety bonds, performance bonds or guarantees and similar types of instruments issued in the Ordinary Course or in connection with an Obligor’s Core Business; but excluding any of the foregoing incurred to secure or support indebtedness for borrowed money (including, without limitation, by way of overdraft and drafts or orders accepted representing extensions of credit in respect of borrowed money);

 

1.1.155.14         those Liens existing on the Property of such Person (or a predecessor of such Person) on the Effective Date and set out in Schedule A and any extensions, renewals or replacements of any such Lien provided that the original principal amount of the Debt or obligations secured thereby is not increased and that any such extension, renewal or

 

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replacement is limited to the property originally encumbered thereby;

 

1.1.155.15         Liens granted by a Guarantor in favour of an Obligor for tax planning purposes; and

 

1.1.155.16         any Lien in addition to those described in subsection 1.1.155.1 to 1.1.155.15 above, which secures Debt under subsection 1.1.154.14;

 

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

 

1.1.157          “Pinos Altos Mine” means the Pinos Altos mining operations and property located in or around the municipality of Ocampo in the state of Chihuahua, Republic of Mexico, as presently constituted and as the same may be developed or expanded from time to time, and any replacements, substitutions and modifications thereof permitted hereunder, together with all easements, rights of way, rights, titles or interests of every kind and description which an Obligor has rights to, or otherwise owns or controls, relating to or acquired in connection with such operations, properties and claims;

 

1.1.158          “Predecessor Obligor” has the meaning defined in Section 14.10.1.4;

 

1.1.159          “Prime Rate” means, on any day, the greater of (a) the reference rate of interest, expressed as an annual rate, publicly announced or posted from time to time by the Agent as being its reference rate then in effect for determining interest rates on commercial loans made in Canada in Canadian Dollars, and (b) the average one month Bankers’ Acceptance rate quoted on Reuters Service, page CDOR, as at approximately 10:00 a.m. on such day, plus 0.50% per annum;

 

1.1.160          “Prime Rate Advance” means an Advance in Canadian Dollars with respect to which the Borrower has elected (or is deemed to have elected) to pay interest on the Prime Rate Basis;

 

1.1.161          “Prime Rate Basis” means the basis of calculation of interest on each Advance made at the Prime Rate, in accordance with the provisions of Sections 2.7, 4.1 and 4.2;

 

1.1.162          “Principal Currency” means each of Canadian Dollars, US Dollars, Euros, British pounds, Swiss francs and Swedish kronor;

 

1.1.163          “Principal Jurisdiction” means each of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands,

 

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Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom;

 

1.1.164          “Prior Fee Letters” means the confidential letter agreement dated September 4, 2008 between the Borrower and The Bank of Nova Scotia, as lead arranger and as agent, providing for the payment of certain fees, and the confidential letter agreement dated June 15, 2009 between the Borrower, on the one hand, and The Bank of Nova Scotia and The Toronto-Dominion Bank, as joint lead arrangers, on the other hand, providing for the payment of certain fees in respect of the Credit Facility (as defined in the Existing Credit Agreement);

 

1.1.165          “Property” means, with respect to any Person, any or all of its present and future undertaking, property and assets, tangible and intangible, and, for avoidance of doubt, in relation to any Property which is leased or co-owned or which is property of a partnership or joint venture, the Property of the Person means the interest of the Person in such Property;

 

1.1.166          “Register” has the meaning defined in Section 18.3;

 

1.1.167          “Related Party” means, with respect to any Person, such Person’s Affiliates and the directors, officers and employees of such Person and such Person’s Affiliates;

 

1.1.168          “Related Party Debt” means Debt of an Obligor owed to an Affiliate (which is not an Obligor) or a Related Party (which is not an Obligor);

 

1.1.169          “Reporting Effective Date” has the meaning defined in subsection 2.7.3;

 

1.1.170          “Reporting Date” means the last day on which financial statements and Compliance Certificate can be delivered in compliance with, as applicable, subsections 13.1.1, 13.1.2 and 13.1.3;

 

1.1.171          “Resigning Issuing Lender” has the meaning defined in Section 3.4.6.5;

 

1.1.172          “Retiring Swing Line Lender” has the meaning defined in Section 3.5.5;

 

1.1.173          “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.;

 

1.1.174          “Schedule I Reference Lender” means each of The Bank of Nova Scotia and The Toronto-Dominion Bank or any other Lender which is a Schedule I bank under the Bank Act (Canada) with equity in excess of

 

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C$5,000,000,000 appointed by the Agent from time to time with the consent of the Borrower in replacement of any such Lender;

 

1.1.175          “Schedule II Reference Lender” means any bank which is a Schedule II or Schedule III bank under the Bank Act (Canada) and which is not subject to the restrictions and requirements referred to in Section 524(2) thereof, designated by the Agent from time to time with the consent of the Borrower;

 

1.1.176          “Second Currency” has the meaning defined in Section17.1;

 

1.1.177          “Seizure Proceeding” has the meaning defined in Section 15.1.10;

 

1.1.178          “Selected Amount” means:

 

1.1.178.1           with respect to a BA Advance, the amount of the Advance which the Borrower has requested be advanced by way of the issuance of Bankers’ Acceptances in accordance with Section 5.1; and

 

1.1.178.2           with respect to a Libor Advance, the amount that the Borrower has requested be advanced in accordance with Section 3.3;

 

1.1.179          “Stamping Fee” means the fee payable upon the acceptance of a Bankers’ Acceptance at the applicable rate set out in Section 2.7.1 and otherwise calculated in accordance with Section 5.2.3;

 

1.1.180          “Standby Fee” has the meaning defined in subsection 2.7.4;

 

1.1.181          “Subordinated Debt” means Debt owing to a Person other than an Obligor which is contractually subordinated to the Loan Obligations so long as (a) no Event of Default has occurred and is continuing immediately prior to the incurrence of such Debt or would occur as a result of the incurrence or assumption of such Debt, (b) such Debt does not require principal payments until at least 12 months following the Maturity Date in effect at the time such Debt is incurred, (c) the terms and conditions of such Debt are no more onerous to the debtor(s) thereunder than any terms and conditions hereunder (with the exception of pricing and fees) and (d) such Debt is expressly subordinated to the Loan Obligations and otherwise subject to an Intercreditor Agreement;

 

1.1.182          “Subsidiary” means, with respect to a Person, a subsidiary of such Person as defined in the Business Corporations Act (Ontario) as of the date of this Agreement (determined as if each such Person were a body corporate);

 

1.1.183          “Substitute Lenders” has the meaning defined in Section19.3.3.3;

 

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1.1.184          “Successor Entity” has the meaning defined in Section 14.10.1.4(a);

 

1.1.185          “Successor Issuing Lender” has the meaning defined in Section 3.4.6.5;

 

1.1.186          “Supported Obligations” means the Loan Obligations, the obligations of the Obligors under the Loan Documents and the Other Supported Obligations;

 

1.1.187          “Supported Parties” means, at any time, the Lenders and the Agent in respect of the Loan Obligations and the Guaranteed Obligations and the Other Supported Parties at such time in respect of the Other Supported Obligations; and, for greater certainty, does not include the Other Derivative Counterparties;

 

1.1.188          “Swing Line Advances” means overdrafts incurred in the Canadian Dollar and US Dollar accounts of the Borrower with the Swing Line Lender, each of which shall be deemed to be, as applicable, a Prime Rate Advance or a US Base Rate Advance made by the Swing Line Lender to the Borrower and the aggregate of which shall at no time exceed the Swing Line Limit;

 

1.1.189          “Swing Line Lender” means The Bank of Nova Scotia, and any successor thereof appointed pursuant to Section 3.5;

 

1.1.190          “Swing Line Limit” means US$20,000,000 or the equivalent thereof in Canadian Dollars;

 

1.1.191          “Swing Line Loan” means, at any time, the aggregate of the Swing Line Advances outstanding at any time in accordance with the provisions hereof, together with any amount of interest payable to the Swing Line Lender by the Borrower pursuant thereto

 

1.1.192          “Synthetic Lease” means any synthetic lease or similar off-balance sheet financing product where such transaction is considered borrowed money for tax purposes but is classified as an operating lease in accordance with GAAP;

 

1.1.193          “Tangible Net Worth” means, at the date of determination, the aggregate value of the Borrower’s then stated share capital, other paid-in capital and contributed surplus (but excluding any deficit or shares of the Borrower held by any of its Subsidiaries) less the aggregate value of all intangibles (including, without limitation, goodwill) all as determined on a consolidated basis in accordance with GAAP consistently applied;

 

1.1.194          “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or charges imposed by any

 

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Governmental Authority, including any interest, additions to tax or penalties applicable thereto;

 

1.1.195          “Test Date” has the meaning defined in Section 8.1.1;

 

1.1.196          “Total Debt” means, at any time, all Debt of the Borrower on a consolidated basis (which shall, for purposes of this definition, include the Consolidated Hedging Exposure owed by the Borrower and its Subsidiaries);

 

1.1.197          “Total Net Debt” means Total Debt less Unencumbered Cash;

 

1.1.198          “Total Net Debt to EBITDA Ratio” means, for any period, the ratio of Total Net Debt to EBITDA;

 

1.1.199          “Trade Date” has the meaning defined in Section 18.2.2.1;

 

1.1.200          “Transaction Date” has the meaning defined in Section 7.7;

 

1.1.201          “Transferred Letters of Credit” means (i) the Irrevocable Standby Letter of Credit (No: S18572/176453) in an amount not to exceed Cdn. $2,255,890 in favour of the Ministry of Northern Development and Mines,  (ii) the Irrevocable Standby Letter of Credit (No: 822/52712) in an amount not to exceed Cdn. $308,000 in favour of the Ministere Des Ressources Naturelles, De La Faune Des Parcs, (iii) the Irrevocable Standby Letter of Credit (No: 823/52712) in an amount not to exceed Cdn. $25,000 in favour of the Ministere Des Finances Du Quebec,  (iv) the Irrevocable Standby Letter of Credit (No: 824/52712) in an amount not to exceed Cdn. $5,000 in favour of the Ministere Des Finances Du Quebec,  (v) the Irrevocable Standby Letter of Credit (No: S18572/259824) in an amount not to exceed Cdn. $350,000 in favour of the Kivalliq Inuit Association,  (vi) the Irrevocable Standby Letter of Credit (No: S18572/259758) in an amount not to exceed Cdn. $605,000 in favour of the Kivalliq Inuit Association,  (vii) the Irrevocable Standby Letter of Credit (No: S18572/259762) in an amount not to exceed Cdn. $25,000 in favour of the Kivalliq Inuit Association,  (viii) the Irrevocable Standby Letter of Credit (No: S18572/259753) in an amount not to exceed Cdn. $430,000 in favour of the Receiver General for Canada on Behalf of The Minister of Indian Affairs and Northern Development,  (ix) the Irrevocable Standby Letter of Credit (No: S18572/267385) in an amount not to exceed Cdn. $1,962,354 in favour of the Direction Du Developpement Et Du Milieu Miniers,  (x) the Irrevocable Standby Letter of Credit (No: S18572/194396) in an amount not to exceed Cdn. $13,292,178 in favour of the Royal Trust Corporation of Canada,  (xi) the Irrevocable Standby Letter of Credit (No: S18572/194291) in an amount not to exceed Cdn. $5,854,253 in favour of the Royal Trust Corporation of Canada,  (xii) the Irrevocable

 

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Standby Letter of Credit (No: S18572/194395) in an amount not to exceed Cdn. $1,761,371 in favour of the Royal Trust Corporation of Canada,  (xiii) the Irrevocable Standby Letter of Credit (No: S18572/267438) in an amount not to exceed US$300,000 in favour of the US Department of the Interior, Bureau of Land Management,  (xiv) the Irrevocable Standby Letter of Credit (No: S18572/298947) in an amount not to exceed Cdn. $120,000 in favour of the Ministere du Developpment Durable et du Nord du Quebec, and (xv) the Irrevocable Standby Letter of Credit (No: S18572/303805) in an amount not to exceed Cdn. $16,000 in favour of the Ministere du Developpment Durable et du Nord du Quebec;

 

1.1.202          “Unanimous Lender Request” has the meaning defined in Section 19.3.1;

 

1.1.203          “Unanimous Lender Response Notice” has the meaning defined in Section 19.3.1;

 

1.1.204          “Unanimous Lender Response Period” has the meaning defined in Section 19.3.1;

 

1.1.205          “Unencumbered Cash” means all cash and Cash Equivalents held by the Obligors in the Principal Jurisdictions that are not subject to any Lien by any Person, other than inchoate Liens which arise by statute or operation of law, in each case, on an involuntary basis.  For the avoidance of doubt, any cash or Cash Equivalents held by any joint ventures that is proportionately consolidated into the Borrower’s balance sheet shall not constitute Unencumbered Cash;

 

1.1.206          “US Base Rate” means, on any day, the rate of interest, expressed as an annual rate, publicly announced or posted from time to time by the Agent as being its reference rate then in effect for determining interest rates on commercial loans granted in Canada in US Dollars to its customers (whether or not any such loans are actually made); provided that if the US Base Rate is, for any period, less than the Federal Funds Effective Rate plus 0.50% per annum, the US Base Rate shall be deemed to be equal to the Federal Funds Effective Rate plus 0.50% per annum;

 

1.1.207          “US Base Rate Advance” means an Advance in US Dollars with respect to which the Borrower has elected (or is deemed to have elected) to pay interest on the US Base Rate Basis;

 

1.1.208          “US Base Rate Basis” means the basis of calculation of interest on each Advance made at the US Base Rate, in accordance with the provisions of Sections 2.7, 4.1 and 4.2;

 

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1.1.209                               “US Dollars” or “US$” means the lawful currency of the USA in same day immediately available funds or, if such funds are not available, the currency of the USA which is ordinarily used in the settlement of international banking operations on the day on which any payment or any calculation must be made pursuant to this Agreement;

 

1.1.210                               “USA” means the United States of America.

 

1.2                                 Interpretation

 

In this Agreement, unless stipulated to the contrary or the context otherwise requires:

 

1.2.1                                           words used herein which indicate the singular include the plural and vice versa and words used herein which indicate one gender include all genders;

 

1.2.2                                           references to Contracts, unless otherwise specified, are deemed to include all present and future amendments, supplements, restatements or replacements to or of such Contracts;

 

1.2.3                                           references to any legislation, statutory instrument or regulation or a section or other provision thereof, unless otherwise specified, is a reference to the legislation, statutory instrument, regulation, section or other provision as amended, restated or re-enacted from time to time;

 

1.2.4                                           references to any thing includes the whole or any part of that thing and a reference to a group of things or Persons includes each thing or Person in that group;

 

1.2.5                                           references to a Person includes that Person’s successors and permitted assigns; and

 

1.2.6                                           any reference to a time shall mean local time in the City of Toronto, Ontario.

 

1.3                                 Currency

 

Unless the contrary is indicated, all amounts referred to herein are expressed in US Dollars.

 

1.4                                 Generally Accepted Accounting Principles

 

Unless the Lenders shall otherwise expressly agree or unless otherwise expressly provided herein, all of the terms of this Agreement which are defined under the rules constituting GAAP shall be interpreted, and all financial statements and reports to be prepared hereunder shall be prepared, in accordance with GAAP; provided that if there occurs after the date hereof any change in GAAP from that used in the preparation of the financial statements of the Borrower most recently delivered to the “Agent” under the

 

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Existing Credit Agreement or that affects in any respect the calculation of any covenants contained in Article 11, the Lenders and the Borrower shall negotiate in good faith amendments to the provisions of this Agreement that relate to the calculation of such covenant with the intent of having the respective positions of the Lenders and the Borrower after such change in GAAP conform as nearly as possible to their respective positions as of the date of this Agreement.

 

1.5                                 Division and Titles

 

The division of this Agreement into Articles, Sections, subsections, paragraphs, clauses and other subdivisions and the insertion of titles are for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.

 

1.6                                 Calculations

 

Amounts in respect of interest, fees and other amounts payable to or for the account of the Agent and the Lenders shall be calculated (i) in accordance with the provisions of the Existing Credit Agreement with respect to any period prior to the Effective Date and (ii) in accordance with the provisions of this Agreement with respect to any period on or after the Effective Date.

 

1.7                                 Assignment and Assumption

 

Upon the effectiveness of this Agreement, the Continuing Lenders hereby irrevocably sell and assign to each of the Continuing Lenders and the New Lenders, as applicable, and each of the Continuing Lenders and the New Lenders, as applicable, hereby irrevocably purchases and assumes from the Continuing Lenders, a portion of the Continuing Lenders’ respective rights and obligations as “Lenders” under the Existing Credit Agreement, including their respective interests in the outstanding “Advances” under the Existing Credit Agreement as necessary in order to reflect the Commitments of the Continuing Lenders and the New Lenders as set out in this Agreement. The sales, assignments, purchases and assumptions shall be deemed to have been made, and consented to as required by the Borrower, the Agent, and the Lenders, on the terms of the Assignment and Assumption Agreement. For greater certainty, the assignment fee contemplated by Section 18.2.2.5 shall not apply to the assignments contemplated by this Section 1.7.

 

1.8                                 Amendment and Restatement

 

This Agreement is and shall for all purposes be a further amendment and a restatement of the provisions of the Existing Credit Agreement.  This Agreement supersedes the Existing Credit Agreement insofar as it constitutes the entire agreement between the parties concerning the subject matter of this Agreement, but does not constitute a novation of the Existing Credit Agreement, the Guarantees (as defined in the Existing Credit Agreement) or any of the indebtedness, liabilities or obligations of the Borrower under the Existing Credit Agreement.  All Advances (as defined in the Existing Credit Agreement) and the Transferred Letters of Credit, are Advances under this Agreement, and all of the indebtedness, liabilities and obligations under the Existing Credit

 

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Agreement constitutes indebtedness, liabilities and obligations under this Agreement.  Without in any way limiting the terms of the Existing Credit Agreement, the Borrower and the Guarantors confirm that the existing Guarantees continue to support, inter alia, all of such indebtedness, liabilities and obligations, including but not limited to that arising under this Agreement.  Section references to the Existing Credit Agreement in the Guarantees granted in connection with the Existing Credit Agreement shall be deemed to be amended, as applicable, to refer to the corresponding section references of this Agreement.

 

1.9                                 First Credit Agreement

 

The parties hereto which were parties to the First Credit Agreement confirm, in their respective capacities under the First Credit Agreement, that the First Credit Agreement has been terminated, and such parties hereby waive any notice requirement in connection with such termination.

 

2.                                      THE CREDIT

 

2.1                                 Amounts of Credit Facility

 

Subject to the applicable provisions hereof, each Lender agrees to make available to the Borrower, severally (not jointly and not jointly and severally), a revolving credit facility for the use of the Borrower in the amount of up to its Applicable Percentage of US$1,200,000,000 or the equivalent thereof in Canadian Dollars, as the same may be reduced in accordance with the terms hereof (the “Credit Facility”), provided that, after giving effect to any Advance, the Credit Exposure of each Lender shall not exceed such Lender’s Commitment.

 

2.2                                 Availment Options under Credit Facility

 

At the option of the Borrower:

 

2.2.1                                           the Credit Facility may be utilized by the Borrower by requesting that Prime Rate Advances, US Base Rate Advances or Libor Advances be made by the Lenders or by presenting drafts, orders or Discount Notes to a Lender for acceptance as Bankers’ Acceptances;

 

2.2.2                                           the Credit Facility may be utilized by the Borrower by:

 

2.2.2.1                                            requesting that Letters of Credit in Canadian Dollars, US Dollars or Euros be issued by the Issuing Lender, provided however, that the aggregate face amount of Letters of Credit outstanding at any time shall not exceed US$100,000,000 or the equivalent thereof in Canadian Dollars or Euros; or

 

2.2.2.2                                            by incurring overdrafts, by way of Swing Line Loans, in its Canadian Dollar and US Dollar accounts with the Swing

 

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Line Lender to an aggregate maximum, at any time, not to exceed the Swing Line Limit or the equivalent thereof in Canadian Dollars.

 

2.3                                 Revolving Credit Facility

 

The Credit Facility is a revolving credit facility.  The principal amount of any Advance under the Credit Facility which is repaid from time to time may, subject to the applicable provisions of this Agreement, be reborrowed.

 

2.4                                 Purpose/Use of the Credit Facility

 

The Borrower may use the Credit Facility for its general corporate purposes or the general corporate purposes of the other Obligors, including acquisitions as permitted under this Agreement.

 

2.5                                 Term and Repayment

 

2.5.1                                           Unless due and payable sooner in accordance with this Agreement, all Loan Obligations shall be due and payable on June 22, 2014, unless this Agreement is extended, upon the irrevocable request of the Borrower (which request may be made at its option), with the consent of the Majority Lenders, in their sole discretion, for additional one year terms in accordance with this Section 2.5.

 

2.5.2                                           Each request for an extension of this Agreement must be made by the Borrower (if it wishes to exercise its option to make such request) providing the Agent with irrevocable written notice of such request at least 60, but not more than 90, days before the applicable anniversary date of the Effective Date.  If the Majority Lenders consent to a request for any such extension in accordance with this Section 2.5, the Maturity Date shall be extended by one year and, unless due and payable sooner in accordance with this Agreement, all Loan Obligations shall be due and payable on the Maturity Date, as so extended, and all Commitments shall be cancelled at such extended time.

 

2.5.3                                           Upon receipt by the Agent of any such request by the Borrower for an extension of this Agreement, the Agent shall provide prompt written notice of such request to each Lender. Each Lender’s determination of whether or not it consents to such extension shall be made in such Lender’s sole discretion.  If a Lender has not provided the Agent with written notice of whether or not such Lender consents to such requested extension 30 days after written notice of such request has been provided by the Agent to such Lender, such Lender shall be irrevocably deemed to have not consented to such extension.

 

2.5.4                                           If the Majority Lenders consent to any extension requested by the Borrower pursuant to this Section 2.5, but any Lender does not so

 

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consent, that dissenting Lender (if it is still a Lender at the relevant time) shall not be entitled to vote on any extensions subsequently requested by the Borrower pursuant to this Section 2.5 (and the denominator in the definition of Majority Lender shall, for such purpose, be reduced by such Lender’s Commitment).

 

2.5.5                                           If the Majority Lenders consent to any requested extension of this Agreement pursuant to this Section 2.5, but any Lender does not so consent, the Borrower shall require that one of the following occur:

 

2.5.5.1                                            any such dissenting Lender assign its Commitment in accordance with Section 18.2;

 

2.5.5.2                                            the Commitment of any such dissenting Lender shall terminate at the end of the then current term of this Agreement (with the maximum amount of the Credit Facility reducing by the amount of such Lender’s Commitment at that time); or

 

2.5.5.3                                            such dissenting Lender’s Commitments immediately terminate.

 

2.5.6                                           In the case of subsection 2.5.5.2, the Borrower shall, at the end of the then current term of this Agreement, repay such Lender its pro rata share of all outstanding Advances (other than Letters of Credit and Swing Line Loans), together with all other amounts owing by the Borrower to that Lender under Section 7.1, and upon receipt by such Lender of such amount such Lender’s Commitment shall be cancelled (and the maximum amount of the Credit Facility shall be reduced by the amount of such Lender’s Commitment at that time). At such time, Borrower shall also repay such Lender’s pro rata share of the outstanding Swing Line Loans to Swing Line Lender.  In the case of subsection 2.5.5.3, the Borrower shall immediately repay such Lender its pro rata share of all outstanding Advances (other than Letters of Credit and Swing Line Loans), together with all other amounts owing by the Borrower to that Lender under Section 7.1, and upon receipt by such Lender of such amount such Lender’s Commitment shall be cancelled (and the maximum amount of the Credit Facility shall be reduced by the amount of such Lender’s Commitment at that time). At such time, Borrower shall also repay such Lender’s pro rata share of the outstanding Swing Line Loans to Swing Line Lender.  In the case of subsection 2.5.5.2 or 2.5.5.3, if upon such repayment and any prepayment made by the Borrower under Section 2.6.1, the outstanding Advances exceed the aggregate Commitments, the Borrower shall be and become unconditionally obligated to deposit forthwith with the Agent for the benefit of the Issuing Lender cash or Cash Equivalents equal to the Letter of Credit Obligations which are in

 

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excess of the aggregate Commitments, such amount to be held by the Issuing Lender subject to Section15.4.

 

2.5.7                                           Any assigning Lender (in the case of subsection 2.5.5.1) or any Lender whose Commitments terminate before the Maturity Date (in the case of subsections 2.5.5.2 or 2.5.5.3) shall, upon such assignment or termination, if such assigning Lender, or its applicable Affiliate, is a party to a Derivative Instrument with an Obligor, either (i) terminate each guarantee provided by any Obligor in connection therewith, in which case, such assigning Lenders or its applicable Affiliate shall be deemed to be an Other Derivative Counterparty or (ii) assign, at a price determined in a reasonable manner from market quotations in accordance with customary market practices, all Derivative Instruments it or they hold with each Obligor to the applicable Eligible Assignee or to another Lender or its Affiliate or to an Other Derivative Counterparty, and if, upon such assignment, any guarantee provided by any Obligor in connection therewith would not constitute Permitted Debt, such assigning Lender shall, or shall cause its Affiliate to, terminate such guarantee.

 

2.5.8                                           If the Majority Lenders do not consent to any extension requested by the Borrower pursuant to the foregoing procedures, all Loan Obligations shall, unless due and payable sooner in accordance with this Agreement, be due and payable on the Maturity Date then in effect and all remaining Commitments shall be cancelled at such time.

 

2.6                                 Voluntary Prepayments and Voluntary Cancellations

 

2.6.1                                           The Borrower may prepay Prime Rate Advances and US Base Rate Advances under the Credit Facility upon one Business Day’s prior written notice in the form of Exhibit D and, subject to Sections 6.4 and 7.1, may prepay Libor Advances under the Credit Facility upon three Business Days prior written notice in the form of Exhibit D, without premium or penalty in minimum amounts of C$1,000,000 or multiples thereof, in the case of Prime Rate Advances, and in minimum amounts of US$1,000,000 and multiples thereof, in the case of US Base Rate Advances and Libor Advances.  All prepayments of such Advances shall include payment of all breakage costs relating thereto in accordance with Section 6.4.  No Bankers’ Acceptance or Discount Note may be paid prior to its maturity date, but the Borrower may provide escrowed funds for outstanding Bankers’ Acceptances and Discount Notes in accordance with Section 15.4.

 

2.6.2                                           The Borrower may, upon three Business Days prior written notice in the form of Exhibit D, cancel undrawn portions of the Credit Facility in minimum amounts of US$1,000,000 and multiples thereof, or if less, the remaining undrawn portion of the Credit Facility.  No Standby Fees

 

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shall be payable in respect of the portion of the Credit Facility so cancelled as and from the effective date of its cancellation.  No portion of the Credit Facility which has been so cancelled may be reinstated by the Borrower.

 

2.7                                 Interest Rates

 

2.7.1                                           Interest rates, Stamping Fees, the Letter of Credit Fee rate and the Standby Fee rate shall vary and be calculated based on the Total Net Debt to EBITDA Ratio as follows:

 

	
 
    	
Total Net Debt
   to EBITDA
   Ratio
    	
 
    	
Libor / Stamping
   Fees/ Letter of
   Credit Fee
    	
 
    	
Base Rate or
   Prime Rate
    	
 
    	
Standby Fee
    	
 
    
	
 
    	
<1.50
    	
 
    	
2.50
    	
%
    	
1.50
    	
%
    	
0.75
    	
%
    
	
 
    	
>1.50 and  < 2.00
    	
 
    	
2.75
    	
%
    	
1.75
    	
%
    	
0.825
    	
%
    
	
 
    	
>2.00 and  < 2.50
    	
 
    	
3.00
    	
%
    	
2.00
    	
%
    	
0.90
    	
%
    
	
 
    	
>2.50
    	
 
    	
3.50
    	
%
    	
2.50
    	
%
    	
1.05
    	
%
    

 

2.7.2                                           All interest rates set forth in subsection 2.7.1 are rates per annum.  Interest on Libor Advances shall accrue and be payable at LIBOR for the applicable Designated Period plus the Applicable Margin shown in the second column of the table in subsection 2.7.1.  The rate for Stamping Fees shall be the Applicable Margin shown in the second column of the table in subsection 2.7.1.  The Letter of Credit Fee shall be the Applicable Margin shown in the second column of the table in subsection 2.7.1.  Interest on Prime Rate Advances and US Base Rate Advances shall, as applicable, accrue and be payable at the Prime Rate or the US Base Rate plus the Applicable Margin shown in the third column of the table in subsection 2.7.1.

 

2.7.3                                           Increases or decreases in the Applicable Margin resulting from a change in the Total Net Debt to EBITDA Ratio shall be based on the Total Net Debt to EBITDA Ratio reported in the applicable Compliance Certificate delivered by the Borrower pursuant to Section 13.1.3; provided that, from the Effective Date to the Reporting Effective Date in respect of the first full fiscal quarter of the Borrower immediately following the Effective Date, the Applicable Margin shall be based on the Total Net Debt to EBITDA Ratio reported in the Compliance Certificate delivered by the Borrower on the Effective Date.  Changes in the Applicable Margin shall be effective as of two Business Days following the earlier of the day upon which such Compliance Certificate is delivered to the Agent and the day upon which such Compliance Certificate could be delivered on time pursuant to Section 13.1.3 (the “Reporting Effective Date”).  Without waiving

 

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the requirement of the Borrower to deliver the Compliance Certificate by no later than the Reporting Date, if any Compliance Certificate required to be delivered by the Borrower is delivered after the Reporting Date, the then prevailing Applicable Margin shall continue until such Compliance Certificate is, in fact, delivered.  Upon receipt of any Compliance Certificate which is delivered after the relevant Reporting Date, the Agent shall determine the amount of any overpayment or underpayment of interest or fees during the period from the Reporting Date to and including the date of actual delivery thereof by the Borrower and notify the Borrower and the Lenders of such amounts.  Such determination by the Agent shall constitute prima facie evidence of the amount of such overpayment or underpayment, as the case may be. In the event of an underpayment, the Borrower shall, upon receipt of such notice, pay to the Agent, for the benefit of the Lenders, the amount of such underpayment.  In the event of an overpayment, the amount of such overpayment shall be credited and applied to succeeding payments by the Borrower of interest or fees as they become due until such amount has been fully applied.  Should the Agent, acting reasonably, determine that the calculation of the Total Net Debt to EBITDA Ratio in any Compliance Certificate is incorrect, the Agent shall advise the Borrower of such error and the Borrower and the Agent agree that, absent manifest error, the Applicable Margin shall be adjusted in accordance with the determination by the Agent, acting reasonably, and if the Applicable Margin should have been higher, the Borrower shall pay the amount owing commencing as of the date when the adjustment would otherwise be effective in accordance with this provision, and if the Applicable Margin should have been lower, the amount of such underpayment. In the event of an overpayment, the amount of such overpayment shall be credited and applied to succeeding payments by the Borrower of interest or Letter of Credit Fees as they become due until such amount has been fully applied.

 

2.7.4                                           The Borrower shall pay a standby fee (the “Standby Fee”) on the daily unadvanced portion of the Credit Facility at a rate per annum which shall vary and be calculated based on the Applicable Margin shown in the fourth column of the table in subsection 2.7.1, calculated on the basis of a year of 365 days.  The Standby Fee shall be calculated daily beginning on the Closing Date and shall be payable quarterly in arrears on the first Business Day following completion of each fiscal quarter of the Borrower; provided that, from the Effective Date to the first Business Day following the first full fiscal quarter of the Borrower immediately following the Effective Date, the Standby Fee shall be based on the Total Net Debt to EBITDA Ratio reported in the Compliance Certificate delivered by the Borrower on the Effective Date.   Upon final payment of the Loan Obligations, the Borrower shall also pay any accrued but unpaid Standby Fees on the Credit Facility.

 

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Notwithstanding the foregoing, Standby Fees shall cease to accrue on the unfunded portion of the Commitment of a Lender while it is a Defaulting Lender.

 

2.7.5                                           Interest on Prime Rate Advances, US Base Rate Advances, Libor Advances and Stamping Fees, Letter of Credit Fees and Standby Fees received by the Agent shall be promptly distributed by the Agent to the Lenders in accordance with their respective Applicable Percentages.

 

2.8                                 Annual Agency Fees

 

The Borrower shall pay to the Agent, inter alia, the annual agency fee provided in the Agency Fee Letter.

 

2.9                                 Exchange Rate Fluctuations

 

If, at any time, fluctuations in rates of exchange in effect between currencies cause the aggregate amount of Advances (expressed in US Dollars using the FX Rate) outstanding under the Credit Facility to exceed the maximum amount of the Credit Facility permitted herein by 3%, the Borrower shall pay to the Lenders on demand such amount as is necessary to repay the excess.  If the Borrower is unable to immediately pay that amount because Designated Periods have not ended or Bankers’ Acceptances have not matured, the Borrower shall, on demand, cause to be deposited with the Agent escrowed funds in the amount of the excess, which shall be held by the Agent until the amount of the excess is paid in full.  The Borrower shall be entitled to receive interest on cash held by the Agent as collateral in accordance with Section 15.4.  If, on any Drawdown Date, the aggregate amount of Advances under the Credit Facility (expressed in US Dollars using the FX Rate) exceeds the maximum amount of the Credit Facility permitted herein because of fluctuations in rates of exchange or otherwise, the Borrower shall immediately pay the Agent, for the benefit of the Lenders, the excess and shall not be entitled to any Advance that would result in the amount of the Credit Facility being exceeded. For greater certainty, no payments made by the Borrower under this Section 2.9 shall result in any permanent reduction in the Credit Facility.

 

3.                                      ADVANCES, CONVERSIONS AND OPERATION OF ACCOUNTS

 

3.1                                 Notice of Borrowing - Direct Advances

 

Subject to the applicable provisions of this Agreement, on any Business Day, the Borrower shall be entitled to draw upon the Credit Facility, on one or more occasions by way of Prime Rate Advances and US Base Rate Advances in minimum amounts of, as applicable, C$1,000,000 or US$1,000,000 and in whole multiples thereof, provided that on any Business Day that is at least two Business Days prior to the day on which any Prime Rate Advance or US Base Rate Advance (other than the Swing Line Advance, which shall be made in accordance with the provisions of Section 3.5) is required, the Borrower shall have provided to the Agent a Notice of Borrowing at or before 10:00 a.m.  Notices of Borrowing in respect of Libor Advances, Letters of Credit, Swing Line

 

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Advances and BA Advances shall be given in accordance with the provisions of Sections 3.3, 3.4, 3.5 and 5.1, respectively.

 

3.2                                 Canadian Dollar-Libor Funded Advances

 

Subject to the applicable provisions of this Agreement, if the Borrower requests an Advance by way of Prime Rate Advance, each Canadian Dollar-Libor Funded Lender shall make available to the Agent pursuant to Section 16.9 when required hereunder an Advance as a Prime Rate Advance in the principal amount equal to such Lender’s Applicable Percentage of the total Advance to be extended by way of Prime Rate Advances. Such Prime Rate Advance made by such Canadian Dollar-Libor Funded Lender shall initially have a term equal to the Canadian Dollar-Libor Term which is effective on the day such Advance is made, and thereafter, shall, until such Advance is repaid, have a term equal to the Canadian Dollar-Libor Term which is effective on the day the last Canadian Dollar-Libor Term for such Advance matures. Upon request by the Borrower, the Agent shall notify the Borrower of the Canadian Dollar-Libor Term which is then in effect.

 

3.3                                 LIBOR Advances and Conversions

 

Subject to the applicable provisions of this Agreement, at or before 10:00 a.m. on at least four Banking Days prior to the Drawdown Date of a proposed Libor Advance, the Borrower may request that a Libor Advance be made, that one or more US Base Rate Advances not borrowed as Libor Advances be converted into one or more Libor Advances or that a Libor Advance or any part thereof be renewed or extended, as the case may be.  Each Selected Amount with respect to each Designated Period shall be in an amount of not less than US$1,000,000, and shall be in whole multiples thereof.  The Agent shall determine the LIBOR which will be in effect on the Drawdown Date (which in such case must be a Banking Day), with respect to the Selected Amount or to each of the Selected Amounts, as the case may be, having a maturity of one, two, three or six months (subject to availability) from the Drawdown Date, but no Designated Period may end after the Maturity Date, and there shall not at any time be LIBOR Advances with more than six different maturity dates outstanding with more than six different maturity dates.  If, at the end of a Designated Period in respect of any Libor Advance, the Borrower has not delivered a notice of conversion or rollover to the Agent in a timely manner in accordance with the provisions of this Section 3.3, the Borrower shall be deemed to have given notice for a US Base Rate Advance.

 

3.4                                 Letters of Credit

 

3.4.1                                           Issuance.  Subject to the applicable provisions of this Agreement, on any Business Day, as part of the credit available under the Credit Facility, upon delivery of a Notice of Borrowing to the Agent three Business Days’ prior to the requested issuance of a Letter of Credit (or such longer period of time as the Issuing Lender may reasonably require to settle the form of the proposed Letter of Credit), the Borrower may request to be issued by the Issuing Lender on behalf of

 

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the Lenders one or more Letters of Credit in a maximum aggregate amount outstanding at any time not exceeding US$100,000,000 or the equivalent thereof in Canadian Dollars or Euros.  Each Letter of Credit shall be issued in Canadian Dollars, US Dollars or Euros.  Concurrently with the delivery of a Notice of Borrowing requesting a Letter of Credit, the Borrower shall execute and deliver to the Issuing Lender the documents required by the Issuing Lender in respect of the requested type of Letter of Credit, including a Letter of Credit application and indemnity on the Issuing Lender’s standard forms or as is otherwise required by the Issuing Lender.  In the event of any conflict between the provisions of this Agreement and the provisions of any document relating to a Letter of Credit, the provisions of this Agreement shall govern and prevail.  Each Letter of Credit shall have a term of not more than one year and shall otherwise be in form and substance satisfactory to the Issuing Lender, acting reasonably, provided however, that each Letter of Credit having a term which expires after the Maturity Date shall be escrowed in accordance with Section15.4.2 not more than five Business Days prior to the Maturity Date.  The Issuing Lender shall not be required to issue any Letter of Credit if such issuance would breach any Applicable Law or any internal policy of the Issuing Lender.

 

3.4.2                                           Fees.  On the first Business Day following completion of each fiscal quarter of the Borrower, the Borrower shall pay:

 

3.4.2.1                                            to the Agent in arrears for the account of the Lenders, a Letter of Credit Fee calculated at the rate specified in Section 2.7 on the undrawn face amount of each outstanding Letter of Credit for the actual number of days to elapse from and including the date of issuance or renewal, as applicable, of the Letter of Credit to but excluding the expiry date of such Letter of Credit, calculated on the basis of a 365 or 366 day year, as applicable, which fee shall be non-refundable in whole or in part; and

 

3.4.2.2                                            to the Issuing Lender for its own account, the Fronting Fee, based on the percentage per annum set out in the Fronting Fee Letter, on the portion of the undrawn face amount of each outstanding Letter of Credit issued by the Issuing Lender which is attributable to Lenders other than the Issuing Lender, for the actual number of days to elapse from and including the date of issuance or renewal, as applicable, of the Letter of Credit to but excluding the expiry date of such Letter of Credit, calculated on the basis of a year of 365 or 366 days, as applicable, which fee shall be non-refundable in whole or in part;

 

46

 

provided that, from the Effective Date to the first Business Day following the first full fiscal quarter of the Borrower immediately following the Effective Date, such fees shall be based on the Total Net Debt to EBITDA Ratio reported in the Compliance Certificate delivered by the Borrower on the Effective Date.

 

3.4.3                                           Additional Fees. The Borrower shall also pay or reimburse the Issuing Lender for all customary administrative, issuance, amendment, payment and negotiation fees paid, payable or charged by the Issuing Lender in connection with any Letter of Credit issued by it.

 

3.4.4                                           General Provisions Relating to Letters of Credit.

 

3.4.4.1                                            The Issuing Lender shall not be liable for the consequences arising from any mutilation, error, omission, interruption or delay or loss in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit. Subject to the immediately preceding sentence, in furtherance and extension and not in limitation of the specific provisions of this Section 3.4 (a) any action taken or omitted by the Issuing Lender or any of its respective correspondents under or in connection with any of the Letters of Credit, if taken or omitted in good faith and in conformity with Applicable Law or customs applicable thereto, shall be binding upon the Borrower and shall not put the Issuing Lender or its respective correspondents under any resulting liability to the Borrower and (b) the Issuing Lender may accept documents in good faith and in conformity with Applicable Law or customs applicable thereto relating to Letters of Credit, without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of such documents, provided that the Issuing Lender shall have the right, in its sole discretion, to decline to accept such documents and decline to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit. Without limiting the generality of the foregoing, the Issuing Lender may receive, accept, or pay as complying with the terms of any Letter of Credit, any demand in relation thereto otherwise in order which may be signed by, or issued to, any administrator, executor, trustee in bankruptcy, receiver or other Person or entity acting as the representative or in place of, the beneficiary.

 

3.4.4.2                                            The Borrower acknowledges and confirms to the Issuing Lender that the Issuing Lender shall not be obliged to make

 

47

 

any inquiry or investigation as to the right of any beneficiary to make any claim or Draft or request any payment under a Letter of Credit and payment by the Issuing Lender pursuant to a Letter of Credit 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 of Credit is to cause to be paid a Draft drawn or purporting to be drawn in accordance with the terms of the applicable Letter of Credit 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 of Credit.

 

3.4.4.3                                            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 subsection 3.4.4.2), authorization, execution, signature, endorsement, correctness (other than to the extent provided in subsection 3.4.4.2), genuineness or legal effect of any Draft, certificate or other document presented to it pursuant to a Letter of Credit and the Borrower unconditionally assumes all risks with respect to the same.  The Borrower agrees that it assumes all risk of the acts or omissions of the beneficiary of any Letter of Credit with respect to the use by the beneficiary of the relevant Letter of Credit.

 

3.4.4.4                                            The Borrower agrees that the Issuing Lender, the Lenders and the Agent shall have no liability to it for any reason in respect of or in connection with any Letter of Credit, the issuance thereof, any payment thereunder, or any other action by any such Person or any other Person in connection therewith, other than such liability that arose on account of the Issuing Lender’s gross negligence or wilful misconduct.

 

3.4.5                                           Reimbursement Obligations.  In the event of any drawing under a Letter of Credit, the Issuing Lender shall promptly notify the Borrower who shall immediately reimburse the amount drawn to the Issuing Lender in same day funds.  In the event that the Borrower fails to reimburse the Issuing Lender after such notification and fails to provide a Notice of Borrowing with a different option, the Borrower shall be deemed to have requested from, and given notice to, the Agent of a Prime Rate Advance, if the Letter of Credit is payable in Canadian Dollars, or a US Base Rate Advance, if the Letter of Credit is payable in US Dollars or Euros (with any drawing under a Letter of Credit payable in Euros being converted into US Dollars in accordance with

 

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the provisions hereof), on the date and in the amount of the drawing, the proceeds of which will be used to satisfy the reimbursement obligations of the Borrower to the Issuing Lender in respect of the drawing under such Letter of Credit.  The reimbursement obligations of the Borrower hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of:

 

3.4.5.1                                            any lack of validity or enforceability of any Letter of Credit or this Agreement or any term or provision therein or herein;

 

3.4.5.2                                            the existence of any claim, set-off, compensation, defence or other right that the Borrower, any other Obligor or any other Person may at any time have against the beneficiary under any Letter of Credit, the Issuing Lender, the Agent, any Lender or any other Person, whether in connection with this Agreement or any other related or unrelated agreement or transaction;

 

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

 

3.4.5.4                                            any dispute between or among the Obligors and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Obligors against any beneficiary of such Letter of Credit or any such transferee;

 

3.4.5.5                                            the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit or any of the rights or benefits thereunder or proceeds thereof in whole or in part, which may prove to be invalid or ineffective for any reason; and

 

3.4.5.6                                            the occurrence of any event including the commencement of legal proceedings to prohibit payment by the Issuing Lender of a Letter of Credit.

 

The obligations of the Borrower hereunder with respect to Letters of Credit shall remain in full force and effect and shall apply to any amendment to or extension of the expiration date of any Letter of Credit. Each Lender’s obligation to fund a Prime Rate Advance or US Base Rate Advance as aforesaid shall be absolute and unconditional

 

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and shall not be affected by any circumstance, including (a) any set-off, compensation, counterclaim, recoupment, defence or other right which such Lender may have against the Issuing Lender, the Borrower, any other Obligor or any other Person for any reason whatsoever, (b) the occurrence or continuance of any Default or Event of Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower, any other Obligor or any other Person, (d) any breach of this Agreement by the Borrower or any other Person, (e) any inability of the Borrower to satisfy the conditions precedent to borrowing set forth in this Agreement on any applicable Drawdown Date for such Prime Rate Advance or US Base Rate Advance, or (f) any other circumstances, happening or event whatsoever, whether or not similar to any of the foregoing.

 

3.4.6                                           Indemnification.

 

3.4.6.1                                            The Borrower agrees to indemnify and hold harmless the Issuing Lender and its Related Parties (collectively, the “LC Indemnitees”) from and against any and all losses, claims, damages and liabilities which the LC Indemnitees may incur (or which may be claimed against any Indemnitee) by any Person by reason of or in connection with the issuance or transfer of or payment or failure to pay under any Letter of Credit, provided that the foregoing indemnity will not, as to any Indemnitee, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, non-appealable judgment of a court to arise from the gross negligence or wilful misconduct of such Indemnitee or the failure of such Indemnitee to comply with the terms and conditions of such Letter of Credit (subject to minor variations or discrepancies in the documents presented in connection with such Letter of Credit).

 

3.4.6.2                                            The Borrower agrees, as between the Borrower and the Issuing Lender, that the Borrower shall assume all risks of the acts, omissions or misuse by the beneficiary of any Letter of Credit.

 

3.4.6.3                                            None of the Issuing Lender, the Agent or any other Lender shall, in any way, be liable for any failure by the Issuing Lender or anyone else to pay any drawing under any Letter of Credit as a result of any action by any Governmental Authority or any other cause beyond the control of the Issuing Lender.

 

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3.4.6.4                                            The obligations of the Borrower under this Section 3.4 shall survive the termination of this Agreement.  No acts or omissions of any current or prior beneficiary of a Letter of Credit shall in any way affect or impair the rights of the Issuing Lender to enforce any right, power or benefit under this Agreement.

 

3.4.6.5                                            The Issuing Lender may resign as such (a “Resigning Issuing Lender”) upon 15 days’ prior written notice to the Agent and the Borrower, in which event the Agent, in consultation with the Borrower, shall designate another Lender as the Issuing Lender.  Upon acceptance by another Lender of the appointment as the Issuing Lender (the “Successor Issuing Lender”), the Successor Issuing Lender shall succeed to the rights, powers and duties of the Resigning Issuing Lender and shall have all the rights and obligations of the Resigning Issuing Lender under this Agreement and the other Loan Documents.  Unless otherwise agreed among the Successor Issuing Lender, the Agent and the Borrower, the Successor Issuing Lender shall be paid the same fees, in such capacity, as the Resigning Issuing Lender.  Following the resignation of the Resigning Issuing Lender, the Resigning Issuing Lender shall continue to have all the rights and obligations of the Issuing Lender under this Agreement and the other Loan Documents with respect to Letters of Credit issued by it prior to such resignation, but the Resigning Issuing Lender shall not be required to issue additional Letters of Credit.  For avoidance of doubt, the provisions of this Agreement relating to the Issuing Lender shall enure to the benefit of the Resigning Issuing Lender as to any actions taken or omitted to be taken by it (a) while it was the Issuing Lender under this Agreement or (b) at any time with respect to Letters of Credit issued by the Issuing Lender.

 

3.5                                 Swing Line Advances

 

3.5.1                                           Subject to the applicable provisions of this Agreement, the Swing Line Lender agrees to make Swing Line Advances to the Borrower on any Business Day from time to time prior to the Maturity Date.  Swing Line Advances are available by way of incurring overdrafts in the Borrower’s Canadian Dollar and US Dollar accounts with the Swing Line Lender, with overdrafts in Canadian Dollars being deemed to be Prime Rate Advances and overdrafts in US Dollars being deemed to be US Base Rate Advances.

 

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3.5.2                                           The Swing Line Lender shall ascertain the net position of the Borrower’s accounts at the close of business daily.  If the net Canadian Dollar position is a debit in favour of the Swing Line Lender, the debit will be deemed to be a Prime Rate Advance in the amount of the debit under the Swing Line Loan.  If the net US Dollar position is a debit in favour of the Swing Line Lender, the debit will be deemed to be a US Base Rate Advance in the amount of the debit under the Swing Line Loan.  If a net position is a credit in favour of the Borrower, the credit will be deemed to be a repayment of the Swing Line Advance by a Prime Rate Advance or US Base Rate Advance under the Swing Line Loan, as the case may be, in the amount of the credit to the extent of any principal amounts owing in respect thereof. If, at any time, the aggregate of the Swing Line Advances exceeds US$20,000,000 or the equivalent in Canadian Dollars, such excess shall be immediately repaid by the Borrower.  No repayments of any Swing Line Advance shall be deemed to be a permanent reduction in the Credit Facility.

 

3.5.3                                           All interest payments and principal repayments of or in respect of the Swing Line Loan shall be solely for the account of the Swing Line Lender.

 

3.5.4                                           Notwithstanding anything to the contrary herein contained or contrary to the provisions of Applicable Law, if a Default or Event of Default has occurred and is continuing or if any Swing Line Loan is outstanding on the last day of each month, the Borrower shall be deemed to have made a request for, as applicable, a Prime Rate Advance and/or a US Base Rate Advance, and each Lender shall make, as applicable, a Prime Rate Advance and/or a US Base Rate Advance available to the Agent for the purpose of repaying the principal amount of the portion of the Swing Line Loan owed to the Swing Line Lender, in the amount of such Lender’s Applicable Percentage multiplied by the amount of the outstanding principal of the Swing Line Loan owing to the Swing Line Lender. Each Lender’s obligation to fund a Prime Rate Advance or US Base Rate Advance as aforesaid shall be absolute and unconditional and shall not be affected by any circumstance, including (a) any set-off, compensation, counterclaim, recoupment, defence or other right which such Lender may have against any Swing Line Lender, the Borrower, any other Obligor or any other Person for any reason whatsoever, (b) the occurrence or continuance of any Default or Event of Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower, any other Obligor or any other Person, (d) any breach of this Agreement by the Borrower or any other Person, (e) any inability of the Borrower to satisfy the conditions precedent to borrowing set forth in this Agreement on any applicable Drawdown Date for such Prime Rate Advance or US Base Rate Advance or participating interest to be purchased, or (f) any other circumstances,

 

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happening or event whatsoever, whether or not similar to any of the foregoing.

 

3.5.5                                           If the Swing Line Lender no longer wishes to act as such, it shall notify the Borrower, the other Lenders and the Agent not less than 15 days prior to the date on which it proposes to cease acting as the Swing Line Lender.  In such event, the Agent, in consultation with the Borrower, may designate another Lender as the Swing Line Lender by sending a notice to (a) the Swing Line Lender who will no longer act as such (the “Retiring Swing Line Lender”) and (b) the proposed new Swing Line Lender who has agreed to act as such, not less than five days prior to the date on which the replacement is to occur. The new Swing Line Lender shall make, as necessary, a Prime Rate Advance and/or a US Base Rate Advance available to the Agent for the purpose of repaying the portion of the Swing Line Loan owed to the Retiring Swing Line Lender.

 

3.5.6                                           If, following the sending of such notice by the Agent, an Event of Default has occurred, other than an Event of Default under subsection 15.1.11, or if no Lender has agreed to act as a replacement for the Retiring Swing Line Lender (in such case, the Swing Line Lender is herein referred to as the “Former Swing Line Lender”), the Borrower shall be deemed to have made a request for, as necessary, a Prime Rate Advance and/or a US Base Rate Advance, and each Lender shall make, as necessary, a Prime Rate Advance and/or a US Base Rate Advance available to the Agent for the purpose of repaying the principal amount of the portion of the Swing Line Loan owed to the Former Swing Line Lender, in the amount of such Lender’s Applicable Percentage multiplied by the amount of the principal of the outstanding Swing Line Loan owing to the Former Swing Line Lender (the “Lender Swing Line Repayments”).  In such event, the Borrower’s right to obtain Swing Line Advances will cease and the amounts outstanding thereunder will continue to form part of the Loan Obligations.  However, if a Default under subsection 15.1.11 of this Agreement shall have occurred and be continuing, or if an Event of Default under subsection 15.1.11 shall have occurred, the Lenders shall not make such Lender Swing Line Repayments and the provisions of subsection 3.5.7 shall apply.

 

3.5.7                                           If, before the making of a Lender Swing Line Repayment under subsection 3.5.6, a Default under subsection 15.1.11 shall have occurred and be continuing or an Event of Default under subsection 15.1.11 shall have occurred, each Lender shall, on the date such Lender Swing Line Repayment was to have been made, purchase from the Former Swing Line Lender an undivided participating interest in the principal of the Swing Line Loans to be repaid, in an amount equal to its Applicable Percentage multiplied by the amount of the outstanding

 

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principal of the Swing Line Loan, and immediately transfer such amount to the Agent for the benefit of the Former Swing Line Lender, in immediately available funds.  In such event, the Borrower’s right to obtain Swing Line Advances will cease and the amounts outstanding thereunder will continue to form part of the Loan Obligations.  If at any time after any Lender Swing Line Repayment has been made or any participation in any existing Swing Line Loan has been purchased in accordance with this Section 3.5.7, the Former Swing Line Lender receives any payment on account of the principal of the Swing Line Loan in respect of which such Lender Swing Line Repayment has been made or any participation in any existing Swing Line Loan has been purchased in accordance with this Section 3.5.7, the Former Swing Line Lender will distribute to the Agent for the benefit of each Lender an amount equal to its percentage Commitment multiplied by such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s portion was outstanding and funded) in like funds as received; provided, however, that if such payment received by the Former Swing Line Lender is required to be returned, such Lender will return to the Agent for the benefit of the Former Swing Line Lender any portion thereof previously distributed by the Former Swing Line Lender to the Agent for the benefit of such Lender in like funds as such payment is required to be returned by such Former Swing Line Lender.

 

3.5.8                                           Each Lender’s obligation to make Lender Swing Line Repayments or to purchase a participating interest in accordance with subsections 3.5.6 and 3.5.7 shall be absolute and unconditional and shall not be affected by any circumstance, including (a) any set-off, compensation, counterclaim, recoupment, defence or other right which such Lender may have against any Swing Line Lender, the Borrower, any other Obligor or any other Person for any reason whatsoever, (b) the occurrence or continuance of any Default or Event of Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower, any other Obligor or any other Person, (d) any breach of this Agreement by the Borrower or any other Person, (e) any inability of the Borrower to satisfy the conditions precedent to borrowing set forth in this Agreement on any applicable Drawdown Date for such Prime Rate Advance or US Base Rate Advance or participating interest to be purchased, or (f) any other circumstances, happening or event whatsoever, whether or not similar to any of the foregoing.  If any Lender does not make available the amount required under subsection 3.5.6 or 3.5.7, as the case may be, the Former Swing Line Lender shall be entitled to recover such amount on demand from such Lender, together with interest thereon, as applicable, at the Prime Rate Basis or US Base Rate Basis, as applicable, at such time from the date of non-payment until such amount is paid in full.

 

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3.6                                 Defaulting Lenders

 

3.6.1                                           The Issuing Lender shall not be obligated to issue Letters of Credit to the extent of any Defaulting Lender’s or Impacted Lender’s Applicable Percentage thereof, unless arrangements satisfactory to the Issuing Lender have been entered into with the Borrower or with the Defaulting Lender or Impacted Lender to eliminate the Issuing Lender’s risk with respect to such Defaulting Lender or Impacted Lender (such as depositing Cash Equivalents with the Agent for the benefit of the Issuing Lender).

 

3.6.2                                           If the available amount of Letters of Credit is reduced pursuant to Section 3.6.1, the Letter of Credit Fee payable by the Borrower under Section 3.4.2.1 shall be reduced by a proportional amount.  While it is a Defaulting Lender or Impacted Lender, a Lender shall not be entitled to share in a Letters of Credit Fee in respect of any Letters of Credit, (i) the amount of which is reduced pursuant to Section 3.6.1, or (ii) to the extent that the Borrower has entered into arrangements with the Issuing Lender to eliminate the Issuing Lender’s risk with respect to such Defaulting Lender or Impacted Lender.  Notwithstanding subsection 3.4.2.1, in the case of clause (ii) above, no Letters of Credit Fee shall be payable on the portion of the Letters of Credit for which the Borrower has entered into those arrangements with the Issuing Lender, with the result that the Letters of Credit Fee shall, in such case, be reduced by that amount.

 

3.6.3                                           The Swing Line Lender shall not be obligated to make Swing Line Loans to the extent of any Defaulting Lender’s or Impacted Lender’s Applicable Percentage thereof, unless arrangements satisfactory to the Swing Line Lender have been entered into with the Borrower or with the Defaulting Lender or Impacted Lender to eliminate the Swing Line Lender’s risk with respect to such Defaulting Lender or Impacted Lender (such as depositing Cash Equivalents with the Agent for the benefit of the Swing Line Lender).

 

3.6.4                                           Section 3.6.3 shall not apply to Swing Line Loans that are outstanding at the time a Lender becomes a Defaulting Lender or an Impacted Lender.

 

3.7                                 Evidence of Indebtedness

 

The Loan Obligations resulting from Prime Rate Advances, US Base Rate Advances and Libor Advances made by the Lenders shall be evidenced by records maintained by the Agent and by each Lender concerning those Advances it has made.  The Agent shall also maintain records of the Loan Obligations resulting from BA Advances and Advances made by way of issuance of Letters of Credit, and each Lender shall also maintain records relating to Bankers’ Acceptances that it has accepted and the Issuing Lender shall

 

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maintain records relating to Letters of Credit it has issued.  The Loan Obligations resulting from Swing Line Loans shall be evidenced by records maintained by the Swing Line Lender. The records maintained by the Agent and the Swing Line Lender shall constitute prima facie evidence of the Loan Obligations and all details relating thereto.  After a request by the Borrower, the Agent or the Lender to whom the request is made will promptly advise the Borrower of the entries in such records.  The failure of the Agent or any Lender to correctly record any such amount or date shall not, however, adversely affect the obligation of the Borrower to pay any Loan Obligations in accordance with this Agreement.  The Agent shall, upon the reasonable request of a Lender or the Borrower, provide any information contained in its records of Advances by such Lender or to the Borrower, and the Agent, each Lender and the Borrower shall cooperate in providing all information reasonably required to keep all accounts accurate and up-to-date.

 

3.8                                 Apportionment of Advances

 

The amount of each Advance will be apportioned among the Lenders by the Agent by reference to the Applicable Percentage of each Lender immediately prior to the making of any Advance, subject to the provisions of Section 5.8 with respect to BA Advances.  If any amount is not in fact made available to the Agent by a Lender, the Agent shall be entitled to recover such amount (together with interest thereon at the rate determined by the Agent as being its cost of funds in the circumstances) on demand from such Lender or, if such Lender fails to reimburse the Agent for such amount on demand, from the Borrower.

 

3.9                                 Notices Irrevocable

 

Any notice (including any deemed notice provided for herein) given to the Agent under Article 3 or 5 may not be revoked or withdrawn.

 

3.10                           Limits on BA Advances and Libor Advances

 

Nothing in this Agreement shall be interpreted as authorizing the Borrower to issue Bankers’ Acceptances or borrow by way of Libor Advances for a Designated Period expiring on a date which is after the Maturity Date.

 

4.                                      CALCULATION OF INTEREST AND FEES

 

4.1                                 Calculation of Interest on Prime Rate Advances and US Base Rate Advances

 

The principal amount of each Prime Rate Advance and each US Base Rate Advance shall bear interest, calculated daily, on the daily balance of each such Advance, from and including the Drawdown Date of, as applicable, such Prime Rate Advance or US Base Rate Advance, up to but excluding the day of repayment thereof in full at the annual rate (calculated based on a 365 or 366 day year, as applicable) applicable to each of such days which corresponds to, as applicable, the Prime Rate or the US Base Rate, at the close of business on each of such days, plus the Applicable Margin determined in accordance with subsection 2.7.1.

 

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4.2                                 Payment of Interest on Prime Rate Advances and US Base Rate Advances

 

Interest on Prime Rate Advances and US Base Rate Advances calculated and payable in accordance with Section 4.1 shall be payable to the Agent for the account of the Lenders on the last Business Day of each month.

 

4.3                                 Calculation of Interest on Libor Basis

 

The principal amount of each Libor Advance shall bear interest, calculated daily, on the daily balance of such Advances, from and including the Drawdown Date up to but excluding the last day of the Designated Period of such Libor Advance, at the annual rate (calculated based on a 360-day year) applicable to each of such days which corresponds to the LIBOR applicable to each Selected Amount, plus the Applicable Margin determined in accordance with subsection 2.7.1, and shall be effective as and from and including the Drawdown Date.

 

4.4                                 Payment of Interest on Libor Basis

 

Interest on Libor Advances calculated and payable in accordance with Section 4.3 shall be payable to the Agent for the account of the Lenders, in arrears,

 

4.4.1                                           on the last day of the applicable Designated Period when the Designated Period is one, two or three months; or

 

4.4.2                                           when the applicable Designated Period exceeds three months, on the last Business Day of each period of three months during such Designated Period and on the last day of the applicable Designated Period.

 

4.5                                 Fixing of LIBOR

 

Notice of LIBOR shall be transmitted to the Borrower at approximately 11:00 a.m., two Banking Days prior to:

 

4.5.1                                           the date on which the Libor Advance is to be made; or

 

4.5.2                                           the relevant rollover date of a Libor Advance.

 

4.6                                 Interest on Miscellaneous Amounts

 

Where this Agreement does not specifically provide for a rate of interest applicable to an outstanding portion of the Loan Obligations, the interest on such portion of the Loan Obligations shall be calculated and payable on the Prime Rate Basis, in the case of amounts payable in Canadian Dollars, and on the US Base Rate Basis, in the case of amounts payable in US Dollars and Euros (with any amounts in Euros having been converted to US Dollars in accordance with the procedures set out herein), in each case payable on the last Business Day of each month.

 

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4.7                                 Default Interest

 

If the Borrower fails to pay any principal amount of any Loan Obligations, any interest thereon, any fees payable hereunder or any other amount payable hereunder on the date when such amount is due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest, to the extent permitted by Applicable Law, from and including such due date up to but excluding the date of actual payment, both before and after demand, Default or judgment, at a rate of interest per annum equal to 2% greater than the interest rate which is otherwise applicable (which, in the case of LIBOR Advances, shall be based on the existing Libor Basis, until the expiry of the then applicable Designated Period and thereafter based on successive Designated Periods of one month) from the date of such non-payment until paid in full (as well after, as before Default, maturity or judgment), with interest on overdue interest bearing interest at the same rate.  All interest payable pursuant to this Section 4.7 shall be payable upon demand.

 

4.8                                 Maximum Interest Rate

 

The amount of the interest or fees payable in applying this Agreement shall not exceed the maximum rate permitted by Applicable Law.  Where the amount of such interest or such fees is greater than the maximum rate, the amount shall be reduced to the highest rate that may be recovered in accordance with the applicable provisions of Applicable Law.

 

4.9                                 Interest Act

 

4.9.1                                           Each rate of interest which is calculated with reference to a period (the “deemed interest period”) that is less than the actual number of days in the calendar year of calculation is, for the purposes of the Interest Act (Canada), equivalent to a rate based on a calendar year calculated by multiplying such rate of interest by the actual number of days in the calendar year of calculation and dividing by the number of days in the deemed interest period.

 

4.9.2                                           The parties agree that all interest in this Agreement will be calculated using the nominal rate method and not the effective rate method, and that the deemed re-investment principle shall not apply to such calculations.  In addition, the parties acknowledge that there is a material distinction between the nominal and effective rates of interest and that they are capable of making the calculations necessary to compare such rates.

 

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5.                                      BANKERS’ ACCEPTANCES

 

5.1                                 Advances by Bankers’ Acceptances and Conversions into Bankers’ Acceptances

 

5.1.1                                           Subject to the applicable provisions of this Agreement (including Section 6.6), the Borrower may request that a BA Advance be made, that one or more Advances not borrowed as BA Advances be converted into one or more BA Advances or that a BA Advance or any part thereof be extended, as the case may be (the “BA Request”) by written Notice of Borrowing to the Agent given at least four Business Days, before 10:00 a.m., prior to the date of the proposed Advance (for the purposes of this Article 5 called the “Acceptance Date”).  BA Advances shall be in a minimum amount of C$1,000,000 or C$100,000 multiples thereof.  Each Bankers’ Acceptance issued shall have a Designated Period of one, two, three or six months (or such other period as may be available and acceptable to the Lenders), and shall in no event mature on a date that is after the Maturity Date.

 

5.1.2                                           Prior to making any BA Request, the Borrower shall deliver:

 

5.1.2.1                                            to the Lenders, in the name of each BA Lender, drafts in form and substance acceptable to the Agent and the Lenders, acting reasonably; and

 

5.1.2.2                                            to the Lenders, in the name of each Lender which is a Non-BA Lender, Discount Notes;

 

completed and executed by its authorized signatories in sufficient quantity for the Advance requested and in appropriate denominations to facilitate the sale of the Bankers’ Acceptances in the financial markets.  No Lender shall be responsible or liable for its failure to accept a Bankers’ Acceptance hereunder if such failure is due, in whole or in part, to the failure of the Borrower to give appropriate instructions to the Agent on a timely basis, nor shall the Agent or any Lender be liable for any damage, loss or other claim arising by reason of any loss or improper use of any such instrument except a loss or improper use arising by reason of the gross negligence or wilful misconduct of the Agent, such Lender, or their respective employees.

 

In order to facilitate issuances of Bankers’ Acceptances pursuant hereto in accordance with the instructions given from time to time by the Borrower, the Borrower hereby authorizes each Lender, and for this purpose appoints each Lender its lawful attorney, to complete and sign Bankers’ Acceptances on behalf of the Borrower, in handwritten, facsimile, mechanical or electronic signature or otherwise, and once so completed, signed and endorsed, and following acceptance of them as Bankers’ Acceptances, to purchase, discount or negotiate such Bankers’ Acceptances in accordance with the provisions of this Article 5, and to provide

 

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the Available Proceeds to the Agent in accordance with the provisions hereof.  Drafts so completed, signed, endorsed and negotiated on behalf of the Borrower by any Lender shall bind the Borrower as fully and effectively as if so performed by an authorized officer of the Borrower.  Each Lender shall maintain a record with respect to such instruments (a) received by it hereunder, (b) voided by it for any reason, (c) accepted by it hereunder and (d) cancelled at their respective maturities.  Each Lender agrees to provide such records to the Borrower upon request.

 

5.2                                 Acceptance Procedure

 

With respect to each BA Advance:

 

5.2.1                                           The Agent shall promptly notify in writing each Lender of the details of the proposed BA Advance, specifying:

 

5.2.1.1                                            for each BA Lender (a) the principal amount of the Bankers’ Acceptances to be accepted by such Lender, and (b) the Designated Period of such Bankers’ Acceptances; and

 

5.2.1.2                                            for each Non-BA Lender (a) the principal amount of the Discount Notes to be issued to such Lender and (b) the Designated Period of such Discount Notes.

 

5.2.2                                           The Agent shall establish the Bankers’ Acceptance Discount Rate at or about 10:00 a.m. on the Acceptance Date, and the Agent shall promptly determine the amount of the BA Proceeds.

 

5.2.3                                           Forthwith, and in any event not later than 11:30 a.m. on the Acceptance Date, the Agent shall indicate to each Lender, in the manner set out in Section 16.5 and to the Borrower:

 

5.2.3.1                                            the Bankers’ Acceptance Discount Rate;

 

5.2.3.2                                            the amount of the Stamping Fee applicable to the Bankers’ Acceptances to be accepted by such Lender on the Acceptance Date, calculated by multiplying the appropriate percentage determined in accordance with subsection 2.7.1 by the face amount of each Bankers’ Acceptance (taking into account the number of days in the Designated Period), each such Lender being authorized by the Borrower to deduct such Lender’s Stamping Fee out of the BA Proceeds of the Bankers’ Acceptances accepted by it;

 

5.2.3.3                                            the BA Proceeds of the Bankers’ Acceptances to be purchased by such Lender on such Acceptance Date; and

 

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5.2.3.4                                            the amount obtained (the “Available Proceeds”) by deducting the Stamping Fee referred to in subsection 5.2.3.2 from the BA Proceeds mentioned in subsection 5.2.3.3.

 

5.2.4                                           Not later than 1:00 p.m. on the Acceptance Date, each Lender shall make available to the Agent its Available Proceeds.

 

5.2.5                                           Not later than 3:00 p.m. on the Acceptance Date, subject to the applicable provisions of this Agreement, the Agent shall transfer the Available Proceeds to the Borrower and shall notify the Borrower of the details of the issue.

 

5.3                                 Purchase of Bankers’ Acceptances and Discount Notes

 

Before giving value to the Borrower, the Lenders which are:

 

5.3.1                                           BA Lenders shall, on the Acceptance Date, accept the Bankers’ Acceptances by inserting the appropriate principal amount, Acceptance Date and maturity date in accordance with the BA Request relating thereto and affixing their acceptance stamps thereto, and shall purchase or sell same; and

 

5.3.2                                           Non-BA Lenders shall, on the Acceptance Date, complete the Discount Notes by inserting the appropriate principal amount, Acceptance Date and maturity date in accordance with the BA Request relating thereto and shall purchase the same.

 

5.4                                 Maturity Date of Bankers’ Acceptances

 

Subject to the applicable notice provisions, at or prior to the maturity date of each Bankers’ Acceptance, the Borrower may:

 

5.4.1                                           give to the Agent a notice in the form of Exhibit D requesting that the Lenders convert all or any part of the BA Advance then outstanding which are maturing into a Prime Rate Advance; or

 

5.4.2                                           give to the Agent a notice in the form of Exhibit D requesting that the Lenders extend all or any part of the BA Advance outstanding which are maturing into another BA Advance by issuing new Bankers’ Acceptances, subject to compliance with the provisions of subsection 5.1.1 with respect to the minimum Selected Amount; or

 

5.4.3                                           by no later than 10:00 a.m., two Business Days prior to the maturity date of each Bankers’ Acceptance then outstanding and reaching maturity, notify the Agent that it intends to deposit in its account for the account of the Lenders on the maturity date thereof an amount equal to the principal amount of each such Bankers’ Acceptance.

 

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5.5                                 Deemed Conversions on the Maturity Date of Bankers’ Acceptances

 

If the Borrower does not deliver to the Agent one or more of the notices contemplated by subsections 5.4.1 or 5.4.2 or does not give the notice contemplated by subsection 5.4.3, the Borrower shall be deemed to have requested and given notice that the part of the BA Advance then outstanding which is reaching maturity be converted into a Prime Rate Advance.

 

5.6                                 Conversion and Extension Mechanism

 

If under the conditions:

 

5.6.1                                           of subsection 5.4.1 and of Section 5.5, the Borrower requests or is deemed to have requested, as the case may be, that the Agent convert the portion of the BA Advance which is maturing into a Prime Rate Advance, the Lenders shall pay the Bankers’ Acceptances which are outstanding and maturing.  Such payments by the Lenders will constitute an Advance within the meaning of this Agreement and the interest thereon shall be calculated and payable as such; or

 

5.6.2                                           of subsection 5.4.3, the Borrower makes a deposit in its account to repay a maturing Bankers’ Acceptance, without limiting in any way the generality of Section 7.10 or19.6, the Borrower hereby expressly and irrevocably authorizes the Agent to make any debits necessary in its account in order to pay the Bankers’ Acceptances which are outstanding and maturing, provided that no such debit will constitute a prepayment under subsection 2.6.1 or cancellation under Section 2.6.2.

 

5.7                                 No Prepayment of Bankers’ Acceptances

 

Notwithstanding any provision hereof, the Borrower may not repay any Bankers’ Acceptance other than on its maturity date; however, this provision shall not prevent the Borrower from providing escrowed funds for any Bankers’ Acceptance in accordance with Section 15.4.

 

5.8                                 Apportionment Amongst the Lenders

 

In relation to each BA Advance, the Agent is authorized by the Borrower and each Lender to allocate between the Lenders the Bankers’ Acceptances to be issued by the Borrower and accepted and purchased by the Lenders, in such manner and amounts as the Agent may, in its sole discretion, consider necessary, so as to ensure that no Lender is required to accept and purchase a Bankers’ Acceptance for a fraction of C$100,000.  In the event of any such allocation by the Agent, the Lenders’ respective Commitments in any such Bankers’ Acceptances and repayments thereof shall be adjusted accordingly.  Further, the Agent is authorized by the Borrower and each Lender to cause the Applicable Percentage of one or more Lender’s Advances with respect to Bankers’ Acceptances to be exceeded by no more than C$100,000 each as a result of such allocations, provided that the principal amount of all outstanding Advances of each

 

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Lender shall not thereby exceed the maximum amount of the respective Commitment of each Lender.  Any resulting amount by which the requested face amount of any such Bankers’ Acceptance shall have been so reduced shall be advanced, converted or continued, as the case may be, as a Prime Rate Advance, to be made contemporaneously with the BA Advance.

 

5.9                                 Days of Grace

 

The Borrower shall not claim from the Lenders any days of grace for the payment at maturity of any Bankers’ Acceptances presented and accepted by the Lenders pursuant to the provisions of this Agreement.  Further, the Borrower waives any defence to payment which might otherwise exist if for any reason a Bankers’ Acceptance shall be held by any Lender in its own right at the maturity thereof.

 

5.10                           Obligations Absolute

 

The obligations of the Borrower with respect to Bankers’ Acceptances shall be unconditional and irrevocable (other than in respect of a loss or the improper use of any Bankers’ Acceptance arising by reason of the gross negligence or wilful misconduct of the Agent, the Lenders or their respective employees) and shall be paid strictly in accordance with the provisions of this Agreement under all circumstances, including the following circumstances:

 

5.10.1                                     any lack of validity or enforceability of any draft accepted by any Lender as a Bankers’ Acceptance; or

 

5.10.2                                     the existence of any claim, set-off, defence or other right which the Borrower may have at any time against the holder of a Bankers’ Acceptance, the Lenders, or any other person or entity, whether in connection with this Agreement or otherwise.

 

5.11                           Depository Bills and Notes Act

 

In the discretion of a BA Lender, Bankers’ Acceptances to be accepted by such Lender may be issued in the form of “depository bills” within the meaning of the Depository Bills and Notes Act (Canada) and deposited with the CDS Clearing and Depository Services Inc. or any successor or other clearinghouse within the meaning of the said Act (herein “CDS”) and may be made payable to “CDS & Co.” or in such other name as may be acceptable to CDS and thereafter dealt with in accordance with the procedures of CDS, consistent with the provisions hereof.  The Lenders are also authorized to issue depository bills as replacements for previously issued Bankers’ Acceptances, on the same terms as those replaced, and deposit them with CDS against cancellation of the previously issued Bankers’ Acceptances.

 

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6.                                      ILLEGALITY, INCREASED COSTS, INDEMNIFICATION AND MARKET DISRUPTIONS

 

6.1                                 Illegality

 

If any Lender determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to (a) make any Advance or maintain any Advance (or to maintain its obligation to make any Advance) or (b) determine or charge interest rates based upon any particular rate other than as a result of any breach of the Criminal Code (Canada), then, on notice thereof by such Lender to the Borrower through the Agent, any obligation of such Lender with respect to the activity that is unlawful shall be suspended 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, the Borrower shall, upon demand from such Lender (with a copy to the Agent), take any necessary steps with respect to any Letter of Credit, and otherwise have the option of prepaying or, if conversion would avoid the unlawful activity, convert any Advances, in order to avoid the activity that is unlawful.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest and accrued Letter of Credit Fees on the amount so prepaid or converted.   Each Lender agrees to designate a different 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 such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.  No payment hereunder by the Borrower shall give rise to any additional obligations under Section 19.6 or be considered a payment under Section 2.6.1 or any cancellation of the Credit Facility under Section 2.6.2.  Any Lender affected under this Section 6.1 shall give the Agent and Borrower prompt written notice of any change in circumstances that make it no longer subject to the circumstances that require any termination of obligations hereunder.

 

6.2                                 Increased Costs

 

6.2.1                                           General.  If any Change in Law shall:

 

6.2.1.1                                            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;

 

6.2.1.2                                            subject any Lender to any Tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Advance made by it, or change the basis of taxation of payments to such Lender in respect thereof, except for Indemnified Taxes or Other Taxes covered by Section 6.3 and the imposition, or any change in the rate, manner of application or

 

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administration, of any Excluded Tax payable by such Lender; or

 

6.2.1.3                                            impose on any Lender or the applicable interbank market any other condition, cost or expense affecting this Agreement or Advances by or owed to such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making any Advance or maintaining any Advance (or of maintaining its obligation to make any such Advance), or to increase the cost to such Lender or the Issuing Lender of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the Issuing Lender hereunder (whether of principal, interest or any other amount), then upon request of such Lender and the delivery by such Lender to the Borrower and the Agent of the certificate referred to in Section 6.2.3, the Borrower will pay to such Lender within 30 days of the receipt of such request and certificate such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.

 

6.2.2                                           Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital 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 holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Advances made, or the Letters of Credit issued or participated in, by such Lender, to a level below that which such Lender or its holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of its holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or its holding company for any such reduction suffered.

 

6.2.3                                           Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection  6.2.1or 6.2.2, including reasonable detail of the basis of calculation thereof and the event by reason of which it has become so entitled with reasonable particulars, and delivered to the Borrower shall be prima facie evidence of such amount or amounts owed. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten days after receipt thereof.

 

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6.2.4                                           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, except 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 six 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, unless the Change in Law giving rise to such increased costs or reductions is retroactive, in which case the six month period referred to above shall be extended to include the period of retroactive effect thereof.

 

6.2.5                                           Notwithstanding the foregoing, the Borrower shall only be obligated to pay such additional amount or amounts under Section 6.2 if the affected Lender, as a general practice, also requires compensation therefor from its other customers, where such other customers are bound by similar provisions to the foregoing provisions of this Section and where, due to the type of credit facility or other arrangements such other customers have with such Lender or the industry or jurisdiction where such other customers carry on business, such Lender would be similarly affected (and because of such Lender’s confidentiality obligations to its other customers, such conditions, if applicable, shall be confirmed as having been satisfied by such Lender in the certificate referred to in Section 6.2.3, which certificate shall be conclusive absent manifest error).

 

6.3                                 Taxes

 

6.3.1                                           Payments Free of Taxes.  Any and all payments by or on account of any obligation of each Obligor hereunder or under any other Loan Document shall be made free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes.  If any Obligor, the Agent, or any Lender is required by Applicable Law to deduct or pay any Indemnified Taxes (including any Other Taxes) in respect of such payments by or on account of any obligation of an Obligor hereunder or under any other Loan Document, then (a) the sum payable shall be increased by that Obligor when payable as necessary so that after making or allowing for all required deductions and payments (including deductions and payments applicable to additional sums payable under this Section) the Agent or Lender, as the case may be, receives an amount equal to the sum it would have received had no such deductions or payments been required, (b) the Obligor shall make any such deductions and withholdings required to be made by it under Applicable Law and (c) the Obligor shall timely pay the full amount required to be deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law.

 

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6.3.2                                           Payment of Other Taxes by the Borrower. Without limiting the provisions of Section 6.3.1, the Obligors shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law.

 

6.3.3                                           Indemnification by the Borrower.  Each Obligor shall indemnify the Agent and each Lender, within thirty days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Agent or such Lender and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to 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 prime facie evidence of such amount or payment.

 

6.3.4                                           Evidence of Payments.  As soon as practicable after any payment of Indemnified Taxes or Other Taxes by an Obligor to a Governmental Authority, the Obligor 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.

 

6.3.5                                           Status of Lenders.  Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the applicable Obligor is resident for tax purposes, or under any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document by such Obligor shall, at the request of the Borrower, deliver to such Obligor (with a copy to the Agent), at the time or times prescribed by Applicable Law or reasonably requested by the Borrower or the Agent, such properly completed and executed documentation prescribed by Applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, (a) any Lender, if 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 such withholding or related information reporting requirements and (b) any Lender that ceases to be, or to be deemed to be, resident in Canada for the purposes of Part XIII of the Income Tax Act (Canada) or any successor provision thereto shall, within five Business Days thereof, notify the Borrower and the Agent in writing.

 

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6.3.6                                           Treatment of Certain Refunds.  If the Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by an Obligor or with respect to which an Obligor has paid additional amounts pursuant to this Section or that, because of the payment of such Taxes or Other Taxes, it has benefitted from a reduction in Excluded Taxes otherwise payable by it, it shall pay to the Borrower or other Obligor, as applicable, an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower or other Obligor under this Section with respect to the Taxes or Other Taxes giving rise to such refund or reduction), net of all out-of-pocket expenses of the Agent or such Lender, as the case may be, and without interest (other than an amount equal to the net after-Tax amount of any interest paid by the relevant Governmental Authority, if any, with respect to such refund).  The Borrower or the other Obligor, as applicable, upon the request of the Agent or such Lender, shall repay the amount paid over to the Borrower or other Obligor (plus any penalties, interest or other Liens imposed by the relevant Governmental Authority) to the Agent or such Lender if the Agent or such Lender is required to repay such refund or reduction to such Governmental Authority.  This subsection shall not be construed to require the Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Obligors or any other Person, to arrange its affairs in any particular manner or to claim any available refund or reduction.

 

6.4                                 Breakage Costs, Failure to Borrow or Repay After Notice

 

The Borrower shall indemnify each Lender against any loss or expense (including any loss or expense arising from interest or fees payable by such Lender to lenders of funds obtained by it in order to make or maintain any Advance and any loss or expense incurred in liquidating or re-employing deposits from which such funds were obtained) which such Lender may sustain or incur as a consequence of any: (a) default by the Borrower in giving a timely Notice of Borrowing, (b) default by the Borrower in making payment when due of the amount of, or interest on, any Advance or in the payment when due of any other amount hereunder, (c) default by the Borrower in completing or obtaining an Advance after the Borrower has given notice hereunder that it desires to obtain such Advance, (d) default by the Borrower in making any voluntary reduction of the outstanding amount of any outstanding Advance after the Borrower has given notice hereunder that it desires to make such reduction, (e) the payment of any Libor Advance otherwise than on the maturity date thereof (including without limitation any such payment required pursuant to Section 2.6 or upon acceleration pursuant to Section 15.2) and (f) the payment of any Prime Rate Advance to any Canadian Dollar-Libor Funded Lender otherwise than on the maturity date of the Canadian Dollar-Libor Term thereof (including without limitation any such payment required pursuant to Section 2.6 or upon acceleration pursuant to

 

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Section 15.2); provided that, the Borrower shall not be required to indemnify a Lender for any such cost or expense if such cost or expense is sustained or incurred by such Lender while it is a Defaulting Lender .  A certificate of the Agent providing reasonable particulars of the calculation of any such loss or expense shall be prima facie evidence of such amount owed.  If any Lender becomes entitled to claim any amount pursuant to this Section 6.4, it shall promptly notify the Borrower, through the Agent, of the event by reason of which it has become so entitled and reasonable particulars of the related loss or expense, provided that the failure to do so promptly shall not prejudice the Lenders’ right to claim hereunder.

 

6.5                                 Mitigation Obligations: Replacement of Lenders

 

6.5.1                                           Designation of a Different Lending Office.  If any Lender requests compensation under Section 6.2, requires the Borrower to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 6.3 or suspend its funding obligations hereunder pursuant to Section 6.1, then such Lender shall use reasonable efforts to designate a different 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 (a) would eliminate or reduce amounts payable pursuant to Section 6.2 or 6.3 or eliminate the illegal event giving rise to the suspension of such Lender’s obligations, as the case may be, in the future and (b) 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.

 

6.5.2                                           Replacement of Lenders.  If any Lender requests compensation under Section 6.2, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 6.3, or if any Lender becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon ten days’ 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, Article 18), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which Eligible Assignee may be another Lender, if a Lender accepts such Assignment), provided that:

 

6.5.2.1                                            the Borrower pays the Agent the assignment fee specified in subsection 18.2.2.5;

 

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6.5.2.2                                            the assigning Lender receives payment of an amount equal to the outstanding principal of Advances made by it, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any breakage costs and amounts required to be paid under this Agreement as a result of prepayment to a Lender) 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); provided, however, that the Borrower shall not be required to pay an assigning Lender that is a Defaulting Lender in respect of breakage costs or other amounts required to be paid as a result of prepayment to such Lender;

 

6.5.2.3                                            in the case of any such Assignment resulting from a claim for compensation under Section 6.2 or payments required to be made pursuant to Section 6.3, such Assignment will result in a reduction in such compensation or payments thereafter;

 

6.5.2.4                                            such Assignment does not conflict with Applicable Law; and

 

6.5.2.5                                            if an assigning Lender or an Affiliate of an assigning Lender is a party to a Derivative Instrument with an Obligor, upon the completion of the acquisition of such assigning Lender’s interests, rights and obligations under this Agreement and the related Loan Documents, such assigning Lender shall, upon completion of such assignment, either (i) terminate each guarantee provided by any Obligor in connection therewith, in which case, such assigning Lender or its applicable Affiliate shall be deemed to be an Other Derivative Counterparty or (ii) assign, at a price determined in a reasonable manner from market quotations in accordance with customary market practices, all Derivative Instruments it or they hold with each Obligor to the applicable assignee or to another Lender or its Affiliate or to an Other Derivative Counterparty, and if, upon such assignment, any guarantee provided by any Obligor in connection therewith would not constitute Permitted Debt, such assigning Lender shall, or shall cause its Affiliate to, terminate such guarantee.

 

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.

 

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6.6                                 Market for Bankers’ Acceptances and Libor Advances

 

If the Lenders determine, after reasonable efforts, at any time or from time to time that: (a) there no longer exists a market for Bankers’ Acceptances, or (b) as a result of market conditions, (i) there exists no appropriate or reasonable method to establish LIBOR for a Selected Amount or a Designated Period or (ii) US Dollar deposits are not available to the Lenders in such market in the Ordinary Course in amounts sufficient to permit them to make a Libor Advance for a Selected Amount or a Designated Period, such Lenders shall so advise the Agent, and the Agent shall so notify the Borrower, and any such Lenders shall not be obliged to accept drafts of the Borrower presented to such Lenders pursuant to the provisions of this Agreement nor to honour any Notices of Borrowing in connection with any Libor Advances, and the Borrower’s option to request BA Advances or Libor Advances, as the case may be, shall thereupon be suspended upon notice by the Agent to the Borrower until the circumstances giving rise to such suspension no longer exist.  Thereafter, the Lenders shall promptly notify the Agent, which shall promptly notify the Borrower, of any change in circumstances of which they become aware which results in the existence of such market for Bankers’ Acceptances or a reasonable method of establishing LIBOR or availability of US Dollar deposits.

 

7.                                      PROVISIONS RELATING TO PAYMENTS

 

7.1                                 Payment of Losses Resulting From a Prepayment

 

If a prepayment in respect of a Libor Advance is made on a date other than the final day of the Designated Period applicable to such Libor Advance contrary to the provisions of this Agreement, simultaneously with such prepayment, the Borrower shall pay to the Lenders the losses, costs and expenses suffered or incurred by the Lenders with respect to such prepayment which are referred to in Section 6.4.  Any attempted prepayment of a BA Advance shall be treated as a payment into an escrow account and dealt with in accordance with Section 15.4.

 

7.2                                 Imputation of Prepayments

 

All prepayments made in accordance with Section 2.6 shall be applied to repay all or part of the principal amount of the outstanding Loan Obligations under the Credit Facility.

 

7.3                                 Currency of Payments

 

All payments, repayments or prepayments, as the case may be:

 

7.3.1                                           of principal under the Loan Obligations or any part thereof, shall be made in the same currency as that in which they are outstanding;

 

7.3.2                                           of interest, shall be made in the same currency as the principal amount outstanding to which they relate;

 

7.3.3                                           of fees, shall be made in US Dollars alone; and

 

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7.3.4                                           of the amounts referred to in Section 6.4, shall be made in the same currency as the losses, costs and expenses suffered or incurred by the Lenders.

 

7.4                                 Payments by the Borrower to the Agent

 

All payments to be made by the Borrower in connection with this Agreement shall be made to the Agent, at the Branch (or at any other office or account in Toronto designated by the Agent) in funds having same day value no later than 2:00 p.m. on the day any such payment is due.

 

7.5                                 Payment on a Business Day

 

Each time a payment, repayment or prepayment is due on a day that is not a Business Day, it shall be made on the next Business Day together with applicable interest during such extension.

 

7.6                                 Payments by the Lenders to the Agent

 

Any amounts payable to the Agent by a Lender shall be paid in funds having same day value to the Agent by the Lenders on a Business Day at the Branch.

 

7.7                                 Netting

 

On any Drawdown Date (a “Transaction Date”), the Agent shall be entitled to net amounts payable on such date by the Agent to a Lender under this Agreement against amounts payable in the same currency on such date by such Lender to the Agent under this Agreement, for the account of the Borrower.  Similarly, on any Transaction Date, the Borrower hereby authorizes each Lender to net amounts payable under this Agreement in one currency on such date by such Lender to the Agent, for the account of the Borrower, against amounts payable under this Agreement in the same currency on such date by the Borrower to such Lender in accordance with the Agent’s calculations made in accordance with the provisions of this Agreement.

 

7.8                                 Application of Payments

 

Except as otherwise indicated herein, all payments made to the Agent by the Borrower for the account of the Lenders shall be distributed the same day by the Agent, in accordance with its normal practice, in funds having same day value, among the Lenders to the accounts last designated in writing by each Lender to the Agent, pro rata in accordance with their respective Applicable Percentage, subject to adjustment, if necessary, as a result of any disproportion in Loan Obligations that may be owing to a Lender, whether as a result of the Swing Line Loan, netting pursuant to subsection 7.7 or otherwise.

 

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7.9                                 No Set-Off or Counterclaim by Borrower

 

All payments by the Borrower shall be made free and clear of and without any deduction or withholding for or on account of any set-off or counterclaim.

 

7.10                           Debit Authorization

 

The Agent is hereby authorized to debit each of the Obligor’s account or accounts maintained from time to time at the Branch or elsewhere, for the amount of any interest or any other amounts due and owing hereunder from time to time payable by the Obligors, in order to obtain payment thereof.

 

8.                                      GUARANTEES

 

8.1                                 Guarantees

 

8.1.1                                           The Borrower covenants and agrees that at all times the Obligors will account for at least (x) 95% of the consolidated total assets of the Borrower and its Subsidiaries as of the last day of the most recently ended quarterly or annual fiscal period of the Borrower (such last day, the “Test Date”) and (y) 90% of the consolidated total revenues of the Borrower and its Subsidiaries for the twelve-month period ending on such Test Date; provided that to the extent the application of Section 8.1.2 below renders compliance with this Section 8.1.1 impossible, this Section 8.1.1 will be deemed to be satisfied if each of the Borrower’s Subsidiaries not subject to the prohibitions in Section 8.1.2 below provides a Guarantee.

 

8.1.2                                           Notwithstanding Section 8.1.1, no Subsidiary of the Borrower shall be required to grant to the Agent, for and on behalf of and for the benefit of the Supported Parties, such a Guarantee under Section 8.1.1 if (a) it is prohibited from doing so under its Constating Documents and its Constating Documents cannot be amended to permit the granting of a Guarantee, provided that, if it is prohibited under its Constating Documents from granting an unlimited guarantee of the Guaranteed Obligations, but not a limited guarantee of the Guaranteed Obligations, it shall grant a limited guarantee of the Guaranteed Obligations to the maximum extent permitted by its Constating Documents, (b) it is prohibited from doing so under Applicable Law, provided that, if it is prohibited from granting an unlimited guarantee of the Guaranteed Obligations, but not a limited guarantee of the Guaranteed Obligations, it shall grant a limited guarantee of the Guaranteed Obligations to the maximum extent permitted by Applicable Law, (c) the Agent, in consultation with the Borrower, determines, acting reasonably, that the cost of obtaining such a guarantee of the Guaranteed Obligations are excessive in relation to the value of the guarantee to the Lenders or

 

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(d) it has been designated by the Borrower as a “non-recourse Subsidiary” and such designation has been accepted by each Lender.

 

8.2                                 Additional Guarantors; Release

 

8.2.1                                           After the Effective Date, the Borrower may, in its sole discretion, cause any Subsidiary of the Borrower which is not a Guarantor to become a Guarantor by causing such Subsidiary to deliver to the Agent an agreement substantially in the form of Exhibit F and to deliver to the Agent, for and on behalf of and for the benefit of the Supported Parties, an unconditional and unlimited guarantee of the Guaranteed Obligations (or to the extent provided under Sections 8.1.2(a) and 8.1.2(b), mutatis mutandis, a limited guarantee of the Guaranteed Obligations), in form and substance satisfactory to the Lenders, acting reasonably, together with all other items contemplated by Sections 9.1.3, 9.1.4 and 9.1.7, which relate to such Subsidiary.

 

8.2.2                                           Notwithstanding anything in this Agreement or in any Guarantee to the contrary, upon notice by the Borrower to the Agent (which notice shall contain a certification by the Borrower as to the matters specified in clauses (x) and (y) below) each of the Guarantors specified in such notice shall cease to be a Guarantor and shall be automatically released from its obligations under its Guarantee (without the need for the execution or delivery of any other document by the Agent, any Lender or any other Person) if, as at the date of such notice, after giving effect to such release (x) the Borrower will be in compliance with the requirements of subsection 8.1.1 above and (y) no Default or Event of Default shall have occurred and be continuing (as of the actual date of such release and, in the case of Section 11.1 and 11.2, assuming such release had occurred on the last day of the quarterly or annual financial period of the Borrower immediately preceding the actual date of such release).

 

8.3                                 Obligations Supported by the Guarantees

 

All guarantees delivered under this Article 8 shall support and secure the Guaranteed Obligations which, it is agreed by the Lenders among themselves, shall rank pari passu with each other.

 

8.4                                 Other Supported Obligations

 

As of the date of this Agreement, the Other Supported Obligations are those listed in Schedule B.  Upon request by a Lender, the Agent shall, from time to time, prepare and provide the Lenders and the Borrower with a revision of Schedule B to reflect changes in the Other Supported Obligations to the extent notified in writing by the Borrower to the Agent, but any failure to do so shall not affect the guarantees of any Other Supported Obligations in favour of any Other Supported Parties.  Other Supported Obligations in

 

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favour of the Other Supported Parties listed on Schedule B from time to time shall be conclusively deemed to be guaranteed by the Guarantees (in the absence of manifest error) and shall not cease to be guaranteed without the prior written consent of the respective Other Supported Parties to whom the Other Supported Obligations are owed unless such Other Supported Party ceases (or, in the case of an Affiliate of a Lender which is an Other Supported Party, such Lender ceases) to be a Lender.  Each Other Supported Party, by its acceptance of the benefit of any Guarantees, shall be deemed to have accepted and be bound by the provisions of this Agreement applicable to Other Supported Parties and regarding the terms upon which the Other Supported Obligations are supported by the Guarantees, and authorizes and directs the Agent to act accordingly.

 

8.5                                 Limitation

 

Notwithstanding the rights of Other Supported Parties to benefit from the Guarantees in respect of the Other Supported Obligations, all decisions concerning the Guarantees and the enforcement thereof shall be made by the Lenders or the Majority Lenders, as applicable, in accordance with this Agreement.  No Other Supported Party holding Other Supported Obligations from time to time shall have any additional right to influence the Guarantees or the enforcement thereof as a result of holding Other Supported Obligations as long as this Agreement remains in force.

 

9.                                      CONDITIONS PRECEDENT

 

9.1                                 Conditions to Effectiveness

 

The amendments to the Existing Credit Agreement set out herein shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.3).  Where delivery of any document or instrument is referred to, each such document or instrument shall be delivered to the Agent for and on behalf of the Lenders and shall be in full force and effect and in form and substance satisfactory to the Lenders.

 

9.1.1                                           Loan Documents.  All Loan Documents shall have been executed and delivered by the parties thereto.

 

9.1.2                                           Guarantees.  Except with respect to the Guarantees granted by Agnico-Eagle (Delaware) L.L.C., Agnico-Eagle (Delaware) II L.L.C. and Agnico-Eagle (Delaware) III L.L.C., the Guarantees granted under or in connection with the Existing Credit Agreement shall continue to guarantee all present and future Guaranteed Obligations.

 

9.1.3                                           Corporate and Other Information.  The Agent shall have received a certificate from each Obligor with copies of its Constating Documents, a list of its officers, directors, trustees and/or partners, as the case may be, who are executing or who have executed Loan Documents on its behalf with specimens of the signatures of those persons, and copies of the corporate (or other equivalent) proceedings taken to authorize it to execute, deliver and perform its obligations under the Loan Documents

 

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and all internal approvals and authorizations of each Obligor to permit it to enter into and to perform its obligations in relation thereto.

 

9.1.4                                           Certificates of Status/Compliance.  The Agent shall have received, where available, a certificate of status, certificate of compliance or an equivalent certificate issued by the relevant Governmental Authority in respect of each Obligor, dated within seven days of the Effective Date, evidencing the status or good standing of such Obligor in its jurisdiction of incorporation or formation.

 

9.1.5                                           Compliance Certificate.  The Agent shall have received a Compliance Certificate dated as of the Effective Date in respect of the fiscal quarter of the Borrower immediately preceding the Effective Date which demonstrates compliance with the financial covenants set out in Section 11 as of the end of the March 31, 2010 fiscal quarter.

 

9.1.6                                           Joinder Agreement.  Agnico-Eagle (Barbados) Limited shall have executed and delivered a joinder agreement, whereby it agrees to be a party to this Agreement as if an original signatory hereto and to be bound by all obligations applicable to it as an Obligor hereunder (and, upon such execution and delivery, Agnico-Eagle (Barbados) Limited shall be deemed to be a party hereto).

 

9.1.7                                           Opinions.  The Agent shall have received the following favourable legal opinions, in form and substance satisfactory to it:

 

9.1.7.1                                            the opinion of Davies Ward Phillips & Vineberg LLP, counsel to the Borrower, 1715495 Ontario Inc. and 1641315 Ontario Inc., addressed to the Agent and the Lenders, in relation to, among other things, the Borrower, 1715495 Ontario Inc. and 1641315 Ontario Inc., and the Loan Documents to which they are a party and such other matters as the Lenders may reasonably require; and

 

9.1.7.2                                            the opinion of counsel to each other Guarantor, addressed to the Agent and the Lenders, in relation to, among other things, such other Guarantor, and the Loan Documents to which it is a party and such other matters as the Lenders may reasonably require.

 

9.1.8                                           Other Matters. The following conditions must also be satisfied:

 

9.1.8.1                                            there shall not have occurred or be existing any event or circumstance which has, or would reasonably be expected to have, material adverse effect on the business, property, assets, liabilities, conditions (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole, or

 

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prospects of the Borrower and its Subsidiaries taken as a whole, since March 31, 2010;

 

9.1.8.2                                            all reasonably documented fees and expenses payable under the Loan Documents, the Fee Letter and the Agency Fee Letter (including upfront fees, extension fees, and legal fees and expenses of the Lenders’ counsel invoiced prior to the Effective Date) shall have been paid;

 

9.1.8.3                                            as of the Effective Date, there are and will be no actions, suits, arbitration or administrative proceedings or industrial or labour disputes outstanding, pending or threatened against any of the Obligors which would reasonably be expected to have a Material Adverse Effect; and

 

9.1.8.4                                            the Agent shall have received such other documents as the Lenders may reasonably require.

 

9.2                                 Conditions Precedent to each Advance

 

The obligation of the Lenders to make any Advance is subject to the conditions precedent that:

 

9.2.1                                           the representations and warranties contained in this Agreement, other than those expressly stated to be made as of a specific other date or otherwise expressly modified in accordance with Section 10.17, are true and correct in all material respects on the date of the Advance as if made on and as of the date of the Advance;

 

9.2.2                                           except in the case of Swing Line Advances, the Agent shall have received a timely, completed Notice of Borrowing;

 

9.2.3                                           no Default or Event of Default shall have occurred and be continuing;

 

provided that, a rollover, conversion or extension of an existing Advance shall not be subject to the conditions precedent set out in subsections 9.2.1 and 9.2.2.

 

9.3                                 Waiver of Conditions Precedent

 

The conditions set out in Sections 9.1 and 9.2 are solely for the benefit of the Lenders.  The conditions set out in Section 9.1 may be waived by the Agent with the consent of each Lender.  The conditions set out in Section 9.2 may be waived in respect of a particular Advance by the Majority Lenders, without prejudice to the right of the Agent and the Lenders to assert any such condition in connection with any subsequently requested Advance.

 

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10.                               REPRESENTATIONS AND WARRANTIES

 

For so long as any Loan Obligations remain outstanding and unpaid (other than those Loan Obligations which survive the termination of this Agreement), or the Borrower is entitled to borrow or obtain credit hereunder (whether or not the conditions precedent to such borrowing or obtaining of credit have been or may be satisfied), the Borrower hereby represents and warrants with respect to itself and each other Obligor, and each other Obligor hereby represents and warrants with respect to itself, that:

 

10.1                           Existence, Power and Authority

 

It has the corporate (or other equivalent) power and authority to enter into and perform its obligations under each Loan Document to which it is a party, and except as permitted under Section 14.10 after the Effective Date, it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, amalgamation or organization. It has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts, and to execute and deliver the Loan Documents to which it is a party and to perform its obligations thereunder.

 

10.2                           Loan Documents

 

10.2.1                                     It is not required to obtain any Permit or to effect any filing or registration with any Governmental Authority in connection with the execution, delivery or performance of this Agreement or the other Loan Documents to which it is a party.

 

10.2.2                                     The entering into and the performance by it of the Loan Documents to which it is a party (a) have been duly authorized by all necessary corporate or other action on its part, (b) do not and will not violate its Constating Documents or any Applicable Law, (c) do not and will not result in a breach of or constitute (with the giving of notice, the lapse of time or both) a default under or require a consent under any Material Permit or any Material Contract to which it is a party or by which it or its Property is bound, and (d) do not and will not result in the creation of any Lien on any of its Property and will not require it to create any Lien on any of its Property and will not result in the forfeiture of any of its Property.

 

10.2.3                                     Its Constating Documents do not restrict the power of its directors, trustees or partners, as the case may be, to borrow money or to give financial assistance by way of loan, guarantee or otherwise, except for restrictions under any Constating Document with which have been complied.

 

10.2.4                                     The Loan Documents to which it is or will be a party have been or will be duly executed and delivered by it (or on its behalf) and, when executed and delivered, will constitute legal, valid and binding

 

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obligations enforceable against it in accordance with their respective terms, subject to the availability of equitable remedies and the effect of bankruptcy, insolvency and other laws of general application limiting the enforceability of creditors’ rights generally, and equitable principles, and to the fact that equitable remedies, including specific performance and injunctive relief, are discretionary and may not be ordered in respect of certain defaults.

 

10.3                           Conduct of Business

 

10.3.1                                     It is qualified to carry on business in all jurisdictions in which the Property owned or leased by it or the nature of the activities carried on by it makes such qualification necessary, except to the extent that the non-qualification would not reasonably be expected to have a Material Adverse Effect.

 

10.3.2                                     It has all Permits required to own its Property and to carry on the business in which it is engaged (at the time this representation and warranty is given) and all such Permits are in good standing, except to the extent that the absence of Permits or lack of good standing of Permits would not reasonably be expected to have a Material Adverse Effect.

 

10.3.3                                     It is not in violation of any Applicable Law or Contract, the violation of which would reasonably be expected to have a Material Adverse Effect.

 

10.3.4                                     As at the Effective Date, the only business carried on by it is the Core Business.

 

10.4                           Litigation

 

There are no actions, suits or legal proceedings instituted or pending nor, to its knowledge, threatened, against it or its Property before any arbitrator or any other Governmental Authority or instituted by any Governmental Authority which, if decided against it, would reasonably, considered on a consolidated basis with the other Obligors, be expected to have a Material Adverse Effect.  As at the Effective Date, the only material litigation against it is described in Schedule C.

 

10.5                           Financial Statements and Information

 

10.5.1                                     The historical financial statements which have been furnished to the Agent and the Lenders, or any of them, in connection with this Agreement, taken as a whole, are complete and fairly present the financial position of the Borrower on a consolidated basis as of the dates referred to therein and have been prepared in accordance with GAAP.

 

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10.5.2                                     All projections, including forecasts, budgets, pro formas and business plans of the Borrower on a consolidated basis provided by the Borrower to the Agent and the Lenders, or any of them, under or in connection with this Agreement were prepared in good faith based on assumptions which, at the time of preparation thereof, were believed to be reasonable and are believed to be reasonable estimates of the prospects of the businesses referred to therein.

 

10.5.3                                     It is not in default under any Permitted Lien, or any Contract creating or otherwise relating to a Permitted Lien, to the extent that such defaults, together with any such defaults by the other Obligors, would reasonably be expected to have a Material Adverse Effect.

 

10.5.4                                     It has (a) no Debt that is not permitted under Section 14.1, (b) except as disclosed in writing to the Agent, no material Contingent Obligations which are not disclosed or referred to in the most recent financial statements delivered in accordance with Section 13.1 and (c) except as disclosed in writing to the Agent, not incurred any Debt which is not disclosed in or reflected in such financial statements, other than Debt incurred in the Ordinary Course since the date of such financial statements.

 

10.6                           Subsidiaries, etc.

 

10.6.1                                     Schedule D fully and fairly describes, as of the Effective Date, the ownership of all of its issued and outstanding Equity Interests and of Equity Interests that it owns in Subsidiaries.  Except as set out in Schedule D, as of the Effective Date, it does not have any Subsidiaries, direct or indirect, is not a partner in any partnership (general or limited) and is not a co-venturer in any joint venture, as of the date hereof, and, as of the Effective Date, Schedule D contains (except as noted therein) complete and correct lists (i) of the Borrower’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, the percentage of its Equity Interests outstanding owned by the Borrower and each other Subsidiary and whether such Subsidiary will on the Effective Date be a Guarantor, (ii) of the Borrower’s Affiliates, other than Subsidiaries, and (iii) of the Borrower’s directors and senior officers.

 

10.6.2                                     The complete and accurate organization structure of the Obligors as of the Effective Date is set forth on Schedule D.

 

10.6.3                                     As of the Effective Date, all of the outstanding Equity Interests of each Subsidiary shown in Schedule D as being owned by the Borrower and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Borrower or another Subsidiary free and clear of any Lien (other than any Lien created by statute or by

 

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operation of law, the Mexican Pledge or as permitted by subsection 1.1.155.15), and except as otherwise disclosed in Schedule D.

 

10.6.4                                     As of the Effective Date, no Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than this Agreement, and the Note Purchase Agreement, and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Borrower or any of its Subsidiaries that owns outstanding Equity Interests of such Subsidiary.

 

10.7                           Title to Property

 

It has good and sufficient title to all material personal or movable Property and good and marketable title to all material real or immovable Property or material leasehold interests therein owned or leased by it, free and clear from any Liens, other than any Permitted Liens.  As of the Effective Date, all leases to which the Borrower or any Subsidiary is party and that individually or in the aggregate are material are valid and subsisting and are in full force and effect in all material respects.

 

10.8                           Taxes

 

It has filed within the prescribed time periods all federal, provincial or other tax returns which it is required by Applicable Law to file, and all material taxes, assessments and other duties levied by each applicable Governmental Authority with respect to each of the Obligors or their properties, assets, income or franchises, have been paid when due, except to the extent that payment thereof is being contested in good faith by it in accordance with the appropriate procedures, for which adequate reserves have been established in its books.

 

10.9                           Insurance

 

It has contracted for the insurance coverage described in Section 12.8, which insurance is in full force and effect.

 

10.10                     No Material Adverse Effect

 

No event has occurred and no circumstance exists which would reasonably be expected to have a Material Adverse Effect.

 

10.11                     Pension Matters

 

10.11.1                               No steps have been taken to terminate any Pension Plan (wholly or in part), which would result in an Obligor being required to make an additional contribution to the Pension Plan; no contribution failure has occurred with respect to any Pension Plan sufficient to give rise to a Lien or charge under any Applicable Laws of any jurisdiction governing pension benefits; no condition exists and no event or

 

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transaction has occurred with respect to any Pension Plan which might result in the incurrence by any Obligor of any liability, fine or penalty; and no Obligor has any contingent liability with respect to any post-retirement non-pension benefit; in each case, that would reasonably be expected to have a Material Adverse Effect.

 

10.11.2                               Each Pension Plan is in compliance in all material respects with all Applicable Laws governing pension benefits and Taxes, (i) all contributions (including employee contributions made by authorized payroll deductions or other withholdings) required to be made to the appropriate funding agency in accordance with all Applicable Laws and the terms of each Pension Plan have been made in accordance with all Applicable Laws and the terms of each Pension Plan, (ii) all liabilities under each Pension Plan are fully funded, on a going concern and solvency basis, in accordance with the terms of the respective Pension Plans, the requirements of Applicable Laws governing pension benefits and the most recent actuarial report filed with Governmental Authorities with respect to the Pension Plan, and (iii) no event has occurred and no conditions exist with respect to any Pension Plan that has resulted or would reasonably be expected to result in any Pension Plan having its registration revoked or refused for the purposes of any Applicable Laws governing pension benefits or Taxes or being placed under the administration of any relevant pension benefits Governmental Authority or being required to pay any Taxes or penalties under any Applicable Laws governing pension benefits or Taxes, except for any exceptions to clauses (i) through (iii) above that would not reasonably be expected to have a Material Adverse Effect.

 

10.12                     Ranking and Priority

 

The Loan Obligations are unsecured unsubordinated obligations of the Borrower ranking pari passu with all other unsecured unsubordinated Debt of the Borrower, except for any such Debt preferred by operation of law.  The Guaranteed Obligations are unsecured unsubordinated obligations of each Guarantor ranking pari passu with all other unsecured unsubordinated Debt of such Guarantor, except for any such Debt preferred by operation of law.

 

10.13                     Absence of Default

 

There exists no Default or Event of Default hereunder.

 

10.14                     Environment

 

10.14.1                               Other than as disclosed in Schedule C, there are no existing claims, demands, damages, suits, proceedings, actions, negotiations or causes of action of any nature whatsoever, whether pending or, to its knowledge, threatened, arising out of the presence on any Property

 

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owned or controlled by it, either past or present, of any Hazardous Substances, or out of any past or present activity conducted on any Property now owned by it, whether or not conducted by such or any other Obligor, involving Hazardous Substances, which would reasonably be expected to have a Material Adverse Effect.

 

10.14.2                               To its knowledge, after due enquiry:

 

10.14.2.1                                there are no Hazardous Substances existing on or under any Property of any Obligor which constitutes a violation of any Environmental Law for which an owner, operator or person in control of a Property may be held liable other than such as would not reasonably be expected to have a Material Adverse Effect;

 

10.14.2.2                                the business of each of the Obligors is being carried on so as to comply in all material respects with all Environmental Laws and all Applicable Laws concerning health and safety matters other than any non-compliance which would not reasonably be expected to have a Material Adverse Effect; and

 

10.14.2.3                                no Hazardous Substance has been spilled or emitted into the environment contrary to Environmental Laws from any Property owned, operated or controlled by any Obligor other than such as would not reasonably be expected to have a Material Adverse Effect.

 

10.15                     Mines

 

As of the Effective Date, the Goldex Mine, the Lapa Mine, the LaRonde Mine and the Meadowbank Mine are each owned by the Borrower. As of the Effective Date, the Kittila Mine is owned by Agnico-Eagle AB, a Swedish corporation, which is an indirect, wholly-owned Subsidiary of the Borrower, or by another Obligor, and the Pinos Altos Mine is owned by Agnico-Eagle Mexico S.A. de C.V., a Mexican corporation which is an indirect, wholly-owned Subsidiary of the Borrower, or by another Obligor.

 

10.16                     Complete and Accurate Information

 

All written information, reports and other papers and data with respect to the Obligors or their Properties which have been furnished by the Borrower to the Agent or the Lenders were, at the time the same were so furnished, complete and correct in all material respects.  No document furnished or statement made in writing to the Agent or the Lenders by the Borrower in connection with the negotiation, preparation or execution of the Loan Documents at the time the same were furnished or made contains any untrue statement of a material fact or omits to state a material fact which is necessary to make the statements contained in such documents true and accurate in all material respects.

 

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10.17                     Survival of Representations and Warranties

 

All of the representations and warranties made hereunder are true and correct at the Effective Date, shall be true and correct (and shall be deemed to be repeated and made) as of the date of each Advance hereunder (except for rollovers and conversions of existing Advances and where qualified in this Article 10 as being made at a particular other date, for which such representations and warranties shall be true and correct as at that particular other date, and subject to such modifications permitted herein which are communicated by the Borrower to the Agent in writing), and shall survive the execution and delivery of this Agreement, any investigation by or on behalf of the Lenders or the making of any Advance hereunder, if any of the same are waived they shall only be waived in writing.  The Lenders shall be deemed to have relied upon such representations and warranties at each such time as a condition of making an Advance hereunder or continuing to extend the Credit Facility hereunder.  The acceptance by the Borrower of any Advances issued on the Effective Date shall be deemed to be a representation and warranty made by the Borrower to the effect that all of the conditions precedent to the making of such Advances have been satisfied, except to the extent any such conditions precedent have been waived by the Lenders.

 

11.                               FINANCIAL COVENANTS

 

For so long as any Loan Obligations remain outstanding (other than those Loan Obligations that survive termination of this Agreement), or the Borrower is entitled to borrow or obtain credit hereunder (whether or not the conditions precedent to such borrowing or obtaining of credit have been or may be satisfied):

 

11.1                           Total Net Debt to EBITDA Ratio

 

The Borrower shall, at all times, maintain a Total Net Debt to EBITDA Ratio of not more than 3.50:1.00, on a rolling four-quarter basis.

 

11.2                           Tangible Net Worth

 

Commencing with the fiscal quarter ending March 31, 2010 and thereafter, the Borrower shall, at all times, have maintained or shall maintain, as applicable, a Tangible Net Worth in an amount of not less than US$1,650,000,000, plus 50% of the Borrower’s consolidated net income for each of its fiscal quarters, on a cumulative basis, commencing with its fiscal quarter ending March 31, 2010 (excluding any fiscal quarters in which the Borrower incurs a net loss) (all as determined on a consolidated basis in accordance with GAAP consistently applied), plus 50% of the net proceeds of any public offerings of Equity Interests (other than convertible Debt) of the Borrower received during such fiscal quarters, on a cumulative basis.

 

12.                               AFFIRMATIVE COVENANTS

 

For so long as any Loan Obligations remain outstanding (other than those Loan Obligations that survive termination of this Agreement), or the Borrower is entitled to borrow or obtain credit

 

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hereunder (whether or not the conditions precedent to such borrowing or obtaining of credit have been or may be satisfied), each Obligor agrees as follows:

 

12.1                           Existence and Good Standing

 

It shall (a) except as may be permitted by Section 14.10, preserve and maintain, as applicable, its corporate or other form of existence, (b) operate its affairs in compliance with its Constating Documents and (c) except as may be permitted by Section 14.10, remain in good standing in all applicable jurisdictions except to the extent that a failure to remain in good standing would not reasonably be expected to have a Material Adverse Effect.

 

12.2                           Permits

 

It shall at all times maintain in effect and obtain all Permits required by it to carry on its business, except to the extent that a failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

12.3                           Books and Records

 

It shall keep or cause to be kept appropriate books and records of account and record or cause to be recorded faithfully and accurately all transactions with respect to its business in accordance with GAAP.

 

12.4                           Property

 

It shall maintain all of its Property necessary for the proper conduct of its business in good condition (ordinary wear and tear excepted) and make all necessary repairs, renewals, replacements and improvements thereof, except where the failure to do same would not reasonably be expected to have a Material Adverse Effect.

 

12.5                           Material Contracts

 

It shall maintain in good standing and shall obtain, as and when required, all Material Contracts which it requires to permit it to acquire, own, operate and maintain its business and Property, except to the extent that a failure to do so would not reasonably be expected to have a Material Adverse Effect, and perform its obligations under any Loan Document to which it is or will be a party.  It shall cause to be faithfully observed, performed and discharged the covenants, conditions and obligations imposed on it under each Material Contract to which it is a party, and shall do all other things necessary in order to protect its interests thereunder, except to the extent and for so long as any such obligation is contested in good faith by appropriate proceedings being diligently pursued, or except where the failure to do same would not reasonably be expected to have a Material Adverse Effect.

 

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12.6                           Financial Information

 

It shall ensure that:

 

12.6.1                                     all of the historical financial statements which are furnished to the Agent and the Lenders, or any of them, in connection with this Agreement from time to time are complete and fairly present the financial position of the Borrower on a consolidated basis as of the dates referred to therein and are prepared in accordance with GAAP; and

 

12.6.2                                     all projections, including forecasts, budgets, pro formas and business plans of the Borrower on a consolidated basis provided by the Borrower to the Agent and the Lenders, or any of them, under or in connection with this Agreement from time to time are prepared in good faith based on assumptions which are, at the time of preparation thereof, believed to be reasonable and are believed to be reasonable estimates of the prospects of the businesses referred to therein.

 

12.7                           Compliance with Applicable Law

 

It shall operate its business in compliance with Applicable Laws (including Environmental Laws) except to the extent that a failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

12.8                           Insurance

 

It shall maintain, with financially sound and reputable insurers, insurance with respect to its properties and business against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

 

12.9                           Payment of Taxes

 

It shall pay all Taxes which are due and payable by it; withhold from each payment made to any of its past or present employees, officers or directors, and to any non-resident of the country in which it is resident, the amount of all Taxes and other deductions required to be withheld therefrom and pay the same to the proper tax or other receiving officers within the time required under any Applicable Law; and collect from all Persons the amount of all Taxes required to be collected from them and remit the same to the proper tax or other receiving officers within the time required under any Applicable Law; in each case, unless any such Taxes are (a) being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and (b) reserves or other appropriate provision, if any, as shall be required by GAAP shall have been made therefor.

 

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12.10                     Access and Inspection

 

It shall allow the employees and representatives of the Agent and/or the Lenders, at any time during normal business hours and on reasonable notice, to have access to and inspect the Property of the Obligors (without any invasive or intrusive testing), to inspect and take extracts from or copies of the books and records of the Obligors and to discuss the business, Property, liabilities, financial position, operating results or business prospects of the Obligors with the officers and auditors of the Obligors, all at the cost of the Agent and/or the Lenders, as the case may be; provided that, the employees and representatives of the Lenders shall only have such access and rights of inspection and discussion at the same time or times as the employees and representatives of the Agent have such access and rights of inspection and discussion.  Notwithstanding the foregoing, if an Event of Default has occurred and is continuing, it shall allow the Agent and/or the Lenders, their employees and representatives, and any third party consultants or engineers designated by the Agent, and their respective employees and representatives, at any time, to have access to and inspect the Property of the Obligors, to inspect and take extracts from or copies of the books and records of the Obligors and to discuss the business, Property, liabilities, financial position, operating results or business prospects of the Obligors with the officers and auditors of the Obligors, all at the cost of the Borrower; provided that, the employees and representatives of the Lenders shall only have such access and rights of inspection and discussion at the same time or times as the employees and representatives of the Agent have such access and rights of inspection and discussion.

 

12.11                     Maintenance of Accounts

 

It shall maintain one or more operating accounts at the Branch or other branches of the Agent at all times during the term of this Agreement, as well as one or more accounts with the Swing Line Lender.

 

12.12                     Performance of Obligations

 

It shall duly and punctually pay and perform its indebtedness, liabilities and obligations hereunder and under the other Loan Documents at the times and places and in the manner required by the terms hereof and thereof.

 

12.13                     Litigation

 

It shall diligently and in good faith contest any actions, suits or legal proceedings instituted and outstanding or pending against it, the outcome of which would reasonably be expected to have a Material Adverse Effect, and shall make such reserves or other appropriate provision therefor, if any, as shall be required by GAAP.

 

12.14                     Payment of Fees and Other Expenses

 

Whether the transactions contemplated by this Agreement are concluded or not and whether or not any part of the Credit Facility is actually advanced, in whole or in part, the Borrower shall pay:

 

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12.14.1                               the reasonable, documented costs of syndicating, as well as the legal fees and costs incurred by the Agent, acting on behalf of the Lenders, for the preparation, negotiation, execution, delivery, administration, registration, publication and/or service of the term sheet and related documentation, this Agreement and the other Loan Documents, as well as any amendments, modifications, waivers, consents or examinations pertaining to this Agreement and the other Loan Documents; and

 

12.14.2                               all reasonable, documented fees and out-of-pocket costs and expenses, including the legal fees and costs, incurred by the Agent, any Lender or the Issuing Lender to preserve, enforce, protect or exercise its rights hereunder or under the other Loan Documents, including all such fees and costs incurred during any workout, restructuring or negotiations in respect of the Credit Facility, any Advances and any Loan Obligations, provided that the Borrower shall not be required to pay the legal fees of more than one set of counsel for the Agent and the Lenders as a collective unit, without limiting that collective unit from retaining as many counsel in as many jurisdictions as that collective unit requires, acting together;

 

provided that, the Borrower shall not be responsible for the fees and expenses of any independent engineer or independent consultants appointed or consulted pursuant to Section 19.4 except to the extent that such appointment or consultation occurred upon and during the continuance of an Event of Default.  All amounts due to the Agent and the Lenders pursuant to this Section 12.14 shall bear interest on the Prime Rate Basis from the date that is 30 days following demand (together with the delivery of any relevant invoice) by the Agent until the Borrower has paid the same in full, with interest on unpaid interest.  The obligations of the Borrower under this Section 12.14 as such obligations relate to costs and expenses incurred prior to the repayment of the Loan Obligations and termination of the Credit Agreement shall survive the repayment of the Loan Obligations and the termination of the Commitments.

 

12.15                     Priority of Obligations.

 

The Borrower will ensure that its payment obligations under this Agreement will at all times rank at least pari passu, without preference or priority, with all other unsecured and unsubordinated Debt of the Borrower, except for any such Debt preferred by operation of law.

 

13.                               REPORTING AND NOTICE REQUIREMENTS

 

During the term of this Agreement (excluding the duration of any provision hereof that survives termination of this Agreement), the Borrower shall deliver the reports specified below and shall give notices in the circumstances specified below, all in a form satisfactory to the Lenders, acting reasonably.

 

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13.1                           Financial and Other Reporting

 

13.1.1                                     The Borrower shall, as soon as practicable and in any event within 60 days of the end of each of its first three fiscal quarters, cause to be prepared and delivered to the Agent, its unaudited consolidated financial statements as at the end of such quarter, in each case including, without limitation, balance sheet, statement of income and retained earnings, statement of changes in financial position and management’s discussion and analysis.

 

13.1.2                                     The Borrower shall, as soon as practicable and in any event within 120 days after the end of each of its fiscal years, prepare and deliver to the Agent its consolidated annual financial statements, including, without limitation, balance sheet, statement of income and retained earnings, statement of changes in financial position for such fiscal year and management’s discussion and analysis, together with the notes thereto, which shall be audited by a nationally recognized accounting firm.

 

13.1.3                                     The Borrower shall, concurrently with the delivery of the quarterly and annual financial statements referred to in subsections 13.1.1 and 13.1.2, provide the Agent with a Compliance Certificate.

 

13.1.4                                     The Borrower shall, concurrently with the delivery of the quarterly and annual financial statements referred to in subsections 13.1.1 and 13.1.2, provide the Agent with a report setting forth each Derivative Instrument to which it or any other Obligor is a party, together with the counterparty thereto and the Obligor Hedging Exposure thereunder.

 

13.1.5                                     The Borrower shall, concurrently with the delivery of the quarterly and annual financial statements referred to in subsections 13.1.1 and 13.1.2, provide the Agent with an operating report on the mines owned and controlled by it and its Subsidiaries (being the “Chief Operating Officer’s Quarterly Report to the Board of Directors”) in reasonable detail as required by the Lenders.

 

13.1.6                                     The Borrower shall, concurrently with the delivery of the annual financial statements referred to in subsection 13.1.2, provide the Agent with a copy of its mineral reserve statements in reasonable detail.

 

13.1.7                                     The Borrower shall, as soon as practicable and in any event within 270 days after the end of each of its fiscal years, provide the Agent with copies of its annual life of mine plans in reasonable detail.

 

13.1.8                                     The Borrower shall, promptly upon the filing, publishing, delivery or reporting by or on behalf of the Borrower or any other Obligor of any release, report, statement (including financial statements) or document to any regulatory authority, provide a copy of each such release, report,

 

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statement or document to the Agent except in circumstances where such filing is made on a confidential basis, in which case it shall deliver a copy thereof when such filing is no longer confidential.

 

13.1.9                                     The Borrower shall promptly provide the Agent with all other information, reports and certificates reasonably requested by the Agent from time to time concerning the business, financial condition and Property of the Borrower and each other Obligor.

 

If there is any change in a fiscal year from the accounting policies, practices and calculation methods used by the Borrower in preparing its financial statements, or components thereof, the Borrower shall provide the Lenders with all information that the Lenders require to ensure that reports provided to the Lenders, after any such change, are comparable to previous reports.  In addition, all calculations made for the purposes of this Agreement shall, unless and until modified in accordance with Section 1.4, continue to be made based on the accounting policies, practices and calculation methods that were used in preparing the financial statements immediately before this Agreement came into effect if the changed policies, practices and methods would affect the results of those calculations.

 

13.2                           Requirements for Notice

 

The Borrower shall, promptly after it becomes aware thereof, notify the Agent of:

 

13.2.1                                     any Default or Event of Default;

 

13.2.2                                     the occurrence of any action, suit, dispute, arbitration, proceeding, labour or industrial dispute or other circumstance affecting it, the result of which if determined adversely would reasonably be expected to have a Material Adverse Effect, and shall from time to time provide the Agent with all reasonable information requested by any of the Lenders concerning the status thereof;

 

13.2.3                                     any violation, alleged violation, notice of infraction, order, claim, suit or proceeding relating to Environmental Laws or the presence of Hazardous Substances on or originating from the Property or operations of any Obligor which would reasonably be expected to have a Material Adverse Effect; and

 

13.2.4                                     the occurrence or existence of event or circumstance known to it which would reasonably be expected to have a Material Adverse Effect.

 

14.                               NEGATIVE COVENANTS

 

For so long as any Loan Obligations remain outstanding (other than those Loan Obligations that survive termination of this Agreement), or the Borrower is entitled to borrow or obtain credit hereunder (whether or not the conditions precedent to such borrowing or obtaining of credit have

 

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been or may be satisfied), no Obligor shall, without the prior written consent of the Majority Lenders:

 

14.1                           Debt

 

Incur, assume or permit to exist any Debt other than Permitted Debt. No Subsidiary of the Borrower shall guarantee, or otherwise enter into any arrangement to assure the payment or performance of, any obligations of any Obligor (other than itself, as applicable) to any Other Derivative Counterparty, and the Borrower shall not guarantee, or otherwise enter into any arrangement to assure the payment or performance of, any obligations of any other Obligor to any Other Derivative Counterparty. Notwithstanding the foregoing, Agnico-Eagle Mines Mexico Cooperatie U.A. shall not incur, assume or permit to exist any Debt other than Debt incurred by it under this Agreement, under its Guarantee, from another Obligor, under guarantees granted to Lenders or Affiliates of Lenders of the obligations under Derivative Instruments entered into between any Obligor and any Lender or any Affiliate of any Lender, and under a guarantee by it of the obligations of the Borrower under the Note Purchase Agreement and the Notes; and Agnico-Eagle Mines Sweden Cooperatie U.A. shall not incur, assume or permit to exist any Debt other than Debt incurred by it under this Agreement, under its Guarantee, from another Obligor, under guarantees granted to Lenders or Affiliates of Lenders of the obligations under Derivative Instruments entered into between any Obligor and any Lender or any Affiliate of any Lender, and under a guarantee by it of the obligations of the Borrower under the Note Purchase Agreement and the Notes.

 

14.2                           Liens

 

Create, assume, enter into, or permit to exist, any Lien on its Property other than Permitted Liens.

 

14.3                           Investments

 

Make any Investment other than:

 

14.3.1                                     Investments in the Core Business or in a business ancillary to or complementary to the Core Business which are made at a time when no Default or Event of Default has occurred which is continuing and no Default or Event of Default would result from such Investment;

 

14.3.2                                     Investments in Cash Equivalents; or

 

14.3.3                                     Investments by an Obligor in another Obligor.

 

14.4                           Distributions

 

Make any Distribution to a Person other than an Obligor if a Default or an Event of Default has occurred which is continuing or if a Default or Event of Default would occur as a result of the Distribution.

 

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14.5                           Asset Dispositions

 

Make any Asset Disposition of any Material Assets except:

 

14.5.1                                     for sales of inventory;

 

14.5.2                                     as permitted under Section 14.10;

 

14.5.3                                     for sales in the Ordinary Course of obsolete or redundant equipment or equipment of no further use in an Obligor’s business, unless a Default or an Event of Default has occurred and is continuing or would result therefrom;

 

14.5.4                                     where the aggregate Net Cash Proceeds of Asset Dispositions made on Arm’s Length terms by the Obligors in any fiscal year of the Borrower does not exceed US$50,000,000 (or the equivalent thereof in other relevant currencies), unless a Default or an Event of Default has occurred and is continuing or would result therefrom; or

 

14.5.5                                     from an Obligor to another Obligor other than, subject to Section 14.5.4, any Asset Disposition of the Goldex Mine, the Lapa Mine, the LaRonde Mine or the Meadowbank Mine, or any part thereof.

 

14.6                           Derivative Instruments

 

14.6.1                                     Enter into or maintain any Derivative Instrument:

 

14.6.1.1                                      for any purpose other than hedging or mitigating of interest rate, commodity or foreign exchange risks to which any Obligor is exposed in the conduct of its business or the management of its liabilities, and not for the purpose of speculation;

 

14.6.1.2                                      on a margin call basis or where the applicable Obligor has granted the applicable counterparty security for any obligations under the Derivative Instrument; or

 

14.6.1.3                                      with an Other Derivative Counterparty, where the obligations under such Derivative Instrument are guaranteed by another Obligor or another Obligor has entered into any other unsecured agreement to assure payment or performance of such obligations.

 

14.6.2                                     Make commitments to deliver gold or any other commodity that it produces that in the aggregate exceed 75% of the Borrower’s scheduled production (on a consolidated basis) of such commodity in any three month period.

 

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14.7                           Line of Business

 

Carry on business activities that differ materially or substantially from the Core Business.

 

14.8                           Affiliate Transactions

 

Enter into any transaction or group of related transactions of any kind (including, without limitation, the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate or Associate (except any Obligor), or Person of which it is an Associate (except any Obligor), except on a commercially reasonable basis as if it were dealing with such Person at Arm’s Length.

 

14.9                           Subordinated Debt

 

Pay any amount in relation to any Subordinated Debt other than as expressly permitted under any applicable Intercreditor Agreement.

 

14.10                     Business Combination, Reorganization, etc.

 

14.10.1                               Enter into any merger, consolidation, amalgamation, statutory arrangement (involving a business combination) or other reorganization, or liquidate, wind-up or dissolve itself (or suffer any liquidation, wind-up or dissolution), or any Capital Reorganization, other than:

 

14.10.1.1                                any Capital Reorganization of a Guarantor;

 

14.10.1.2                                any Capital Reorganization of the Borrower in which the holders of the Equity Interests of the Borrower immediately prior to the Capital Reorganization continue to have, directly or indirectly, more than 50% of the Equity Interests of the Borrower or applicable Successor Entity immediately after such Capital Reorganization and no Default or Event of Default would result from such Capital Reorganization;

 

14.10.1.3                                any Subsidiary of an Obligor that is not an Obligor may enter into any merger, consolidation, amalgamation, statutory arrangement (involving a business combination) or other reorganization with, or liquidate, wind-up or dissolve itself (or suffer any liquidation, wind-up or dissolution) into, an Obligor so long as no Default or Event of Default is then existing and no Default or Event of Default would result from the consummation of such merger, amalgamation or consolidation;

 

14.10.1.4                                an Obligor (the “Predecessor Obligor”) may enter into any merger, consolidation, amalgamation, statutory

 

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arrangement (involving a business combination) or other reorganization with, or liquidate, wind-up or dissolve itself (or suffer any liquidation, wind-up or dissolution) into, any other Person (which may be an Obligor) (any such transaction, a “Business Combination”) provided that:

 

(a)           the successor entity formed as a result of such Business Combination or the entity surviving such Business Combination, as applicable (each, a “Successor Entity”) shall (i) have the corporate (or analogous) power and authority to perform the obligations of the Predecessor Obligor under the Loan Documents to which the Predecessor Obligor is party, and (ii) as soon as practicable, and in any event, within five (5) Business Days, following such Business Combination, expressly confirm and, if the Successor Entity is not the surviving Predecessor Obligor, assume all the obligations of the Predecessor Obligor under this Agreement and the other Loan Documents to which the Predecessor Obligor is a party pursuant to such documentation as may be reasonably satisfactory to the Agent;

 

(b)           such Business Combination does not materially impair the ability of any Obligor to perform its obligations under any Loan Document to which it is a party;

 

(c)           no Default or Event of Default is then existing and no Default or Event of Default would result from the consummation of such Business Combination; and

 

(d)           in the case of a Business Combination involving the Borrower, (x) the Successor Entity shall be existing under the laws of the United States or any State thereof (including the District of Columbia), Canada or any Province thereof or any other country that on April 30, 2004 was a member of the European Union (other than Greece, Italy, Portugal or Spain) and (y) each Guarantor shall acknowledge that its Guarantee shall continue in full force and effect.

 

15.                               EVENTS OF DEFAULT AND ENFORCEMENT

 

15.1                           Events of Default

 

The occurrence of any of the following events shall constitute an Event of Default:

 

15.1.1                                     If the Borrower fails to pay any principal amount of any Advance when due and payable; or

 

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15.1.2                                     If the Borrower fails to pay any amount of interest, fees, commissions or other Loan Obligations (other than amounts on account of principal) when due, and such failure continues for 5 Business Days after such amount becomes due; or

 

15.1.3                                     If any representation or warranty made by any Obligor or deemed to have been made by any Obligor pursuant to this Agreement, or any representation or warranty made by an officer of any Obligor in any Loan Document or in any certificate, agreement, instrument or written statement delivered by any Obligor or by an officer of any Obligor pursuant thereto was, at the time the same was made, incorrect in any material respect, and if the circumstances giving rise to such incorrect representation or warranty are capable of being corrected (such that thereafter such representation or warranty would be correct), such representation or warranty remains uncorrected for a period of 30 days after the Obligor becomes aware that such representation or warranty was incorrect, whether on its own or by notice from the Agent; or

 

15.1.4                                     If any Obligor breaches or fails to perform any of its obligations or undertakings hereunder or under any other Loan Document not otherwise contemplated by this Section 15.1 and has not remedied the Default within 30 days following the date on which the Agent has given written notice to the Borrower; or

 

15.1.5                                     If any of the financial covenants set out in Article 11 are not complied with; or

 

15.1.6                                     If a default occurs under one or more agreements or instruments relating to Debt of the Borrower or any Material Subsidiary other than the Loan Obligations, if the effect of such default is to accelerate, or to permit the acceleration of the due date of such Debt (whether or not acceleration actually occurs), or if the Borrower or any Material Subsidiary fails to pay any amount under any Derivative Instrument when due, whether at maturity, upon acceleration, demand or otherwise; in an aggregate amount of US$50,000,000 or more (or the equivalent thereof in any other currency); or

 

15.1.7                                     If the Borrower or any Material Subsidiary ceases or threatens to cease to carry on its business (except as otherwise permitted by Section 14.10) or admits its inability or fails to pay its Debt generally; or

 

15.1.8                                     If an Obligor denies its obligations under the Loan Documents or claims any of the Loan Documents to be invalid or unenforceable, in whole or in part; or any of the Loan Documents is invalidated or determined to be unenforceable by any act, regulation or action of any Governmental Authority or is determined to be invalid or

 

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unenforceable by a court or other judicial entity of competent jurisdiction and such determination has not been stayed pending appeal, unless such invalidity or unenforceability can be cured and such invalidity or unenforceability is cured within 30 consecutive days of notice thereof being given by the Agent to the Borrower of the occurrence of such invalidity or unenforceability, unless such invalidity or unenforceability occurred as a result of a contest initiated, acquiesced in or consented to by an Obligor; or

 

15.1.9                                     If one or more judgments are rendered by a court of competent jurisdiction against the Borrower or any Material Subsidiary in an aggregate amount in excess of US$20,000,000 (or, if applicable, the equivalent thereof in other currencies) and (a) the same are not released, bonded, satisfied, discharged, vacated, stayed or accepted for payment by an insurer within 45 consecutive days after their entry, commencement or levy or (b) such Person is not contesting such judgments or decrees in good faith and by appropriate proceedings and adequate reserves in accordance with GAAP have not been set aside on its books; or

 

15.1.10                               If Property of the Borrower or any Material Subsidiary having an aggregate value of more than US$20,000,000 (or, if applicable, the equivalent thereof in other currencies) is seized or taken possession of (or subject to other similar legal proceedings by a creditor for seizure or possession of Property) (the “Seizure Proceeding”), except to the extent that the applicable Person is diligently and in good faith contesting any such Seizure Proceeding by appropriate proceedings and such Seizure Proceeding remains undismissed or unstayed for a period of 60 consecutive days; or the Borrower or any Material Subsidiary takes any action in furtherance of, or indicates its consent to, approval of, or acquiescence in, any such Seizure Proceeding; or

 

15.1.11                               If (a) the Borrower or any Material Subsidiary commits an act of bankruptcy within the meaning of the Bankruptcy and Insolvency Act (Canada) or any other applicable legislation in any applicable jurisdiction, makes an assignment in favour of its creditors, consents to the filing of an application for a bankruptcy order against it, files a notice of intention to make a proposal or a proposal within the meaning of the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada) or takes such action or any other action for the relief of debtors under any other applicable legislation in any applicable jurisdiction, or makes a motion to a tribunal to name, or consents to, approves or accepts the appointment of a trustee-in-bankruptcy, receiver, liquidator, sequestrator or other similar official with respect to itself or its Property, commences any other proceeding with respect to itself or its Property under the provisions of any Applicable Law contemplating reorganizations, proposals,

 

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rectifications, compromises or liquidations in connection with insolvent Persons, in any jurisdiction whatsoever, (b) a trustee-in-bankruptcy, receiver, liquidator or sequestrator is named with respect to the Borrower, any Material Subsidiary or any of their respective Property or the Borrower or any Material Subsidiary is judged insolvent or bankrupt or (c) a proceeding seeking to name a trustee-in-bankruptcy, receiver, liquidator, sequestrator or other similar official, or to force the Borrower or any Material Subsidiary into bankruptcy, is commenced against the Borrower or such Material Subsidiary (an “Insolvency Proceeding”) unless the applicable Person is diligently and in good faith contesting such Insolvency Proceeding by appropriate proceedings and such Insolvency Proceeding is not settled or withdrawn within 60 consecutive days of its commencement; or

 

15.1.12                               If there occurs any Change of Control of the Borrower.

 

15.2                           Remedies

 

Upon the occurrence of any Event of Default which is continuing, the Agent may, at its option, and shall, if required to do so by the Majority Lenders, declare immediately due and payable, without presentation, demand, protest or other notice of any nature, which the Borrower hereby expressly waives, notwithstanding any provision to the contrary effect in this Agreement or in the other Loan Documents:

 

15.2.1                                     the entire amount of the Loan Obligations, including (subject to Section 15.4) the amount corresponding to the face amount of all Letters of Credit then outstanding, the principal amount of the BA Advances then outstanding, in principal and interest, notwithstanding the fact that one or more of the holders of the Bankers’ Acceptances have not demanded payment in whole or in part or have demanded only partial payment from the Lenders, and the amount of the Other Supported Obligations.  The Borrower shall not have the right to invoke against the Agent or the Lenders (or any Affiliate of any Lender) any defence or right of action, indemnification or compensation of any nature or kind whatsoever that the Borrower may at any time have or have had with respect to any holder of one or more of the Letters of Credit, Derivative Instruments or Bankers’ Acceptances issued in accordance with the provisions hereof; and

 

15.2.2                                     an amount equal to the amount of losses, costs and expenses assumed by the Lenders and referred to in Sections 6.4 and 19.15; and

 

the Credit Facility shall cease and as and from such time shall be cancelled, and the Lenders may exercise all of their rights and recourses under the provisions of this Agreement and of the other Loan Documents.  For greater certainty, (i) from and after the occurrence and during the continuance of any Default or Event of Default, the Lenders shall not be obliged to make any further Advances under the Credit Facility and (ii) after

 

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the Agent makes a declaration as contemplated by this Section 15.2 or the Loan Obligations otherwise become immediately due and payable, no Event of Default may be cured by the Obligors.

 

15.3                           Notice

 

Except where otherwise expressly provided herein, no notice or demand of any nature is required to be given to the Borrower by the Agent in order to put the Borrower in default, the latter being in default by the simple lapse of time granted to execute an obligation or by the simple occurrence of a Default.

 

15.4                           Escrowed Funds for Letters of Credit and Bankers’ Acceptances

 

15.4.1                                     Immediately upon any Loan Obligations becoming due and payable under Section 15.2, the Borrower shall, without necessity of further act or evidence, be and become thereby unconditionally obligated to deposit forthwith with the Agent for the benefit of, as applicable, the Issuing Lender and each other Lender cash or Cash Equivalents equal to the full face amount at maturity of all Bankers’ Acceptances then outstanding for its account and all Letter of Credit Obligations.

 

15.4.2                                     On that day which is 5 Business Days prior to the Maturity Date, the Borrower shall, without necessity of further act or evidence, be and become unconditionally obligated to deposit forthwith with the Agent for the benefit of the Issuing Lender cash or Cash Equivalents equal to all Letter of Credit Obligations.

 

15.4.3                                     In the event of any purported prepayment of a Bankers’ Acceptance or if the Borrower otherwise requests that it be permitted to cash collateralize a Bankers’ Acceptance, it shall, without necessity of further act or evidence, be and become thereby unconditionally obligated to deposit forthwith with the Agent for the benefit of the Lenders cash or Cash Equivalents equal to the full face amount at maturity of all applicable Bankers’ Acceptances.

 

15.4.4                                     The Borrower hereby unconditionally promises and agrees to deposit with the Agent immediately upon demand cash or Cash Equivalents in the amount so demanded.

 

15.4.5                                     The Borrower authorizes the Lenders, or any of them, to debit its accounts with the amount required to pay such Letters of Credit and to pay such Bankers’ Acceptances, notwithstanding that such Bankers’ Acceptances may be held by the Lenders, or any of them, in their own right at maturity.  Such amounts paid to, or obtained by, the Agent in respect of Bankers’ Acceptances and Letters of Credit shall be applied against, and shall reduce, pro rata among the Lenders, to the extent of the amounts paid to, or obtained by, the Agent in respect of Bankers’ Acceptances and Letters of Credit, respectively, the obligations of the

 

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Borrower to pay amounts then or thereafter payable under Bankers’ Acceptances and Letters of Credit, respectively, at the times amounts become payable thereunder.  The Borrower shall be entitled to receive interest on cash or Cash Equivalents held by the Agent under this Section if no Event of Default has occurred and is continuing, but neither the Agent nor any Lender shall be responsible for the rate of return, if any, earned on such amounts.

 

15.4.6                                     If the Agent holds cash or Cash Equivalents in the amount of the full face amount of the Bankers’ Acceptances and the Letter of Credit Obligations at the Maturity Date, such cash and Cash Equivalents shall be the property of the Lenders to be applied as set out in Section 15.4.5, and except for any obligations herein which by their terms survive termination of this Agreement and which may relate to such outstanding Letters of Credit and Bankers’ Acceptances, the Borrower shall have no further obligations under or in connection with such Letters of Credit or Bankers’ Acceptance.

 

15.5                           Costs

 

If an Event of Default occurs, and within the limits contemplated by Section 12.14, the Agent may impute to the account of the Lenders and pay to other Persons reasonable sums for services rendered with respect to obtaining payment hereunder and may deduct the amount of such costs and payments from the proceeds which it receives therefrom.  The balance of such proceeds may be held by the Agent and, when the Agent decides it is opportune, may be applied to the account of the part of the Loan Obligations of the Borrower to the Lenders which the Agent deems preferable, without prejudice to the rights of the Lenders against the Borrower for any loss of profit.

 

15.6                           Relations with the Obligors

 

As between the Agent and the Obligors, the Agent may grant extensions, renounce security (if any security has, at the time been granted to the Agent), accept compromises, grant acquittances and releases and otherwise negotiate with the Obligors, as it deems advisable in accordance with the terms of this Agreement, without in any way diminishing the liability of the Obligors nor prejudicing the rights of the Lenders hereunder.

 

15.7                           Application of Proceeds

 

Notwithstanding any other provision of this Agreement or any other Loan Document, the Agent shall apply the proceeds of realization arising from the enforcement of this Agreement or any other Loan Document and of any credit or compensating balance in reduction of the Loan Obligations and the Other Supported Obligations on a pro rata basis.

 

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16.                               THE AGENT AND THE LENDERS

 

16.1                           Authorization of Agent

 

Each Lender hereby irrevocably appoints and authorizes the Agent to act for all purposes as its agent hereunder and under the other Loan Documents with such powers as are expressly delegated to the Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto.  The Agent shall have no duties or responsibilities except those expressly set forth in this Agreement.  As to any matters not expressly provided for by this Agreement, the Agent shall act hereunder or in connection herewith in accordance with the instructions of the Lenders in accordance with the provisions of this Article, but in the absence of any such instructions, the Agent may (but shall not be obliged to) act as it shall deem fit in the best interests of the Lenders, and any such instructions and any action taken by the Agent in accordance herewith shall be binding upon each Lender.  The Agent and its Related Parties shall not, by reason of this Agreement, be deemed to be a trustee or fiduciary for the benefit of any Lender, any Obligor or any other Person, irrespective of whether a Default or Event of Default may have occurred.  Neither the Agent nor any of its Related Parties shall be responsible to the Lenders for (a) any recitals, statements, representations or warranties contained in this Agreement or any other Loan Document or in any certificate or other document referred to, or provided for in, or received by any of them under, this Agreement, (b) the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or any collateral provided for thereby, (c) the satisfaction of any condition specified in this Agreement, other than to confirm receipt of items expressly required to be delivered to the Agent or (d) any failure by the Borrower or any other Obligor to perform its obligations hereunder or under any other Loan Documents.  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 any one or more sub-agents appointed by the Agent from among the Lenders (including the Person serving as Agent) and their respective Affiliates.  The Lenders agree that the Agent may employ agents and attorneys and shall not be responsible for the negligence or misconduct of any such agents or attorneys selected by it with reasonable care.  Neither the Agent nor any of its Related Parties shall be responsible to the Lenders for any action taken or omitted to be taken by it or its Related Parties under or in connection herewith, except for its or their own gross negligence or wilful misconduct. Notwithstanding the foregoing, the Agent may, without the consent of the Lenders, but for greater certainty only, with the consent of the other parties hereto, make amendments to the Loan Documents that are for the sole purpose of curing any immaterial or administrative ambiguity, defect or inconsistency, but the Agent shall promptly notify the Lenders of any such action.

 

16.2                           Agent’s Responsibility

 

16.2.1                                     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 posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise

 

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authenticated by the proper Person.  The Agent may also 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 that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, the Agent may presume that such condition is satisfactory to such Lender or the Issuing Lender unless the Agent shall have received notice to the contrary from such Lender or the Issuing Lender prior to the making of such Advance.  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 each Lender as the holder of the Commitment made by such Lender for all purposes hereof unless and until an Assignment has been completed in accordance with Section 18.2.

 

16.2.2                                     The Agent shall not be deemed to have knowledge of the occurrence of a Default or Event of Default unless the Agent has received notice from a Lender or the Borrower describing such a Default or Event of Default and stating that such notice is a “Notice of Default”.  In the event that the Agent receives such a notice of the occurrence of a Default or Event of Default or otherwise becomes aware that a Default or Event of Default has occurred, the Agent shall promptly give notice thereof to the Lenders.  The Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Lenders in accordance with the provisions of this Article provided that, unless and until the Agent shall have received such directions, the Agent may (but shall not be obliged to) take such action, or refrain from taking such action, with respect to such a Default or Event of Default as it shall deem advisable in the best interest of the Lenders.  The Agent shall not be required to take any action that, in its opinion or in the opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or Applicable Law.

 

16.2.3                                     Except (in the case of the Agent) for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Agent hereunder, the Agent shall have no duty or responsibility to provide any Lender with any credit or other information concerning the affairs or financial condition of the Obligors which may come to the attention of the Agent, except where provided to the Agent for the Lenders as set out herein.  Nothing in this Agreement shall oblige the Agent to disclose any information relating to the Obligors if such disclosure would or might, in the opinion of the Agent, constitute a breach of any Applicable Law or duty of secrecy or confidence.

 

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16.2.4                                     The Agent shall have no responsibility (a) to any Obligor on account of the failure of any Lender to perform its obligations hereunder or under any other Loan Document or (b) to any Lender on account of the failure of any Obligor to perform its obligations hereunder or under any other Loan Document.

 

16.2.5                                     Each Lender severally represents and warrants to the Agent that it has made its own independent investigation of the financial condition and affairs of the Obligors in connection with the making and continuation of its Commitment and has not relied on any information provided to such Lender by the Agent in connection herewith, and each Lender represents and warrants to the Agent that it shall continue to make its own independent appraisal of the creditworthiness of the Obligors while any Loan Obligations are outstanding or the Lenders have any obligations hereunder.

 

16.3                           Rights of Agent as Lender

 

With respect to its Commitment, the Agent in its capacity as a Lender shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as the Agent.  The Agent may (without having to account therefor to any Lender) accept deposits from, lend money to and generally engage in any kind of banking or other business with the Obligors as if it were not acting as the Agent and may accept fees and other consideration from the Obligors for customary services in connection with this Agreement and the Loan Obligations and otherwise without having to account for the same to the Lenders.

 

Any reference in this Agreement to the Agent means, where the Agent is also a Lender, the agency department of such Lender specifically responsible for acting as Agent under and in connection with this Agreement.  In acting as Agent, the agency department will be treated as a separate entity from any other department or division of the Lender in question.  Without limiting the foregoing, the Agent shall not be deemed to have notice of a document or information received by any other department or division of that Lender, nor will the Lender concerned be deemed to have notice of a document or information received by the Agent.

 

16.4                           Indemnity by Lenders

 

Each Lender shall indemnify the Agent and hold it harmless, to the extent not otherwise reimbursed by the Borrower or another Obligor, rateably in accordance with its Applicable Percentage and not jointly or jointly and severally, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever (including the fees, charges and disbursements of counsel) which may be imposed on, incurred by or asserted against the Agent in any way relating to or arising out of this Agreement or any other Loan Documents or the transactions contemplated hereby or thereby (excluding, unless a Default or Event of Default is apprehended or has occurred and is continuing, normal

 

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administrative costs and expenses incidental to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or of any other Loan Documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from the Agent’s gross negligence or wilful misconduct.

 

16.5                           Notice by Agent to Lenders

 

As soon as practicable after its receipt thereof, the Agent will forward to each Lender a copy of each report, notice or other document required by this Agreement to be delivered to the Agent for such Lender.

 

16.6                           Protection of Agent - Advances and Payments

 

16.6.1                                     Unless the Agent shall have been notified in writing by any Lender prior to a Drawdown Date that such Lender does not intend to make available to the Agent such Lender’s Applicable Percentage of such Advance, the Agent may assume that such Lender has made such Lender’s Applicable Percentage of such Advance available to the Agent on the Drawdown Date and the Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  If such corresponding amount is not in fact made available to the Agent by such Lender, the Agent shall be entitled to recover such amount (together with interest thereon at the rate determined by the Agent as being its applicable rate for interbank compensation based on prevailing banking industry standards) on demand from such Lender or, if such Lender fails to reimburse the Agent for such amount on demand, from the Borrower.

 

16.6.2                                     Unless the Agent shall have been notified in writing by the Borrower prior to the date on which any payment is due hereunder that the Borrower does not intend to make such payment, the Agent may assume that the Borrower will make such payment when due and the Agent may, in reliance upon such assumption, make available to each Lender on such payment date an amount equal to such Lender’s pro rata share of such assumed payment.  If it is established that the Borrower has not in fact made such payment to the Agent, each Lender shall forthwith on demand repay to the Agent the amount made available to such Lender (together with interest thereon at the rate determined by the Agent as being its applicable rate for interbank compensation based on prevailing banking industry standards).

 

16.7                           Notice by Lenders to Agent

 

Each Lender shall endeavour to use its best efforts to notify the Agent of the occurrence of any Default or Event of Default forthwith upon becoming aware of such event, but no Lender shall be liable if it fails to give such notice to the Agent.

 

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16.8                           Sharing Among the Lenders

 

Each Lender, and by its acceptance of the benefit of each Guarantee, each Other Supported Party, agrees that as amongst themselves, except as otherwise provided for by the provisions of this Agreement, all amounts received by the Agent, in its capacity as administrative agent for the Lenders pursuant to this Agreement or any other Loan Document (other than the Agency Fee Letter, the Fee Letter and the Prior Fee Letters) and whether received by voluntary payment, by the exercise of the right of set-off or compensation or by counterclaim, cross-claim, separate action or as proceeds of realization of any security:

 

16.8.1                                     prior to any Loan Obligations becoming due and payable under Section 15.2, shall be shared by each Lender pro rata, determined in accordance with the Applicable Percentages of each Lender; and

 

16.8.2                                     following any Loan Obligations becoming due and payable under Section 15.2, shall be shared by each Supported Party, pro rata, based on its percentage of the aggregate Supported Obligations;

 

and each Lender undertakes to do all such things as may be reasonably required to give full effect to this Section 16.8.  If any amount so shared is later recovered from the Lender who originally received it, each other Lender shall restore its proportionate share of such amount to such Lender, without interest.

 

As a necessary consequence of the foregoing, each Lender shall share, in a percentage equal to its Applicable Percentage, any losses incurred as a result of any Event of Default, and shall pay to the Agent, within 2 Business Days following a request by the Agent, any amount required to ensure that such Lender bears its Applicable Percentage of such losses, if any, including any amounts required to be paid to any Lender in respect of any Bankers’ Acceptances and Letters of Credit.  Such obligation to share losses shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (a) any set-off, compensation, counterclaim, recoupment, defence or other right which such Lender may have against the Agent, any Obligor or any other Person for any reason whatsoever, (b) the occurrence or continuance of any Default or Event of Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower or any other Person, (d) any breach of this Agreement by the Borrower or any other Person, or (e) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.  Where necessary to give effect to this Section 16.8, a Lender shall purchase a participation in the Advances of other Lenders.  If any Lender does not make available the amount required hereunder, the Agent shall be entitled to recover such amount on demand from such Lender, together with interest thereon at the rate determined by the Agent as being its applicable rate for interbank compensation based on prevailing banking industry standards from the date of non payment until such amount is paid in full.

 

The provisions of this Section shall not be construed to apply to (a) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its

 

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Loan Obligations to any Assignee or Participant, other than to any Obligor or any Affiliate of an Obligor (as to which the provisions of this paragraph shall apply), (b) any payment made while no Event of Default has occurred and is continuing in respect of obligations of the Borrower to such Lender that do not arise under or in connection with the Loan Documents, (c) any payment made in respect of an obligation that is secured by a Permitted Lien or that is otherwise entitled to priority over any Obligor’s obligations under or in connection with the Loan Documents, (d) any reduction arising from an amount owing to an Obligor on account of Derivative Obligations upon the termination of any Derivative Instrument except for a net amount available after the termination of all Derivative Obligations between the Obligors and such Lender (or an Affiliate of a Lender) and the set-off of resulting amounts owing by the Obligors and to the Obligors, or (e) any payment to which such Lender is entitled as a result of any form of credit insurance obtained by such Lender.

 

16.9                           Procedure With Respect to Advances

 

Subject to the applicable provisions of this Agreement, upon receipt of a Notice of Borrowing from the Borrower, the Agent shall, without delay, advise each Lender of the receipt of such notice, of the Drawdown Date, of its Applicable Percentage of the amount of such Advance and of the relevant details of the Agent’s account(s).  Subject to the applicable provisions of this Agreement, each Lender shall disburse its Applicable Percentage of each Advance, and shall make it available to the Agent (no later than 10:00 a.m.) on the Drawdown Date, by depositing its Applicable Percentage of the Advance in the Agent’s account in the applicable currency, as the case may be.  The Agent will make such amounts available to the Borrower on the Drawdown Date, at the Branch, and, in the absence of other arrangements made in writing between the Agent and the Borrower, by transferring or causing to be transferred an equivalent amount in the case of a Prime Rate Advance, US Base Rate Advance, Libor Advance and the Available Proceeds in the case of Bankers’ Acceptances, in accordance with the instructions of the Borrower which appear in the Notice of Borrowing with respect to each Advance; however, the obligation of the Agent with respect hereto is limited to taking the steps judged commercially reasonable in order to follow such instructions, and once undertaken, such steps shall constitute prima facie evidence that the amounts have been disbursed in accordance with the applicable provisions.  Subject to the foregoing sentence, the Agent shall not be liable for damages, claims or costs imputed to the Borrower and resulting from the fact that the amount of an Advance did not arrive at its agreed-upon destination.

 

16.10                     Non-Payment by Lenders

 

If any Lender shall fail to make any payment required to be made by it hereunder to the Agent, the Issuing Lender or the Swing Line Lender, then the Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter received by the Agent for the account of such Lender and for the benefit of the Agent, the Issuing Lender or the Swing Line Lender to satisfy such Lender’s obligations hereunder until all such unsatisfied obligations are fully paid, and/or (ii) hold any such amounts in a segregated account for, and application to, any future funding obligations of such Lender

 

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hereunder; in the case of each of (i) and (ii) above, in any order as determined by the Agent in its discretion.

 

16.11                     Accounts Kept by Each Lender

 

Each Lender shall keep in its books, in respect of its Commitment, accounts for Libor Advances, Prime Rate Advances, US Base Rate Advances, Bankers’ Acceptances and other amounts payable by the Borrower under this Agreement.  Each Lender shall make appropriate entries showing, as debits, the amount of the Debt of the Borrower to it in respect of the Libor Advances, Prime Rate Advances, US Base Rate Advances and BA Advances, as the case may be, the amount of all accrued interest and any other amount due to such Lender pursuant hereto and, as credits, each payment or repayment of principal and interest made in respect of such Debt as well as any other amount paid to such Lender pursuant hereto.  These accounts shall constitute (in the absence of contradictory entries in the accounts of the Agent referred to in Section 3.7) prima facie evidence of their content against the Borrower.

 

16.12                     Binding Determinations

 

The Agent shall in good faith to make any determination that is required in order to apply this Agreement and, once made, such determination shall be final and binding upon all Lenders, except in the case of manifest error.

 

16.13                     Amendment of Article 16

 

The provisions of this Article 16 relating to the rights and obligations of the Lenders and the Agent inter se, other than under Sections 16.14 or 16.15, may be amended or added to, from time to time, by the execution by the Agent and the Lenders of an instrument in writing and such instrument in writing shall validly and effectively amend or add to any or all of the provisions of this Article affecting the Lenders without requiring the execution of such instrument in writing by the Borrower.

 

16.14                     Decisions, Amendments and Waivers of the Lenders

 

Subject to the provisions of Section 16.15, all decisions taken by the Lenders shall be taken as follows: (a) if there are two Lenders, by unanimous consent, or (b) if there are three or more Lenders, by the Majority Lenders.  The Agent shall confirm such consent to each Lender and to the Borrower. Notwithstanding the foregoing, no amendment, modification or waiver of any provision of any Loan Document dealing with the rights and duties of the Agent shall be taken without the written consent of the Agent, no amendment, modification or waiver of any provision of any Loan Document dealing with the rights and duties of the Issuing Lender shall be taken without the written consent of the Issuing Lender, and no amendment, modification or waiver of any provision of any Loan Document dealing with the rights and duties of the Swing Line Lender shall be taken without the written consent of the Swing Line Lender. Notwithstanding any other provision hereof, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender.

 

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16.15       Authorized Waivers, Variations and Omissions

 

If so authorized in writing by the Lenders, the Agent, on behalf of the Lenders, may grant waivers, consents, vary the terms of this Agreement and the other Loan Documents and do or omit to do all acts and things in connection herewith or therewith.  Notwithstanding the foregoing, except with the prior written agreement of each Lender, nothing in Section 15.6, Section 16.14 or this Section 16.15 shall authorize (a) any extension of the date for, or alteration in the amount, currency or mode of calculation or computation of any payment of principal or interest, fees or other amounts, with the effect, in the case of the alteration in the amount or mode of calculation or computation or any payment of principal or interest, fees or other amounts, that any such principal, interest, fees or other amounts would be reduced, (b) any reduction in the interest rate applicable to the payment of principal, fees or other amounts, (c) any increase in the Commitment of a Lender, (d) any extension of any Maturity Date (other than as set out in Section 2.5), (e) any change in the terms of this Article 16, (f) any change in the manner of making decisions among the Lenders, including the definition of Majority Lenders, (g) the release of the obligations of any Obligor except to the extent permitted by Section 8.2.2 or Section 14.10, (h) the release, in whole or in part, of any of the Loan Documents or of any of the Guarantees, (i) any change in or any waiver of the conditions precedent provided for in Section 9.1 or (j) any amendment to this Section 16.15.

 

16.16       Provisions for the Benefit of Lenders Only

 

The provisions of this Article 16 relating to the rights and obligations of the Lenders and Agent inter se shall be operative as between the Lenders and Agent only, and the Obligors shall not have any rights under or be entitled to rely for any purposes upon such provisions.

 

16.17       Assignment by Agent to an Affiliate

 

The Agent may, at any time and from time to time, assign its rights and transfer its obligations hereunder, in whole or in part, to an Affiliate acceptable to the Borrower, acting reasonably, upon notice to the Lenders, provided that such assignment does not result in an increase in the amounts payable by any Obligor hereunder.

 

16.18       Collective Action of the Lenders

 

Each of the Lenders hereby acknowledges that to the extent permitted by Applicable Law, any Guarantees and the remedies provided under the Loan Documents to the Lenders are for the benefit of the Lenders (and Other Supported Parties) collectively and acting together and not severally and further acknowledges that its rights hereunder and under any Guarantees are to be exercised not severally, but by the Agent upon the decision of the requisite majority of Lenders as contemplated in the relevant Loan Document.  Accordingly, notwithstanding any provision of any Loan Document, each of the Lenders covenants and agrees that it shall not be entitled to take any action under any of the Loan Documents including any declaration of Event of Default hereunder, such that any such action may only be taken through the Agent in accordance with the

 

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provisions hereof or upon the prior written agreement of the Majority Lenders.  Each of the Lenders agrees to cooperate with the Agent as reasonably requested from time to time.

 

16.19       Resignation of Agent

 

16.19.1          The Agent may at any time give notice of its resignation to the Lenders, the Issuing Lender and the Borrower.  Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a Lender having an office in Toronto, Ontario, or an Affiliate of any such Lender with an office in Toronto.  The Agent may also be removed at any time by the Majority Lenders upon 30 days’ notice to the Agent and the Borrower as long as the Majority Lenders, in consultation with the Borrower, appoint and obtain the acceptance of a successor within such 30 days, which shall be a Lender having an office in Toronto, or an Affiliate of any such Lender with an office in Toronto.

 

16.19.2          If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the Lenders, appoint a successor Agent meeting the qualifications specified in subsection 16.19.1, provided that if the Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held or cash or Cash Equivalents held in escrow by the Agent on behalf of the Lenders under any of the Loan Documents, the retiring Agent shall continue to hold such collateral security or cash or Cash Equivalents until such time as a successor Agent is appointed) and (b) 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 as the Majority Lenders appoint a successor Agent as provided for above in Section 16.19.1.

 

16.19.3          Upon 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 former Agent, and the former Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided in the preceding paragraph).  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 termination of the service of the former Agent, the

 

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provisions of this Section 16.19 and of Section 19.15 shall continue in effect for the benefit of such former 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 former Agent was acting as Agent.

 

17.          CURRENCY CONVERSION, ETC.

 

17.1         Rules of Conversion

 

If for the purpose of obtaining judgment in any court or for any other purpose hereunder, it is necessary to convert an amount due, advanced or to be advanced hereunder from the currency in which it is due (the “First Currency”) into another currency (the “Second Currency”) the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Agent could purchase, in the Canadian money market or the Canadian exchange market, as the case may be, the First Currency with the Second Currency on the date on which the judgment is rendered, the sum is payable or advanced or to be advanced, as the case may be.  The Borrower agrees that its obligations in respect of any First Currency due from it to the Agent or the Lenders in accordance with the provisions hereof shall, notwithstanding any judgment rendered or payment made in the Second Currency, be discharged by a payment made to the Agent on account thereof in the Second Currency only to the extent that, on the Business Day following receipt of such payment in the Second Currency, the Agent may, in accordance with normal banking procedures, purchase on the Canadian money market or the Canadian foreign exchange market, as the case may be, the First Currency with the amount of the Second Currency so paid or which a judgment rendered payable (the rate applicable to such purchase being in this Section called the (“FX Rate”)); and if the amount of the First Currency which may be so purchased is less than the amount originally due in the First Currency, the Borrower agrees as a separate and independent obligation and notwithstanding any such payment or judgment to indemnify the Lenders against such deficiency. The agreements in this Section shall survive the termination of the Commitments and the repayment of all other amounts outstanding hereunder and under the other Loan Documents.

 

17.2         Determination of Equivalent Amount in another Currencies

 

If, in their discretion, the Lenders or the Agent choose or, pursuant to the terms of this Agreement, are obliged to choose, calculate or determine the equivalent in one currency of the amount in another currency the Agent, in accordance with the conversion rules stipulated in Section 17.1:

 

17.2.1            on any Drawdown Date; or

 

17.2.2            at any other time when such a calculation or determination under this Agreement (including Section 2.9) or any other Loan Document is contemplated;

 

shall, using the FX Rate at such time on such date, determine the equivalent amount in such currency, as the case may be, of any security or amount expressed in the other

 

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currency pursuant to the terms hereof.  Immediately following such determination, the Agent shall inform the Borrower of the conclusion which the Lenders have reached.

 

18.          ASSIGNMENT

 

18.1         Assignment by the Borrower

 

The rights of the Borrower and each other Obligor under the provisions hereof may not be transferred or assigned (except by operation of law as may be permitted pursuant to Section 14.10), and no Obligor may transfer or assign any of its obligations, any such assignment being null and void and of no effect against the Agent and the Lenders and rendering any balance outstanding of the Loan Obligations immediately due and payable at the option of the Lenders and further releasing the Lenders from any obligation to make any further Advances under the provisions hereof.

 

18.2         Assignments and Transfers by the Lenders

 

18.2.1            No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (a) to an Eligible Assignee in accordance with the provisions of subsection 18.2.2, or (b) by way of a sale of a participation in accordance with the provisions of Section 18.5 (and any other attempted assignment or transfer by any party hereto shall be null and void).

 

18.2.2            Each Lender may assign or transfer to an Eligible Assignee in accordance with this Article 18 up to 100% of its rights, benefits and obligations hereunder; provided that:

 

18.2.2.1             except (a) if an Event of Default has occurred that is continuing, (b) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loan Obligations at the time owing to it or (c) in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment being assigned (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 applicable assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption Agreement with respect to such assignment is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption Agreement, as of the Trade Date) shall not be less than US$10,000,000, unless each of the Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower,

 

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otherwise consent to a lower amount (each such consent not to be unreasonably withheld or delayed);

 

18.2.2.2             any assignment must be approved by the Agent (such approval not to be unreasonably withheld or delayed) unless the proposed Assignee is itself already a Lender;

 

18.2.2.3             any assignment must be approved by the Issuing Lender (such approval not to be unreasonably withheld or delayed, unless the Person that is the proposed assignee has a credit rating of less than BBB by S&P or Baa2 by Moody’s, in which case, such approval to be in the Issuing Lender’s sole discretion), unless the Person that is the proposed assignee is itself already a Lender with a Commitment under this Agreement;

 

18.2.2.4             any assignment must be approved by the Borrower (such approval not to be unreasonably withheld or delayed, provided that it shall be reasonable for the Borrower to withhold its consent if such assignment would give rise to a direct claim against an Obligor under Article 6 or Section 19.15) unless (i) the proposed Assignee is itself already a Lender, or (ii) a Default has occurred that is continuing, or (iii) an Event of Default has occurred that is continuing; and

 

18.2.2.5             the parties to each Assignment shall execute and deliver to the Agent an Assignment and Assumption Agreement, together with a processing and recordation fee in an amount of US$5,000, and the Eligible Assignee, if it is not a Lender, shall deliver to the Agent an administrative questionnaire.

 

Subject to acceptance and recording thereof by the Agent pursuant to Section 18.3, from and after the effective date specified in each Assignment and Assumption Agreement, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of a Lender under this Agreement and the other Loan Documents, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) with respect to matters and circumstances from and after the effective date of such Assignment but shall continue to be entitled to the benefits of Article 6 and Section 19.15 with respect to facts and circumstances occurring prior to the effective date of such Assignment.  For greater certainty, subject to

 

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the second last sentence of Section 19.15, no Lender that is a Defaulting Lender shall be released from any obligation in respect of damages arising in connection with it being or becoming a Defaulting Lender.  Any Assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 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 Section 18.5.  Any payment by an Assignee to an assigning Lender in connection with an Assignment or transfer shall not be or be deemed to be a repayment by the Borrower or a new Advance to the Borrower.

 

18.3         Register

 

The Agent shall maintain at one of its offices in Toronto, Ontario, a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts 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 prima facie evidence of each of the foregoing items, and the Borrower, the Agent and the Lenders may 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, at any reasonable time and from time to time upon reasonable prior notice.

 

18.4         Electronic Execution of Assignments

 

The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption Agreement shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including Parts 2 and 3 of the Personal Information Protection and Electronic Documents Act (Canada), the Electronic Commerce Act, 2000 (Ontario) and other similar federal or provincial laws based on the Uniform Electronic Commerce Act of the Uniform Law Conference of Canada or its Uniform Electronic Evidence Act, as the case may be.

 

18.5         Participations

 

Any Lender may at any time, without the consent of, the Borrower or the Agent, sell participations to any Person (other than a natural person, an Obligor or any Affiliate of an Obligor) (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 (a) such Lender’s obligations under this Agreement shall remain unchanged, (b) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (c) the Borrower, the Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement; provided

 

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further that, on or after any sale by a Lender of such a participation, such Lender shall forthwith provide notice thereof to the Agent and the Borrower.  Any payment by a Participant to a Lender in connection with a sale of a participation shall not be or be deemed to be a repayment by the Borrower or a new Advance to the Borrower.  Subject to Section 18.6, the Borrower agrees that each Participant shall be entitled to the benefits of Article 6 to the same extent as if it were a Lender and had acquired its interest by Assignment pursuant to subsection 18.2.2.

 

18.6         Limitations Upon Participant Rights

 

A Participant shall not be entitled to receive any greater payment under Sections 6.2 and 6.3 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant.  A Participant that would be a Foreign Lender if it were a Lender to the Borrower shall not be entitled to the benefits of Section 6.3 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with subsection 6.3.5 as though it were a Lender to the Borrower.

 

18.7         Promissory Notes

 

Upon the request of any Lender, the Borrower will execute and deliver one or more promissory notes in form and substance acceptable to such Lender, acting reasonably, evidencing the Commitment under this Agreement and any Advances hereunder.

 

19.          MISCELLANEOUS

 

19.1         Notices

 

19.1.1            General.  Except where otherwise expressly specified herein, all notices, requests, demands or other communications between the parties hereto shall be in writing and shall be made by prepaid registered mail, prepaid overnight courier, fax or physical delivery to the address or fax number of such party and to the attention indicated on the signature page of this Agreement of such party or to any other address, attention or fax number which such party hereto may subsequently communicate to each in writing in such manner. Any notice, request, demand or other communication shall be deemed to have been received by the party to whom it is addressed (a) upon receipt by the addressee (or refusal thereof), in the case of prepaid overnight courier or physical delivery, (b) three days after delivery in the mail, if sent by prepaid registered mail, and (c) on the day of transmission, if faxed before 5:00 p.m. (local time) on a Business Day, and on the next Business Day following transmission, if faxed after 5:00 p.m. (local time) on a Business Day; provided that, any notice to the Borrower shall be deemed to be notice to all Obligors.  If normal postal or fax service is interrupted by strike, work slow-down or other cause, the party sending the notice shall use such services which have

 

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not been interrupted or shall deliver such notice by messenger in order to ensure its prompt receipt by the other party.  Notwithstanding any other provision in the Loan Documents, any notice, request, demand or other communication which is required to be given or delivered to any Guarantor hereunder or under any other Loan Document shall be deemed to have been given to and received by such Obligor if given in the manner required by this Section to the Borrower.

 

19.1.2            Electronic Communications.  Notices and other communications by the Agent to the Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic communication (including email and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that the foregoing shall not apply to notices by the Agent to any Lender of Advances to be made or Letters of Credit to be issued if such Lender has notified the Agent that it is incapable of receiving notices by electronic communication.  The Agent or the Borrower may, in their discretion, agree to accept notices and other communications to each other hereunder by electronic communications pursuant to procedures approved by them, provided that approval of such procedures may be limited to particular notices or communications.

 

Unless the Agent otherwise prescribes, (a) notices and other communications sent to an email 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 email or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, and (b) 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 clause (a) of notification that such notice or communication is available and identifying the website address therefor.

 

19.2         Amendment and Waiver

 

The rights, remedies and recourses of the Agent and the Lenders under this Agreement and the other Loan Documents are cumulative and do not exclude any other rights, remedies and recourses which the Agent or the Lenders might have, and no omission or delay on the part of the Agent or the Lenders in the exercise of any right shall have the effect of operating as a waiver of any such right, remedy or recourse, and the partial or sole exercise of a right, remedy, recourse or power will not prevent the Agent or the Lenders from exercising thereafter any other right, remedy, recourse or power.  Without limiting the generality of the foregoing sentence, in the event that the Agent does not immediately make a declaration accelerating the Loan Obligations under Section 15.2 following the occurrence of an Event of Default, such absence of a declaration shall not be construed as a waiver of its right to make such a declaration and shall in no way

 

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hinder, estop or prevent the Agent from making such a declaration at a later time.  The provisions of this Agreement may only be amended or waived by an instrument in writing in each case signed by the Agent with the approval of, as applicable, the Lenders or Majority Lenders in accordance with Section 16.15, or by the Lenders or Majority Lenders, as applicable, on the same terms, and further, unless otherwise expressly provided herein, may only be amended by written instrument of the Obligors.

 

19.3         Lender Replacement

 

19.3.1            The Borrower may, at any time, by written request to the Agent (each, a “Unanimous Lender Request”), request an amendment or waiver that requires the prior written consent of each Lender pursuant to Section 16.15.  A copy of the Unanimous Lender Request shall be provided by the Agent to each Lender.  Each Lender may, in its sole discretion, by written notice to the Agent (the “Unanimous Lender Response Notice”), within ten Business Days of the Agent’s receipt of the Unanimous Lender Request (the “Unanimous Lender Response Period”), approve or decline the Unanimous Lender Request.  If any Lender does not provide a Unanimous Lender Response Notice within the Unanimous Lender Response Period, such Lender shall be deemed to have declined the Unanimous Lender Request.

 

19.3.2            On or before the second Business Day after the Unanimous Lender Response Period, the Agent shall give written notice (the “Accepting Lender Notice”) to the Borrower and each Lender, identifying each Lender that approved the Unanimous Lender Request within the Unanimous Lender Response Period (the “Approving Lenders”) and each Lender that declined or was deemed to have declined the Unanimous Lender Request (the “Declining Lenders”) and their respective Commitments, and if Lenders with Commitments that in the aggregate are greater than 30% of the aggregate Commitments of all Lenders do not approve the Unanimous Lender Request, the notice shall state that the Unanimous Lender Request has been declined.  In such case, the Unanimous Lender Request will be declined.

 

19.3.3            If the aggregate Commitments of the Approving Lenders are equal to or greater than 70% but less than 100% of the aggregate Commitments of all Lenders, the Borrower may, at any time on or before the tenth Business Day following the receipt of the Accepting Lender Notice, by written request to the Agent (each, an “Acquisition Request Notice”), a copy which shall be provided by the Agent to each Lender within one Business Day of the Agent receiving same, request that the rights and obligations of the Declining Lenders be assigned in accordance with this Section 19.3 and the following shall apply:

 

19.3.3.1             Any Approving Lender may, at its option, acquire all or any portion of the rights and obligations of the Declining

 

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Lenders under the Loan Documents (all of such rights and obligations being herein called the “Available Amount”) by giving written notice to the Agent (an “Acquisition Notice”) of the portion of the Available Amount which it is prepared to acquire (the “Desired Acquisition Amount”). Such Acquisition Notice shall be given within six Business Days following the giving of the Acquisition Request Notice by the Borrower to the Agent (such deadline being herein called the “Acquisition Deadline”).  If only one Approving Lender gives an Acquisition Notice to the Agent or if more than one Approving Lender gives an Acquisition Notice to the Agent but the aggregate of their Desired Acquisition Amounts is less than or equal to the Available Amount, then each such Approving Lender shall be entitled to acquire its Desired Acquisition Amount of the rights and obligations of the Declining Lenders under the Loan Documents.  If more than one Approving Lender gives an Acquisition Notice to the Agent and the aggregate of the Desired Acquisition Amounts is greater than the Available Amount, then each such Approving Lender shall be entitled to acquire a pro rata share of the rights and obligations of the Declining Lenders under the Loan Documents, such pro rata share being determined based on the relative Desired Acquisition Amount of each such Approving Lender.

 

19.3.3.2             On or before the second Business Day following the Acquisition Deadline, the Agent shall give to the Borrower and each Lender a written notice identifying the Available Amount of each Declining Lender and the portion thereof to be acquired by each Approving Lender.  Each of such acquisitions shall be completed on the date which is ten Business Days following the Acquisition Deadline, in accordance with the procedures set out in Section 18.2.  If a Declining Lender or an Affiliate of such Declining Lender is a party to a Derivative Instrument with an Obligor, upon the completion of the acquisition of such Declining Lender’s portion of the Available Amount, such Declining Lender shall either (i) terminate each guarantee provided by any Obligor in connection therewith, in which case, such assigning Lenders or its applicable Affiliate shall be deemed to be an Other Derivative Counterparty or (ii) assign, at a price determined in a reasonable manner from market quotations in accordance with customary market practices, all Derivative Instruments it or they hold with each Obligor to the applicable assignee or to another Lender or its Affiliate or to an Other Derivative Counterparty, and if, upon such assignment, any guarantee

 

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provided by any Obligor in connection therewith would not constitute Permitted Debt, such assigning Lender shall, or shall cause its Affiliate to, terminate such guarantee.

 

19.3.3.3                                      If the Available Amount is not completely acquired by the Approving Lenders, the Borrower may locate other Persons (“Substitute Lenders”) who are approved by the Agent (subject to Section 18.2.2.2) and the Issuing Lender (subject to Section 18.2.2.3), and who acquire all or a portion of the balance of the rights and obligations of the Declining Lenders under the Loan Documents on the date which is ten Business Days following the Acquisition Deadline, in accordance with the procedures set out in Section 18.2.

 

19.3.3.4                                      Any outstanding credit extended by the Declining Lenders to the Borrower under the Credit Facility which is not acquired by Approving Lenders or Substitute Lenders under Sections 19.3.3.2 or 19.3.3.3 shall be repaid by the Borrower, and the Commitments of the Declining Lenders not so acquired shall be cancelled on the date which is ten Business Days following the Acquisition Deadline and the amount of the Credit Facilities shall thereupon be reduced by the aggregate of the Commitments so cancelled, if any.  The Borrower shall comply with Section 6.4 in connection with any such prepayment.  As concerns any BA Advances that otherwise would be subject to prepayment pursuant to this Section 19.3.3.4, the Borrower shall forthwith pay to the Agent an amount equal to the aggregate of the face amount of such BA Advances, such amount to be held by the Agent against any amount owing by the Borrower to such Declining Lenders in respect of such BA Advances.  Any such amount paid to the Agent shall be held on deposit by the Agent until the maturity date of such BA Advances, at which time it shall be applied against the indebtedness of the Borrower to such Declining Lenders thereunder.  The Borrower shall be entitled to receive interest on cash or Cash Equivalents held by the Agent under this Section if no Event of Default has occurred and is continuing, but neither the Agent nor any Lender shall be responsible for the rate of return, if any, earned on such amounts. As concerns any Letter of Credit or Swing Line Loans that otherwise would be subject to prepayment pursuant to this Section 19.3.3.4, the Borrower shall forthwith pay to the Issuing Lender cash or Cash Equivalents in an amount equal to the Letter of Credit Obligations (if any) which are in excess of the aggregate

 

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Commitments (after giving effect to such  prepayments pursuant to this Section 19.3.3.4 and under Section 2.6.1) , such amount to be held by the Issuing Lender subject to Section 15.4, and the Borrower shall repay the Declining Lenders’ pro rata share of the outstanding Swing Line Loans to the Swing Line Lender.

 

19.3.3.5                                      For greater certainty, once there are no Declining Lenders that hold any Commitments, the relevant Unanimous Lender Request shall be deemed to have been approved.

 

19.3.3.6                                      The Borrower may at any time prior to the commencement of the transactions contemplated by Sections 19.3.3.2, 19.3.3.3 or 19.3.3.4, by written notice to the Agent (a copy of which shall be promptly provided to each Lender), terminate and cancel any assignment or repayment contemplated thereby, whereupon the Acquisition Request Notice shall be deemed to have been withdrawn and Section 19.3.3 shall not apply in respect of the Unanimous Lender Request.

 

19.4                           Independent Engineer and Other Consultants

 

Subject to Sections 12.10 and 12.14, the Agent and/or the Majority Lenders shall have the right at any time and from time to time to appoint an independent engineer to act on behalf of the Agent and the Lenders for such purposes as the Agent or the Majority Lenders may determine to carry out such duties as may be set forth in this Agreement or as may be required by the Agent or the Majority Lenders from time to time. Subject to Sections 12.10 and 12.14, the Agent and/or the Lenders may also, from time to time, consult and retain any other independent consultants determined by them to be appropriate for the same purpose.

 

19.5                           Entire Agreement

 

The entire agreement between the parties is expressed herein, and no variation or modification of its terms shall be valid unless expressed in writing and signed by the parties.  All previous agreements, promises, proposals, representations, understandings and negotiations between the parties hereto which relate in any way to the subject matter of this Agreement are hereby deemed to be null and void.

 

19.6                           Indemnification and Set-Off

 

In addition to the other rights now or hereafter conferred by Applicable Law and those described in subsection 5.6.2 and Section 7.10, and without limiting such rights, following the occurrence of an Event of Default which is continuing, each Lender and the Agent is hereby authorized by each Obligor, at any time and from time to time, subject to the obligation to give notice to the Borrower subsequently and within a reasonable time, to set off, indemnify, compensate, use and allocate any deposit (general

 

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or special, term or demand, including any debt evidenced by certificates of deposit, whether or not  matured) and any other debt at any time held or due by a Lender to an Obligor or to its credit or its account, with respect to and on account of the Loan Obligations and the Other Supported Obligations, including, without limitation, the accounts of any nature or kind which flow from or relate to this Agreement or the other Loan Documents, and whether or not the Agent has made demand under the terms hereof or has declared the amounts referred to in Section 15.2 as payable in accordance with the provisions of that Section and even if such obligation and Debt or either of them is a future or unmatured Debt.

 

19.7                           Benefit of Agreement

 

This Agreement shall be binding upon and enure to the benefit of each party hereto and its successors and permitted assigns.

 

19.8                           Counterparts

 

This Agreement may be signed in any number of counterparts, each of which shall be deemed to constitute an original, and all of the separate counterparts shall constitute one single document.  Delivery of an executed counterpart of a signature page of this Agreement by fax or by sending a scanned copy by electronic mail shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

19.9                           This Agreement to Govern

 

In the event of any conflict or inconsistency between the terms of this Agreement and the terms of any other Loan Document, the provisions of this Agreement shall govern to the extent necessary to remove the conflict or inconsistency.

 

19.10                     Applicable Law

 

This Agreement, its interpretation and its application shall be governed by the laws of the Province of Ontario and the laws of Canada applicable therein.

 

19.11                     Severability

 

Each provision of this Agreement is separate and distinct from the others, such that any decision of a court or tribunal to the effect that any provision of this Agreement is null or unenforceable shall in no way affect the validity of the other provisions of this Agreement or the enforceability thereof.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by Applicable Law, each Obligor hereby waives any provision of any Applicable Law that renders any provision hereof prohibited or unenforceable in any respect.

 

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19.12                     Further Assurances

 

Each Obligor covenants and agrees that, at the request of the Agent, it will at any time and from time to time execute and deliver such further and other documents and instruments and do all acts and things as the Agent may reasonably require in order to evidence the Debt of the Borrower under this Agreement or otherwise, to confirm its Guarantee or to further implement or evidence any provision hereof or of the other Loan Documents.

 

19.13                     Good Faith and Fair Consideration

 

Each party hereto acknowledges and declares that it has entered into this Agreement freely and of its own will.  In particular, each party hereto acknowledges that this Agreement was freely negotiated by it in good faith, there was no exploitation of the Obligors by the Lenders and there is no serious disproportion between the consideration provided by the Lenders and that provided by the Obligors.

 

19.14                     Responsibility of the Lenders

 

Each Lender shall be solely responsible for the performance of its own obligations hereunder.  Accordingly, no Lender is in any way or jointly or jointly and severally responsible for the performance of the obligations of any other Lender.

 

19.15                     Indemnity

 

The Borrower shall indemnify and hold harmless each Supported Party and their agents, consultants and advisors (other than agents, consultants and advisors to the extent that their costs and expenses are not, pursuant to Section 12.14, to be borne by the Borrower), and each of their Related Parties and each of their agents, consultants and advisors (other than agents, consultants and advisors to the extent that their costs and expenses are not, pursuant to Section 12.14, to be borne by the Borrower), (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities, costs and expenses (including, without limitation, reasonable fees and expenses of counsel), including Environmental Claims, (each, a “Claim”) that may be incurred by, or asserted or awarded against, any Indemnified Party, in each case arising out of, or in connection with, or by reason of, any investigation, litigation or proceeding (or the preparation for the defence of any investigation, litigation or proceeding), brought by Persons other than an Indemnified Party arising out of, related to or in connection with (a) this Agreement, (b) the other Loan Documents or (c) any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances, whether or not such investigation, litigation or proceeding is brought by any Obligor, its directors, shareholders or creditors or by an Indemnified Party, or any other Person, or any Indemnified Party is otherwise a party thereto, and whether or not the transactions contemplated hereby are consummated; except to the extent (i) such Claim results from such Indemnified Party’s gross negligence, wilful misconduct, fraud, bad faith or breach of any Loan Document to which such Indemnified Party is a party or relates to the liability of an Indemnified Party to an Obligor under any Loan Document or (ii) relates

 

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solely to a Claim between Indemnified Parties resulting from a Claim brought by any Person, with no fault on the part of any Obligor; provided that in the case of clauses (i) and (ii) above, the Borrower has obtained a judgment in its favour of a court of competent jurisdiction.  Each Obligor agrees not to assert any claim against any Indemnified Party, and, without in any way limiting any of their other rights or remedies hereunder or at law, each Lender and the Agent, also agrees not to assert any claim against any Obligor, its officers, directors, employees, agents or advisors, on any theory of liability for special, indirect, consequential or punitive damages arising out of or otherwise relating to this Agreement and the other Loan Documents and any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances.  The agreements in this Section shall survive the termination of the Commitments and the repayment of all other amounts outstanding hereunder and under the other Loan Documents.

 

19.16                     Confidentiality

 

19.16.1                               Each of the Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to it, its Affiliates and its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (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 requested by any regulatory authority purporting having jurisdiction over it (including any self-regulatory authority), (c) to the extent required by Applicable Law or by any subpoena or similar legal process, (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 or obligations under this Agreement, or (ii) any actual or prospective counterparty (or its advisors) to any Derivative Instrument, credit-linked note or similar transaction relating to the Obligors and their obligations, (g) with the consent of the Borrower, or (h) 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 or any Lender on a non-confidential basis from a source other than an Obligor.

 

19.16.2                               For purposes of this Section, “Information” means all information received in connection with this Agreement from any Obligor or any Related Person in respect thereof or any of their respective advisors, in each case, relating to any Obligor or any of its Subsidiaries or any of their respective businesses, other than any such information that is

 

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available to the Agent or any Lender on a non-confidential basis prior to such receipt.  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.  In addition, the Agent may disclose to any agency or organization that assigns standard identification numbers to loan facilities such basic information describing the facilities provided hereunder as is necessary to assign unique identifiers (and, if requested, supply a copy of this Agreement), it being understood that the Person to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to make available to the public only such Information as such person normally makes available in the course of its business of assigning identification numbers.

 

19.16.3                               In addition, and notwithstanding anything herein to the contrary, the Agent may provide the information described on Exhibit C concerning the Borrower and the credit facilities established herein to Loan Pricing Corporation and/or other recognized trade publishers of information for general circulation in the loan market.

 

19.16.4                               Each Obligor agrees that Export Development Canada may disclose Information (i)  to the Minister of Finance, the Treasury Board or the Auditor General, (ii) as required by the disclosure policy of Export Development Canada or (iii) under the international commitments of the Government of Canada or Export Development Canada.

 

19.17                     Reinstatement

 

This Agreement shall remain in full force and effect and continue to be effective if any petition or other proceeding is filed by or against the Borrower or any other Obligor for liquidation or reorganization, or if the Borrower or any other Obligor becomes insolvent or makes an assignment for the benefit of any creditor or creditors, or if an interim receiver, receiver, receiver and manager or trustee be appointed for all or any significant part of the Property of the Borrower or any other Obligor, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and performance of the obligations hereunder or under the other Loan Documents, or any part thereof, is, pursuant to Applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of such obligations, whether as a fraudulent preference, a reviewable transaction, or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the obligations hereunder and under the other Loan Documents shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

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19.18                     Submission to Jurisdiction

 

Each Obligor irrevocably and unconditionally submits, for itself and its Property, to the non-exclusive jurisdiction of the courts of the Province of Ontario, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such court.  Each of the parties hereto agrees that a final judgment in any such action 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 any Obligor or its Property in the courts of any jurisdiction.

 

19.19                     Waiver of Venue

 

Each Obligor 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 Section 19.18.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defence of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

19.20                     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 (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

19.21                     Language

 

The parties acknowledge that they have required that this Agreement, the Loan Documents and all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto be drawn up in English.  Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention

 

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ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relativement ou à la suite de la présente convention.

 

19.22                     Third Party Beneficiaries

 

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 Section 18.5 and, to the extent 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.

 

19.23                     Formal Date

 

For the purposes of convenience, this Agreement may be referred to as bearing the formal date of June 22, 2010, notwithstanding its actual date of signature.

 

19.24                     Swedish Companies Act

 

Notwithstanding anything to the contrary herein, the obligations and liabilities of any Obligor incorporated under the laws of Sweden (each, a “Swedish Obligor”) under this Agreement and the scope of this Agreement as it relates to any such Swedish Obligor shall be limited if (and only if) required by an application of the provisions of the Swedish Companies Act (in Swedish: Aktiebolagslagen (2005:551)) regulating prohibited loans and guarantees and the distribution of assets, and it is understood that the obligations of the Swedish Obligor for its obligations and liabilities hereunder shall apply only to the extent permitted by the above-mentioned provisions as applied, together with other applicable provisions of the said Companies Act, and the Agreement shall be limited in accordance with this Section 19.24. For greater certainty, nothing in this Section19.24 shall affect the obligations and liabilities of any other Obligor or any other aspect of this Agreement.

 

19.25                     Finnish Companies Act

 

Notwithstanding anything to the contrary herein, the obligations and liabilities of any Obligor incorporated under the laws of Finland (each a “Finnish Obligor”) under this Agreement and the scope of this Agreement as it relates to any such Finnish Obligor shall be limited if (and only if) required by an application of the provisions of the Finnish Companies Act (in Finnish: Osakeyhtiölaki — 624/2006) regulating prohibited loans and guarantees and the distribution of assets, and it is understood that the obligations of the Finnish Obligor for its obligations and liabilities hereunder shall apply only to the extent permitted by the above-mentioned provisions as applied, together with other applicable provisions of the said Companies Act, and the Agreement shall be limited in accordance with this Section 19.25. For greater certainty, nothing in this Section 19.25 shall affect the obligations and liabilities of any other Obligor or any other aspect of this Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
THE BANK OF NOVA SCOTIA,
    
	
 
    	
as Administrative Agent
    
	
40 King Street West
    	
 
    
	
Scotia Plaza, 62nd Floor
    	
 
    
	
Toronto, Ontario
    	
By: 
    	
“Robert Boomhour”
    
	
M5W 2X6
    	
 
    	
Name: 
    	
Robert Boomhour
    
	
 
    	
 
    	
Title: 
    	
Director
    
	
Attention: Alastair Borthwick
    	
 
    
	
 
    	
 
    
	
Telecopier: (416) 866-3329
    	
By: 
    	
“Stella Luna”
    
	
 
    	
 
    	
Name: 
    	
Stella Luna
    
	
 
    	
 
    	
Title: 
    	
Associate Director
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S1

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
THE BANK OF NOVA SCOTIA,
    
	
 
    	
as Lender
    
	
40 King Street West
    	
 
    
	
Scotia Plaza, 62nd Floor
    	
 
    
	
Toronto, Ontario
    	
By: 
    	
“Ray Clarke”
    
	
M5W 2X6
    	
 
    	
Name: 
    	
Ray Clarke
    
	
 
    	
 
    	
Title: 
    	
Managing Director
    
	
Attention: Ray Clarke
    	
 
    
	
 
    	
 
    
	
Facsimile: (416) 866-2009
    	
By: 
    	
“Ian Stephenson”
    
	
 
    	
 
    	
Name: 
    	
Ian Stephenson
    
	
 
    	
 
    	
Title: 
    	
Associate Director
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S2

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
THE TORONTO-DOMINION BANK
    
	
 
    	
 
    
	
66 Wellington Street West
    	
 
    
	
TD Tower, 9th Floor
    	
By: 
    	
“Rohan Appadurai”
    
	
Toronto, Ontario
    	
 
    	
Name: 
    	
Rohan Appadurai
    
	
M5K 1A2
    	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
Attention: 
    	
Rohan Appadurai
    	
 
    
	
 
    	
 
    	
By: 
    	
“Liza Straker”
    
	
Facsimile: 
    	
(416) 944-5164
    	
 
    	
Name: 
    	
Liza Straker
    
	
 
    	
 
    	
Title: 
    	
Vice President
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S3

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
BANK OF MONTREAL
    
	
 
    	
 
    
	
Loan Products Group
    	
 
    
	
100 King Street West
    	
By: 
    	
“R. Wright”
    
	
4th Floor
    	
 
    	
Name: 
    	
R. Wright
    
	
Toronto, Ontario
    	
 
    	
Title: 
    	
Vice-President
    
	
M5X 1A1
    	
 
    
	
 
    	
 
    
	
Attention: 
    	
Robert Wright
    	
By: 
    	
 
    
	
 
    	
 
    	
 
    	
Name: 
    	
 
    
	
Facsimile: 
    	
(416) 359-7796
    	
 
    	
Title: 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S4

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
CANADIAN IMPERIAL BANK OF   COMMERCE
    
	
 
    	
 
    
	
161 Bay Street
    	
 
    
	
8th Floor
    	
 
    
	
Toronto, Ontario
    	
By: 
    	
“Peter Rawlins”
    
	
M5J 2S8
    	
 
    	
Name: 
    	
Peter Rawlins
    
	
 
    	
 
    	
Title: 
    	
Executive Director
    
	
 
    	
 
    	
 
    
	
Attention: 
    	
Peter Rawlins / Robert Riverso
    	
By: 
    	
“David J. Cohen”
    
	
 
    	
 
    	
 
    	
Name: 
    	
David J. Cohen
    
	
Facsimile: 
    	
(416) 594-8347
    	
 
    	
Title: 
    	
Executive Director
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S5

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
SOCIÉTÉ GÉNÉRALE (CANADA   BRANCH)
    
	
 
    	
 
    
	
c/o Société Générale
    	
 
    
	
480 Washington Boulevard
    	
 
    
	
20th Floor
    	
By: 
    	
“Michael C. Manion”
    
	
Jersey City, New Jersey
    	
 
    	
Name: 
    	
Michael C. Manion
    
	
07310
    	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
Attention:
    	
Colleen Messina,
    	
By: 
    	
“Simona Lungu”
    
	
 
    	
Deal Administrator
    	
 
    	
Name: 
    	
Simona Lungu
    
	
 
    	
 
    	
Title: 
    	
Vice-President
    
	
Facsimile: 201-839-8125
    	
 
    
	
 
    	
 
    
	
With a copy to:
    	
 
    
	
 
    	
 
    
	
100 Yonge Street, Suite 1002
    	
 
    
	
Toronto, Ontario
    	
 
    
	
M5C 2W1
    	
 
    
	
 
    	
 
    
	
Attention: 
    	
Michael Manion
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile: 
    	
(416) 364-1879
    	
 
    
						

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S6

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
ROYAL BANK OF CANADA
    
	
 
    	
 
    
	
5th Floor, South   Tower
    	
 
    
	
Royal Bank Plaza
    	
By: 
    	
“Stam Fountoulakis”
    
	
200 Bay Street
    	
 
    	
Name: 
    	
Stam Fountoulakis
    
	
Toronto, Ontario
    	
 
    	
Title: 
    	
Authorized Signatory
    
	
M5J 2W7
    	
 
    
	
 
    	
 
    
	
Attention: 
    	
Stam Fountoulakis
    	
By: 
    	
 
    
	
 
    	
 
    	
 
    	
Name: 
    	
 
    
	
Facsimile: 
    	
(416) 842-5320
    	
 
    	
Title: 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S7

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
COMMONWEALTH BANK OF AUSTRALIA
    
	
 
    	
 
    
	
599 Lexington Avenue
    	
 
    
	
Floor 17
    	
 
    
	
New York, New York
    	
By: 
    	
“Greg Caione”
    
	
U.S.A. 10022
    	
 
    	
Name: 
    	
Greg Caione
    
	
 
    	
 
    	
Title: 
    	
Head of Natural Resources —  Americas
    
	
 
    	
 
    
	
Attention: 
    	
Greg Caione
    	
 
    
	
 
    	
 
    	
By: 
    	
 
    
	
Facsimile: 
    	
(212) 336-7722
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title: 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S8

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    
	
5 The North Colonnade
    	
 
    
	
Canary Wharf
    	
By: 
    	
“Colin Hall”
    
	
London, England
    	
 
    	
Name: 
    	
Colin Hall
    
	
E14 4BB
    	
 
    	
Title: 
    	
Assistant Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
Attention: 
    	
Colin Hall
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile: 
    	
020 7773 1840
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S9

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
BANK OF AMERICA, N.A., CANADA   BRANCH
    
	
 
    	
 
    
	
200 Front Street West
    	
 
    
	
Toronto, Ontario
    	
By: 
    	
“Medina Sales de Andrade”
    
	
M5V 3L2
    	
 
    	
Name: 
    	
Medina Sales de Andrade
    
	
 
    	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
Attention: 
    	
Scott T. Hitchens / Medina
    	
 
    	
 
    
	
 
    	
Sales de Andrade
    	
By: 
    	
 
    
	
 
    	
 
    	
 
    	
Name: 
    	
 
    
	
Facsimile: 
    	
(980) 683-6306 /
    	
 
    	
Title: 
    	
 
    
	
 
    	
(416) 349-4283
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S10

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
NATIONAL BANK OF CANADA
    
	
 
    	
 
    
	
Credit Capital Markets
    	
 
    
	
1155 Metcalfe Street
    	
By: 
    	
“Roch Ledoux”
    
	
5th Floor
    	
 
    	
Name: 
    	
Roch Ledoux
    
	
Montreal, Quebec
    	
 
    	
Title: 
    	
Directeur - Director
    
	
H3B 4S9
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention: 
    	
Roch Ledoux
    	
By: 
    	
“Alain Aubin”
    
	
 
    	
 
    	
 
    	
Name: 
    	
Alain Aubin
    
	
Facsimile: 
    	
(514) 390-7860
    	
 
    	
Title: 
    	
Directeur - Director
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S11

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
MACQUARIE BANK LIMITED
    
	
 
    	
 
    
	
1 Martin Place
    	
 
    
	
Sydney, New South Wales 2000
    	
By: 
    	
“Katie Choi”
    
	
Australia
    	
 
    	
Name: 
    	
Katie Choi
    
	
 
    	
 
    	
Title: 
    	
Division Director
    
	
Attention:   
    	
Executive   Director, Legal Risk
    	
 
    	
 
    
	
 
    	
Management,   Treasury and
    	
 
    	
 
    
	
 
    	
Commodities   Group
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile: +612 8232 4540
    	
By: 
    	
“Robert McRobbie”
    
	
 
    	
 
    	
Name: 
    	
Robert McRobbie
    
	
 
    	
 
    	
Title: 
    	
Division Director  Legal Risk Management
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S12

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
CREDIT SUISSE AG, TORONTO   BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
1 First Canadian Place, Suite 2900
    	
 
    	
 
    
	
P.O. Box 301
    	
By:
    	
“Alain Daoust”
    
	
Toronto, Ontario
    	
 
    	
Name:  Alain   Daoust
    
	
M5X 1C9
    	
 
    	
Title:  Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
Alain Daoust
    	
By:
    	
“Bruce F. Wetherly”
    
	
Facsimile:
    	
(416) 352-4576
    	
 
    	
Name:  Bruce F. Wetherly
    
	
PC Fax:
    	
(416) 352-0927
    	
 
    	
Title:  Director
    
	
 
    	
 
    
	
cc:
    	
Nicholas Lam, Loan Operations
    	
 
    
	
Facsimile:
    	
(416) 352-4688
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S13

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
EXPORT DEVELOPMENT CANADA
    
	
 
    	
 
    
	
151 O’Connor Street
    	
 
    	
 
    
	
Ottawa, Ontario
    	
By:
    	
“Joanne Tognarelli”
    
	
K1A 1K3
    	
 
    	
Name:    Joanne Tognarelli
    
	
 
    	
 
    	
Title:    Financing Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attention:
    	
Matthew Devine
    	
By:
    	
“Deepak Dave”
    
	
 
    	
 
    	
 
    	
Name:    Deepak Dave
    
	
Facsimile:
    	
(613) 598-3186
    	
 
    	
Title:    Principal
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S14

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE MINES LIMITED
    
	
 
    	
 
    
	
145 King Street East, Suite 400
    	
 
    	
 
    
	
Toronto, Ontario
    	
By:
    	
“Claudio Mancuso”
    
	
M5C 2Y7
    	
 
    	
Name:    Claudio Mancuso
    
	
 
    	
 
    	
Title:    Vice-President, Treasurer
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S15

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
1715495 ONTARIO INC.
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Claudio Mancuso”
    
	
Toronto, Ontario
    	
 
    	
Name:    Claudio Mancuso
    
	
M5C 2Y7
    	
 
    	
Title:    Authorized Signatory
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S16

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
1641315 ONTARIO INC.
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Claudio Mancuso”
    
	
Toronto, Ontario
    	
 
    	
Name:    Claudio Mancuso
    
	
M5C 2Y7
    	
 
    	
Title:    Authorized Signatory
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S17

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE SWEDEN AB
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Ingmar Haga”
    
	
Toronto, Ontario
    	
 
    	
Name:    Ingmar Haga
    
	
M5C 2Y7
    	
 
    	
Title:    Director
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S18

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE FINLAND OY
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Ingmar Haga”
    
	
Toronto, Ontario
    	
 
    	
Name:    Ingmar Haga
    
	
M5C 2Y7
    	
 
    	
Title:    Director
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S19

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE AB
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Ingmar Haga”
    
	
Toronto, Ontario
    	
 
    	
Name:    Ingmar Haga
    
	
M5C 2Y7
    	
 
    	
Title:    Director
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S20

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
RIDDARHYTTAN RESOURCES AB
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Ingmar Haga”
    
	
Toronto, Ontario
    	
 
    	
Name:    Ingmar Haga
    
	
M5C 2Y7
    	
 
    	
Title:    Director
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S21

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO EAGLE MEXICO S.A. DE C.V.
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Rodrigo   Sánchez Mejorada V.”
    
	
Toronto, Ontario
    	
 
    	
Name:  Rodrigo Sánchez Mejorada V.
    
	
M5C 2Y7
    	
 
    	
Title:    Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S22

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
TENEDORA AGNICO EAGLE MEXICO S.A. DE C.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Rodrigo Sánchez   Mejorada V.”
    
	
Toronto, Ontario
    	
 
    	
Name:  Rodrigo Sánchez Mejorada V.
    
	
M5C 2Y7
    	
 
    	
Title:    Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S23

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE MINES MEXICO COOPERATIE U.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Jacobus Alexander Hendrik   Groesbeek”
    
	
Toronto, Ontario
    	
 
    	
Name:    Jacobus Alexander Hendrik Groesbeek
    
	
M5C 2Y7
    	
 
    	
Title:    Director B
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S24

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first hereinabove mentioned.

 

	
Address For Notice
    	
AGNICO-EAGLE MINES SWEDEN COOPERATIE U.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
c/o Agnico-Eagle Mines Limited
    	
 
    	
 
    
	
145 King Street East, Suite 400
    	
By:
    	
“Jacobus Alexander Hendrik   Groesbeek”
    
	
Toronto, Ontario
    	
 
    	
Name:    Jacobus Alexander Hendrik Groesbeek
    
	
M5C 2Y7
    	
 
    	
Title:    Director B
    
	
 
    	
 
    	
 
    
	
Attention:  David   Garofalo
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile:  (416)   367-4681
    	
 
    	
 
    

 

[signature page for Amended and Restated Credit Agreement relating to The Bank of Nova Scotia, as administrative agent, Agnico-Eagle Mines Limited, as borrower, et al.]

 

S25

 

EXHIBIT A
 COMMITMENTS

 

	
Lender
    	
 
    	
Commitment
    	
 
    
	
The Bank of Nova Scotia
    	
 
    	
US$
    	
220,000,000
    	
 
    
	
The Toronto-Dominion Bank
    	
 
    	
US$
    	
175,000,000
    	
 
    
	
Bank of Montreal
    	
 
    	
US$
    	
100,000,000
    	
 
    
	
Canadian Imperial Bank of Commerce
    	
 
    	
US$
    	
100,000,000
    	
 
    
	
Société Générale (Canada Branch)
    	
 
    	
US$
    	
100,000,000
    	
 
    
	
Royal Bank of Canada
    	
 
    	
US$
    	
80,000,000
    	
 
    
	
Commonwealth Bank of Australia
    	
 
    	
US$
    	
80,000,000
    	
 
    
	
Barclays Bank PLC
    	
 
    	
US$
    	
65,000,000
    	
 
    
	
Bank of America, N.A., Canada Branch
    	
 
    	
US$
    	
65,000,000
    	
 
    
	
National Bank of Canada
    	
 
    	
US$
    	
65,000,000
    	
 
    
	
Macquarie Bank Limited
    	
 
    	
US$
    	
50,000,000
    	
 
    
	
Credit Suisse AG, Toronto Branch
    	
 
    	
US$
    	
50,000,000
    	
 
    
	
Export Development Canada
    	
 
    	
US$
    	
50,000,000
    	
 
    

 

 

EXHIBIT B
 ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Agent as contemplated below (a) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including without limitation any letters of credit, guarantees, and swingline loans included in such facilities), and (b) to the extent permitted to be assigned under Applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan-transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (a) above (the rights and obligations sold and assigned pursuant to clauses (a) and (b) above being referred to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	
Assignor:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Assignee:
    	
 
    	
 
    
	
 
    	
  [and is an Affiliate/Approved   Fund of [identify Lender](1) ]
    
	
 
    	
 
    
	
Borrower(s):
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Agent:
    	
 
    	
  ,
    
	
 
    	
  as the administrative agent under   the Credit Agreement
    

 

(1)     Select as applicable.

 

 

	
Credit Agreement:
    	
[The [amount] Credit Agreement dated as of                        among [name of Borrower], the Lenders parties thereto, [name of   administrative agent], as Agent, and the other agents parties thereto]
    

 

Assigned Interest:

 

	
Aggregate Amount of
   Commitment/Loans
   for all Lenders(2)
    	
 
    	
Amount of
   Commitment/Loans
   Assigned
    	
 
    	
Percentage Assigned of
   Commitment/Loans(3)
    	
 
    	
CUSIP Number
    	
 
    
	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    	
 
    	
 
    
										

 

[Trade Date:                                               ](4)

 

(2)     Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

(3)     Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

(4)     To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

2

 

Effective Date:                        , 20       [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
 
    	
ASSIGNOR
    
	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE
    
	
 
    	
[NAME OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

	
[Consented to and](5) Accepted:
    
	
 
    
	
[NAME OF AGENT], as Administrative Agent
    
	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    
	
 
    
	
[Consented to:](6)
    
	
 
    
	
[NAME OF RELEVANT PARTY]
    
	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

(5)     To be added only if the consent of the Agent is required by the terms of the Credit Agreement.

 

(6)     To be added only if the consent of the Borrower and/or other parties (e.g., Issuing Lender) is required by the terms of the Credit Agreement.

 

3

 

ANNEX 1 to Assignment and Assumption

 

[                                                            ](1)

 

STANDARD TERMS AND CONDITIONS FOR
 ASSIGNMENT AND ASSUMPTION

 

Representations and Warranties.

 

Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document(2), (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section         thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Agent or any other Lender, and (v) if it is a Foreign Lender(3), attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan

 

(1)     Describe Credit Agreement at option of Agent.

 

(2)     The term “Loan Document” should be conformed to the term used in the Credit Agreement.

 

(3)     The concept of “Foreign Lender” should be conformed to the section in the Credit Agreement governing withholding taxes and gross-up.

 

 

Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

Payments.  From and after the Effective Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to, on or after the Effective Date. The Assignor and the Assignee shall make all appropriate adjustments in payments by the Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves.

 

General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law governing the Credit Agreement.

 

2

 

EXHIBIT C
 LOAN MARKET DATA TEMPLATE

 

Recommended Data Fields — At Close

 

The items highlighted in bold are those that Loan Pricing Corporation (LPC) deem essential.  The remaining items are those that LPC has seen become more prominent over time as transparency has increased in the U.S. Loan Market.

 

	
Company Level
    	
 
    	
Deal Specific
    	
 
    	
Facility Specific
    
	
Issuer Name
    	
 
    	
Currency/Amount
    	
 
    	
Currency/Amount
    
	
Location
    	
 
    	
Date
    	
 
    	
Type
    
	
SIC (Cdn)
    	
 
    	
Purpose
    	
 
    	
Purpose
    
	
Identification Number(s)
    	
 
    	
Sponsor
    	
 
    	
Tenor
    
	
Revenue
    	
 
    	
Financial Covenants
    	
 
    	
Term Out Option
    
	
 
    	
 
    	
 
    	
 
    	
Expiration Date
    
	
 
    	
 
    	
Target Company
    	
 
    	
Facility Signing Date
    
	
*Measurement of Risk
    	
 
    	
Assignment Language
    	
 
    	
Pricing
    
	
S&P   Sr. Debt
    	
 
    	
Law Firms
    	
 
    	
Base Rate(s)/Spread(s)/BA/LIBOR
    
	
S&P   Issuer
    	
 
    	
MAC Clause
    	
 
    	
Initial   Pricing Level
    
	
Moody’s   Sr. Debt
    	
 
    	
Springing lien
    	
 
    	
Pricing   Grid (tied to, levels)
    
	
Moody’s   Issuer
    	
 
    	
Cash Dominion
    	
 
    	
Grid   Effective Date
    
	
Fitch   Sr. Debt
    	
 
    	
Mandatory Prepays
    	
 
    	
Fees
    
	
Fitch   Issuer
    	
 
    	
Restrct’d Payments (Neg Covs)
    	
 
    	
 
    
	
S&P Implied
    	
 
    	
 
    	
 
    	
 
    
	
(internal assessment)
    	
 
    	
Other Restrictions
    	
 
    	
Commitment   Fee
    
	
DBRS
    	
 
    	
 
    	
 
    	
 
    
	
Other Ratings
    	
 
    	
 
    	
 
    	
 
    
	
*Industry Classification
    	
 
    	
 
    	
 
    	
 
    
	
Moody’s Industry
    	
 
    	
 
    	
 
    	
 
    
	
S&P Industry
    	
 
    	
 
    	
 
    	
 
    
	
Parent
    	
 
    	
 
    	
 
    	
Prepayment Fee
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Financial Ratios
    	
 
    	
 
    	
 
    	
Other Fees to Market
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Security
    
	
 
    	
 
    	
 
    	
 
    	
Secured/Unsecured
    
	
 
    	
 
    	
 
    	
 
    	
Collateral and Seniority of Claim
    
	
 
    	
 
    	
 
    	
 
    	
Collateral Value
    
	
 
    	
 
    	
 
    	
 
    	
Guarantors
    
	
 
    	
 
    	
 
    	
 
    	
Lenders Names/Titles
    
	
 
    	
 
    	
 
    	
 
    	
Lender Commitment ($)
    
	
 
    	
 
    	
 
    	
 
    	
Commited/Uncommited
    
	
 
    	
 
    	
 
    	
 
    	
Distribution method
    
	
 
    	
 
    	
 
    	
 
    	
Amortization Schedule
    
	
 
    	
 
    	
 
    	
 
    	
Borrowing Base/Advance Rates
    
	
 
    	
 
    	
 
    	
 
    	
New Money Amount
    
	
 
    	
 
    	
 
    	
 
    	
Country of Syndication
    
	
 
    	
 
    	
 
    	
 
    	
Facility Rating (Loss given default)
    
	
 
    	
 
    	
 
    	
 
    	
S&P   Bank Loan
    
	
 
    	
 
    	
 
    	
 
    	
Moody’s   Bank Loan
    
	
 
    	
 
    	
 
    	
 
    	
Fitch   Bank Loan
    
	
 
    	
 
    	
 
    	
 
    	
DBRS
    
	
 
    	
 
    	
 
    	
 
    	
Other   Ratings
    

 

* These items would be considered useful to capture from an analytical perspective

 

 

EXHIBIT D
 NOTICE OF BORROWING AND CERTIFICATE
  [See Sections 3.1, 3.3 and 5.1]

 

	
TO:
    	
The Bank of Nova Scotia
    
	
 
    	
Global Wholesale Services —
    
	
 
    	
Loan Operations department
    
	
 
    	
720 King Street West
    
	
 
    	
Third Floor
    
	
 
    	
Toronto, Ontario
    
	
 
    	
M5V 2T3
    

 

Reference is made to the amended and restated credit agreement dated as of June 22, 2010 between Agnico-Eagle Mines Limited, as borrower, the guarantors from time to time party thereto, The Bank of Nova Scotia, as administrative agent and joint lead arranger, The Toronto-Dominion Bank, as joint lead arranger, and the Lenders from time to time party thereto, as amended, supplemented, restated or replaced from time to time (the “Credit Agreement”). All terms used in this certificate and that are defined in the Credit Agreement will have the meanings defined in the Credit Agreement.

 

A.                                    Request for Advance

 

Notice is hereby given pursuant to the Credit Agreement that the undersigned hereby irrevocably requests as follows:

 

1.                                       that an Advance be made under the Credit Facility;

 

2.                                       the aggregate principal amount of the Advance shall be [choose one] [Cdn. • dollars (C$•)/ US • dollars (US$•)]; and

 

3.                                       the Drawdown Date shall be                                 .

 

4.                                       the Advance shall be in the form of [check one or more and complete details]:

 

	
Prime Rate Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Amount
    	
 
    	
C$
    	
 
    	
 
    
	
Banker’s Acceptances
    	
 
    	
 
    	
 
    	
(   )
    
	
Selected Amount:
    	
 
    	
C$
    	
 
    	
 
    
	
Designated Period
    	
 
    	
 
    	
 
    	
 
    
	
US Base Rate Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Amount
    	
 
    	
US$
    	
 
    	
 
    
	
Libor Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Selected Amount
    	
 
    	
US$
    	
 
    	
 
    
	
Designated Period
    	
 
    	
 
    	
 
    	
 
    
	
Letter of Credit
    	
 
    	
 
    	
 
    	
(   )
    
	
Nominal amount and   currency
    	
 
    	
 
    	
 
    	
 
    
	
Issue date:
    	
 
    	
 
    	
 
    	
 
    
	
Expiry date:
    	
 
    	
 
    	
 
    	
 
    

 

 

	
Name and Address of Beneficiary:
    	
 
    	
 
    	
 
    	
 
    
	
Purpose:
    	
 
    	
 
    	
 
    	
 
    
	
[Note: attach proposed form or   details]
    	
 
    	
 
    	
 
    	
 
    

 

5.                                       the proceeds of the Advance shall be deposited in [specify designated account].

 

The undersigned hereby confirms as follows:

 

(a)                                  the representations and warranties contained in Article 10 of the Credit Agreement, other than those expressly stated to be made as of a specific date or otherwise expressly modified in accordance with Section 10.17 of the Credit Agreement, are true and correct in all material respects on and as of the date hereof with the same force and effect as if such representations and warranties had been made on and as of the date hereof;

 

(b)                                 no Default or Event of Default has occurred and is continuing on the date hereof or will result from the Advance(s) requested herein; and

 

(c)                                  the undersigned will immediately notify you if it becomes aware of the occurrence of any event which would mean that the statements in the immediately preceding paragraphs (a) and (b) would not be true if made on the Drawdown Date.

 

B.                                    Notice of Conversion or Rollover

 

Notice is hereby given pursuant to the Credit Agreement that the undersigned hereby irrevocably requests as follows:

 

1.                                       that                                    [Note: describe outstanding Advance] be converted or rolled over into or extended as [check one or more and complete details]:

 

	
Banker’s Acceptances
    	
 
    	
 
    	
 
    	
(   )
    
	
Selected Amount:
    	
 
    	
C$
    	
 
    	
 
    
	
Designated Period
    	
 
    	
 
    	
 
    	
 
    
	
Libor Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Selected Amount
    	
 
    	
US$
    	
 
    	
 
    
	
Designated Period
    	
 
    	
 
    	
 
    	
 
    

 

2.                                       the date of the conversion, rollover or extension shall be                               .

 

C.                                    Notice of Prepayment

 

Pursuant to Article 2.6.1 of the Credit Agreement, the undersigned hereby irrevocably notifies you of the following:

 

(a)                                  that a prepayment will be made under the Credit Facility;

 

(b)                                 the prepayment represents the following [check one or more]:

 

2

 

	
prepayment in Prime Rate Advances under the   Credit Facility
    	
 
    	
(   )
    
	
prepayment in US Base Rate Advances   under the Credit Facility
    	
 
    	
(   )
    
	
prepayment in Libor Advances under the Credit   Facility
    	
 
    	
(   )
    

 

(c)                                  the prepayment date shall be                                 .

 

(d)                                 the Advance to be paid shall be in the form of [check one or more and complete details]:

 

	
Prime Rate Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Amount
    	
 
    	
C$
    	
 
    	
 
    
	
US Base Rate Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Amount
    	
 
    	
US$
    	
 
    	
 
    
	
Libor Advance
    	
 
    	
 
    	
 
    	
(   )
    
	
Amount
    	
 
    	
US$
    	
 
    	
 
    
	
Maturity Date
    	
 
    	
 
    	
 
    	
 
    

 

D.                                    Notice of Cancellation

 

Pursuant to Article 2.6.2 of the Credit Agreement, the undersigned hereby irrevocably notifies you of the following cancellation of undrawn portions of the Credit Facility:

 

(a)                                  the amount of the Credit Facility to be cancelled is                             ; and

 

(b)                                 the cancellation date shall be                                 .

 

	
DATED
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AGNICO-EAGLE MINES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

3

 

EXHIBIT E
 COMPLIANCE CERTIFICATE
  [See Section 8.2, Article 11 and Sections 13.1.3, 13.1.4, 13.1.5, 13.1.6, 13.1.7 and 13.2.2]

 

TO:                 THE BANK OF NOVA SCOTIA, as Administrative Agent 

 

AND TO:       THE LENDERS (as defined in the Credit Agreement referred to below)

 

Reference is made to the amended and restated credit agreement dated as of June 22, 2010 between Agnico-Eagle Mines Limited, as borrower, the guarantors from time to time party thereto, The Bank of Nova Scotia, as administrative agent and joint lead arranger, The Toronto-Dominion Bank, as joint lead arranger, and the Lenders from time to time party thereto, as amended, supplemented, restated or replaced from time to time (the “Credit Agreement”).  All terms used in this certificate that are defined in the Credit Agreement have the meanings defined in the Credit Agreement.

 

The undersigned hereby certifies that:

 

(a)                                  No Default or Event of Default has occurred and is continuing on the date hereof [or if a Default or Event of Default has occurred and is continuing on the date hereof, a detailed description of the same and the steps the Borrower is taking or proposes to take to cure the same are described on the schedule dealing with the same which is attached hereto].

 

(b)                                 The undersigned hereby certifies that, as of the end of its most recently completed fiscal quarter, which ended on                                 :

 

(i)                                     the Total Net Debt to EBITDA Ratio was                     : 1; and

 

(ii)                                  the Tangible Net Worth for such fiscal quarter was $                            .

 

(c)                                  Set forth on Schedule A hereto are the calculations of the financial covenants referred to in clause (b) above.

 

(d)                                 Attached hereto is a report setting forth each Derivative Instrument to which the Borrower or any other Obligor is a party, together with the counterparty thereto and the Obligor Hedging Exposure thereunder.

 

(e)                                  Attached hereto is an operating report on the mines owned and controlled by the Borrower and its Subsidiaries (being the “Chief Operating Officer’s Quarterly Report to the Board of Directors”).

 

(f)                                    Attached hereto is a copy of the Borrower’s mineral reserve statements.  [Note: only required to be delivered with the Borrower’s annual financial statements.]

 

 

(g)                                 Attached hereto is a copy of the Borrower’s annual life of mine plans.  [Note: only required to be delivered  as soon as practicable and in any event within 270 days after the end of each fiscal year of the Borrower.]

 

(h)                                 The following Persons, which have not previously been reported to the Agent pursuant to Section 8.2 of the Credit Agreement, have become Material Subsidiaries since the Effective Date:                                   .

 

(i)                                     Additional Debt incurred pursuant to Section 1.1.154.14 is as follows:                           .

 

 

	
DATED
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AGNICO-EAGLE MINES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

2

 

EXHIBIT F
 ADDITIONAL GUARANTOR AGREEMENT
  [See Section 8.2]

 

THIS AGREEMENT supplements the amended and restated credit agreement dated as of June 22, 2010 between Agnico-Eagle Mines Limited, as borrower, the guarantors from time to time party thereto, The Bank of Nova Scotia, as administrative agent and joint lead arranger, The Toronto-Dominion Bank, as joint lead arranger, and the Lenders from time to time party thereto, as amended, supplemented, restated or replaced from time to time (the “Credit Agreement”).

 

RECITALS:

 

A.            All terms used in this Agreement that are defined in the Credit Agreement have the meanings defined in the Credit Agreement.

 

B.            The Credit Agreement contemplates that further Subsidiaries of the Borrower shall become Guarantors in certain circumstances.

 

C.            [•] (the “New Subsidiary”) is required or permitted by the Credit Agreement to become a Guarantor.

 

D.            The New Subsidiary has delivered an opinion of its counsel and other resolutions and ancillary documents required by the Credit Agreement.

 

THEREFORE, for value received, and intending to be legally bound by this Agreement, the parties agree as follows:

 

1.             The New Subsidiary hereby acknowledges and agrees to the terms of the Credit Agreement and agrees to be bound by all obligations of a Guarantor, and therefore an Obligor, under the Credit Agreement as if it had been an original signatory thereto.  [Except as set out on Schedule A hereto,] [t/T]he New Subsidiary represents and warrants to the Agent and the Lenders that each of the representations and warranties in Article 10 of the Credit Agreement is true and correct in relation to it.

 

2.             The Agent, on behalf of the Lenders, acknowledges that the New Subsidiary is a Guarantor, and therefore an Obligor, as of the date of this Agreement.

 

3.             This Agreement shall be governed by the laws of the Province of Ontario and the laws of Canada applicable therein.

 

4.             This Agreement and the other Loan Documents have been prepared and signed in English and the parties hereto agree that the English version hereof and thereof (to the maximum extent permitted by applicable law) shall be the only version valid for the purpose of the interpretation and construction hereof and thereof notwithstanding the preparation of any translation into another language hereof or thereof, whether official or otherwise or whether prepared in relation to any proceedings which may be brought in any jurisdiction in respect hereof or thereof.

 

 

5.             This Agreement may be signed in counterparts and transmitted by facsimile or “PDF”, each of which shall be considered an original and all of such counterparts taken together shall constitute one and the same agreement.

 

[Note: additional foreign law provisions, if any, to be included, as applicable.]

 

2

 

IN WITNESS OF WHICH, the undersigned have executed this Agreement as of [•].

 

 

	
 
    	
THE BANK OF NOVA SCOTIA, as Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NEW MATERIAL SUBSIDIARY]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

3

 

SCHEDULE A
 PERMITTED LIENS

 

Registrations Against Agnico-Eagle Mines Limited Under
 the Personal Property Security Act (Ontario)

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Xerox   Canada Ltd. 

33   Bloor St. E., 3rd Floor 

Toronto,   ON M4W 3H1
    	
 
    	
Registration   No. 20061214 1009 1462 9962 (6 years) 

(Ref.   File No. 631424124)
    	
 
    	
Photocopy   equipment
    
	
Caterpillar   Financial Services Limited 

700   Dorval Drive, Suite 705, 

Oakville,   ON L6K 3V3
    	
 
    	
Registration   No. 20070925 1047 8077 7779 (3 years) 

(Ref.   File No. 639359253)
    	
 
    	
4   Caterpillar motor vehicles
    
	
Xerox   Canada Ltd. 

33   Bloor St. E., 3rd Floor 

Toronto,   ON M4W 3H1
    	
 
    	
Registration   No. 20071219 1404 1462 2799 (6 years) 

(Ref.   File No. 641510037)
    	
 
    	
Photocopy   equipment
    
	
Xerox   Canada Ltd. 

33   Bloor St. E., 3rd Floor 

Toronto,   ON M4W 3H1
    	
 
    	
Registration   No. 20080306 1405 1462 7757 (6 years) 

(Ref.   File No. 643180194)
    	
 
    	
Photocopy   equipment
    
	
The   Bank of Nova Scotia 

20   Queen St West, 4th Floor 

Toronto,   ON M5H 3R3
    	
 
    	
Registration   No. 20090520 1610 1532 8529 (4 years) 

(Ref.   File No. 653561217)
    	
 
    	
One   Toro 50 Underground Haulage Truck s/n T9050444; one LH514 Underground LHD s/n   L914D311; and one RB50E Raisedrill s/n RB50E-032.
    
	
HSBC   Bank Canada 

350-407   8 Avenue SW 

Calgary,   AB T2P 1E5
    	
 
    	
Registration   No. 20091019 1951 1531 7037 (5 years) 

(Ref.   File No. 657033903) 

Amendment   Registration No.
   20091020 1451 1530 4377
    	
 
    	
Equipment
    
	
HSBC   Bank Canada 

350-407   8 Avenue SW 

Calgary,   AB T2P 1E5
    	
 
    	
Registration   No. 20091014 1947 1531 5276 (5 years) 

(Ref.   File No. 656949384 

Amendment   Registration No.

20091019   1951 1531 7429 

Amendment   Registration No.

20091019   1951 1531 7430 

Amendment   Registration No.

20091020   1451 1530 4378
    	
 
    	
Equipment
    
	
The   Bank of Nova Scotia 

20   Queen Street West — 4th Floor Toronto, ON M5H 1H1
    	
 
    	
Registration   No. 20090629 1834 1532 3470 (5 years)

(Reference   File No. 654546492
    	
 
    	
Equipment/Other
    

 

 

Registrations Against Agnico-Eagle Mines Limited Under
 the British Columbia Personal Property Registry

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   September 26, 2007 

(expiry   September 26, 2010) 

under   Registration No. 942306D
    	
 
    	
Six   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   September 25, 2007 

(expiry   September 25, 2010) 

under   Registration No. 939036D
    	
 
    	
Four   Caterpillar motor vehicles
    
	
Toromont   CAT, A Div. of Toromont Industries Ltd.
    	
 
    	
Registered   October 20, 2008 

(expiry   October 20, 2010) 

under   Registration No. 649747E
    	
 
    	
Caterpillar   980H plus attachments
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   November 4, 2008 

(expiry   November 4, 2011) 

under   Registration No. 678095E
    	
 
    	
Caterpillar   980H plus attachments
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   May 28, 2009 

(expiry   May 28, 2013) 

under   Registration No. 991292E
    	
 
    	
Caterpillar   14M
    
	
HSBC   Bank Canada
    	
 
    	
Registered   October 19, 2009 

(expiry   October 19, 2014) 

under   Registration No. 232146F
    	
 
    	
O&K   Orenstein & Kopmodel Excavator and related equipment
    
	
HSBC   Bank Canada
    	
 
    	
Registered   October 19, 2009 

(expiry   October 14, 2014) 

under   Registration No. 232146F
    	
 
    	
O&K   Orenstein & Kopmodel Excavator and related equipment
    

 

Registrations Against Agnico-Eagle Mines Limited Under
 the Nunavut Territory Personal Property Registry

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   September 25, 2007 

(expiry   September 25, 2010) under Registration No. 107953
    	
 
    	
Four   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   September 26, 2007 

(expiry   September 26, 2010) 

under   Registration No. 108001
    	
 
    	
Six   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 11, 2008 

(expiry   July 11, 2011) 

under   Registration No. 122010
    	
 
    	
Two   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 11, 2008 

(expiry   July 11, 2011) 

under   Registration No. 122028
    	
 
    	
Eight   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 14, 2008 

(expiry   July 14, 2011) 

under   Registration No. 122069; 

Amendment   No. 122135
    	
 
    	
Four   Caterpillar motor vehicles
    

 

2

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 14, 2008 

(expiry   July 14, 2011) 

under   Registration No. 122077
    	
 
    	
One   Caterpillar motor vehicle
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 14, 2008 

(expiry   July 14, 2011) 

under   Registration No. 122085
    	
 
    	
One   Caterpillar motor vehicle
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   July 14, 2008 

(expiry   July 14, 2011) 

under   Registration No. 122093
    	
 
    	
One   Caterpillar motor vehicle
    
	
Toromont   CAT, A Div. of Toromont Industries Ltd.
    	
 
    	
Registered   October 20, 2008 

(expiry   October 20, 2010) 

under   Registration No. 127274
    	
 
    	
One   Caterpillar motor vehicle
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   November 5, 2008 

(expiry   November 5, 2011) 

under   Registration No. 128090
    	
 
    	
One   Caterpillar motor vehicle
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   December 16, 2008 

(expiry   December 16, 2011) 

under   Registration No. 130468
    	
 
    	
Three   Caterpillar motor vehicles
    
	
Caterpillar   Financial Services Limited
    	
 
    	
Registered   May 28, 2009 

(expiry   May 28, 2013) 

under   Registration No. 139329
    	
 
    	
2009   Caterpillar 14M
    
	
HSBC   Bank Canada
    	
 
    	
Registered   October 14, 2009 

(expiry   October 14, 2014) 

under   Registration No. 148013
    	
 
    	
Two   Toro Loaders and one Toro Truck
    
	
HSBC   Bank Canada
    	
 
    	
Registered   October 14, 2009 

(expiry   October 14, 2014) 

under   Registration No. 148270
    	
 
    	
Orenstein &   Kopmodel Excavator and Bucked Excavation
    
	
HSBC   Bank Canada
    	
 
    	
Registered   October 14, 2009 

(expiry   October 14, 2014) 

under   Registration No. 148288
    	
 
    	
Orenstein &   Kopmodel Excavator and Bucked Excavation
    
	
De   Lage Landen Financial Services Canada Inc.; Service Financiers De Lage Landen   Canada Inc.
    	
 
    	
Registered   May 6, 2010 

(expiry   May 6, 2014) 

under   Registration No. 160184
    	
 
    	
Medical   equipment; all goods supplied to Agnico-Eagle Mines Limited
    

 

Registrations Against Agnico-Eagle Mines Limited in the
 Register of Personal and Moveable Real Rights — Quebec

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   October 12, 2006 (expiry October 4, 2010) under Registration   No. 06-0591413-0001
    	
 
    	
Photocopier
    

 

3

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   January 17, 2007 (expiry January 10, 2010) under Registration   No. 07-0025303-0001
    	
 
    	
Photocopier   and related equipment
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   October 10, 2007 (expiry July 27, 2010) under Registration   No. 07-0582625-0001
    	
 
    	
Fax   Canon Laser
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   October 15, 2007 (expiry October 14, 2010) under Registration   No. 07-0591089-0023
    	
 
    	
2008   Ford F250, serial #1FTSW21598EB74175
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   October 30, 2007 (expiry October 29, 2010) under Registration   No. 07-0623704-0033
    	
 
    	
2008   Ford F150, serial #1FTRF14W08KB60048
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   October 30, 2007 (expiry October 29, 2010) under Registration   No. 07-0623704-0034
    	
 
    	
2008   Ford F150, serial #1FTRF14W38KB60271
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   December 7, 2007 (expiry November 14, 2011) under Registration   No. 07-0700180-0001
    	
 
    	
Photocopier   and related equipment
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   December 7, 2007 (expiry October 3, 2011) under Registration   No. 07-0700187-0001
    	
 
    	
Photocopier   and related equipment
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   January 30, 2008 (expiry January 16, 2012) under Registration   No. 08-0051392-0001
    	
 
    	
Photocopier   and related equipment
    
	
Ford   Credit Canada Leasing, A Division of Canadian Road Leasing Company
    	
 
    	
Registered   February 11, 2008 (expiry February 10, 2011) under Registration   No. 08-0072011-0063
    	
 
    	
2008   Ford F150, serial #1FTRF14WX8KB69517 

2008   Ford F150, serial #1FTRF14W68KB60507 

2008   Ford F150, serial #1FTRF14W18KC49661
    

 

4

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   April 7, 2008 (expiry April 6, 2011) under Registration   No. 08-0183283-0019
    	
 
    	
2008   Ford F250, serial #1FTSW21538ED26581
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   April 7, 2008 (expiry April 6, 2011) under Registration   No. 08-0183283-0020
    	
 
    	
2008   Ford F150, serial #1FTRF14W48KD09464
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   April 8, 2008 (expiry April 7, 2011) under Registration   No. 08-0186276-0007
    	
 
    	
2008   Ford F150, serial #1FTVX14568KD01112
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   on July 7, 2008 (expiry July 31, 2011) under Registration   No. 08-0394893-0001
    	
 
    	
Photocopiers   and related equipment
    
	
Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road
    	
 
    	
Registered   July 11, 2008 (expiry July 9, 2011) under Registration   No. 08-0403194-0019
    	
 
    	
2008   Ford F250, serial #1FTSX21548EE15511
    
	
Hardy Ringuette Automobiles Inc.  

 

Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road (assignee)
    	
 
    	
Registered   July 18, 2008 (expiry July 17, 2011) under Registration   No. 08-0420215-0075
    	
 
    	
2008   Ford F250, serial #1FTSX21548EE15511
    
	
Toromont   Cat, A Division of Toromont Industries Ltd. 

 

Caterpillar   Financial Services Limited (assignee)
    	
 
    	
Registered   July 30, 2008 (expiry June 30, 2011) under Registration   No. 08-0444262-0006
    	
 
    	
Motor   vehicles
    
	
Location Credit Ford Canada, Une Division De Compagnie   De Location Canadian Road
    	
 
    	
Registered   October 8, 2008 (expiry October 8, 2011) under Registration   No. 08-0583748-0018
    	
 
    	
Motor   vehicle
    

 

5

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road
    	
 
    	
Registered   February 2, 2009 (expiry January 29, 2012) under Registration   No. 09-0051290-0002
    	
 
    	
Motor   vehicle
    
	
Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road
    	
 
    	
Registered   February 27, 2009 (expiry February 26, 2012) under Registration   No. 09-0102286-0045
    	
 
    	
Motor   vehicle
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   April 15, 2009 (expiry March 3, 2013) under Registration   No. 09-0202771-0001
    	
 
    	
Photocopiers   and related equipment
    
	
Location Credit Ford Canada, Une Division De   Compagnie De Location Canadian Road
    	
 
    	
Registered   May 11, 2009 (expiry May 10, 2012) under Registration   No. 09-0264800-0020
    	
 
    	
Motor   vehicle
    
	
Bal Global Finance Canada Corporation
    	
 
    	
Registered   July 6, 2009 (expiry June 30, 2019) under Registration 

No. 09-0401160-0001
    	
 
    	
The   personal and movable property including drilling and mining equipment of any   nature or kind described in any Leasing Schedule executed by the parties
    
	
Bal Global Finance Canada Corporation
    	
 
    	
Registered   July 6, 2009 (expiry June 30, 2019) under Registration 

No. 09-0401160-0002
    	
 
    	
The   personal and movable property including drilling and mining equipment of any   nature or kind described in any Leasing Schedule executed by the parties
    
	
Bal Global Finance Canada Corporation
    	
 
    	
Registered   July 6, 2009 (expiry June 30, 2019) under Registration 

No. 09-0401160-0003
    	
 
    	
Various   drilling and mining equipment located at Goldex Mine, Val d’Or, Quebec
    
	
Bal Global Finance Canada Corporation
    	
 
    	
Registered   July 6, 2009 (expiry June 30, 2019) under Registration 

No. 09-0401160-0004
    	
 
    	
Various   drilling and mining equipment located at Goldex Mine, Val d’Or, Quebec
    
	
Atlas Copco Customer Finance Canada a   division of Atlas Copco Canada Inc.
    	
 
    	
Registered   July 16, 2009 (expiry July 14, 2010) under Registration   No. 09-0429764-0002
    	
 
    	
(x2)   Atlas Copco ST 1030 SCOOP TRAM S/N AVO08X554, S/N AVO08X321 with all   accessories and attachments.
    
	
The Bank of Nova Scotia
    	
 
    	
Registered   July 20, 2009 (expiry July 20, 2018) under Registration   No. 09-0439986-0001
    	
 
    	
1   new TORO 50 underground haulage truck S/N T9050444 

1   new LH514 underground LHD S/N L914D311
    

 

6

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
The Bank of Nova Scotia
    	
 
    	
Registered   July 24, 2009 (expiry July 23, 2018) under Registration   No. 09-0452727-0011
    	
 
    	
Various   drilling and mining equipment
    
	
Hardy Ringuette Automobiles Inc.  

Location Credit Ford Canada, une division de   Compagnie de Location Canadian Road
    	
 
    	
Registered   August 21, 2009 (expiry August 20, 2012) under Registration   No. 09-0516937-0013
    	
 
    	
2009   FORD F150 serial no. 1FTPF14849KC69381
    
	
HSBC Bank Canada
    	
 
    	
Registered   October 26, 2009 (expiry October 15, 2013) under Registration   No. 09-0665290-0001
    	
 
    	
1   used Toro Loader, model 1400 U/G, serial no. T7140234 

1   used Toro Loader, model 50 U/G, serial number T7050325 

1   used Toro Haulage Truck, model 50 U/G, serial number T8050375
    
	
Gestion Loca Bail Ltee
    	
 
    	
Registered   October 26, 2009 (expiry September 24, 2013) under Registration   No. 09-0665505-0001
    	
 
    	
2   photocopiers and related equipment
    
	
Location Credit Ford Canada, une division de   Compagnie de location Canadien Road
    	
 
    	
Registered   February 25, 2010 (expiry February 24, 2013) under Registration   No. 10-0108942-0023
    	
 
    	
2010   Ford F150 serial no. 1FTVX1EV1AKA56482
    
	
Ford Credit Canada Leasing, a division of   Canadian Road Leasing Company
    	
 
    	
Registered   March 2, 2010 (expiry March 1, 2013) under Registration   No. 10-0118244-0003
    	
 
    	
2010   Ford E150 serial no. 1FTNF1E87AKA36346
    
	
HSBC Bank Canada
    	
 
    	
Registered   March 22, 2010 (expiry June 16, 2015) under Registration   No. 10-0163965-0001
    	
 
    	
1   Gold F-250-001 HP800, serial no. HP800240, Cone Crusher and associated   rights, equipment and accessories
    
	
HSBC Bank Canada
    	
 
    	
Registered   March 29, 2010 (expiry June 21, 2015) under Registration   No. 10-0179390-0001
    	
 
    	
2   2007 Atlas Cooper Wagner Scooptrams (serial nos. AVO07X211 and AVO7X151) and   associated rights, equipment and accessories
    
	
Hardy Ringuette Automobiles Inc.
    	
 
    	
Registered   April 1, 2010 (expiry March 31, 2013) under Registration No. 10-0194669-0022
    	
 
    	
2010   Ford F250 serial no. 1FTSW2B54AEB21646
    
	
Hardy Ringuette Automobiles Inc.
    	
 
    	
Registered   April 6, 2010 (expiry April 5, 2013) under Registration   No. 10-0200051-0006
    	
 
    	
2010   Ford F150 serial no. 1FTVX1EV1AKB99271
    
	
Hardy Ringuette Automobiles Inc.
    	
 
    	
Registered   April 6, 2010 (expiry April 5, 2013) under Registration   No. 10-0200280-0001
    	
 
    	
2010   Ford F150 serial no. 1FTX1EV3AKB99272
    

 

7

 

	
Secured Party
    	
 
    	
Registration Details
    	
 
    	
Collateral
    
	
Hardy Ringuette Automobiles Inc.
    	
 
    	
Registered   April 19, 2010 (expiry April 18, 2013) under Registration   No. 10-0236403-0011
    	
 
    	
2010   Ford F150 serial no. 1FTVX1EV1AKC35718
    
	
Gestion   Loca-Bail Ltée
    	
 
    	
Registered   May 5, 2010 (expiry September 29, 2014) under Registration   No. 10-0285044-0001
    	
 
    	
Photocopier   and related equipment
    

 

8

 

SCHEDULE B
 OTHER SUPPORTED OBLIGATIONS

 

Nil.

 

 

SCHEDULE C
 LITIGATION

 

Nil.

 

 

SCHEDULE D
 EQUITY INTERESTS AND ORGANIZATION STRUCTURE

 

 

(1) Indicates that the Subsidiary will be a Guarantor on the Effective Date.

(2) Agnico-Eagle Sweden AB, Agnico-Eagle AB and Riddarhyttan Resources AB will merge as part of a reorganization of the Agnico-Eagle Mines Limited’s Swedish/Finnish organization structure with Agnico-Eagle Sweden AB as the continuing entity.

 

Notes:

· The LaRonde, Goldex and Lapa Mines and the Meadowbank development project are owned by Agnico-Eagle Mines Limited and each mine/project is operated as a separate division.
  · The Kittila Mine is owned by Agnico-Eagle AB and is operated by an unincorporated Finnish Branch of Agnico-Eagle AB.

· The Pinos Altos Mine project is owned by Agnico Eagle Mexico, SA de CV.

 

 

Directors and Senior Officers of Agnico-Eagle Mines Limited

 

	
Name
    	
 
    	
Title
    
	
James   D. Nasso
    	
 
    	
Chairman
    
	
Sean   Boyd
    	
 
    	
Vice-Chairman   and Chief Executive Officer
    
	
Leanne   M. Baker
    	
 
    	
Director
    
	
Douglas   R. Beaumont
    	
 
    	
Director
    
	
Clifford   J. Davis
    	
 
    	
Director
    
	
David   Garofalo
    	
 
    	
Director,   Senior Vice-President, Finance and Chief Financial Officer
    
	
Bernard Kraft
    	
 
    	
Director
    
	
Mel Leiderman
    	
 
    	
Director
    
	
J.   Merfyn Roberts
    	
 
    	
Director
    
	
Eberhard   Scherkus
    	
 
    	
Director,   President, and Chief Operating Officer
    
	
Howard   Stockford
    	
 
    	
Director
    
	
Pertti   Voutilainen
    	
 
    	
Director
    
	
Donald G. Allan
    	
 
    	
Senior Vice-President, Corporate Development
    
	
Alain Blackburn
    	
 
    	
Senior Vice-President, Exploration
    
	
Tim Haldane
    	
 
    	
Senior Vice-President, Latin America
    
	
R. Gregory Laing
    	
 
    	
General Counsel, Senior Vice-President, Legal   and Corporate Secretary
    
	
Daniel Racine
    	
 
    	
Senior   Vice-President, Operations
    
	
Jean Robitaille
    	
 
    	
Senior   Vice-President, Technical Services
    
	
Picklu Datta
    	
 
    	
Vice-President,   Controller
    
	
Patrice Gilbert
    	
 
    	
Vice-President,   Human Resources
    
	
Paul-Henri Girard
    	
 
    	
Vice-President,   Canada
    

 

 

	
Louise Grondin
    	
 
    	
Vice-President,   Environment and Sustainable Development
    
	
Ingmar Haga
    	
 
    	
Vice-President,   Europe
    
	
Marc Legault
    	
 
    	
Vice-President,   Project Development
    
	
Claudio Mancuso
    	
 
    	
Vice-President,   Treasurer
    
	
David Smith
    	
 
    	
Vice-President, Investor   Relations
    

 

2

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