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 Exhibit 4.1  

 
 

  SECOND AMENDMENT
  TO
  SECOND AMENDED AND RESTATED COMBINED CREDIT AGREEMENTS    
    

        THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED COMBINED CREDIT AGREEMENTS, dated as of March 16, 2009 (the
"Amendment"), among FOREST OIL CORPORATION, a New York corporation (the "U.S.
Borrower"), CANADIAN FOREST OIL LTD. and each other subsidiary of Canadian Forest which becomes a "Borrower" (as defined
in the Canadian Credit Agreement) under the Canadian Credit Agreement (the "Canadian Borrowers"), each of the lenders that is a signatory to, or which
becomes a signatory to, the U.S. Credit Agreement (together with its successors and assigns, the "U.S. Lenders"), each of the lenders that is a
signatory to, or which becomes a signatory to, the Canadian Credit Agreement (together with its successors and assigns, the "Canadian Lenders", and
together with the U.S. Lenders, the "Combined Lenders"), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as
Canadian Administrative Agent and JPMORGAN CHASE BANK, N.A., as Global Administrative Agent (in such
capacity, together with its successors in such capacity, the "Global Administrative Agent"), and the other Agents party thereto. 

W I T N E S S E T H:  

        1.     The
U.S. Borrower, Global Administrative Agent, the Co-Global Syndication Agents, the Co-U.S. Documentation Agents, and the U.S. Lenders are
parties to that certain Second Amended and Restated Credit Agreement, dated as of June 6, 2007 (the "U.S. Credit Agreement"), pursuant to which
the U.S. Lenders agreed to make loans to and extensions of credit on behalf of the U.S. Borrower. 

        2.     The
Canadian Borrowers, Global Administrative Agent, the Canadian Administrative Agent, the Co-Global Syndication Agents, the Co-Canadian
Documentation Agents, and the Canadian Lenders are parties to that certain Second Amended and Restated Credit Agreement, dated as of June 6, 2007 (the "Canadian Credit
Agreement", and together with the U.S. Credit Agreement, the "Combined Credit Agreements"), pursuant to which the Canadian
Lenders agreed to make loans to and extensions of credit on behalf of the Canadian Borrowers. 

        3.     The
U.S. Borrower, Canadian Borrowers, Canadian Administrative Agent, Global Administrative Agent and the other Agents party to the Combined Credit Agreements have
entered into that certain First Amendment to Second Amended and Restated Combined Credit Agreements, dated as of May 9, 2008 (the "First
Amendment"), pursuant to which the parties agreed to certain amendments to the Combined Credit Agreements. 

        4.     The
parties to the Combined Credit Agreements intend to amend the Combined Credit Agreements as set forth herein. 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows: 

        I.     Amendments to U.S. Credit Agreement.  

         A.    Section 1.1 of the U.S. Credit Agreement hereby is amended by amending and restating the
following definitions of
"Alternate Base Rate", "Lantern Sale and Leaseback" and "Total
Debt" in their entirety to read as follows: 

        "
"Alternate Base Rate" means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day,
(b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall
be based on the rate appearing on the Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on such day. Any
change in the Alternate Base Rate due to 

 

a
change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively. If for any reason the Global Administrative Agent shall have determined (which determination shall be conclusive and binding, absent manifest
error) that it is unable to ascertain the Federal Funds Effective Rate or the Adjusted LIBO Rate for any reason, including, without limitation, the inability or failure of the Global Administrative
Agent to obtain sufficient bids or publications in accordance with the terms hereof, the Alternate Base Rate shall be the Prime Rate until the circumstances giving rise to such inability no longer
exist. 

        "Lantern Sale and Leaseback" means the sale by Borrower or one or more of its Restricted Subsidiaries of nine drilling rigs and two
work-over rigs or other equipment as well as any and all additional rigs or equipment built or acquired after the effective date of the U.S. Credit Agreement (the
"Rigs") to any Person and the subsequent leasing of the Rigs back to the Borrower or one or more of its Restricted Subsidiaries. 

        "Total Debt" means all Indebtedness of Borrower and its Restricted Subsidiaries on a consolidated basis described under
clauses (a), (b), (d), (e), (f), (g), (h), (i), (k) and (l) of the definition thereof but excluding (i) any attributable Indebtedness amount with the Lantern Sale and
Leaseback and (ii) all obligations of such Person with respect to volumetric Production Payments sold by such Person relating to the Permian Basin and Mid-Continent assets of the
Borrower and its Restricted Subsidiaries which in the aggregate are in an amount less than U.S.$125,000,000." 

        B.    Section 6.1 of the U.S. Credit Agreement hereby is amended and restated in its entirety to read as follows: 

        "
SECTION 6.1 Ratio of Total Debt to EBITDA. Borrower will not permit its ratio of Total Debt outstanding to EBITDA (calculated for
the last four consecutive fiscal quarter period then most recently ended for which financial statements are available) to be greater than 4.50 to 1.0 at any time on or before the last day of the
calendar quarter ending December 31, 2010, to be greater than 4.00 to
1.0 at any time on or before the last day of the calendar quarter ending December 31, 2011, and at any time thereafter to be greater than 3.50 to 1.00." 

        C.    Section 7.1(a)(viii) of the U.S. Credit Agreement hereby is amended and restated in its entirety to read as
follows: 

        "
(viii) Indebtedness relating to the Lantern Sale and Leaseback not to exceed U.S.$130,000,000 at any time outstanding; and". 

        D.    Section 7.1(a) of the U.S. Credit Agreement hereby is amended by (i) deleting the word "and" at the end
of Section 7.1(a)(viii), (ii) re-numbering Section 7.1(a)(ix)  as Section 7.1(a)(x), and
(iii) inserting the following provision as Section 7.1(a)(ix): 

        "
(viii) Indebtedness relating to volumetric Production Payments sold by the Borrower or any of its Restricted Subsidiaries relating to the Permian Basin and
Mid-Continent assets of the Borrower and its Restricted Subsidiaries not to exceed U.S.$125,000,000 at any time outstanding;". 

        E.    Section 7.5(g) of the U.S. Credit Agreement hereby is amended and restated in its entirety to read as follows: 

        "
(g) the sale, transfer or other disposition in one or more transactions of Property constituting either Equity Interests in Restricted Subsidiaries or any Oil and Gas Properties
that are given value in the calculation of Present Value or the Global Borrowing Base, as applicable, including, without limitation, the sale of any Production Payments;  provided that if the aggregate
fair market value of such Oil and Gas Property so sold, transferred or disposed of during the 

2

 

period
since the most recent redetermination of the Global Borrowing Base shall exceed 10% of the amount of the then current Global Borrowing Base, then the Global Borrowing Base shall be reduced by
an amount equal to value assigned such Oil and Gas Property in the most recently prepared Reserve Reports (or if such no such value was assigned, by an amount to be agreed upon by Borrower and the
Global Administrative Agent); and". 

        II.    Effectiveness.    This Amendment shall become effective as of
March 16, 2009 (the "Effective Date") when the Global Administrative Agent shall have received: 

	A.
	Counterparts
hereof duly executed by the U.S. Borrower, the Global Administrative Agent, the Canadian Administrative Agent, and the Majority Lenders (or, in
the case of any party as to which an executed counterpart shall not have been received, telegraphic, telex, or other written confirmation from such party of execution of a counterpart hereof by such
party); and

	B.
	Payment
of any fees or compensation then due and owing to any Combined Lender pursuant to the terms of the Combined Credit Agreements. 

        III.  Reaffirmation of Representations and Warranties.    To induce
the Combined Lenders, the Global Administrative Agent and the Canadian Administrative Agent to enter into this Amendment, the U.S. Borrower hereby reaffirms, as of the date hereof, the following: 

        A.    The
representations and warranties of each Loan Party (as such term is defined in the U.S. Credit Agreement and the Canadian Credit Agreement, collectively, the
"Combined Loan Parties") set forth in the Combined Loan Documents to which it is a party are true and correct on and as of the date hereof (or, if
stated to have been made expressly as of an earlier date, were true and correct in all material respects as of such earlier date). 

        B.    Each
of the U.S. Borrower and its Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization,
has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 

        C.    The
execution, delivery and performance by U.S. Borrower and the Canadian Borrowers of this Amendment are within U.S. Borrower's and the Canadian Borrowers' corporate
powers, and have been duly authorized by all necessary corporate action. This Amendment has been duly executed and delivered by U.S. Borrower and the Canadian Borrowers and, when duly executed and
delivered by the other parties hereto, will constitute, a legal, valid and binding obligation of U.S. Borrower and the Canadian Borrowers, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law. 

        D.    The
execution, delivery and performance by the U.S. Borrower and the Canadian Borrowers of this Amendment (i) do not require any Governmental Approval or third
party approvals, except such as have been obtained or made and are in full force and effect, (ii) will not violate any applicable Governmental Rule or the Organic Documents of U.S. Borrower and
the Canadian Borrowers or any order of any Governmental Authority, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding upon U.S. Borrower or
the Canadian Borrowers or either of their assets, or give rise to a right thereunder to require any payment to be made by U.S. Borrower or the Canadian Borrowers, and (iv) will not result in
the creation or imposition of any Lien on any asset of U.S. Borrower or the Canadian Borrowers (other than Liens created under the Combined Loan Documents). 

3

 

        E.    No
Default under the Combined Loan Documents has occurred and is continuing and the U.S. Borrower is in compliance with the financial covenant set forth in  Article VI of the U.S. Credit Agreement.

        F.     No
event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 

        IV.    Defined Terms.    Except as amended hereby, terms used herein
when defined in the U.S. Credit Agreement shall have the same meanings herein unless the context otherwise requires. 

        V.     Reaffirmation of Combined Credit Agreements.    This Amendment
shall be deemed to be an amendment to the Combined Credit Agreements, and the Combined Credit Agreements, as amended hereby, are hereby ratified, approved and confirmed in each and every respect. All
references to the Combined Credit Agreements herein and in any other document, instrument, agreement or writing shall hereafter be deemed to refer to the Combined Credit Agreements as amended hereby. 

        VI.   Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

        VII. Severability of Provisions.    Any provision of this Amendment
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. 

        VIII.  Counterparts.    This Amendment may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery
of an executed counterpart of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment. 

        IX.   Headings.    Article and section headings used herein are for
convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

        X.    Successors and Assigns.    This Amendment shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns. 

        XI.   No Oral Agreements. THIS AMENDMENT, THE COMBINED CREDIT AGREEMENTS, AS AMENDED HEREBY, AND THE
OTHER COMBINED LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

        THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  

[SIGNATURES BEGIN ON FOLLOWING PAGE]

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        IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrower, the undersigned Combined Lenders, the Global Administrative Agent, and the other "agents" under the Combined Credit
Agreements have executed this Amendment as of the date first above written. 

					
	

 	
 	
 U.S. BORROWER
	
 	
 	
 FOREST OIL CORPORATION
	
 	
 	
By:	
 	
/s/ MICHAEL KENNEDY

 
	 	 	Name:	 	Michael Kennedy
	 	 	Title:	 	VP—Finance and Treasurer
	

 	
 	
 CANADIAN BORROWER
	
 	
 	
 CANADIAN FOREST OIL LTD.
	
 	
 	
By:	
 	
/s/ BLAINE WOFFORD

 
	 	 	Name:	 	Blaine Wofford
	 	 	Title:	 	Vice President

S-1

 

					
	

 	
 	
 AGENTS AND COMBINED LENDERS
	
 	
 	
 JPMORGAN CHASE BANK, N.A., as Global Administrative Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ RYAN FUESSEL

 
	 	 	Name:	 	Ryan Fuessel
	 	 	Title:	 	Senior Vice President

S-2

 

					
	

 	
 	
 BANK OF AMERICA, N.A., as a Co-Global Syndication Agent and as a U.S. Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-3

 

					
	

 	
 	
 CITIBANK, N.A., as a U.S. Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-4

 

					
	

 	
 	
 BNP PARIBAS, as a Co-U.S. Documentation Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ BETSY JOCHER

 
	 	 	Name:	 	Betsy Jocher
	 	 	Title:	 	Director
	

 	
 	
By:	
 	
/s/ RICHARD HAWTHORNE

 
	 	 	Name:	 	Richard Hawthorne
	 	 	Title:	 	Director

S-5

 

					
	

 	
 	
 BMO CAPITAL MARKETS FINANCING, INC., as a U.S. Lender
	

 	
 	
By:	
 	
/s/ JAMES V. DUCOTE

 
	 	 	Name:	 	James V. Ducote
	 	 	Title:	 	Director

S-6

 

					
	

 	
 	
 CREDIT SUISSE, CAYMANS ISLANDS BRANCH, as a Co-U.S. Documentation Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ VANESSA GOMEZ

 
	 	 	Name:	 	Vanessa Gomez
	 	 	Title:	 	Director
	

 	
 	
By:	
 	
/s/ SHAHEEN MALIK

 
	 	 	Name:	 	Shaheen Malik
	 	 	Title:	 	Vice President

S-7

 

					
	

 	
 	
 DEUTSCHE BANK SECURITIES INC., as a Co-U.S. Documentation Agent
	

 	
 	
By:	
 	
/s/ ROBERT M. WOOD, JR.

 
	 	 	Name:	 	Robert M. Wood, Jr.
	 	 	Title:	 	Director
	

 	
 	
By:	
 	
/s/ DAVID E. SISLER

 
	 	 	Name:	 	David E. Sisler
	 	 	Title:	 	Director
	

 	
 	
 DEUTSCHE BANK AG NEW YORK BRANCH, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ DUSAN LAZAROY

 
	 	 	Name:	 	Dusan Lazaroy
	 	 	Title:	 	Vice President
	

 	
 	
By:	
 	
/s/ VALERIE SHAPIRO

 
	 	 	Name:	 	Valerie Shapiro
	 	 	Title:	 	Vice President

S-8

 

					
	

 	
 	
 U.S. BANK NATIONAL ASSOCIATION, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ DARIA MAHONEY

 
	 	 	Name:	 	Daria Mahoney
	 	 	Title:	 	Vice President

S-9

 

					
	

 	
 	
 THE BANK OF NOVA SCOTIA, as a Co-U.S. Documentation Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ DAVID MILLS

 
	 	 	Name:	 	David Mills
	 	 	Title:	 	Managing Director

S-10

 

					
	

 	
 	
 FORTIS CAPITAL CORP., as a U.S. Lender
	

 	
 	
By:	
 	
/s/ DARRELL HOLLEY

 
	 	 	Name:	 	Darrell Holley
	 	 	Title:	 	Managing Director
	

 	
 	
By:	
 	
/s/ DAVID MONTGOMERY

 
	 	 	Name:	 	David Montgomery
	 	 	Title:	 	Director

S-11

 

					
	

 	
 	
 BANK OF SCOTLAND, as a U.S. Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-12

 

					
	

 	
 	
 ABN AMRO BANK N.V., as a U.S. Lender
	

 	
 	
By:	
 	
/s/ JIM MOYES

 
	 	 	Name:	 	Jim Moyes
	 	 	Title:	 	Managing Director
	

 	
 	
By:	
 	
/s/ TODD VAUBEL

 
	 	 	Name:	 	Todd Vaubel
	 	 	Title:	 	Vice President

S-13

 

					
	

 	
 	
 UBS LOAN FINANCE LLC, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ MARIE A. HADDAD

 
	 	 	Name:	 	Marie A. Haddad
	 	 	Title:	 	Associate Director Banking Products Services, US
	

 	
 	
By:	
 	
/s/ MARY E. EVANS

 
	 	 	Name:	 	Mary E. Evans
	 	 	Title:	 	Associate Director Banking Products Services, US

S-14

 

					
	

 	
 	
 COMPASS BANK, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ GREG DETERMANN

 
	 	 	Name:	 	Greg Determann
	 	 	Title:	 	Vice President

S-15

 

					
	

 	
 	
 WELLS FARGO BANK, N.A., as a Co-U.S. Documentation Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ TIM GREEN

 
	 	 	Name:	 	Tim Green
	 	 	Title:	 	Vice President

S-16

 

					
	

 	
 	
 MIZUHO CORPORATE BANK, LTD, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ LEON MO

 
	 	 	Name:	 	Leon Mo
	 	 	Title:	 	Senior Vice President

S-17

 

					
	

 	
 	
 TORONTO DOMINION (TEXAS) LLC, as a Co-Global Syndication Agent and as a U.S. Lender
	

 	
 	
By:	
 	
/s/ DEBBI L. BRITO

 
	 	 	Name:	 	Debbi L. Brito
	 	 	Title:	 	Authorized Signatory

S-18

 

					
	

 	
 	
 BARCLAYS BANK PLC, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ MARIA LUND

 
	 	 	Name:	 	Maria Lund
	 	 	Title:	 	Vice President

S-19

 

					
	

 	
 	
 BANK OF OKLAHOMA, N.A., as a U.S. Lender
	

 	
 	
By:	
 	
/s/ MICHAEL M. LOGAN

 
	 	 	Name:	 	Michael M. Logan
	 	 	Title:	 	Senior Vice President

S-20

 

					
	

 	
 	
 EXPORT DEVELOPMENT CANADA, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ JANINE DOPSON

 
	 	 	Name:	 	Janine Dopson
	 	 	Title:	 	Loan Asset Manager
	

 	
 	
By:	
 	
/s/ SHAWN PUSICK

 
	 	 	Name:	 	Shawn Pusick
	 	 	Title:	 	Loan Portfolio Manager

S-21

 

					
	

 	
 	
 GUARANTY BANK AND TRUST COMPANY, as a U.S. Lender
	

 	
 	
By:	
 	
/s/ GAIL J. NOFSINGER

 
	 	 	Name:	 	Gail J. Nofsinger
	 	 	Title:	 	Senior Vice President

S-22

 

					
	

 	
 	
 UNION BANK OF CALIFORNIA, N.A., as a U.S. Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-23

 

					
	

 	
 	
 JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian Administrative Agent and as a Canadian Lender
	

 	
 	
By:	
 	
/s/ RYAN FUESSEL

 
	 	 	Name:	 	Ryan Fuessel
	 	 	Title:	 	Senior Vice President

S-24

 

					
	

 	
 	
 BANK OF MONTREAL, as a Co-Canadian Documentation Agent and as a Canadian Lender
	

 	
 	
By:	
 	
/s/ JAMES V. DUCOTE

 
	 	 	Name:	 	James V. Ducote
	 	 	Title:	 	Director

S-25

 

					
	

 	
 	
 THE TORONTO-DOMINION BANK, as a Canadian Lender
	

 	
 	
By:	
 	
/s/ DEBBI L. BRITO

 
	 	 	Name:	 	Debbi L. Brito
	 	 	Title:	 	Authorized Signatory

S-26

 

					
	

 	
 	
 BANK OF AMERICA, N.A., CANADA BRANCH, as a Canadian Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-27

 

					
	

 	
 	
 CITIBANK, N.A., CANADIAN BRANCH, as a Co-Canadian Documentation Agent and as a Canadian Lender
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 

S-28

QuickLinks

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED COMBINED CREDIT AGREEMENTSFiled by sedaredgar.com - Royal Mines And Minerals Corp. - Exhibit 10.28

PAYMENT EXTENSION AND LICENSE AGREEMENT

THIS AGREEMENT dated for reference the 13th day of
March, 2009

AMONG:

NEW VERDE RIVER MINING CO.,
INC., a company formed under the laws of the State of Arizona having an
office at 48412 N. Black Canyon Hwy., New River, AZ 85087

(hereinafter referred to as “New
Verde”)

OF THE FIRST PART

AND:

ROBERT H. GUNNISON of 48412 N.
Black Canyon Hwy., New River, AZ 85087

(hereinafter referred to as the
“Inventor”)

OF THE SECOND PART

AND:

ROYAL MINES AND MINERALS CORP.,
a company formed under the laws of the State of Nevada having its corporate
office at 2580 Anthem Village Drive, Suite 112, Henderson, NV 89052

(hereinafter referred to as “Royal
Mines”)

OF THE THIRD PART

WHEREAS:

A. Pursuant to an agreement dated April 2, 2007 (the
"Technology and Asset Purchase Agreement"), Royal Mines acquired from New Verde
a technology for lixivation of metals from ore utilizing thiourea stabilization
(the "Technology");

B. Pursuant to the Technology and Asset Purchase Agreement,
Royal Mines agreed to enter into an employment agreement with the Inventor (the
"Employment Agreement");

C. Under the terms of the Technology and Asset Purchase
Agreement, Royal Mines agreed to pay a total of $300,000 US to New Verde of
which $197,731.67 has been paid to date, leaving an outstanding balance of
102,268.33 (the "Outstanding Balance");

D. Royal Mines is in default of its obligation to pay the
Outstanding Balance to New Verde; 

E. Royal Mines wishes to cure its default under the Technology
and Asset Purchase Agreement; and

F. New Verde and the Inventor wish to obtain a limited license
with respect to the Technology in the event of termination of the Employment
Agreement,

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the premises, and of the mutual covenants and agreements herein
contained, the parties hereto have agreed and do hereby agree as follows:

2

     1. New Verde agrees to extend the
date for payment of the Outstanding Balance to June 30, 2010 (the
"Extension").

     2. Royal Mines agrees to pay
interest on the Outstanding Balance at 6% per annum from the date of this
Agreement. The interest will be payable on June 30, 2010.

     3. As additional consideration
for the Extension, Royal Mines hereby agrees to grant to New Verde and the
Inventor a non-exclusive license (the "License") on the following terms and
conditions:

          (i)
The License will take effect only upon termination of the Employment Agreement
whether terminated by the Company or the Inventor;

          (ii)
The License will be a non-exclusive worldwide license to use and exploit the
Technology;

          (iii)
The License may only be used by New Verde, the Inventor or a corporation all of
the shares of which are owned by the Inventor and/or his wife or children;
and

          (iv)
Except for sublicenses to a corporation described in (iii) above, the License
will not be assignable and the Inventor and New Verde will not be permitted to
assign or sublicense without the prior written approval of Royal Mines.

     4. Time is of the essence of this
Agreement.

     5. This Agreement shall enure to
the benefit of and be binding upon the parties and their respective successors
and permitted assigns.

     6. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of Nevada
and the parties hereto irrevocably attorn to the jurisdiction of said State.

     7. Each of the parties hereto
will cooperate with the others and execute and deliver to the other parties
hereto such other instruments and documents and take such other actions as may
be reasonably requested from time to time by any other party hereto as necessary
to carry out, evidence, and confirm the intended purposes of this Agreement.

     8. This Agreement may not be
amended except by an instrument in writing signed by each of the parties.

     9. The headings contained in this
Agreement are for convenience purposes only and will not affect in any way the
meaning or interpretation of this Agreement.

     10. This Agreement may not be
assigned (except by operation of law) by any party without the consent of the
other parties.

     11. This Agreement will be
governed by and construed in accordance with the laws of the State of Nevada
applicable to contracts made and to be performed therein. 

     12. This Agreement may be
executed in one or more counterparts, all of which will be considered one and
the same agreement and will become effective when one or more counterparts have
been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

     13. This Agreement may be
executed by delivery of executed signature pages by fax and such fax execution
will be effective for all purposes.

3

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the day and year first above written.

	NEW VERDE RIVER MINING CO., INC., 	 
	an Arizona corporation, by its authorized signatory: 	 
	  	 
	  	 
	/s/ Robert
    Gunnison	 
	Signature of Authorized Signatory 	 
	  	 
	  	 
	Robert Gunnison
	 
	Name of Authorized Signatory 	 
	  	 
	  	 
	President 	 
	Position of Authorized Signatory 	 

	SIGNED, SEALED AND DELIVERED 	
      ) 
	  
	BY ROBERT H. GUNNISON 	
      ) 
	  
	in the presence of: 	
      ) 
	  
	  	
      ) 
	  
	  	
      ) 
	  
	/s/ K. I. Matheson	
      )
	 
	Signature of Witness 	
      ) 
	
       

	  	
      ) 
	
  /s/ Robert H. Gunnison 

	K. I. Matheson	
      )
	
      ROBERT H. GUNNISON 

	Name of Witness 	
      ) 
	  
	  	
      ) 
	  
	2215 Lucerne Cir., Henderson, NV  89014	
      )
	 
	Address of Witness 	
      ) 
	  
	  	
      ) 
	  
		
      )
	 

	ROYAL MINES AND MINERALS CORP. 	 
	a Nevada corporation by its authorized signatory: 	 
	  	 
	  	 
	/s/ Jason S.
      Mitchell 	 
	Signature of Authorized Signatory 	 
	  	 
	  	 
	Jason S. Mitchell
    	 
	Name of Authorized Signatory 	 
	  	 
	  	 
	Secretary and
      Treasurer 	 
	Position of Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]