Document:

EX-10.1

Exhibit 10.1

     CONSENT AND AMENDMENT effective as of June 4, 2009 (the “Consent”), executed in
connection with the FINANCING AGREEMENT, dated as of July 15, 2005 (as amended, modified or
supplemented from time to time, the “Financing Agreement”), among HORSEHEAD CORPORATION
(f/k/a Horsehead Corp. and Horsehead Acquisition Corp.), a Delaware corporation doing business in
South Carolina as Horsehead Recycling (the “Company”), HORSEHEAD INTERMEDIARY CORP., a
Delaware corporation (“Horsehead Intermediary”), CHESTNUT RIDGE RAILROAD CORP., a Delaware
corporation (together with the Company, the “Credit Parties”), THE CIT GROUP/BUSINESS
CREDIT, INC. (“CIT”), PNC BANK, NATIONAL ASSOCIATION (“PNC” and together with CIT,
collectively, the “Lenders”), and CIT, as agent for the Lenders (the “Agent”).
Terms which are capitalized in this Consent and not otherwise defined shall have the meanings
ascribed to such terms in the Financing Agreement.

     WHEREAS, the Company is in the process of constructing a new facility, located in Barnwell,
South Carolina, which will be used primarily as a zinc recycling facility, and the construction of
the facility, and the acquisition of the property on which the facility will be located, will be
financed in part pursuant to a new markets tax credit transaction with Bank of America Community
Development Corp. and certain other entities (the “New Market Tax Credit Transaction”); and

     WHEREAS, prior to or concurrently with the consummation of the New Markets Tax Credit
Transaction, the Company intends to take the following actions, and the Credit Parties have
requested that the Agent and Lenders provide their consent to (i) the formation by the Company of
Horsehead Zinc Recycling, LLC, a South Carolina limited liability company (“Horsehead
Zinc”), (ii) the acquisition by Horsehead Zinc of title to certain real estate situated at 941
Technology Drive, Barnwell, South Carolina 29812 (the “Barnwell Property”), (iii) the
funding of the acquisition of the Barnwell Property and construction of improvements thereon,
utilizing proceeds of the New Markets Tax Credit Transaction in the approximate amount of
$19,625,000 and proceeds of equity contributions by the Company to Horsehead Zinc in the
approximate aggregate amount of $18,095,000, such acquisition and improvements currently projected
to have an approximate aggregate cost of $37,720,000 (the “Barnwell Project”), (iv)
the Company’s receiving and owning, beneficially and of record, a 99.99% membership interest in
Horsehead Zinc in exchange for the equity contributions hereinabove described, made and to be made
by the Company to Horsehead Zinc, (v) the lease by the Company, from Horsehead Zinc, of the
Barnwell Property, pursuant to a Lease Agreement, effective as of May 29, 2009 between Horsehead
Zinc, as lessor, and the Company, as lessee (the “Barnwell Lease”), and (vi) the execution
by the Company in favor of Horsehead Zinc of a certain environmental indemnity agreement effective
as of May 29, 2009 (the “Environmental Indemnity”), and the Agent and the Lenders
are willing to provide such consents, on the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

 

 

     Section One.  Consent. Notwithstanding any prohibition against (x) the
lease, transfer or other disposition by the Company of any of its assets, pursuant to Section
7.4(c) of the Financing Agreement, (y) the creation by the Company of a new subsidiary, the
investment by the Company in such subsidiary or the acquisition by the Company of an equity
interest in such subsidiary, pursuant to Section 7.4(g) of the Financing Agreement and (z) the
entering into of a lease transaction with an affiliate of the Company pursuant to Section 7.4(h) of
the Financing Agreement, subject to the satisfaction of the conditions precedent contained in
Section Four hereof, the Agent and the Lenders hereby consent to the following transactions:

               (i) The formation by the Company of Horsehead Zinc, provided the Company shall be at
all times the Manager of Horsehead Zinc;

               (ii) The equity contribution by the Company to Horsehead Zinc in the approximate aggregate
amount of $18,095,000, provided the proceeds thereof are used by Horsehead Zinc to fund the
Barnwell Project; and

               (iii) The execution by the Company of the Barnwell Lease and the Environmental Indemnity in
substantially the forms of Exhibit A-1 and A-2, respectively, annexed hereto.

     Section Two.  Amendment. Subject to the satisfaction of the conditions
precedent contained in Section Four hereof, the Financing Agreement is hereby amended as follows:

          (a) Section 1.1. Defined Terms. Section 1.1 is amended by deleting the
definitions of the terms Applicable Margin, LIBOR and Line of Credit Fee, and substituting the
following in lieu thereof, respectively:

Applicable Margin shall mean, with respect to (a)
the Revolving Loans, three percent (3.00%) for Chase Bank
Rate Loans and four percent (4.00%) for LIBOR Loans, and (b)
Letters of Credit, four percent (4.00%).

LIBOR shall mean, for any Interest Period and
subject to availability, a rate of interest equal to the
greater of (1) one and three-quarters percent (1.75%) or (2)
the quotient obtained by dividing: (a) at the Agent’s
election, (i) the rate set forth in the new York (a.m.)
edition of The Wall Street Journal under the “Money Rates”
section for “London Interbank Offered Rates” two (2)
Business Days prior to the first day of such Interest
Period, or (ii) the rate of interest determined by the Agent
at which deposits in U.S. Dollars are offered for such
Interest Period as presented on Telerate Systems at page
3750 (or such other page as may replace such page on
Telerate Systems for purposes of displaying interest rates
in the London interbank markets) as of 11:00 a.m. (London
time) two (2) Business Days prior

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to the first day of such Interest Period (provided
that if two or more offered rates are presented on Telerate
System at page 3750 (or such other page) for such Interest
Period, the arithmetic mean of all such rates, as determined
by the Agent, will be the rate elected) (or, to the extent
that neither (i) not (ii) are available, LIBOR for such
Interest Period as quoted to the Agent by JPMorgan Chase
Bank, N.A. (or any successor thereof) two (2) Business Days
prior to the first day of such Interest Period); by
(b) a number equal to 1.00 minus the Eurocurrency Reserve
Requirements, if any, in effect on the day which is two (b)
Business Days prior to the beginning of such Interest
Period.

Line of Credit Fee shall mean, for any month, the
product obtained by multiplying (a) (i) the amount of the
Revolving Line of Credit minus (ii) the average
daily principal balance of Revolving Loans and the average
daily undrawn amount of Letters of Credit outstanding during
such month, times (b) three-quarters of one percent
(0.75%) per annum for the number of days in said month.

          (b) Section 7.3. Financial Covenants. Section 7.3 (e) of the Financing
Agreement is amended by deleting therefrom the sum of Five Million Dollars ($5,000,000) in each
instance in which it appears in such Section, and substituting in lieu thereof the sum of Twelve
Million Five Hundred Thousand Dollars ($12,500,000), and accordingly, such Section is amended and
restated as follows:

“(e) Nothstanding anything to the contrary contained in this
Section, (i) Consolidated EBITDA for the twelve (12)-month
period ending September 30, 2005 shall be calculated by
annualizing the results of operations of the Company and its
consolidated subsidiaries for the nine (9)-month period
ending September 30, 2005, and Consolidated Fixed Charges
for such twelve (12)-month period shall be calculated by
annualizing Consolidated Fixed Charges for such nine
(9)-month period, and (ii) without limiting any other term
or provision of this Financing Agreement, the Credit Parties
shall not be required to cause the Company and its
consolidated subsidiaries to comply with the financial
covenants set forth in clauses (a), (b) or (c) above unless
and until the average of Net Availability for any
consecutive ten (10) day period is less than Twelve Million
Five Hundred Thousand Dollars ($12,500,000) (a “Testing
Event”), in which case the Credit Parties shall be
required to cause the

-3-

 

Company and its consolidated subsidiaries to have complied
with such financial covenants for the relevant period ended
as of the last day of the prior fiscal quarter and to comply
with such financial covenants for the relevant period ending
as of the last day of the current fiscal quarter and for
each relevant period thereafter; provided, however,
that if the average of Net Availability for any consecutive
thirty (30) day period thereafter is equal to or greater
than Twelve Million Five Hundred Thousand Dollars
($12,500,000), then such Testing Event shall thereafter
cease to exist and the Credit Parties shall not be required
to cause the Company and its consolidated subsidiaries to
comply with such financial covenants for any relevant period
ending after the last day of the fiscal quarter during which
the last day of such thirty (30) day period occurred (it
being agreed for avoidance of doubt that the Credit Parties
shall be required to cause the Company and its consolidated
subsidiaries to comply with such financial covenants for the
relevant period ending on the last day of such fiscal
quarter) unless and until a subsequent Testing Event occurs,
in which case the Credit Parties shall be required to cause
the Company and its consolidated subsidiaries to have
complied and to comply with such financial covenants in
accordance with the preceding clause (ii) so long as such
subsequent Testing Event continues (it being agreed that any
Testing Event shall continue unless and until it ceases to
exist in accordance with this proviso); provided
further, however, that for avoidance of doubt,
irrespective of whether a Testing Event has occurred and is
continuing, minimum Consolidated EBITDA shall be tested on
an annual basis in accordance with the definition of PP&E
Component for the purpose of determining whether the PP&E
Component will be reduced.”

          (c) The Company has heretofore advised the Agent and the Lenders that Horsehead Intermediary
has effectively dissolved as a corporate entity, and accordingly, all references in the Credit
Agreement and in the other Loan Documents to Horsehead Intermediary are hereby deleted.

     Section Three.  Representations and Warranties. Each of the Credit Parties
warrants and represents to the Agent and each Lender as follows:

          (a) the execution, delivery and performance of this Consent and the other documents described
herein by such Credit Party are within its corporate powers, have been duly authorized by all
necessary corporate action, and such Credit Party has received all

-4-

 

necessary consents and approvals (if any shall be required) for the execution and delivery of
this Consent and such other documents;

          (b) upon the execution of this Consent and the other documents described herein, this
Amendment and such other documents shall constitute the legal, valid and binding obligation of such
Credit Party, enforceable against such Credit Party in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency or similar laws affecting creditors’
rights generally and (ii) general principles of equity;

          (c) no Default or Event of Default has occurred and is continuing;

          (d) the Company is not contributing any cash or other property of any kind to Horsehead Zinc
in connection with the New Market Tax Credit Transaction, except for capital contributions, in
cash, in the approximate aggregate amount of $18,095,000; and

          (e) the Recitals contained in this Consent are true and correct in all respects.

Each Credit Party confirms, reaffirms and restates to the Agent and each Lender, as of the date of
this Consent, each of the representations and warranties set forth in the Financing Agreement,
except to the extent that such representations and warranties solely relate to a specific earlier
date, in which case each Credit Party confirms, reaffirms and restates such representations and
warranties as of such earlier date.

     Section Four.  Conditions Precedent. The effectiveness of this Consent and
the provisions hereof are subject to the following conditions precedent, including, where
applicable, that the Agent shall have received the following documents and other items (all such
documents and other items to be in form and substance satisfactory to the Agent):

          (a) This Consent duly executed by authorized representatives of each of the Credit Parties and
each of the Lenders;

          (b) Horsehead Zinc shall have executed and delivered to the Agent a landlord’s waiver with
respect to the Barnwell Property, in substantially the form of Exhibit B annexed hereto;
and

          (c) Except to the extent provided for in the provisions of Section Five(a) below, the New
Market Tax Credit Transaction shall have been consummated in accordance with its terms, all of the
conditions precedent to its effectiveness shall have been satisfied or, if waived, the terms of
such waiver shall be acceptable to the Agent and the Lenders in their commercially reasonable
judgment, and the Agent and its counsel shall have received and reviewed to their reasonable
satisfaction (i) the structure of the New Market Tax Credit Transactions, (ii) the obligations, if
any, of the Company arising under the New Market Tax Credit Transaction and (iii) all material
documents, instruments and agreements to be executed or delivered in connection with the New Market
Tax Credit Transaction (except for those

-5-

 

documents relating to the New Market Tax Credit Transaction listed on Exhibit E
annexed hereto, which are being executed and/or delivered by the parties thereto after the date
hereof);

          (d) The Agent shall have received evidence reasonably satisfactory to it of the return by
Horsehead Zinc to the Company of an amount equal to the sum of approximately $13,955,292
less the aggregate amount of those professional fees and disbursements incurred in
connection with the New Market Tax Credit Transaction which are to be paid upon the consummation
thereof, and the receipt by the Company of such amount, effective upon the consummation of the New
Market Tax Credit Transaction.

     Section Five.  Conditions Subsequent. Notwithstanding the provisions of
Section Four above, the effectiveness of this Consent and the provisions hereof are subject to the
following conditions subsequent, including, where applicable, that the Agent shall have received
the following documents and other items (all such documents and other items to be in form and
substance satisfactory to the Agent), each of which such conditions subsequent must be satisfied by
the deadline specified below (as any such deadline may be extended in writing by Agent acting in
its sole discretion (and without any obligation to grant any such extension)); provided
that, in the event that any of these conditions subsequent shall not have been satisfied by the
respective deadline set forth below (as it may be extended by Agent as provided for above): (i) the
consents provided for in Section One of this Consent above shall be automatically and immediately
deemed to be revoked and to have become null and void ab initio and (ii) an immediate and automatic
Event of Default shall occur under the Financing Agreement:

          (a) No later than the close of business New York time on the tenth (10th) day
following the date of this Consent, Agent and its counsel shall have received and reviewed to their
reasonable satisfaction those documents relating to the New Market Tax Credit Transaction listed on
Exhibit E annexed hereto, which are being executed and/or delivered by the parties thereto
after the date hereof, and notwithstanding anything to the contrary contained herein, this
condition subsequent shall not be deemed to have been satisfied unless and until Agent and its
counsel shall have approved the terms and provisions of (and obligations of the Company under) such
documents in its reasonable discretion and commercial judgment;

          (b) No later than the close of business New York time on the tenth (10th) day
following the date of this Consent, Horsehead Zinc, and each holder of a mortgage on the Barnwell
Property, as of the date of this Consent, shall have executed in favor of the Company a
non-disturbance agreement, in substantially the form of Exhibit C annexed hereto;

          (c) No later than the close of business New York time on the fifth (5th) day
following the date of this Consent, the Company shall have delivered to the Agent satisfactory
proof of effective liability and casualty insurance, in amounts reasonably satisfactory to the
Agent, applicable to the machinery and equipment owned by the Company and to be located or
installed on the Barnwell Property, including appropriate certificates and/or endorsement
indicating that Agent has been added to such policies as lender loss payee or additional insured as
applicable;

-6-

 

          (d) No later than the earlier of (x) the close of business New York time on the tenth
(10th) day following the date of this Consent or (y) the close of business New York time
on the first (1st) Business Day following the date the First Amended and Restated
Operating Agreement of Horsehead Zinc Recycling, LLC described as item #4.a on Exhibit E below
shall have been approved by Agent and its counsel under Section Five(a) hereof above and executed
by the parties thereto, all of the equity interests issued by Horsehead Zinc to the Company (the
“Pledged Equity Interests”) shall have been pledged and collaterally assigned by the
Company to the Agent, for the ratable benefit of the Lenders, as security for all Obligations,
pursuant to a pledge and security agreement in substantially the form of Exhibit D annexed
hereto, and all of the other members of Horsehead Zinc shall have consented to such pledge, in
writing, the Agent’s security interest in the Pledged Equity Interests shall be perfected and shall
constitute an exclusive first priority security interest, all of the Pledged Equity Interests shall
be certificated and Horsehead Zinc shall have “opted in” to Article 8 of the applicable Uniform
Commercial Code, Agent and its counsel shall have received and reviewed to their reasonable
satisfaction the limited liability company agreement or operating agreement of Horsehead Zinc, the
other formation documents of Horsehead Zinc, and the statute applicable to the formation of limited
liability companies under South Carolina law, and shall have determined that such pledge agreement
provides for the effective pledge and collateral assignment of all of the economic rights and
voting rights associated with the Pledged Equity Interests in a manner consistent with such
documents and laws;

          (e) No later than the close of business New York time on the tenth (10th) day
following the date of this Consent, the Company shall deliver to Agent a written opinion of counsel
for the Credit Parties addressed to the Agent and the Lenders covering such matters as may be
reasonably requested by the Agent; and

          (f) No later than the close of business New York time on the fifth (5th) day
following the date of this Consent, the Company shall deliver to Agent evidence that the execution,
delivery and performance of this Consent by each of the Credit Parties have been duly authorized by
all necessary action, and that no amendment or other modification to the articles or certificate of
incorporation or bylaws of any Credit Party has been made since the date of the original delivery
thereof to the Agent and that such documents (in the form delivered to the Agent) remain in full
force and effect

     Section Six.  General Provisions.

          (a) The Financing Agreement and all other agreements, documents, instruments and certificates
executed in connection therewith, are ratified and confirmed in all respects and shall remain in
full force and effect in accordance with their respective terms.

          (b) The execution, delivery and effectiveness of the consents contained in Section One hereof
shall not operate as a waiver of any right, power or remedy of any Lender or of Agent under the
Financing Agreement or any of the other Loan Documents, nor constitute a waiver of any other
provision of the Financing Agreement or any of the other Loan Documents.

-7-

 

          (c) All references to the Financing Agreement and each other Loan Document shall mean the
Financing Agreement as in effect on the date hereof and as hereafter amended, supplemented and
modified from time to time.

          (d) This Consent embodies the entire agreement between the parties hereto with respect to the
subject matter hereof and supercedes all prior agreements, commitments, arrangements, negotiations
or understandings, whether written or oral, of the parties with respect thereto.

          (e) Each Credit Party hereby specifically agrees and acknowledges and covenants that, promptly
upon request of Agent, any applicable Credit Party will execute and deliver to Agent a mortgage
modification agreement or amendment with respect to each Mortgage, pursuant to which such Mortgage
shall be modified as necessary to reflect the amendments, modifications and other changes to the
Financing Agreement provided for in this Consent.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties to this Consent have signed below to indicate their agreement
with the foregoing and their intent to be bound thereby.

	 	 	 	 	 	 	 
	 	 	HORSEHEAD CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James M. Hensler	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James M. Hensler	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CHESTNUT RIDGE RAILROAD CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James M. Hensler	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James M. Hensler	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.,

as a Lender and as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alan Strauss	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Alan Strauss	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Douglas Hoffman	 	 
	 

	 	Name:
	 	Douglas Hoffman	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to ConsentEX-4.4

Exhibit 4.4

Material marked [*] has been omitted pursuant to a request for confidential treatment. This material has been filed with the Commission separately.

<translation from Norwegian>

AGREEMENT

between

THE NORWEGIAN STATE REPRESENTED BY

THE MINISTRY OF TRADE AND INDUSTRY

and

EKSPORTFINANS ASA

<sign.>

 

 

<translation from Norwegian>

This agreement (”the Agreement”) has been entered into between

The Norwegian State represented by the Ministry of Trade and Industry, org.no.: 972 417 890, (“the
State”)

and

Eksportfinans ASA, org.no.: 816 521 432, (“Eksportfinans”).

1. BACKGROUND

In accordance with an agreement with the Norwegian State, represented by the Ministry of Trade and
Industry, Eksportfinans currently manages the government-supported scheme providing fixed-rate
loans to the export industries. Due to the situation in the international capital market,
Eksportfinans has concluded that it is unable to increase lending under the scheme. Norwegian
authorities are worried that a situation may occur where Norwegian businesses do not have access to
export financing in line with schemes which are common internationally. The State and Eksportfinans
have entered into this Agreement in order to ensure access to long-term export financing for
Norwegian businesses through Eksportfinans.

2. STATE FINANCING OF THE GOVERNMENT-SUPPORTED SCHEME FOR FIXED-RATE LOANS TO THE EXPORT INDUSTRIES

2.1 Loans from the State to Eksportfinans

Contingent upon consent from the Storting (Norwegian parliament), the State will issue loans to
Eksportfinans. The loan amounts (volume), loan currency, credit limits and other terms are set by
the State. The loans shall be given with a term of five years, or less if Eksportfinans so asks.
The interest rate shall be in line with commercial terms and calculated with a mark-up to the
State’s borrowing rate and shall reflect the benefit to Eksportfinans inherent in loans from the
State. The State’s claims on Eksportfinans shall not be tradable. The commercial interest rate
shall be stipulated in each individual loan agreement, based on the principles stipulated in
Appendix 1.

2.2 Period during which the State is obliged to issue loans

The State’s obligation to issue loans in accordance with this Agreement lasts until 31 December
2010 unless the parties agree otherwise in a new agreement.

2.3 Use of loans

Loans from the State under this Agreement shall exclusively be used to finance new export credits
which qualify under the government-supported scheme in accordance with the OECD’s “Arrangement on
Officially Supported Export Credits” on “Commercial Interest
Reference Rate” (CIRR loans). Eksportfinans shall be able to issue both CIRR loans and commercial
loans to borrowers that qualify under the scheme.

 

 

<translation from Norwegian>

3. SHARE STRUCTURE

2.4 Share with special right to dividend

Eksportfinans shall increase its share capital with one share, subscribed by the State at a
nominal value of NOK 10,500. The share shall be in a separate share category which, from the
accounting year 2009, gives a right, stipulated by the bylaws, to annual dividend (the Preference
Share) equal to 22.5 per cent of the company’s annual profit according to last year’s presented
accounts within the statutory maximum dividend basis (the Basis for Calculation). However, reversal
of loan losses recognized in the accounts before 1 January 2009 and results from Kommunekreditt AS
are excluded from the Basis for Calculation. Dividend from the Preference Share shall, to the
extent compatible with the concern for prudent operations and the company’s solidity, be disbursed
as cash dividend. Alternatively, such dividend can be disbursed in the form of issuance of new,
ordinary shares in accordance with the terms which applied at the increase of the share capital in
2008. The formulation of Eksportfinans’ bylaws concerning this point shall be approved by the
State.

Eksportfinans shall redeem or buy the Preference Share at nominal value as soon as Eksportfinans
has presented its annual accounts and disbursed dividend for the Preference Share for the
accounting year in which all loans issued by the State in accordance with this Agreement have been
fully repaid.

Disbursements, including dividend, from other shares than the Preference Share are contingent upon
consent from the State as long as Eksportfinans has loans issued by the State under this Agreement.
However, Eksportfinans shall freely make allocations or disburse dividend to the extent this stems
from sale of and/or dividend/group contribution from Kommunekreditt AS and companies in the same
group as Eksportfinans.

2.5 The State’s right of inspection vis-à-vis Eksportfinans

The State can at any time, itself or using external assistance, audit Eksportfinans’ activities.
The State or agency assisting the State in such an audit shall have access to all accounts and all
other relevant documentation in Eksportfinans and companies in the same group as Eksportfinans.

2.6 Executive wages, etc.

Until 31 December 2010, wages and other benefits to senior executive employees in Eksportfinans
shall not be increased. During this period, senior executive employees shall not accumulate or
receive bonuses, except for bonuses accumulated before 1 November 2008 in accordance with
agreements entered into before this date. Wages, other benefits and any bonus schemes to senior
executive employees after 31 December 2010 shall be approved in advance by the State.

4. CONDITIONS FOR THE IMPLEMENTATION OF THE AGREEMENT

The following conditions must be met before implementation of the Agreement:

	 	(1)	 	The EFTA Surveillance Authority is notified of and approves the Agreement ,

 

 

<translation from Norwegian>

	 	(2)	 	the Storting gives its necessary endorsement of the State entering into this Agreement,
	 
	 	(3)	 	the Agreement is approved by Eksportfinans’ general meeting, cf. Section 3-8 of the
Public Limited Liability Companies Act , and
	 
	 	(4)	 	the shareholders of Eksportfinans, representing, together with the State, more than
two-thirds of the shares in Eksportfinans, endorse the Agreement and pledge themselves to
vote in favour of all necessary motions to implement this Agreement at the general meeting.

The Agreement will be cancelled if all the above-mentioned conditions are not met by 31 January
2009.

5. DURATION

The Agreement lasts until Eksportfinans repays all loans issued by the State in accordance with
Item 2.1 and the Preference Share has been redeemed by Eksportfinans in accordance with Item 3.1.

6. AMENDMENTS TO THE AGREEMENT

Amendments to the Agreement shall be made in writing and signed by the parties.

7. PUBLICATION

The parties agree that the Agreement and its content can be published after it has been signed.

8. COSTS

Each of the parties must bear its own costs, including expenses for own advisers, in connection
with the negotiations, signing, implementation and follow-up of this Agreement.

9. CHOICE OF LAW AND DISPUTES

The Agreement is subject to Norwegian law,

Attempts shall bee made to resolve any dispute which may arise in connection with the Agreement
through negotiations between the parties. If such negotiations are not successful, any disputes
shall be resolved in a regular court of law. The parties choose Oslo District Court as their legal
venue.

..oo00oo..

26 November 2008

Agreement in two originals, one to each party

	 	 	 
	The Norwegian State,

	 	Eksportfinans ASA
	represented by the Ministry of

	 	Geir Bergvoll (sign.)
	Trade and Industry

	 	Geir Bergvoll (by authority)
	Knut Utvik (sign.)
	 	 

 

 

<translation from Norwegian>

Knut Utvik (by authority)

Appendix 1

The commercial mark-up for a loan in foreign currency can be illustrated thus:

To the State’s borrowing rate for loans in NOK with a corresponding term (fixed rate quoted at the
time the loan is draw down):

State/swap spread in Norway for the relevant term – minus the swap interest rate in NOK for the
relevant term – minus basis swap spread against LIBOR for the currency the loan is drawn down in
for the relevant term + plus the swap interest rate in the relevant currency for the relevant term
for the currency the loan is drawn down in + (xx) bp

The commercial mark-up for a loan in NOK can be illustrated thus:

To the State’s borrowing rate for loans in NOK with a corresponding relevant term (fixed rate
quoted at the time the loan is drawn down):

State/swap spread in Norway for the relevant term + (xx) bp

 

 

LOAN AGREEMENT

between

THE MINISTRY OF TRADE AND INDUSTRY FOR THE NORWEGIAN

STATE

(Herein known as the “Lender”)

and

EKSPORTFINANS ASA

(Herein known as the “Borrower”)

 

2

Index

	 	 	 	 	 	 	 
	Framework for contract formation
	Page 3
	 
	I 
		Relationship between the Agreement and the Loan Agreement		Page 3
	 
	II 
		Definitions		Page 3
	 
	III 
		Borrowings, term to maturity, repayment structure, disbursement		Page 4
	 
	IV 
		Interest, calculation and payment of interest		Page 5
	 
	V 
		Repayment of Capital Sum		Page 5
	 
	VI 
		Default Interest		Page 5
	 
	VII 
		Pre-payment		Page 5
	 
	VIII 
		Borrower’s declarations		Page 5
	 
	IX 
		Defaults		Page 6
	 
	X 
		Enquiries, addresses, amendments and miscellaneous		Page 7
	 
	IX 
		Choice of law and legal venue		Page 7

 

3

Framework for contract formation

On 26 November 2008, the Lender and Borrower entered into an agreement (the “Agreement”),
which entitles the Borrower to borrow directly from the Lender on certain terms, which are
described in detail in the Agreement.

Art. I Relationship between the Agreement and the Loan Agreement

This Loan Agreement hereby sets the detailed prerequisites, terms, conditions and
documentation requirements for loans taken out by the Borrower under the Agreement.

In the event of conflicts between the two documents, the Agreement takes precedence over the
Loan Agreement.

Art. II Definitions

The following definitions apply to words and terms in this Loan Agreement and in any
documents issued in connection with this Loan Agreement:

“Bank Day”: all days that banks in Oslo are normally open

“Basis Points”: a hundredth of a percentage point

“Lender’s Place of Payment”: the Lender’s banker and bank account number, which are specified
in the individual Loan Certificate

“Borrower’s Place of Payment”: the Borrower’s banker and bank account number, which are
specified in the individual Loan Certificate

“Bullet Structure”: a loan with a repayment structure in which the entire Capital Sum
falls due for payment on the agreed Due Date

“Due Date”: the date that the Capital Sum shall be repaid, and which is specified in the
individual Loan Certificate

“Default Interest”: interest that accrues in place of Interest in the event of late
payment of Interest and/or the Capital Sum, as agreed in 5.2 below.

“Capital Sum”: the amount that is borrowed and paid out for each individual Loan

“Loan”: the loans that the Borrower has taken out under this Loan Agreement in accordance
with the Withdrawal Requests and which are documented with a Loan Certificate. The individual
Loan is an independent loan obligation for the Borrower, with its own interest and repayment
structures.

“Loan Agreement”: this Loan Agreement with any subsequent amendments and additions

 

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“Loan Certificate”: written acknowledgement of a Loan, which is signed by the Borrower
for each Loan, with a format and content that generally complies with Supplement 3

“Loan Offer”: the Lender’s offer to provide the Borrower with a Loan under this Loan
Agreement, with a format and content that generally complies with Supplement 2

“Commercial Mark-up”: [*]. The magnitude of the
Commercial Mark-up may be subject to reassessment

“NIBOR”: Norwegian Interbank Offered Rate as observed on Reuters’ NIBO information site, or
other sites in its place that aim to show NIBOR, as observed at 12:00

“NOK”: the currency that is legal tender in Norway at any given time

“Interest”: 3 — three — months’ NIBOR plus a Commercial Mark-up

“Interest Payment Day”: the days when the Borrower shall pay Interest to the Lender,
which are specified in the individual Loan Certificate

“Interest Period”: the period from one Interest Payment Day to the next Interest Payment
Day

“Withdrawal Request”: the Borrower’s written request to take out a Loan under this Loan
Agreement, containing details of the amount required, the Interest Payment Day, the term to
maturity, the Due Date, date of disbursement and Borrower’s Place of Payment, with a format and
content that generally complies with Supplement 1.

Art. III Borrowings, term to maturity, repayment structure, disbursement

	3.1	 	Where the Borrower wants to take out a Loan under the Loan Agreement, the
Withdrawal Request shall be sent to the Lender at least 5 — five — Bank Days
before the Borrower requires the Loan to be disbursed.
	 
	3.2	 	The Lender shall send the Borrower a Loan Offer within 3 — three — Bank
Days of the Lender receiving the Withdrawal Request from the Borrower.
	 
	3.3	 	The Lender shall pay out the Loan in NOK.
	 
	3.4	 	The term to maturity for each Loan is a maximum of 5 — five — years
calculated from the disbursement date of the Loan. The Borrower may request
a shorter term to maturity than 5 — five — years. Maturity terms shall be
specified in whole years or months in the Withdrawal Request, according to
the Borrower’s preference.
	 
	3.5	 	Loans shall only be performed using the Bullet Structure (to be repaid in one
instalment).

 

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	3.6	 	The Lender shall pay all Loans on the Bank Day and at the Place of Payment
specified in the Withdrawal Request.

Art. IV Interest, calculation and payment of interest

	4.1	 	Interest for the first period is set by the Lender for each Loan 2 — two — Bank
Days prior to payment. For subsequent interest periods, Interest is set 2 — two
Bank Days before the relevant Interest Period.
	 
	4.2	 	Payment of Interest shall take place on the Interest Payment Day at the agreed
Place of Payment.
	 
	4.3	 	Interest is calculated from the date of disbursement and/or Interest Payment
Day up to, but not including, the next Interest Payment Day.
	 
	4.4	 	Interest is calculated quarterly, as specified in the Loan Certificate, in arrears
and using an interest calculation method based on actual days in the period
and on a 360-day year (Act/360).
	 
	4.5	 	Where an Interest Payment Day does not fall on a Bank Day, the day on which
the Borrower is to pay Interest is moved to the next Bank Day. The interest
amount shall, in such cases, be calculated up to the next Bank Day.

Art. V Repayment of Capital Sum

	5.1	 	The Borrower shall repay the Capital Sum on the agreed Due Date at the
agreed Lender’s Place of Payment.
	 
	5.2	 	Where the Due Date does not fall on a Bank Day, the Borrower shall repay the
Capital Sum on the next Bank Day.

Art. VI Default Interest

	6.1	 	In the event that the Borrower does not pay Interest or the Capital Sum on the
agreed Due Date, the Borrower shall be subject to Default Interest. Default
Interest is set at the Interest rate plus 100 — one hundred — basis points per
year. Default Interest replaces Interest and runs from the agreed Interest
Payment Day and/or the Due Date, until the Interest and/or Capital Sum has
been paid.
	 
	6.2	 	Default Interest shall be calculated based on the actual number of days that
have accrued and on a 360-day year (Act/360).

Art. VII Pre-payment

	7.1	 	The Borrower may at any given time, upon giving 30 — thirty — calendar days’
prior written warning to the Lender, pre-pay the Capital Sum and accrued
Interest up to and including the Bank Day when the Borrower wants the
Capital Sum and accrued Interest paid. Pre-payment shall take place on an
Interest Payment Day.

 

6

Art. VIII Borrower’s declarations

	8.1	 	The Borrower confirms and vouches for the following upon entering into this Loan
Agreement:

	 	a)	 	The Borrower is a legally established and organised financial enterprise
in Norway, and is qualified to enter into this Loan Agreement and take out a
loan on the terms hereby agreed.
	 
	 	b)	 	The Borrower has obtained all the necessary company approvals and public permits
in order to enable the valid and legally binding signing of this Loan Agreement to
take out loans under the said agreement.
	 
	 	c)	 	The Borrower is not aware of any situations that have arisen or are imminent that
would be intercepted by circumstances covered in IX below. The Borrower is not aware
of any defaults that will occur on other loan agreements entered into by the Borrower
as a result of this Loan Agreement.

Art. IX Defaults

	9.1	 	In the event that any of the following events occur, the Lender may unilaterally
discontinue his obligations pursuant to this agreement and declare all outstanding Loans as
having been defaulted, whereupon all Loans will fall due for payment with immediate effect
together with accrued Interest:

	 	a)	 	The Borrower does not pay Interest on the relevant Interest Payment Day, and the
situation is not rectified within 10 — ten — Bank Days of the Borrower having been
made aware of the situation.
	 
	 	b)	 	The Capital Sum has been due for payment for more than 7 — seven — Bank Days
since the Due Date, and the situation is not rectified within 10 — ten — Bank Days
of the Borrower having been made aware of the situation.
	 
	 	c)	 	The Borrower has defaulted on any of his other loan obligations for a sum
exceeding NOK 50 000 000.
	 
	 	d)	 	The Borrower is insolvent, is subject to public administration, requests a
bankruptcy petition, is declared bankrupt, enters into negotiations on the
restructuring of debt with one or more of his creditors or declares the liquidation of
the entire business, and the situation is not rectified within 30 — thirty —
calendar days.
	 
	 	e)	 	Circumstances arise that according to Norwegian law qualify as an anticipatory
breach.

 

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Art. X Enquiries, addresses, amendments and miscellaneous

	10.1	 	All enquiries concerning this Loan Agreement shall be made in writing to:

	 	 	 
	Eksportfinans ASA

	 	Ministry of Trade and Industry
	Postboks 1601 Vika

	 	Postboks 8014 Dep
	NO-0119 Oslo

	 	NO-0030 Oslo
	NORWAY

	 	NORWAY
	 
	 	 
	Tel: +47 22 01 22 01

	 	+47 22 24 60 16
	Fax: +47 22 01 22 02

	 	+47 22 24 01 30

	10.2	 	All amendments to this Loan Agreement shall be made in writing and upon agreement
between the Lender and Borrower.

Art. XI Choice of law and legal venue

	11.1	 	This Loan Agreement is subject to Norwegian law and the parties have chosen Oslo City
Court as the legal venue.

Two original copies of the Loan Agreement have been issued, with each party retaining
one copy.

Oslo, 15 January 2009

	 	 	 
	The Norwegian State,

	 	Eksportfinans ASA
	Ministry of Trade and Industry
	 	 
	 
	 	 
	[Signature]

	 	[Signature]

 

 

 8

Supplement 1

To:

Ministry of Trade and Industry

Norges Bank

Ministry of Finance

Withdrawal Request

Reference is made to the loan agreement between the Ministry of Trade and Industry for the
State and Eksportfinans ASA dated                      (the “Loan Agreement”). Words and terms defined in the Loan
Agreement are applied in the same way in this Withdrawal Request as in the Loan Agreement.

Eksportfinans ASA hereby requests the following Loan to be taken out under the Loan
Agreement:

	 	 	 
	1. Amount

	 	[Description]
	 
	 	 
	2. Interest Payment Day

	 	[Description]
	 
	 	 
	3. Term to maturity

	 	[Description]
	 
	 	 
	4. Due Date

	 	[Description]
	 
	 	 
	5. Date of Disbursement

	 	[Description]
	 
	 	 
	6. Borrower’s Place of Payment

	 	[Description]
	 
	 	 
	7. Miscellaneous

	 	[Description]

Oslo,                     20          

Kind regards

Eksportfinans ASA

 

 

 9

Appendices

	1.	 	Overview of export contracts, which form the basis for the Withdrawal Request.

 

 

 10

Appendix 1

Overview of export contracts, which form the basis for the Withdrawal Request

The enclosed Withdrawal Request is aimed at financing the following export contracts:

	1.	 	[Description, borrower, contract, amount, loan’s term to maturity]
	 
	2.	 	 
	 
	3.	 	 

Oslo,                      20          

Eksportfinans ASA

                                        

 

 

 11

Supplement 2

To:

Eksportfinans ASA

FAO: Treasury

Loan Offer from the Ministry of Trade and Industry/Norges Bank/Ministry of Finance

Reference is made to the loan agreement between the Ministry of Trade and Industry for the
State and Eksportfinans ASA dated                      (the “Loan Agreement”). Words and terms defined in the Loan
Agreement are applied in the same way in this Loan Offer as in the Loan Agreement.

The Ministry of Trade and Industry for the State/Norges Bank and the Ministry of Finance
have received a Withdrawal Request from Eksportfinans ASA dated
[                    ]. A loan is herby offered on the following terms and conditions:

	 	 	 
	1. Amount

	 	[Description]
	 
	 	 
	2. Interest Terms

	 	[Description]
	 
	 	 
	3. Interest Payment Days

	 	[Description]
	 
	 	 
	4. Term to maturity

	 	[Description]
	 
	 	 
	5. Due Dates

	 	[Description]
	 
	 	 
	6. Date of Disbursement

	 	[Description]
	 
	 	 
	7. Borrower’s Place of Payment

	 	[Description]
	 
	 	 
	8. Lender’s Place of Payment

	 	[Description]
	 
	 	 
	9. [Miscellaneous]

	 	[Description]

 

 

 12

Loans under the Loan Agreement are made under the terms, conditions and
prerequisites specified in the Loan Agreement.

Oslo,                      20     

[Ministry of Trade and Industry] for the State

                                        

 

 

 13

Supplement 3

Loan Certificate no. [      ]

Loan Certificate

Reference is made to the loan agreement between the Ministry of Trade and Industry for the
State and Eksportfinans ASA dated                      (the “Loan Agreement”). Words and terms defined in the Loan
Agreement are applied in the same way in this Loan Certificate as in the Loan Agreement.

The undersigned Eksportfinans ASA hereby confirms taking out a loan from the Norwegian
State [Ministry of Trade and Industry] on the following terms:

	 	 	 
	1. Amount

	 	[Description]
	 
	 	 
	2. Interest

	 	[Description]
	 
	 	 
	3. Interest Payment Days

	 	[Description]
	 
	 	 
	4. Term to maturity

	 	[Description]
	 
	 	 
	5. Due Date

	 	[Description]
	 
	 	 
	6. Date of Disbursement

	 	[Description]
	 
	 	 
	7. Borrower’s Place of Payment

	 	[Description]
	 
	 	 
	8. Lender’s Place of Payment

	 	[Description]
	 
	 	 
	9. [Miscellaneous]

	 	[Description]

Oslo,                      20          

Eksportfinans ASA

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