Document:

exv10w15

Exhibit 10.15

Washington Avenue Medical Arts II

PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

by and between

1375 ASSOCIATES, L.L.C.,

a New York limited liability company

(“Seller”),

and

ERLY REALTY DEVELOPMENT, INC. (“Erly”)

and

HTA — WASHINGTON MEDICAL ARTS II, LLC,

a Delaware limited liability company

(“Buyer”)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. Purchase and Sale
	 	 	1	 
	2. Purchase Price
	 	 	2	 
	2.1. Deposit
	 	 	2	 
	2.2. Independent Contract Consideration
	 	 	3	 
	2.3. Holdback
	 	 	3	 
	2.4. Purchase Agreement Guaranty
	 	 	4	 
	2.5. Purchase Price Adjustment
	 	 	4	 
	3. Title to Property
	 	 	4	 
	3.1. Title Insurance
	 	 	4	 
	3.2. Procedure for Approval of Title
	 	 	5	 
	4. Due Diligence Items
	 	 	6	 
	5. Inspections.
	 	 	6	 
	5.1. Procedure; Indemnity
	 	 	6	 
	5.2. Approval
	 	 	6	 
	6. Escrow
	 	 	7	 
	6.1. Opening of Escrow
	 	 	7	 
	6.2. Closing Date
	 	 	7	 
	6.3. Seller Required to Deliver
	 	 	8	 
	6.4. Buyer Required to Deliver
	 	 	9	 
	6.5. Seller’s Costs
	 	 	10	 
	6.6. Buyer’s Costs
	 	 	11	 
	6.7. Prorations
	 	 	11	 
	6.8. Duties of Escrow Holder
	 	 	15	 
	7. Seller Representations, Warranties, and Covenants
	 	 	15	 
	7.1. Representations and Warranties
	 	 	15	 
	7.2. Survival
	 	 	19	 
	7.3. Covenants of Seller
	 	 	19	 
	8. Buyer Representations and Warranties
	 	 	25	 
	9. Conditions Precedent to Closing
	 	 	26	 
	9.1. Conditions Precedent
	 	 	26	 
	9.2. Effect of Failure
	 	 	28	 
	10. Damage or Destruction
	 	 	28	 
	11. Eminent Domain
	 	 	28	 
	12. Notices
	 	 	29	 
	13. Remedies
	 	 	31	 
	13.1. Seller Default
	 	 	31	 
	13.2. Buyer Default
	 	 	31	 
	14. [INTENTIONALLY DELETED]
	 	 	31	 
	15. Assignment
	 	 	31	 
	16. Interpretation and Applicable Law
	 	 	31	 
	17. Amendment
	 	 	31	 
	18. Attorneys’ Fees
	 	 	32	 

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	19. Entire Agreement
	 	 	32	 
	20. Counterparts
	 	 	32	 
	21. Calculation of Time Periods
	 	 	32	 
	22. Real Estate Commission
	 	 	32	 
	23. Further Assurances
	 	 	32	 
	24. Exclusivity
	 	 	33	 
	25. SEC Filings
	 	 	33	 
	26. Confidentiality
	 	 	33	 
	27. No Option; Binding Effect
	 	 	34	 
	28. No Warranties
	 	 	34	 
	29. AS-IS
	 	 	34	 
	30. Like-Kind Exchange Transaction
	 	 	34	 
	31. Management and Leasing Agreement
	 	 	35	 
	32. Limitation of Liability
	 	 	35	 
	33. Unit 1 Sale
	 	 	35	 

EXHIBITS

Exhibit A Legal Description

Exhibit B Deed, Unit Deed and Assignment of Ground Lease

Exhibit C Assignment Agreement

Exhibit D Tenant Notification Letter

Exhibit E Post Closing Escrow Agreement

Exhibit F Signed Representation Letter

Exhibit G Audit Inquiry Letter

Exhibit H Management Agreement

Exhibit I [Intentionally Deleted]

Exhibit J Purchase Agreement Guaranty

Exhibit K Guaranty Holdback Agreement

SCHEDULES

Schedule 1.5-1 Leases

Schedule 1.5-2 Security Deposits

Schedule 2.1.3 List of Properties

Schedule 4 Due Diligence Items

Schedule 5.2.3 Service Contracts

Schedule 7.1 Completion Obligations

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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

     THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this “Agreement”) is
made and entered into as of October 26, 2010 (the “Effective Date”), by and among 1375
ASSOCIATES, L.L.C., a New York limited liability company (“Seller”) and ERLY REALTY
DEVELOPMENT, INC., a New York corporation (“Erly”) and HTA — WASHINGTON MEDICAL ARTS II, LLC, a
Delaware limited liability company (“Buyer”). Each of Seller and Buyer are sometimes each
individually referred to as a “Party” and collectively as the “Parties.”

     IN CONSIDERATION of the mutual covenants and agreements contained in this Agreement, and other
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by the
Parties, the Parties hereby agree as follows:

1. Purchase and Sale. Seller and Erly hereby agree to sell and convey to Buyer and Buyer hereby agrees to
purchase from Seller and Erly, subject to the terms and conditions of this Agreement, the following
(collectively, the “Property”):

     1.1. all of Erly’s fee simple interest in, to and under that certain real property located at
1375 Washington Avenue and 1375A Washington Avenue, Albany, New York 12206 and more particularly
described on Exhibit A attached hereto (the “Land”), all of Erly’s ground lease
interest in the Land pursuant to ground lease agreement dated as of May 1, 1956 between Erly and
1110 Western Albany Management Co., Inc. (“Erly Ground Lease”) and all of Seller’s leasehold estate
created or existing by virtue of that certain Ground Lease Agreement by and between Seller and 1110
Western Albany Management Co., Inc. (“Ground Lessor”), both as specifically set forth in that
certain title report order no. A-0120543 dated October 11, 2010 and prepared by Sneeringer Monahan
Provost Redgrave (“Ground Lease”) and all of Seller’s interest in and to Unit 1 in that certain
1375 Washington Avenue Building Condominium (“Condominium”);

     1.2. all of Erly’s and Seller’s right, title and interest in, to and under all privileges and
easements appurtenant to the Land, including, without limitation, all of Erly’s and Seller’s right,
title and interest, if any, in and to all minerals, oil, gas and other hydrocarbon substances in,
on and under the Land, all development rights, air rights, water rights and water stock owned by
Erly and/or Seller relating to the Land, and all easements, rights of way or other appurtenances of
Erly and/or Seller used in connection with the beneficial use and enjoyment of the Land
(collectively, the “Appurtenances”);

     1.3. all of Erly and Seller’s right, title and interest in and to all improvements and
fixtures located on the Land, including, without limitation, all buildings and structures located
on the Land, all apparatus, equipment and appliances used in connection with the operation or
occupancy of the Land, such as heating, air conditioning, and lighting systems and other facilities
used to provide any utility services, refrigeration, ventilation, garbage disposal, or other
services on the Land (collectively, the “Improvements,” and together with the Land,
and the Appurtenances, the “Real Property”);

 

 

     1.4. all of Seller’s right, title and interest in and to all tangible personal property now or
hereafter located on or in, stored for future use with, or used in connection with, the Real
Property, excluding all tangible personal property owned or leased by the Tenants (as defined
below) or other occupants of the Property (the “Personal Property”);

     1.5. all of Erly’s and Seller’s right, title and interest in, to and under all leases,
subleases, licenses and other occupancy agreements together with all associated amendments,
modifications, extensions or supplements thereto set forth on the attached Schedule 1.5-1
and all other leases, subleases, licenses or occupancy agreements entered into in accordance with
the terms and conditions of this Agreement prior to the Closing Date (collectively, the
“Leases”) with all persons or entities occupying the Real Property or any part thereof
pursuant to the Leases (“Tenants”), together with all deposits held in connection with the
Leases, including, without limitation, all unapplied security deposits, prepaid rent, guaranties,
letters of credit and other similar charges and credit enhancements providing additional security
for the Leases, as set forth on the attached Schedule 1.5-2 (“Security Deposits”)
but excluding all rent and other amounts due with respect to all periods prior to the Closing Date,
which shall remain the sole property of Erly’s or Seller, as applicable, as described in
Section 6.7.1(b), herein;

     1.6. to the extent assignable, all right, title and interest in, to and under all intangible
personal property now or hereafter owned by Erly’s and/or Seller and used in the ownership, use,
operation, occupancy, maintenance or development of the Real Property and Personal Property,
including, without limitation (a) all licenses, permits, certificates, approvals, authorizations
and other entitlements issued (the “Permits”); (b) all reports, test results, environmental
assessments, surveys, plans, specifications (the “Plans”); (c) all warranties and
guaranties from manufacturers, contractors, subcontractors, suppliers and installers
(“Warranties”); (d) all trade names, trademarks, service marks, building and property names
and building signs used in connection with the Real Property (except that Seller retains the right
to use the name of the Property in connection with the marketing of its development and management
activities) (the “Tradenames”); (e) all telephone numbers, domain names, e-mail addresses
and other means of contact utilized in connection with the Real Property; and (f) all other
intangible property related to the Real Property, excluding, all intangible property owned or
leased by the Tenants or other occupants of the Property (collectively, the “Intangible
Property”); and

     1.7. to the extent approved by Buyer pursuant to Section 5.2.3 all right, title and
interest in, to and under the “Assigned Contracts” (as defined below).

2. Purchase Price. The total purchase price of the Property shall be Nine Million Nine Hundred Eighty Seven
Thousand Seven Hundred Ten and No/100 Dollars ($9,987,710.00), ($62,000 of which shall be
attributable toward Erly’s fee interest in the Property) (“Purchase Price”) as adjusted by
the prorations and adjustments provided elsewhere in this Agreement and payable as follows:

     2.1. Deposit.

               2.1.1. Within two (2) business days following the mutual execution and exchange of this
Agreement, Buyer shall deposit into Escrow (as defined below) the amount of One Hundred Fifty
Thousand Four Hundred Fifty Eight and No/100 Dollars ($150,458.00)

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(the “Deposit”), in
the form of a wire transfer payable to First American Title Insurance Company (“Escrow
Holder”). Escrow Holder shall place the Deposit into an interest bearing money market
account at a bank or other financial institution reasonably satisfactory to Buyer, and interest
thereon shall be credited to Buyer’s account and shall be deemed to be part of the Deposit.

               2.1.2. On or before the Closing Date, Buyer shall deposit with the Escrow Holder to be held
in Escrow the balance of the Purchase Price, as adjusted by the prorations and adjustments
provided for in this Agreement, in immediately available funds by wire transfer made payable to
Escrow Holder.

               2.1.3. Escrow Holder shall deposit the Deposit in a non-commingled trust account and shall
invest the Deposit in an insured, interest bearing money market accounts, certificates of
deposit, United States Treasury Bills or such other instruments as directed by Buyer and
reasonably acceptable to Seller and interest thereon shall be credited to Buyer’s account and
deemed to be part of the Deposit. In the event of the consummation of the purchase and sale of
the Property as contemplated hereunder, the Deposit shall be paid to Seller and credited against
the Purchase Price on the “Closing Date” (as defined below) to the extent such credit
when added to the aggregate amount of deposits that have been applied to purchase prices under
the purchase and sale agreements (the “Other Purchase and Sale Agreements”) related to
the properties listed on Schedule 2.1.3 attached hereto (the “Properties”) does
not exceed One Million and No/100 Dollars ($1,000,000.00). The balance of the Deposit, if any,
shall be held in Escrow and shall be paid, in accordance with the terms of the applicable Other
Purchase and Sale Agreement(s), to Seller’s affiliate and credited against the purchase price on
the closing date of the last of the Properties to be purchased by Buyer’s affiliate from
Seller’s affiliate. In the event the sale of the Property is not consummated because of (a) a
Seller default, (b) an Erly default, (c) the termination of this Agreement by Buyer in
accordance with any right to so terminate provided herein, or (d) Seller’s or Erly’s failure to
satisfy any of Buyer’s Closing Conditions (as defined below), or for any other reason, except
for a default by Buyer under Section 13.2, then the Deposit shall be immediately and
automatically paid over to Buyer without the need for any further action by either Party hereto.
In the event the sale of the Property is not consummated for any of the reasons set forth in
Section 13.2, the Deposit shall be promptly paid to and retained by Seller in accordance
with Section 13.2. As used herein, the term “Deposit” includes any deposit made
pursuant to an Other Purchase and Sale Agreement that was not applied to the purchase price
under such Other Purchase and Sale Agreement.

          2.2. Independent Contract Consideration. Notwithstanding anything in this Agreement to the contrary, One Hundred and No/100 Dollars
($100.00) of the Deposit is delivered to the Escrow Holder for delivery to Seller as “Independent
Contract Consideration,” and the Deposit is reduced by the amount of the Independent Contract
Consideration so delivered to Seller, which amount has been bargained for and agreed to as
consideration for Seller’s execution and delivery of this Agreement.

          2.3. Holdback. At Closing, Escrow Holder shall withhold, for a period of 180 days following the Closing
Date, from proceeds which would otherwise be distributed to Seller, the sum of Forty Nine Thousand
Seven Hundred Fifty Two Dollars and and 63/100 Dollars

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($49,752.63) (the “Holdback”).
The Holdback shall be held and disbursed by Escrow Holder in compliance with an Escrow Holdback
Agreement to be executed and delivered at Closing by Buyer, Seller and Escrow Holder in the form
attached hereto as Exhibit E (the “Post-Closing Escrow Agreement”). At Closing,
Escrow Holder shall also withhold, for a period of 270 days following the Closing Date, from
proceeds which would otherwise be distributed to Seller, the sum of Eighty Nine Thousand Five
Hundred Fifty Four and 73/100 Dollars ($89,554.73) (the “SWF Guaranty Holdback”). The SWF
Guaranty Holdback shall be held and disbursed by Escrow Holder in compliance with a Guaranty
Holdback Agreement to be executed and delivered at Closing by Buyer, SWF Guarantor (as defined
herein) and Escrow Holder in the form attached hereto as Exhibit K (the “Guaranty
Holdback Agreement”).

          2.4. Purchase Agreement Guaranty. As additional and separate consideration to Buyer, and to induce Buyer to enter into this
Agreement and acquire the Property, Seller shall cause Joseph R. Nicolla, SWF, L.P., a New York
limited partnership (“SWF Guarantor”) and Francesco Galesi (individually and collectively,
“Guarantor”) to execute and deliver to Buyer, at Closing, a Purchase Agreement Guaranty in
the form attached hereto as Exhibit J (“Guaranty”). Seller shall also cause SWF
Guarantor to execute the Guaranty Holdback Agreement and deliver the same to Buyer at Closing.
Guarantor shall execute this Agreement for the sole purpose of obligating Guarantor to execute and
deliver the Guaranty and the Guaranty Holdback Agreement, as applicable, to Buyer at the Closing.
Guarantor acknowledges that Buyer is and will be relying on this agreement by Guarantor, the
Guaranty and the Guaranty Holdback Agreement in entering into this Agreement and acquiring the
Property and that, but for this agreement by Guarantor, the Guaranty and the Guaranty Holdback
Agreement, Buyer would not enter into this Agreement or acquire the Property.

          2.5. Purchase Price Adjustment. If during the Due Diligence Period, Buyer reasonably demonstrates that costs and expenses
of the Property are greater than historical costs and expenses for the Property and/or the in place
net operating income of the Property is less or more than what was originally disclosed by Seller
to Buyer on or before the Effective Date, Buyer and Seller shall meet and confer in order to
determine whether the Parties, in their sole and absolute discretion, can agree upon an appropriate
adjustment to the Purchase Price. If the Parties cannot agree on a Purchase
Price adjustment, the Purchase Price shall remain unchanged, subject to Buyer’s right to
terminate this Agreement in accordance with any right to so terminate provided herein.

3. Title to Property.

          3.1. Title Insurance. At Closing, Erly shall convey to Buyer fee simple title to the Real Property by duly
executed and acknowledged Deed (as defined below) and Seller shall convey Unit 1 of the Condominium
by Unit Deed (as defined below) and its leasehold interest in the Ground Lease by an Assignment of
Ground Lease (as defined below). A condition to Buyer’s obligations under this Agreement is the
issuance by First American Title Insurance Company whose address is 777 South Figueroa Street,
4th Floor, Los Angeles, California 90017, Attention: Barbara Laffer, Telephone: (213)
271-1702, Facsimile: (818) 450-0135 (the “Title Company”) to Buyer of a 2006 ALTA Extended
Coverage Owner’s Policy of Title Insurance (with the arbitration provision, the creditors’ rights
exclusion and the general exceptions deleted) insuring fee simple title to the Real Property in
Buyer with liability in the amount of the

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Purchase Price, subject only to such exceptions as Buyer
shall have approved pursuant to Section 3.2 below (the “Permitted Exceptions”), and
without survey exceptions, underwritten by First American Title Insurance Company (the “Title
Policy”). Notwithstanding anything in this Agreement to the contrary, and notwithstanding any
approval or consent given or deemed given by Buyer hereunder, Seller and Erly covenant to cause to
be released and reconveyed from the Property, and to remove as exceptions to title on or prior to
the Closing Date all labor, materialmen’s and mechanics’ liens, mortgages (except to the extent
that Buyer is assuming the Existing Loan), deeds of trust and other monetary encumbrances, (the
“Pre-Disapproved Exceptions”).

          3.2. Procedure for Approval of Title. Buyer may obtain an updated survey of the Property (the “Survey”). Buyer shall pay
all costs and expenses incurred in obtaining and delivering the Survey. Buyer shall have until the
expiration of the Due Diligence Period to review and approve, in writing, the condition of the
title to the Real Property (“Title Review Period”). If the Title Documents or the Survey
reflect or disclose any defect, exception or other matter affecting the Real Property (each, a
“Title Defect,” and collectively, the “Title Defects”) that is unacceptable to
Buyer, then Buyer shall provide Seller with written notice of Buyer’s objections no later than the
conclusion of the Title Review Period; provided, however, that if Buyer shall fail to notify Seller
in writing within the Title Review Period either that the condition of title is acceptable or of
any specific objections to the state of title to the Real Property, then Buyer shall be deemed to
have approved to all exceptions to title or other conditions or matters which are described in the
Title Documents or shown on the Survey. Seller may, at its sole option, elect, by written notice
given to Buyer within three (3) business days following the conclusion of the Title Review Period
(“Seller’s Notice Period”), to cure or remove the objections made or deemed to have been
made by Buyer; provided, however, Seller shall in all events have the obligation to (i) act in good
faith in making such election and curing any Title Defects that Seller elects to cure, (ii)
specifically remove the Pre-Disapproved Exceptions, and (iii) remove any Title Defect that attaches
to the Real Property subsequent to the conclusion of the Title Review Period. The failure of Seller
to deliver written notice electing to cure any or all such objected to exceptions during Seller’s
Notice Period shall be deemed an election by Seller not to cure such exceptions. Should Seller
elect to attempt to cure or remove any objection, Seller shall have fifteen (15) days from the
conclusion of the Title Review Period (“Cure Period”) in which to accomplish the cure. In
the event Seller elects (or is deemed to have elected) not to cure or remove any objection, or in
any event Seller fails to cure or remove any objection which Seller agrees or is required to cure
within the Cure Period, then Buyer shall be entitled, as Buyer’s sole and exclusive remedies,
either to (i) terminate this Agreement and obtain a refund of the Deposit or (ii) waive any
objections that Seller has not elected to cure and close this transaction as otherwise contemplated
herein. The failure of Buyer to provide written notice to Seller within ten (10) days following
the expiration of Seller’s Notice Period waiving any objections Seller has not elected to cure
shall be deemed an election by Buyer to waive its objections as to all Title Defects that are not
Pre-Disapproved Exceptions and/or that Seller has not agreed to release or cure. If at anytime
prior to the Closing Date, Buyer receives a new, updated or supplemental title commitment or Survey
and such new, updated or supplemental title commitment or Survey discloses one or more Title
Defects that are not Permitted Exceptions (in each case, a “New Title Defect”) and any New
Title Defect is unacceptable to Buyer, Buyer may, within three (3) business days after receiving
such new, updated or supplemental title commitment or Survey, as the case may be, deliver to Seller
another written notice of Buyer’s

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objections with respect to any New Title Defect only and the
process described in this Section shall apply thereto.

4. Due Diligence Items. Seller shall deliver to Buyer the items set forth on Schedule 4 attached hereto, to
the extent such documents exist and are in Seller’s possession as of the Effective Date
(collectively, the “Due Diligence Items”).

5. Inspections.

          5.1. Procedure; Indemnity. Buyer, at its sole expense, shall have the right to conduct feasibility, environmental,
engineering and physical studies of the Property at any time beginning on September 24, 2010 and
thereafter expiring on November 15, 2010 (the “Due Diligence Period”). Upon 48 hours
notice to Seller and accompanied by a Seller representative, Buyer and its duly authorized agents
or representatives shall be permitted to enter upon the Property at all reasonable times during the
Due Diligence Period in order to conduct tenant interviews (tenant interviews will be conducted
with the consent of Seller and Seller may be present during same), engineering studies, soil tests
and any other inspections and/or tests that Buyer may deem necessary or advisable (collectively,
the “Inspections”). Buyer agrees to promptly discharge any liens that may be imposed
against the Property as a result of Buyer’s Inspections and to defend, indemnify and hold Seller
harmless from all claims, suits, losses, costs, expenses (including without limitation court costs
and attorneys’ fees), liabilities, judgments and damages (collectively, “Claims”) incurred
by Seller as a result of any Inspections performed by Buyer, except for any Claims against Seller
based upon any obligations and liabilities of Seller

          Buyer agrees to provide Seller with an insurance certificate from Buyer and any third party
entering the Property to perform Inspections, naming Seller as an additional insured prior to any
entry on the Property when invasive tests are contemplated. Buyer shall indemnify, defend and hold
Seller harmless from and against all losses, liabilities, obligations, charges, fees, claims,
litigation demands, defenses, costs, judgments, suits, proceedings, damages, disbursements or
expenses of any kind or of any nature whatsoever, (including, without limitation, reasonable
attorneys’ fees and disbursements and costs of investigation) arising out of or from the
Inspections of the Property by Buyer or its agents or consultants, except to the extent caused by
Seller or any of its affiliates or related to a pre-existing condition. The obligations of Buyer
under the immediately preceding sentence shall expressly survive any termination of this Agreement.
In connection with the Inspections, Buyer shall not unreasonably disturb any Tenants use and
occupancy of the Property.

          5.2. Approval.

               5.2.1. Buyer shall have until the conclusion of the Due Diligence Period to approve or
disapprove of the Inspections, Due Diligence Items, and the economic feasibility of the
Property. If Buyer shall fail to deliver a written notice to Seller and Escrow Holder within
the Due Diligence Period approving Buyer’s due diligence, in Buyer’s sole and absolute
discretion, then (i) this Agreement and the Other Purchase and Sale Agreements shall thereupon
be automatically terminated, (ii) Buyer shall not be entitled to purchase the Property or any of
the Properties, (iii) Seller shall not be obligated to sell the Property or any of the
Properties to Buyer and (iv) the Parties shall be relieved of any further obligation to

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each
other with respect to the Property and the Properties. Upon termination, Escrow Holder shall,
without any further action required from any Party, return all documents and funds, including
the Deposit and all of the deposits related to the Properties, to the Buyer and no further
duties shall be required of Escrow Holder.

               5.2.2. Notwithstanding anything to the contrary contained herein, Buyer hereby agrees that
in the event this Agreement is terminated for any reason, then Buyer shall promptly and at its
sole expense return to Seller all Due Diligence Items which have been delivered by Seller to
Buyer in connection with Buyer’s inspection of the Property within five (5) business days
following the termination of this Agreement.

               5.2.3. On or before the expiration of the Due Diligence Period, Buyer may deliver a written
notice to Seller (the “Contracts Notice”) identifying those service contracts, vending
machine, telecommunications and other facilities leases, utility contracts, maintenance
contracts, management contracts, leasing contracts, equipment leases, brokerage and leasing
commission agreements and other agreements or rights related to the construction, ownership,
use, operation, occupancy, maintenance, repair or development of each Property (collectively,
the “Service Contracts”) listed on Schedule 5.2.3 that Seller shall assign to
Buyer and that Buyer shall assume as of the Closing Date (such designated Service Contracts
shall be collectively referred to herein as the “Assigned Contracts”). All Service
Contracts that are not Assigned Contracts (the “Terminated Contracts”) shall be
terminated at Closing by Seller whereupon the Terminated Contracts shall not be assigned to,
or assumed by, Buyer. To the extent that any Terminated Contracts require payment of a
penalty or premium for cancellation, Seller shall be solely responsible for the payment of any
such cancellation fees or penalties. If Buyer fails to deliver the Contracts Notice on or
before the expiration of the Due Diligence Period, all Service Contracts will be Terminated
Contracts.

6. Escrow.

          6.1. Opening of Escrow. The sale of the Property shall be consummated through
an escrow (“Escrow”) to be
opened with Escrow Holder within two (2) business days after the execution of this Agreement by
Seller and Buyer. This Agreement shall constitute the joint escrow instructions between the
Parties, with such further consistent instructions as Escrow Holder shall require in order to
clarify its duties and responsibilities. If Escrow Holder shall require further Escrow
instructions, Escrow Holder may prepare such instructions on its usual form. Such further
instructions shall, so long as not inconsistent with the terms of this Agreement, be promptly
signed by Buyer and Seller and returned to Escrow Holder within three (3) business days after
receipt thereof. In the event of any conflict between the terms and conditions of this Agreement
and any further Escrow instructions, the terms and conditions of this Agreement shall control.

          6.2. Closing Date. The consummation of the purchase and sale of the Property (the “Closing”) shall
occur ten (10) days after the expiration of the Due Diligence Period. The date upon which the
Closing shall occur is referred to as the “Closing Date;” provided, however, that Buyer
shall have the right to call for an earlier Closing Date without Seller’s consent by

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providing at
least with five (5) business days’ written notice to Seller prior to the earlier Closing Date.

          6.3. Seller and Erly Required to Deliver. No later than one (1) business day prior to the Closing Date (unless an earlier date is
specified), Seller and Erly shall deliver to Escrow Holder the following:

               6.3.1. Deed. One (1) original Bargain and Sale Deed in the form attached hereto as
Exhibit B-1 (the “Deed”), duly executed and acknowledged by Erly and in proper
form for recording, conveying fee title to the Property to Buyer;

               6.3.2. Unit Deed. Two (2) original Unit Deeds in the form attached hereto as
Exhibit B-2 (the “Unit Deed”), duly executed and acknowledged by Seller and in
proper form for recording, conveying the Condominium interest of Seller to the Buyer;

               6.3.3. Assignment of Ground Lease. Two (2) original Assignments of Ground Lease in
the form attached hereto as Exhibit B-3 (the “Assignment of Ground Lease”) duly
executed and acknowledged by Seller and in proper form for recording, conveying the Seller’s
interest in the Ground Lease to the Buyer.

               6.3.4. Assignment of Erly Ground Lease. Two (2) original Assignments of Ground
Lease in form attached hereto as Exhibit B-4 (the “Assignment of Erly Ground
Lease”) duly executed and acknowledged by Erly and in property form for recording, conveying
Erly’s interest in the Erly Ground Lease to the Buyer.

               6.3.5. Assignment Agreement. Two (2) originals of an Assignment and Assumption
Agreement in the form attached hereto as Exhibit C (the “Assignment Agreement”),
duly executed by Seller;

               6.3.6. Transferor’s Certification of Non-Foreign Status. One (1) original
certification as to Seller’s non-foreign status which complies with the provisions of Section
1445(b)(2) of the Internal Revenue Code of 1986, as amended, any regulations promulgated
thereunder (“Internal Revenue Code”), and any revenue procedures or other officially
published announcements of the Internal Revenue Service or the U.S. Department of the Treasury
in connection therewith (the “FIRPTA”);

               6.3.7. Tenant Notice. One (1) original letter, in the form attached hereto as
Exhibit D, duly executed by Seller, advising the Tenants of the change in ownership of
the Property;

               6.3.8. Rent Roll; Delinquency Report. One (1) original updated Rent Roll and
updated Delinquency Report certified by Seller as being true and accurate as of the Closing
Date;

               6.3.9. Paid Receipt. A reading as of the date of the Closing as to the unpaid
balance of the water and sewer charges (if any);

8

 

          6.3.10. Title Documents. Such other documents and instruments, executed and
properly acknowledged by Seller, if applicable, as Title Company may require from Seller in
order to issue the Title Policy;

          6.3.11. Guaranty. Two (2) originals of the Guaranty, duly executed by each
Guarantor;

          6.3.12. Post-Closing Escrow Agreement. Two (2) originals of the Post-Closing
Escrow Agreement, duly executed by Seller;

          6.3.13. Guaranty Holdback Agreement. Two (2) originals of the Guaranty Holdback
Agreement, duly executed by SWF Guarantor; and

          6.3.14. Other Documents. Such other documents as may be required by this Agreement
or as may reasonably be required to carry out the terms and intent of this Agreement, provided
that such documents shall not increase Seller’s liability or result in a material expense to
Seller.

          6.4. Buyer Required to Deliver. No later than one (1)
business day prior to the Closing Date (unless an earlier date is
specified), Buyer shall deliver to Escrow Holder the following:

               6.4.1. Purchase Price. The balance of the Purchase Price, as adjusted by the
prorations and adjustments provided for in this Agreement; provided, however,
that Buyer shall not be required to deposit the balance of the Purchase Price into Escrow until
Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow each of the
documents and instruments to be delivered by Seller in connection with the sale of the Property
to Buyer, (ii) Title Company has committed to issue and deliver the Title Policy to Buyer, and
(iii) the only impediment to Closing is the delivery of such amount by or on behalf of Buyer;

               6.4.2. Title Documents. On or before the Closing Date, such other documents as the
Title Company may require from Buyer in order to issue the Title Policy;

               6.4.3. Assignment Agreement. Two (2) originals of the Assignment Agreement duly
executed by Buyer;

               6.4.4. Post Closing Escrow Agreement. Two (2) originals of the Post Closing Escrow
Agreement, duly executed by Buyer;

               6.4.5. Guaranty Holdback Agreement. Two (2) originals of the Guaranty Holdback
Agreement, duly executed by Buyer; and

               6.4.6. Other Documents. Such other documents as may be required by this Agreement
or as may reasonably be required to carry out the terms and intent of this Agreement, provided
that such documents shall not increase Buyer’s liability or result in a material expense to
Buyer.

9

 

               6.4.7. Unit Deed. Two (2) originals of the Unit Deed, duly executed by Buyer, and

               6.4.8. Assignment of Ground Lease. Two (2) originals of the Assignment of Ground
Lease, duly executed by Buyer;

               6.4.9. Assignment of Erly Ground Lease. Two (2) originals of the Assignment of
Erly Ground Lease, duly executed by Buyer; and

               6.4.10. Post-Closing Deliverables. Within one (1) business day after the Closing
Date, Seller shall deliver to Buyer the following:

                    (a) All keys to all buildings and other improvements located on the Property, combinations to
any safes thereon, and security devices therein in Seller’s possession;

                    (b) The original Leases, Service Contracts, Permits, Plans and Warranties; and

                    (c) All records and files relating to the management or operation of the Property, including,
without limitation, all insurance policies, all Assigned Contracts, all Tenant
files (including correspondence), property tax bills, and all calculations used to prepare
statements of rental increases under the Leases and statements of common area charges, insurance,
property taxes and other charges which are paid by Tenants of the Property.

          6.5. Seller’s Costs. Seller shall pay the following:

               6.5.1. One-half (1/2) of Escrow Holder’s fee, costs and expenses;

               6.5.2. All realty transfer, recordation and documentary fees, stamps and taxes imposed on
the Deed, the conveyance of the Property or the transaction contemplated by this Agreement;

               6.5.3. Costs and expenses of the Title Policy for the Property, not to exceed $37,184.00
(“Seller’s Title Expense Cap”);

               6.5.4. All costs incurred in connection with the prepayment, satisfaction or reconveyance
of any loan encumbering the Property or any portion thereof, including, without limitation, all
prepayment, reconveyance and recording fees, penalties or charges, and any legal fees associated
therewith, and any other document(s) required by the Title Company in order to release Title
Defects or New Title Defects;

               6.5.5. All real estate commissions due in connection with this transaction pursuant to
Section 22 below;

               6.5.6. Seller’s and Erly’s attorney fees; and

               6.5.7. All other costs customarily borne by sellers of real property in Albany County, New
York.

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               The provisions of this Section 6.5 shall survive the termination of this Agreement.

          6.6.  Buyer’s Costs . Buyer shall pay the following:

               6.6.1. One-half (1/2) of Escrow Holder’s fee, costs and expenses;

               6.6.2. Costs and expenses of the Title Policy for the Property in excess of Seller’s Title
Expense Cap;

               6.6.3. The cost of the Survey;

               6.6.4. Buyer attorneys’ fees; and

               6.6.5. All other costs customarily borne by buyers of real property in Albany County, New
York.

               The provisions of this Section 6.6 shall survive the termination of this Agreement.

          6.7. Prorations.

               6.7.1. Items to Be Prorated. The following shall be prorated between Seller and
Buyer as of the Closing Date with Buyer being deemed the owner of the Property as of the Closing
Date and with Buyer receiving credit for or charged with the entire day of the Closing. Except
as hereinafter expressly provided, all prorations shall be done on the basis of the actual
number of days in the year in which Closing occurs for the actual number of days elapsed to the
Closing Date or the actual number of days in the month in which the Closing occurs and the
actual number of days elapsed in such month to the Closing Date, as applicable:

                    (a) Taxes and Assessments. Seller shall pay, on or prior to Closing, any and all
delinquent real estate and personal property taxes and assessments with respect to the Property.
General real estate and personal property taxes and assessments and payments in lieu of taxes (if
applicable) that are due or accrue during the year in which the Closing occurs shall be prorated as
of the Closing Date; provided, however, that Seller shall pay on or before Closing
the full amount of any bonds or assessments against the Property, including interest payable
therewith, and including any bonds or assessments that may be payable after the Closing Date, that
are a result of or relate to the construction or operation of any Improvements or any public
improvements that serve only the Property. If after the Closing there is any retroactive increase
in the real or personal property taxes or assessments imposed on the Property: (i) if such
increase relates to the tax year in which the Closing occurred, then such increase shall be
prorated by Seller and Buyer on a per diem basis based on their respective periods of ownership
during the period to which such increase applies, (ii) if such increase relates to any tax year
subsequent to the tax year which the Closing occurred, then such increase shall be the obligation
of Buyer, and (iii) if such increase relates to any tax year prior to the tax year in which the
Closing occurred, then such increase shall be the obligation of Seller. The prorations shall be
based upon the most recently issued tax bill for the Property. If the most recent tax bill is not
for the current tax year, then the Parties shall reprorate within ninety (90) days of the receipt
of the tax bill for the current tax year.

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                    (b) Rents. Rent and other charges under the Ground Lease and the Condominium shall be
prorated at Closing with Buyer reimbursing Seller and Erly, as applicable, for any rent or charges
paid prior to Closing but which are attributable to periods from and after the Closing Date. Buyer
will receive a credit at Closing for all rents collected by Seller prior to the Closing Date and
allocable to the period from and after the Closing Date based upon the actual number of days in the
month. No credit shall be given Seller for accrued and unpaid rent or any other non-current sums
due from Tenants until these sums are paid, and Seller shall retain the right to collect any such
rent provided Seller does not sue to evict any tenants or terminate any Leases. Buyer shall
cooperate with Seller after the Closing Date to collect any rent under the Leases which has accrued
as of the Closing Date; provided, however, Buyer shall not be obligated to sue any
Tenants or exercise any legal remedies under the Leases or to incur any expense over and above its
own regular collection expenses. All payments collected from
Tenants after the Closing Date shall first be applied to the month in which the Closing
occurs, then to any rent due to Buyer for the period after the Closing Date through the month in
which such payment was made, and finally to any rent due to Seller for the period prior to Closing
Date; provided, however, notwithstanding the foregoing, if Seller collects any
payments from Tenants after the Closing Date through its own collection efforts and the Tenants
indicate that such payment is specifically for past-due amounts owed to Seller, Seller may first
apply such payments to rent due Seller for the period prior to the Closing Date. Subject to this
subsection, if Seller receives any payment from a Tenant for rent due and payable for any period
from and after the Closing Date, then Seller agrees to promptly endorse and forward such un-cashed
check or payment to Buyer no later than the next business day.

                    (c) CAM Expenses. To the extent that Tenants are reimbursing the landlord for common
area maintenance and other operating expenses (collectively, “CAM Charge(s)”), CAM Charges
shall be prorated at Closing and again subsequent to Closing, as of the Closing Date on a
lease-by-lease basis with each Party being entitled to receive a portion of the CAM Charges payable
under each Lease for the CAM Lease Year (as defined below) in which Closing occurs, which portion
shall be equal to the actual CAM Charges incurred during the Party’s respective periods of
ownership of the Property during the CAM Lease Year. As used herein, the term “CAM Lease
Year” means the twelve (12) month period as to which annual CAM Charges are owed under each
Lease. Five (5) days prior to the Closing Date Seller shall submit to Buyer an itemization of its
actual CAM Charge expenses through such date and the amount of CAM Charges received by Seller as of
such date, together with an estimate of CAM Charges to be incurred to, but not including, the
Closing Date. In the event that Seller has received CAM Charge payments in excess of its actual
CAM Charge expenses, Buyer shall be entitled to receive a credit against the Purchase Price for the
excess. In the event that Seller has received CAM Charge payments less than its actual CAM Charge
expenses, to the extent that the Leases provide for a “true up” at the end of the CAM Lease Year,
Seller shall be entitled to receive any deficit but only after Buyer has received any true up
payment from the Tenant. Upon receipt by either Party of any CAM Charge true up payment from a
Tenant, the Party receiving the same shall provide to the other Party its allocable share of the
“true up” payment within five (5) days of the receipt thereof.

                         To assist Buyer in preparing “true up” reconciliation at the end of the CAM Lease Year, Seller
shall deliver to Buyer records of all of Seller’s CAM Charge expenditures at the Closing for the
CAM Lease Year in question.

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                    (d) Operating Expenses. All operating expenses (including all charges under the
Assigned Contracts and agreements assumed by Buyer) shall be prorated, and as to each service
provider, operating expenses payable or paid to such service provider in respect to the billing
period of such service provider in which the Closing occurs (the “Current Billing Period”),
shall be prorated on a per diem basis based upon the number of days in the Current Billing Period
prior to the Close Date and the number of days in the Current Billing Period from and after the
Closing Date, and assuming that all charges are incurred uniformly during the Current Billing
Period. If actual bills for the Current Billing Period are unavailable as of the Closing Date,
then such proration shall be made on an estimated basis based upon the most recently issued bills,
subject to readjustment upon receipt of actual bills.

                    (e) Security Deposits; Prepaid Rents. All deposits, including, without limitation,
all prepaid rentals, damage, and other tenant charges and security deposits (including any portion
thereof which may be designated as prepaid rent) under Leases, if and to the extent that such
deposits are in Seller’s actual possession or control and have not been otherwise applied by Seller
to any obligations of any Tenants under the Leases and any interest earned thereon which by law or
the terms of the Leases could be required to be paid or refunded to Tenants, shall be assigned to
Buyer and either delivered to Buyer or, at Buyer’s option, credited to Buyer against the Purchase
Price, and upon the Closing Date, Buyer shall assume full responsibility for all security deposits
to be refunded to the Tenants under the Leases (to the extent the same are required to be refunded
by the terms of such Leases or applicable). To the extent that any free rent, abatements or other
unexpired concessions under any Leases (collectively, “Abatements”) apply to any period
after the Closing Date, Buyer shall be entitled to a credit against the Purchase Price for the
amount of any such Abatements. In the event that any security deposits are in a form other than
cash (the instrument constituting such security deposits shall be known as, the “Non-Cash
Security Deposits”), Seller will, at Closing cause Buyer to be named as beneficiary under the
Non-Cash Security Deposits. Buyer will not receive a credit against the Purchase Price for such
security deposits. In the event that Buyer cannot be named the beneficiary under the Non-Cash
Security Deposits as of the Closing Date, a cash escrow equal to the amount of the Non-Cash
Security Deposit will be established at the Closing until the Non-Cash Security Deposits are
reissued in Buyer’s name. Prior to such time of reissue, Buyer shall be entitled to draw from such
cash escrow in the event the terms of the relevant lease entitle Buyer, as landlord, to draw on the
Non-Cash Security Deposit.

                    (f) Leasing Costs. Seller shall receive a credit at the Closing for all leasing
costs, including tenant improvement costs and allowances, and its pro-rata leasing commissions,
previously paid by Seller in connection with any Lease or modification to an existing Lease which
was entered into after the Effective Date and which is approved or deemed approved by Buyer
pursuant to this Agreement, which approval included approval of the tenant improvement costs.
Seller’s pro-rata share shall be equal to a fraction which has as its numerator the number of
months left in the base term of the Lease after the Closing Date and which has as its denominator
the number of months in the base term of the Lease. Seller shall pay for all tenant improvement
allowances and leasing commissions with respect to the premises leased as of the Effective Date by
the Tenants pursuant to the Leases in effect as of the Effective Date, to the extent that such
tenant improvement allowances and leasing commissions are unpaid as of the Closing Date.

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                         (g) Water and Sewer Charges. Water and sewer charges for the Property shall be
apportioned as of the date of the Closing.

               6.7.2. Calculation; Reproration. Seller shall prepare and deliver to Buyer no
later than three (3) business days prior to the Closing Date an estimated closing statement
which shall set forth all costs payable, and the prorations and credits provided for in this
Agreement and to the extent Seller does not timely deliver the estimated closing statement to
Buyer, Buyer shall have the right, but not the obligation, to extend the Closing Date by the
number of days Seller is delinquent in delivering such estimated closing statement to Buyer.
Any item which cannot be finally prorated because of the unavailability of information shall be
tentatively prorated on the basis of the best data then available and adjusted when the
information is available in accordance with this subsection. The Parties shall attempt in
good faith to reconcile any differences or disputes regarding such estimated closing statement
no later than one (1) business day before the Closing Date. The estimated closing statement as
adjusted as aforesaid and approved in writing by the Parties (which shall not be withheld if
prepared in accordance with this Agreement) shall be referred to herein as the “Closing
Statement”. If the prorations and credits made under the Closing Statement shall prove to
be incorrect or incomplete for any reason, then either Party shall be entitled to an adjustment
to correct the same; provided, however, that any adjustment shall be made, if at
all, within ninety (90) days after the Closing Date (except with respect to CAM Charges, taxes
and assessments, in which case such adjustment shall be made within ninety (90) days after the
information necessary to perform such adjustment becomes available and is provided to all
Parties), and if a Party fails to request an adjustment to the Closing Statement by a written
notice delivered to the other Party within the applicable period set forth above (such notice to
specify in reasonable detail the items within the Closing Statement that such Party desires to
adjust and the reasons for such adjustment), then the prorations and credits set forth in the
Closing Statement shall be binding and conclusive against such Party.

               6.7.3. Items Not Prorated. Seller and Buyer agree that (a) none of the insurance
policies relating to the Property will be assigned to Buyer and Buyer shall be responsible for
arranging for its own insurance as of the Closing Date; and (b) utilities, including telephone,
electricity, water and sewer (if water and sewer charges are included in the property tax bills)
and gas, shall be read on the Closing Date and Buyer shall be responsible for all the necessary
actions needed to arrange for utilities to be transferred to the name of Buyer on the Closing
Date, including the posting of any required deposits and Seller shall be entitled to recover and
retain from the providers of such utilities any refunds or overpayments to the extent applicable
to the period prior to the Closing Date, and any utility deposits which it or its predecessors
may have posted. Accordingly, there will be no prorations for debt service, insurance or
utilities. In the event a meter reading is unavailable for any particular utility, such utility
shall be prorated in the manner provided in Section 6.7.2 above.

               6.7.4. Indemnification. Buyer and Seller shall each indemnify, protect, defend and
hold the other harmless from and against any claim in any way arising from the matters for which
the other receives a credit or otherwise assumes responsibility
pursuant to this Section 6.7.

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               6.7.5. Survival. This Section 6.7 shall survive the Closing.

          6.8. Duties of Escrow Holder. Escrow Holder shall undertake the following at or promptly after Closing:

               6.8.1. If necessary, Escrow Holder is authorized and instructed to insert the Closing Date
as the effective date of any documents conveying interests herein or which are to become
operative as of the Closing Date;

               6.8.2. Cause the Deed, the Unit Deed, the Assignment of Ground Lease, and the Assignment of
Erly Ground Lease, and any other recordable instruments which the Parties so direct to be
recorded in the Official Records of the Recorder of the County in which the Property is located.
If permitted by applicable law, Escrow Holder is hereby instructed not to affix the amount of
the documentary transfer tax on the face of the Deed, but to pay on the basis of a separate
affidavit of Seller not made a part of the public record;

               6.8.3. Cause each non-recorded document to be delivered to the Party acquiring rights
thereunder, or for whose benefit such document was obtained, unless there are sufficient fully
executed counterparts so that each Party executing the same can receive its own fully executed
counterpart;

               6.8.4. Deliver the Title Policy to Buyer as soon as practicable;

               6.8.5. Deliver to Seller the Purchase Price, as adjusted by the prorations and adjustments
provided for in this Agreement, and such other funds, if any, as may be due to Seller by reason
of credits under this Agreement; and

               6.8.6. Comply with all applicable federal, state and local reporting and withholding
requirements relating to the close of the transactions contemplated herein. Without limiting
the generality of the foregoing, to the extent the transactions contemplated by this Agreement
involve a real estate transaction within the purview of Section 6045 of the Internal Revenue
Code, Escrow Holder shall have sole responsibility to comply with the requirements of Section
6045 of the Internal Revenue Code (and any similar requirements imposed by state or local law).
For purposes hereof, Seller’s tax identification number is 14-1813279. Escrow Holder shall
defend, indemnify and hold Buyer, Seller and their counsel free and harmless from and against
any and all liability, claims, demands, damages and costs, including reasonable attorneys’ fees
and other litigation expenses, arising or resulting from the failure or refusal of Escrow Holder
to comply with such reporting requirements.

7. Seller Representations, Warranties, and Covenants.

          7.1.
Representations and Warranties. Seller hereby represent and warrant as of the date hereof and as of the Closing Date to
Buyer as follows:

               7.1.1. Organization and Authorization. Seller is a limited liability company duly
formed and validly existing under the laws of the State of New York. Seller has full power and
authority to enter into this Agreement, to perform its obligations under this

15

 

Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance of
this Agreement and all documents contemplated hereby by Seller have been duly and validly
authorized by all necessary action on the part of Seller and all required consents and approvals
have been duly obtained and will not result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, agreement or
instrument to which Seller is a Party or otherwise bound. This Agreement is a legal, valid
and binding obligation of Seller, enforceable against Seller in accordance with its terms,
subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement,
moratorium or other similar laws affecting the rights of creditors generally.

               7.1.2. No Conflicting Agreements. The execution and delivery by Seller of, and the
performance of and compliance by Seller with, the terms and provisions of this Agreement, do not
(a) conflict with, or result in a breach of, the terms, conditions or provisions of, or
constitute a default under, Seller’s limited liability company agreement, or any other agreement
or instrument to which Seller is a Party or by which all or any part of the Property is bound,
(b) violate any restriction, requirement, covenant or condition to which all or any part of the
Property is bound, (c) constitute a violation of any applicable code, resolution, law, statute,
regulation, ordinance or rule applicable to Seller or the Property, (d) constitute a violation
of any judgment, decree or order applicable to Seller or specifically applicable to the
Property, or (e) require the consent, waiver or approval of any third Party.

               7.1.3. Title. To the best of Seller’s knowledge, Seller has good, marketable and
indefeasible title to the Property, subject to the Permitted Exceptions. Except as expressly
set forth in the Due Diligence Items, there are no outstanding rights of first refusal rights of
first offer, rights of reverter or other similar rights or options relating to the Property or
any interest therein. To the best of Seller’s knowledge, there are no unrecorded or undisclosed
documents or other matters which affect title to the Property. Subject to the Leases and except
as otherwise provided in the Due Diligence Items, Seller has enjoyed the continuous and
uninterrupted quiet possession, use and operation of the Property, without material complaint or
objection by any person.

               7.1.4. FIRPTA. Seller is not a “foreign person” within the meaning of Section
1445(f) of the Internal Revenue Code.

               7.1.5. Employees. As of the date of Closing, there shall be no on-site employees
of Seller at the Property.

               7.1.6. Litigation. Except as set forth on any schedule of litigation delivered
pursuant to Section 4, there are no actions, suits or proceedings pending, or to the
best of Seller’s knowledge, threatened against Seller and affecting any portion of the Property,
at law or in equity, or before or by any federal, state, municipal, or other governmental court,
department, commission, board, bureau, agency, or instrumentality, domestic or foreign.

               7.1.7. Compliance with Laws and Environmental Conditions. Except as expressly set
forth in the Due Diligence Items and to the best of Seller’s knowledge, Seller has not received
any written notice from any governmental or quasi-governmental authority of any violations of
any applicable federal, state or local laws, statutes, rules, regulations,

16

 

ordinances, orders or
requirements (collectively, “Laws”) noted or issued by any governmental authority having
jurisdiction over or affecting the Property, including, without limitation, Laws relating to
“Hazardous Materials”. For purposes of this Agreement, “Hazardous Materials” are
substances defined as: “toxic substances,” “toxic materials,” “hazardous waste,” “hazardous
substances,” “pollutants,” or “contaminants” as those terms
are defined in the Resource, Conservation and Recovery Act of 1976, as amended (42 U.S.C. §
6901 et. seq.), the Comprehensive Environmental Response Compensation and
Liability Act of 1980, as amended (42 U.S.C. § 9601, et. seq.), the Hazardous
Materials Transportation Act, as amended (49 U.S.C. § 1801 et. seq.), the Toxic
Substances Control Act of 1976, as amended (15 U.S.C. § 2601 et. seq.), the
Clean Air Act, as amended (42 U.S.C. § 1251 et. seq.) and any other federal,
state or local law, statute, ordinance, rule, regulation, code, order, approval, policy and
authorization relating to health, safety or the environment]; asbestos or asbestos-containing
materials; lead or lead-containing materials; oils; petroleum-derived compounds; pesticides; or
polychlorinated biphenyls. To the best of Seller’s knowledge, no part of the Property has been
previously used by Seller, for the storage, manufacture or disposal of Hazardous Materials,
except as may be disclosed in the Due Diligence Items.

               7.1.8. Unpaid Claims. There are no unpaid bills, claims, or liens in connection
with any construction or repair of the Property except for those that will be paid in the
ordinary course of business prior to the Closing Date or which have been bonded over or the
payment of which has otherwise been adequately provided for.

               7.1.9. Leases. The Rent Roll and Delinquency Report provided to Buyer pursuant to
Section 4, as updated pursuant to Section 6.3.8, are true, correct, and complete
as of the date prepared. Seller has or will, pursuant to Section 4, deliver to Buyer
true, accurate and complete copies of all of the Leases and, to the best of Seller’s knowledge,
there are no leases, subleases, licenses, occupancies or tenancies in effect pertaining to any
portion of the Property, and no persons, tenants or entities occupy space in the Property,
except as stated on the most current Rent Roll. To the best of Seller’s knowledge, there are no
rights to renew, extend or terminate the Leases or expand any Lease premises, except as shown in
the Rent Roll, the Leases and the Due Diligence Items. To the best of Seller’s knowledge and
except as expressly set forth in the Leases and Due Diligence Items, no brokerage commission or
similar fee is due or unpaid by Seller with respect to any Lease, and there are no written or
oral agreements that will obligate Buyer, as Seller’s assignee, to pay any such commission or
fee under any Lease or extension, expansion or renewal thereof. To the best of Seller’s
knowledge, neither Seller nor any Tenant is in material default under its Lease. To the best of
Seller’s knowledge, Seller is in full compliance with all of the landlord’s obligations under
the Leases. Except as set forth in the Leases and Due Diligence Items, Seller has no obligation
to any Tenant under the Leases to further improve such Tenant’s premises or to grant or allow
any rent or other concessions. No rent or other payments have been collected in advance for
more than one (1) month and no rents or other deposits are held by Seller, except the security
deposits described on the Rent Roll and rent for the current month.

               7.1.10. Condemnation Proceedings. To the best of Seller’s knowledge, there are no
presently pending or, to the best of Seller’s knowledge, contemplated proceedings to condemn the
Property or any part of it.

17

 

               7.1.11. Service Contracts. Except for the Leases set forth on Schedule
1.5-1 and the Service Contracts set forth on Schedule 5.2.3, Seller has not entered
into any agreements, written or oral, relating to the management, leasing, operation,
maintenance and/or improvement of the Property or any portion thereof that would bind Buyer
after the Closing Date. To the best of Seller’s knowledge, Seller has not delivered or received any
written notice alleging any default in the performance or observance of any of the covenants,
conditions or obligations to be kept, observed or performed under any of the Service Contracts
to be retained by Buyer post closing. To the best of Seller’s knowledge, Seller has delivered
to Buyer a true, correct and complete copy of each of the Service Contracts (including all
amendments thereto).

               7.1.12. Personal Property. To the best of Seller’s knowledge, Seller has good
title to all the Personal Property and at Closing Seller shall transfer title to the Personal
Property to Buyer, free and clear of liens, encumbrances and adverse claims.

               7.1.13. Operating Statements. To the best of Seller’s knowledge, the operating
statements for the Property furnished to Buyer in connection with or pursuant to this Agreement
for years ending 2006, 2007, 2008 and 2009 are true, correct and complete in all material
respects.

               7.1.14. Rights. To the best of Seller’s knowledge, Seller has not, except by
operation of law, sold, transferred, conveyed, or entered into any agreement regarding “air
rights,” “excess floor area ratio,” or other rights or restrictions relating to the Property
except as otherwise expressly set forth in the Title Policy or Leases for the Property.

               7.1.15. Due Diligence Items. To the best of Seller’s knowledge, the Due Diligence
Items provided to Buyer constitute all of the material documents, information, data, reports or
written materials that are related to the items requested on the Due Diligence Items listed on
Schedule 4. To the best of Seller’s knowledge, the Due Diligence Items made available
to Buyer are true, correct and complete copies of such documents requested. Seller will make
its files regarding the Property available for personal inspection; provided however, only the
items listed on Schedule 4 shall be deemed Due Diligence Items for the purposes of this
Agreement. Buyer has requested that the Due Diligence Items be scanned and placed on a website
for ease of accessibility. Seller is not responsible for missing pages in those documents that
may have occurred as an administrative error and is relying on Buyer to advise if a document
page is missing. Seller makes no representation or warranty with respect to the content or
accuracy of documents or reports prepared by third parties and Seller’s representations and
warranties with respect to such reports are based upon Seller’s assumption of their accuracy.

               7.1.16. Patriot Act Compliance. To the extent applicable to Seller, Seller has
complied in all material respects with the International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, which comprises Title III of the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(the “Patriot Act”) and the regulations promulgated thereunder, and the rules and
regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control
(“OFAC”), to the extent such Laws are applicable to Seller. To the best of

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Seller’s knowledge, Seller is not included on the List of Specially Designated Nationals and Blocked
Persons maintained by the OFAC, or is a resident in, or organized or chartered under the laws
of, (A) a jurisdiction that has been designated by the U.S. Secretary of the Treasury under
Section 311 or 312 of the Patriot Act as warranting special measures due to
money laundering concerns or (B) any foreign country that has been designated as
non-cooperative with international anti-money laundering principles or procedures by an
intergovernmental group or organization, such as the Financial Action Task Force on Money
Laundering, of which the United States is a member and with which designation the United States
representative to the group or organization continues to concur.

               7.1.17. Completion Obligations. To the best of Seller’s knowledge, except as set
forth on the attached Schedule 7.1 and in the Leases or Due Diligence Items on the
Closing Date, there will be no outstanding written or oral contract made for any improvements,
including capital improvements, to the spaces covered by the Leases, to the Property, or for
offsite improvements related to the Property, which have not been fully completed and paid for
or a credit given to Buyer at Closing in the amount sufficient complete the improvement.

               7.1.18. Ground Lease. Seller has delivered or made available to Buyer a complete
copy of the Ground Lease in its possession, including all amendments. The Ground Lease is in
full force and effect. Seller is “tenant” or “lessee” under the Ground Lease. Seller has
received no written notice of any default. To the best of Seller’s knowledge there is no
default by Seller or, to Seller’s knowledge, Ground Lessor under the Ground Lease.

          7.2. Survival. The foregoing representations and warranties of Seller set forth in this Article 7 are made
by Seller as of the date hereof and again as of the Closing Date, shall survive the Closing for a
period of nine (9) months and shall not be merged as of the Closing Date hereunder.

          7.3. Covenants of Seller. Seller hereby covenants from and after the Effective Date and through the Closing Date as
follows:

               7.3.1. Seller Insurance. To cause to be in force fire and extended coverage
insurance upon the Property, and public liability insurance with respect to damage or injury to
persons or property occurring on the Property in at least such amounts, and with the same
deductibles, as are maintained by Seller on the date hereof.

               7.3.2. Maintenance. To maintain any building constituting an Improvement on the
Property in the same physical condition as it was at the date of Buyer’s inspection, reasonable
wear and tear and casualty excepted, and to perform all normal maintenance from and after the
Effective Date in the same fashion as prior to the Effective Date.

               7.3.3. Leasing. To not enter into any new Lease with respect to the Property,
without Buyer’s prior written consent. The exercise of a mandatory renewal option, shall not be
considered a new lease. To the extent specifically disclosed to and approved by Buyer in
connection with any request for approval, any brokerage commission and the cost of tenant
improvements or other allowances payable with respect to a new Lease shall be prorated

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between Buyer and Seller in accordance with their respective periods of ownership as it bears
to the primary term of the new Lease. Further, Seller will not modify or cancel any
existing Lease covering space in the Property without first obtaining the written consent of
Buyer. Buyer shall have five (5) business days following receipt of a request for any consent
pursuant to this Section 7.3.3 in which to approve or disapprove of any new Lease or any
modification or cancellation of any existing Lease. Failure to respond in writing within said
time period shall be deemed to be an approval. Seller’s execution of a new lease or
modification or cancellation of an existing Lease following Buyer’s refusal to consent thereto
shall constitute a default hereunder.

                    Before the expiration of the Due Diligence Period, Buyer may not unreasonably withhold,
condition or delay its consent under this Section 7.3.3; after expiration of the Due
Diligence Period, Buyer shall have sole discretion in all such matters. In the event of a default
under this Agreement by Buyer, Buyer shall have no further consent rights regarding new leases or
modification of existing Leases.

                    In the event that Seller enters into any new Lease with respect to the Property that (i) was
entered into by Seller in accordance with this Section 7.3.3, and (ii) was not included in
the Argus run dated September 22, 2010 delivered to Buyer prior to the Effective Date, then Buyer
agrees to pay to the Seller, at Closing, (a) the tenant improvement allowance set forth in such new
lease to complete landlord’s work in connection therewith, not to exceed of $20.00 per rentable
square foot, and (b) a 4% leasing commission based upon the total annual rent for the term of the
new Lease.

               7.3.4. Liens. To not sell, assign, or convey any right, title, or interest
whatsoever in or to the Property, or create or permit to attach any lien, security interest,
easement, encumbrance, charge, or condition affecting the Property (other than the Permitted
Exceptions).

               7.3.5. Agreements. To not, without Buyer’s written approval, (a) amend or waive
any right under any Assigned Contract, or (b) enter into any service, operating or maintenance
agreement affecting the Property that would survive the Closing except for such agreements that
may be cancelled or terminated by Seller, without penalty, by notice of thirty (30) days or
less.

               7.3.6. Obligations. To fully and timely comply with all obligations to be
performed by it under all of the Leases, Service Contracts, Permits, Warranties licenses,
approvals and laws, regulations and orders applicable to the Property.

               7.3.7. Rent Roll. To provide Buyer with monthly rent rolls containing the same
information in its Rent Roll delivered pursuant to Section 4.

               7.3.8. Notices. To provide Buyer with copies of (a) any default letters sent to or
received from Tenants and, (b) any copies of correspondence received from a Tenant that it is
discontinuing operations at the Property or seeking to re-negotiate its lease and (c) notices of
bankruptcy filings received with respect to any Tenant.

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               7.3.9. Estoppels. To use reasonably commercial efforts to obtain estoppel
certificates required under this Agreement on the form provided by Buyer.

               7.3.10. Operations. To operate the Property from and after the date hereof in
substantially the same manner as prior thereto.

               7.3.11. Tenant Insurance Certificates. To deliver to Buyer copies of Tenant
insurance certificates, prior to the Closing Date.

               7.3.12. Terminated Contracts. To terminate the Terminated Contracts as of the
Closing Date.

               7.3.13. Ground Lease. (i) To continue to maintain all insurance, if any, as required by the
Ground Lease; (ii) to not amend the Ground Lease without Buyer’s consent; and (iii) to provide
Buyer with copies of any written notices or default letters with respect to the Ground Lease.

               Except with respect to Sections 7.3.2, 7.3.7, 7.3.9, 7.3.10 and 7.3.11, the
provisions of this Section 7.3 shall survive the Closing for a period of nine (9) months.
For purposes of this Agreement, “to the best of Seller’s knowledge” means the knowledge of
(i) David Buicko, and (ii) Galesi Management Corporation, each with the duty of inquiry on the part
of Seller or such individuals.

          7.4. Representations and Warranties. Erly hereby represent and warrant as of the date hereof and as of the Closing Date to Buyer
as follows:

               7.4.1. Organization and Authorization. Erly is a corporation duly formed and
validly existing under the laws of the State of New York. Erly has full power and authority to
enter into this Agreement, to perform its obligations under this Agreement and to consummate the
transactions contemplated hereby. The execution, delivery and performance of this Agreement and
all documents contemplated hereby by Erly have been duly and validly authorized by all necessary
action on the part of Erly and all required consents and approvals have been duly obtained and
will not result in a breach of any of the terms or provisions of, or constitute a default under,
any indenture, agreement or instrument to which Erly is a party or otherwise bound. This
Agreement is a legal, valid and binding obligation of Erly, enforceable against Erly in
accordance with its terms, subject to the effect of applicable bankruptcy, insolvency,
reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors
generally.

               7.4.2. No Conflicting Agreements. The execution and delivery by Erly of, and the
performance of and compliance by Erly with, the terms and provisions of this Agreement, do not
(a) conflict with, or result in a breach of, the terms, conditions or provisions of, or
constitute a default under, Erly’s by laws, or any other agreement or instrument to which Erly
is a Party or by which all or any part of the Property is bound, (b) violate any restriction,
requirement, covenant or condition to which all or any part of the Property is bound, (c)
constitute a violation of any applicable code, resolution, law, statute, regulation, ordinance
or rule applicable to Erly or the Property, (d) constitute a violation of

21

 

any judgment, decree
or order applicable to Erly or specifically applicable to the Property, or (e) require the
consent, waiver or approval of any third Party.

               7.4.3. Title. To the best of Erly’s knowledge, Erly has good, marketable and
indefeasible title to the Property, subject to the Permitted Exceptions. Except as expressly
set forth in the Due Diligence Items, there are no outstanding rights of first refusal rights of
first offer, rights of reverter or other similar rights or options relating to the Property or
any interest therein. To the best of Erly’s knowledge, there are no unrecorded or undisclosed
documents or other matters which affect title to the Property. Subject to the Leases and the
Ground Lease and except as otherwise provided in the Due Diligence Items and Title Report, Erly
has enjoyed the continuous and uninterrupted quiet possession, use and operation of the
Property, without material complaint or objection by any person.

               7.4.4. FIRPTA. Erly is not a “foreign person” within the meaning of Section
1445(f) of the Internal Revenue Code.

               7.4.5. Employees. As of the date of Closing, there shall be no on-site employees
of Erly at the Property.

               7.4.6. Litigation. Except as set forth on any schedule of litigation delivered
pursuant to Section 4, there are no actions, suits or proceedings pending, or to the
best of Erly’s knowledge, threatened against Erly and affecting any portion of the Property, at
law or in equity, or before or by any federal, state, municipal, or other governmental court,
department, commission, board, bureau, agency, or instrumentality, domestic or foreign.

               7.4.7. Compliance with Laws and Environmental Conditions. Except as expressly set
forth in the Due Diligence Items and to the best of Erly’s knowledge, Erly has not received any
written notice from any governmental or quasi-governmental authority of any violations of any
applicable federal, state or local laws, statutes, rules, regulations, ordinances, orders or
requirements (collectively, “Laws”) noted or issued by any governmental authority having
jurisdiction over or affecting the Property, including, without limitation, Laws relating to
“Hazardous Materials”. For purposes of this Agreement, “Hazardous Materials” are
substances defined as: “toxic substances,” “toxic materials,” “hazardous waste,” “hazardous
substances,” “pollutants,” or “contaminants” as those terms are defined in the Resource,
Conservation and Recovery Act of 1976, as amended (42 U.S.C. § 6901 et. seq.),
the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (42
U.S.C. § 9601, et. seq.), the Hazardous Materials Transportation Act, as amended
(49 U.S.C. § 1801 et. seq.), the Toxic Substances Control Act of 1976, as
amended (15 U.S.C. § 2601 et. seq.), the Clean Air Act, as amended (42 U.S.C. §
1251 et. seq.) and any other federal, state or local law, statute, ordinance,
rule, regulation, code, order, approval, policy and authorization relating to health, safety or
the environment]; asbestos or asbestos-containing materials; lead or lead-containing materials;
oils; petroleum-derived compounds; pesticides; or polychlorinated biphenyls. To the best of
Erly’s knowledge, no part of the Property has been previously used by Erly, for the storage,
manufacture or disposal of Hazardous Materials, except as may be disclosed in the Due Diligence
Items.

22

 

               7.4.8. Unpaid Claims. There are no unpaid bills, claims, or liens in connection
with any construction or repair of the Property except for those that will be paid
in the ordinary course of business prior to the Closing Date or which have been bonded over
or the payment of which has otherwise been adequately provided for.

               7.4.9. Leases. The Ground Lease documents set forth in the Title Report and
provided in Due Diligence Items, are true, correct, and complete as of the date prepared. Erly
has or will, deliver to Buyer true, accurate and complete copies of the Ground Lease in its
possession and, To the best of Erly’s knowledge, there are no rights to renew, extend or
terminate the Leases or expand any Ground Lease, except as shown therein. To the best of Erly’s
knowledge and except as expressly set forth in the Ground Lease, no brokerage commission or
similar fee is due or unpaid by Erly with respect to any Lease, including the Ground Lease, and
there are no written or oral agreements that will obligate Buyer, as Erly’s assignee, to pay any
such commission or fee under any Lease or extension, expansion or renewal thereof. To the best
of Erly’s knowledge, neither Erly nor the ground tenant is in material default under its Lease.
To the best of Erly’s knowledge, Erly is in full compliance with all of the landlord’s
obligations under the Ground Lease. Except as set forth in the Ground Lease and Title and Due
Diligence Items, Erly has no obligation to any Tenant under the Ground Lease to further improve
such ground tenant’s premises or to grant or allow any rent or other concessions. No rent or
other payments have been collected in advance for more than one (1) month and no rents or other
deposits are held by Erly.

               7.4.10. Condemnation Proceedings. To the best of Erly’s knowledge, there are no
presently pending or, to the best of Erly’s knowledge, contemplated proceedings to condemn the
Property or any part of it.

               7.4.11. Service Contracts. Except for the Ground Lease and the Service Contracts
set forth on Schedule 5.2.3, Erly has not entered into any agreements, written or oral,
relating to the management, leasing, operation, maintenance and/or improvement of the Property
or any portion thereof that would bind Buyer after the Closing Date. To the best of Erly’s
knowledge, Erly has not delivered or received any written notice alleging any default in the
performance or observance of any of the covenants, conditions or obligations to be kept,
observed or performed under any of the Service Contracts to be retained by Buyer post closing.
To the best of Erly’s knowledge, Erly has delivered to Buyer a true, correct and complete copy
of each of the Service Contracts (including all amendments thereto).

               7.4.12. Personal Property. To the best of Erly’s knowledge, Erly has good title to
all the Personal Property and at Closing Erly shall transfer title to the Personal Property to
Buyer, free and clear of liens, encumbrances and adverse claims.

               7.4.13. Operating Statements. To the best of Erly’s knowledge, the operating
statements for the Property furnished to Buyer in connection with or pursuant to this Agreement
for years ending 2006, 2007, 2008 and 2009 are true, correct and complete in all material
respects.

               7.4.14. Rights. To the best of Erly’s knowledge, Erly has not, except by operation
of law, sold, transferred, conveyed, or entered into any agreement regarding “air

23

 

rights,”
“excess floor area ratio,” or other rights or restrictions relating to the Property except as
otherwise expressly set forth in the Title Policy or Ground Lease for the Property.

               7.4.15. Patriot Act Compliance. To the extent applicable to Erly, Erly has
complied in all material respects with the International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, which comprises Title III of the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(the “Patriot Act”) and the regulations promulgated thereunder, and the rules and
regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control
(“OFAC”), to the extent such Laws are applicable to Erly. To the best of Erly’s
knowledge, Seller is not included on the List of Specially Designated Nationals and Blocked
Persons maintained by the OFAC, or is a resident in, or organized or chartered under the laws
of, (A) a jurisdiction that has been designated by the U.S. Secretary of the Treasury under
Section 311 or 312 of the Patriot Act as warranting special measures due to money laundering
concerns or (B) any foreign country that has been designated as non-cooperative with
international anti-money laundering principles or procedures by an intergovernmental group or
organization, such as the Financial Action Task Force on Money Laundering, of which the United
States is a member and with which designation the United States representative to the group or
organization continues to concur.

               7.4.16. Completion Obligations. To the best of Erly’s knowledge, except as set
forth on the attached Schedule 7.1 and in the Ground Lease or Due Diligence Items on the
Closing Date, there will be no outstanding written or oral contract made for any improvements,
including capital improvements, to the spaces covered by the Leases, to the Property, or for
offsite improvements related to the Property, which have not been fully completed and paid for
or a credit given to Buyer at Closing in the amount sufficient complete the improvement.

          7.5. Survival. The foregoing representations and warranties of Erly set forth in this Article 7 are made
by Erly as of the date hereof and again as of the Closing Date, shall survive the Closing for a
period of nine (9) months and shall not be merged as of the Closing Date hereunder.

          7.6. Covenants of Erly. Erly hereby covenants from and after the Effective Date and
through the Closing Date as follows:

               7.6.1. Erly’s Insurance. To cause to be in force fire and extended coverage
insurance upon the Property, and public liability insurance with respect to damage or injury to
persons or property occurring on the Property in at least such amounts, and with the same
deductibles, as are maintained by Erly on the date hereof.

               7.6.2. Leasing. To not enter into any new lease with respect to the Property,
without Buyer’s prior written consent. The exercise of a mandatory renewal option, shall not be
considered a new lease.

               7.6.3. Liens. To not sell, assign, or convey any right, title, or interest
whatsoever in or to the Property, or create or permit to attach any lien, security interest,

24

 

easement, encumbrance, charge, or condition affecting the Property (other than the Permitted
Exceptions).

               7.6.4. Agreements. To not, without Buyer’s written approval, (a) amend or waive
any right under any Assigned Contract, or (b) enter into any service, operating or maintenance
agreement affecting the Property that would survive the Closing except for such agreements that
may be cancelled or terminated by Erly, without penalty, by notice of thirty (30) days or less.

               7.6.5. Obligations. To fully and timely comply with all obligations to be
performed by it under all of the Ground Lease, Service Contracts, Permits, Warranties licenses,
approvals and laws, regulations and orders applicable to the Property.

               7.6.6. Notices. To provide Buyer with copies of (a) any default letters sent to or
received from Tenants and, (b) any copies of correspondence received from its ground tenant that
it is discontinuing operations at the Property or seeking to re-negotiate its lease and (c)
notices of bankruptcy filings received with respect to ground tenant.

               7.6.7. Operations. To operate the Property from and after the date hereof in
substantially the same manner as prior thereto.

          7.6.8. Ground Lease. (i) To continue to maintain all insurance, if any, as required
by the Ground Lease; (ii) to not amend the Ground Lease without Buyer’s consent; and (iii) to
provide Buyer with copies of any written notices or default letters with respect to the Ground
Lease.

          Except with respect to Section 7.6.7, the provisions of this Section 7.6 shall survive
the Closing for a period of nine (9) months.

8. Buyer Representations and Warranties. Buyer hereby represents and warrants to Seller as of the date hereof that:

               8.1.1. Organization and Authorization. Buyer is a limited liability company duly
organized and validly existing under the laws of the State of Delaware. Buyer has full power
and authority to enter into this Agreement, to perform this Agreement and to consummate the
transactions contemplated hereby. This Agreement is a legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms, subject to the effect of
applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws
affecting the rights of creditors generally.

               8.1.2. No Conflicting Agreements. The execution, delivery and performance of this
Agreement and all documents contemplated hereby by Buyer have been duly and validly authorized
by all necessary action on the part of Buyer and all required consents and approvals have been
duly obtained and will not result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, agreement or instrument to which Buyer is a Party or
otherwise bound.

25

 

               8.1.3. Patriot Act Compliance. To the extent applicable to Buyer, Buyer has
complied in all material respects with the Patriot Act and the regulations promulgated
thereunder, and the rules and regulations administered by OFAC, to the extent such Laws are
applicable to Buyer. Buyer is not included on the List of Specially Designated Nationals
and Blocked Persons maintained by the OFAC, or is a resident in, or organized or chartered under
the laws of, (A) a jurisdiction that has been designated by the U.S. Secretary of the Treasury
under Section 311 or 312 of the Patriot Act as warranting special measures due to money
laundering concerns or (B) any foreign country that has been designated as non-cooperative with
international anti-money laundering principles or procedures by an intergovernmental group or
organization, such as the Financial Action Task Force on Money Laundering, of which the United
States is a member and with which designation the United States representative to the group or
organization continues to concur.

               8.1.4. Buyer does not have any knowledge of any pending or threatened actions or
proceedings before any court or administrative agency which will materially adversely affect the
ability of Buyer to perform its obligations under this Agreement.

9. Conditions Precedent to Closing.

          9.1. Conditions Precedent. The obligation of Buyer to purchase the Property pursuant to this Agreement shall, at the
option of Buyer, be subject to the fulfillment, on or before the Closing Date, of all of the
conditions set forth in this Section 9.1 (“Buyer’s Closing Conditions”), any or all
of which may be waived by Buyer in its sole and absolute discretion:

               9.1.1. Representations, Warranties and Covenants. All of the representations and
warranties of Seller set forth in this Agreement shall be true and correct in all material
respects as of the date hereof and as of the Closing Date, and Seller shall have fully complied
with all of Seller’s duties and obligations contained in this Agreement.

               9.1.2. Title. There shall be no change in the matters reflected in the title
documents, and there shall not exist any encumbrance or title defect affecting the Property not
described in the title documents except for the Permitted Exceptions or matters to be satisfied
as of the Closing Date.

               9.1.3. Title Policy. On the Closing Date, the Title Insurance Company shall be
unconditionally obligated and prepared, subject to the payment of the applicable title insurance
premium and other related charges, to issue to Buyer the Title Policy.

               9.1.4. Management Agreements. Unless Seller receives notice from Buyer at least
thirty (30) days prior to the Closing, any management agreement affecting the Property shall be
terminated by Seller and any and all termination fees incurred as a result thereof shall be the
sole obligation of Seller.

               9.1.5. Major Tenants. No Major Tenant shall be in default under its Lease after
any applicable grace period nor shall a Major Tenant filed bankruptcy or sought any similar
debtor protective measure or be the subject of an involuntary bankruptcy.

26

 

               9.1.6. Estoppels. Buyer shall have received from Seller, no later than ten (10)
days prior to the Closing, estoppel certificates from (a) all Tenants occupying 5,000 (based on
a per suite or cumulative basis) rentable square feet or more (each, a “Major Tenant”),
(b) other Tenants sufficient so that Seller has delivered estoppel certificates from Tenants
representing, in the aggregate, at least seventy-five percent (75%) of the occupied square
footage of the Property (including the Major Tenants), and (c) from any party or declarant to a
reciprocal easement agreement, easement agreement, declaration of covenants, conditions or
restrictions other similar agreement affecting the Property, so long as (i) Buyer has a
reasonable basis for requesting such estoppel, (ii) Buyer has provided written notice to Seller
of such request prior to the expiration of the Due Diligence Period and (iii) such estoppels are
limited in scope to monetary obligations due and payable by Seller. In all cases, the estoppels
shall be on forms provided by (or otherwise reasonably approved by) Buyer dated no earlier than
thirty (30) days prior to the Closing Date. The matters certified in the estoppel certificates
and any modifications to the estoppel certificate forms shall be subject to Buyer’s reasonable
approval. Buyer shall notify Seller within three (3) days before the Closing Date of Buyer’s
approval or disapproval and the basis of such disapproval, if disapproved. If Buyer disapproves
of any estoppel certificate, and Seller is unable to deliver, in Buyer’s good faith business
judgment, a reasonably acceptable estoppel certificate prior to the Closing Date, Buyer shall
have the right to terminate this Agreement and to obtain a refund of the Deposit without any
further action required by any Party, and neither Party shall have any further obligation to the
other.

               9.1.7. Non-Cash Security Deposits. All Non-Cash Security Deposits, if any, must be
reissued in Buyer’s name as of the Closing or else a cash escrow equal to all Non-Cash Security
Deposits must be established at the Closing until all Non-Cash Security Deposits are reissued in
Buyer’s name. Prior to such time as all Non-Cash Security Deposits are reissued, Buyer shall be
entitled to draw from such cash escrow in the event the terms of the relevant lease entitle
Buyer, as landlord, to draw on the Non-Cash Security Deposits. The provisions of this
Section 9.1.7 shall survive the Closing.

               9.1.8. Bankruptcy. As of the Closing Date, Seller shall not have commenced (within
the meaning of any Bankruptcy Law) a voluntary case, nor shall there have been commenced against
Seller an involuntary case, nor shall Seller have consented to the appointment of a Custodian of
it or for all or any substantial part of its property, nor shall a court of competent
jurisdiction have entered an order or decree under any Bankruptcy Law that is for relief against
Seller in an involuntary case or appoints a Custodian of Seller for all or any substantial part
of its property. The term “Bankruptcy Law” means Title 11, U.S. Code, or any similar state law
for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law.

               9.1.9. Consent and Estoppel from Ground Lessor. Seller shall have delivered to
Buyer a (i) consent to the assignment of Seller’s interest in the Ground Lease executed by
Ground Lessor; and (ii) a ground lease estoppel letter executed by Ground Lessor, in the form
and substance satisfactory to Buyer in its sole and absolute discretion. Without limiting the
foregoing, if Buyer provides a form ground lease estoppel certificate upon execution of this
Agreement, Seller shall use its commercially reasonable efforts to cause the

27

 

aforementioned Ground Lessor consent and estoppel to be delivered to Buyer prior to the
expiration of the Due Diligence Period, if reasonably feasible.

          9.2. Effect of Failure. If Buyer notifies Seller of a failure to satisfy the conditions precedent set forth in this
Article 9, Seller may, within five (5) days after receipt of Buyer’s notice, agree to
satisfy the condition by written notice to Buyer, and Buyer shall thereupon be obligated to close
the transaction provided (a) Seller so satisfies such condition and (b) no such right to cure shall
extend the Closing. If Seller fails to agree to cure or fails to cure such condition by the
Closing Date, this Agreement shall be automatically terminated, the Deposit shall be returned to
Buyer without any further action required from either Party.

10. Damage or Destruction. In the event that the Property should be damaged or destroyed by fire or any other casualty
prior to the Closing Date, then Seller shall promptly provide Buyer with written notice of such
casualty. If the cost of repairing such damage, as estimated by an architect or contractor
retained pursuant to the mutual agreement of the Parties (the “Cost of Repairs”), is (a)
less than One Hundred Thousand Dollars ($100,000), then the Closing shall proceed as scheduled and
(i) Seller shall cause all collected insurance proceeds, plus the cash amount of all associated
deductibles, to be paid over to Buyer (or credited against the Purchase Price) at Closing, (ii)
Seller shall assign to Buyer all right, title and interest in and to all claims and proceeds Seller
may have with respect to all policies of insurance relating to the Property at Closing, and (iii)
Seller shall pay over to Buyer all insurance proceeds collected after the Closing by Seller
promptly upon receipt thereof; or (b) greater than One Hundred Thousand Dollars ($100,000), then
Buyer may in its discretion either (i) elect to terminate this Agreement, in which case the Deposit
shall be returned to Buyer without any further action required from either Party, Buyer and Seller
shall each be liable for one-half of any escrow fees or charges and neither Party shall have any
further obligation to the other or (ii) proceed as scheduled and (i) Seller shall cause all
collected insurance proceeds, plus the cash amount of all associated deductibles, to be paid over
to Buyer (or credited against the Purchase Price) at Closing, (ii) Seller shall assign to Buyer all
right, title and interest in and to all claims and proceeds Seller may have with respect to all
policies of insurance relating to the Property at Closing, and (iii) Seller shall pay over to Buyer
all insurance proceeds collected after the Closing by Seller promptly upon receipt thereof. In the
event that the casualty is uninsured, Buyer may terminate this Agreement unless Buyer receives a
credit against the Purchase Price equal to the Cost of Repairs. The foregoing notwithstanding, in
the event any casualty results in the cancellation of any Lease, Buyer shall have the option to
terminate this Agreement without regard to the Cost of Repairs. Any notice required to terminate
this Agreement pursuant to this Section shall be delivered no later than thirty (30) days following
Buyer’s receipt of Seller’s notice of such casualty. The provisions of this Section shall survive
the Closing.

11. Eminent Domain. If, before the Closing Date, proceedings are commenced for the taking by exercise of the
power of eminent domain of all or a material part of the Property which, as
reasonably determined by Buyer, would render the Property unacceptable to Buyer or unsuitable
for Buyer’s intended use, Buyer shall have the right, by giving written notice to Seller within
thirty (30) days after Seller gives notice of the commencement of such proceedings to Buyer, to
terminate this Agreement, in which event this Agreement shall automatically terminate, the Deposit
shall be returned to Buyer without any further action required from either Party, Buyer and Seller
shall each be liable for one-half of any escrow fees or charges and

28

 

neither Party shall have any
continuing obligations hereunder. If, before the Closing Date, proceedings are commenced for the
taking by exercise of the power of eminent domain of less than a material part of the Property, or
if Buyer has the right to terminate this Agreement pursuant to the preceding sentence but Buyer
does not exercise such right, then this Agreement shall remain in full force and effect and, on the
Closing Date, the condemnation award (or, if not theretofore received, the right to receive such
portion of the award) payable on account of the taking shall be assigned, or paid to, Buyer.
Seller shall give written notice to Buyer within three (3) business days after Seller’s receiving
written notice of the commencement of any proceedings for the taking by exercise of the power of
eminent domain of all or any part of the Property. The foregoing notwithstanding, in the event the
taking results in the cancellation any Lease, Buyer shall have the option to terminate this
Agreement by giving written notice to Seller within 30 days after Seller gives notice of the
commencement of such proceedings to Buyer. The provisions of this Section shall survive the
Closing.

12. Notices. All notices, demands, or other communications of any type given by any Party hereunder,
whether required by this Agreement or in any way related to the transaction contracted for herein,
shall be void and of no effect unless given in accordance with the provisions of this Section. All
notices shall be in writing and delivered to the person to whom the notice is directed, either (a)
in person, (b) by United States Mail, as a registered or certified item, return receipt requested,
(c) by email transmission (with confirmation by a nationally recognized overnight delivery
service), or (d) by a nationally recognized overnight delivery service. Notices transmitted to the
then designated facsimile number of the Party intended to be given notice shall be deemed received
upon electronic verification of receipt by the sending machine, notices sent by a nationally
recognized overnight delivery service shall be deemed received on the next business day and notices
delivered by certified or registered mail shall be deemed delivered three (3) days following
posting. Notices shall be given to the following addresses:

	 	 	 	 	 

	 

	 	Seller:
	 	The Columbia Development Group
	 

	 	 	 	302 Washington Avenue Extension
	 

	 	 	 	Albany, New York 12203
	 

	 	 	 	Attention: Joseph R. Nicolla
	 

	 	 	 	Telephone: 518-862-9133 (ext. 4502)
	 

	 	 	 	Facsimile: 518-862-9443
	 

	 	 	 	Email: jnicolla@aol.com
	 
	 	 	 	 
	 

	 	With Required Copy to:
	 	Debra Lambek, Esq.
	 

	 	 	 	Segel Goldman Mazzotta & Siegel, P.C.
	 

	 	 	 	9 Washington Square
	 

	 	 	 	Albany, New York 12205
	 

	 	 	 	Telephone: 518-452-0941
	 

	 	 	 	Facsimile: 518-452-0417
	 

	 	 	 	Email: debra@sgmalbany.com

29

 

	 	 	 	 	 

	 

	 	And:
	 	Steven Porter, Esq.
	 

	 	 	 	695 Rotterdam Industrial Park
	 

	 	 	 	Schenectady, New York 12306
	 

	 	 	 	Telephone: (518) 356-4445
	 

	 	 	 	Facsimile: (518) 356-5334
	 

	 	 	 	Email: sporter@galesi.com
	 
	 	 	 	 
	 

	 	Buyer:
	 	HTA — Washington Medical Arts II, LLC
	 

	 	 	 	16435 North Scottsdale Road, Suite 320
	 

	 	 	 	Scottsdale, Arizona 85254
	 

	 	 	 	Attention: Mark D. Engstrom
	 

	 	 	 	Telephone: (480) 998-3478
	 

	 	 	 	Facsimile: (480) 991-0755
	 

	 	 	 	E-mail:
markengstrom@htareit.com
	 
	 	 	 	 
	 

	 	With Required Copy to:
	 	Cox, Castle & Nicholson LLP
	 

	 	 	 	2049 Century Park East, 28th Floor
	 

	 	 	 	Los Angeles, California 90067
	 

	 	 	 	Attention: John F. Nicholson, Esq.
	 

	 	 	 	Telephone: (310) 277-4222
	 

	 	 	 	Facsimile: (310) 277-7889
	 

	 	 	 	E-mail:
jnicholson@coxcastle.com
	 
	 	 	 	 
	 

	 	If to Escrow Holder:
	 	First American Title Insurance Company
	 

	 	 	 	777 South Figueroa Street, Suite 400
	 

	 	 	 	Los Angeles, California 90017
	 

	 	 	 	Attention: Barbara Laffer
	 

	 	 	 	Telephone: (213) 271-1702
	 

	 	 	 	Facsimile: (818) 450-0134
	 
	 	 	 	 
	 

	 	Title Company:
	 	First American Title Insurance Company
	 

	 	 	 	777 South Figueroa Street, Suite 400
	 

	 	 	 	Los Angeles, California 90017
	 

	 	 	 	Attention: Barbara Laffer
	 

	 	 	 	Telephone: (213) 271-1702
	 

	 	 	 	Facsimile: (818) 450-0134

30

 

13. Remedies.

     13.1. Seller Default. If Seller or Erly fails to close the purchase of the Property due to a Seller or Erly
default, Buyer may, as its sole and exclusive remedy hereunder, elect one of the following
remedies, at Buyer’s sole election: (i) terminate this Agreement by written notice to Seller and
Escrow Holder, and upon receipt of such notice of termination, Escrow Holder shall promptly refund
the Deposit to Buyer and Seller shall reimburse Buyer for its reasonable out-of-pocket costs up to
a maximum amount of Seventy-Five Thousand and No/100 Dollars ($75,000.00) (which costs must be
substantiated by invoices); or (ii) commence an action or proceeding for specific performance. The
provisions of this Section 13.1 shall survive the Closing or termination of this Agreement.

     13.2. Buyer Default. In the event the sale of the Property is not consummated solely because of a default under
this Agreement on the part of Buyer following notice to Buyer and seven (7) days thereafter during
which period Buyer may cure the default, Seller may declare this Agreement terminated, in which
case, the Deposit shall be paid to and retained by Seller as liquidated damages. The Parties have
agreed that Seller’s actual damages, in the event the sale of the Property is not consummated
solely because of a default by Buyer, would be extremely difficult or impracticable to determine.
Therefore, the Parties acknowledge that the Deposit has been agreed upon, after negotiation, as the
Parties’ reasonable estimate of Seller’s and Erly’s damages and as Seller’s and Erly’s sole and
exclusive remedy against Buyer, at law or in equity, in the event the sale of the Property is not
consummated solely because of a default under this Agreement on the Party of Buyer and each Party
shall thereupon be relieved of all further obligations and liabilities, except any which survive
termination. The foregoing notwithstanding, no right to cure shall extend the Closing. The
provisions of this Section 13.2 shall survive the Closing or termination of this Agreement.

14. [INTENTIONALLY DELETED].

15. Assignment. Neither Seller nor Erly shall assign any of its right, title, claim or interest in, to or
under this Agreement. Buyer may assign any or all of its rights and obligations under this
Agreement upon notice to the Seller, to any one or more persons or entities affiliated with the
Buyer and specifically created by the Buyer for the purchase of the Property; provided, however,
that absent the express agreement of Seller, no such assignment shall release Buyer from its
liabilities hereunder.

16. Interpretation and Applicable Law. This Agreement shall be construed and interpreted in accordance with the laws of the State
where the Property is located. Where required for proper interpretation, words in the singular
shall include the plural; the masculine gender shall include the neuter and the feminine,
and vice versa. The terms “successors and assigns” shall include the heirs, administrators,
executors, successors, and assigns, as applicable, of any Party hereto.

17. Amendment. This Agreement may not be modified or amended, except by an agreement in writing signed by
the Parties. The Parties may waive any of the conditions contained herein or any of the
obligations of the other Party hereunder, but any such waiver shall be effective only if in writing
and signed by the Party waiving such conditions and obligations.

31

 

18. Attorneys’ Fees. In the event a court action arises concerning the performance, meaning or interpretation of
any provision of this Agreement or any document executed in connection with this Agreement, the
prevailing party in such action shall be awarded any and all costs and expenses incurred by the
prevailing party in enforcing, defending or establishing its rights hereunder or thereunder,
including, without limitation, court costs and reasonable attorneys and expert witness fees. In
addition to the foregoing award of costs and fees, the prevailing party shall also be entitled to
recover its reasonable attorneys’ fees incurred in any post judgment proceedings to collect or
enforce any judgment. The provisions of this Section 18 shall survive the Closing or
termination of this Agreement.

19. Entire Agreement. This Agreement, including all Exhibits and Schedules attached hereto, constitutes the
entire agreement between the Parties pertaining to the subject matter hereof and supersedes all
prior and contemporaneous agreements and understandings of the Parties in connection therewith. No
representation, warranty, covenant, agreement, or condition not expressed in this Agreement shall
be binding upon the Parties hereto nor shall affect or be effective to interpret, change, or
restrict the provisions of this Agreement.

20. Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken
together shall constitute the entire agreement of the Parties.

21. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described herein, the day of
the act or event after which the designated period of time begins to run is not to be included and
the last day of the period so computed is to be included, except that if such last day falls upon a
Saturday, Sunday, or legal holiday under the Federal law or laws of the State(s) where the Property
is located, then such period shall run until the end of the next day that is neither a Saturday,
Sunday, or legal holiday under Federal law or the laws of the State(s) where the Property is
located. The last day of any period of time described herein shall be deemed to end at 11:59 p.m.
New York time.

22. Real Estate Commission. Seller and Buyer each represent and warrant to the other that neither Seller nor Buyer has
contacted or entered into any agreement with any real estate broker, agent, finder or any other
Party in connection with this transaction, and that neither Party has taken any action which would
result in any real estate broker’s, finder’s or other fees or commissions being due and payable to
any Party with respect to the transaction contemplated hereby, except that Seller will pay a
commission to Healthcare Real Estate Capital LLC (“Broker”) under the terms of a separate
agreement between Seller and Broker. Such commission amounts shall be payable on the Closing Date
from the proceeds of the Purchase Price deposited by Buyer. Each Party hereby indemnifies and
agrees to hold the other Party harmless from any loss, liability, damage, cost, or expense
(including reasonable attorneys’ fees) resulting to the other Party by reason of a breach of the
representation and warranty made by such Party in this Section. The provisions of this Section
22 shall survive the Closing or termination of this Agreement.

23. Further Assurances. Each Party will, whenever and as often as it shall be requested to do so by the other
Party, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered any
and all such further conveyances, assignments, approvals,

32

 

consents and any and all other documents
and do any and all other acts as may be necessary to carry out the intent and purpose of this
Agreement.

24. Exclusivity. Until the Closing Date or the date that this Agreement is terminated, Seller shall not
enter into any contract, or enter into or continue any negotiations, to sell the Property to any
person or entity other than Buyer, nor will Seller solicit proposals from, or furnish any
non-public information to, any person or entity other than Seller’s agents, attorneys and lenders
and Buyer regarding the possible sale of the Property.

25. SEC Filings. Seller acknowledges that it has been advised that Buyer is a subsidiary of a publicly
registered company and will be required to make certain filings with the Securities and Exchange
Commission (the “SEC Filings”) that relate to the most recent pre-acquisition fiscal year
(the “Audited Year”) and the current fiscal year through the date of acquisition (the
“Stub Period”) for the Property. To assist Buyer in preparing the SEC Filings, Seller
agrees to provide Buyer, at or before the Closing, with the following or provide Buyer with access
to all of the following at Seller’s offices: however, if Seller as not prepared any of such items
in the normal course of Seller’s business, then Seller shall create such items provided Buyer
reimburses Seller for Seller’s reasonable out-of-pocket costs incurred in connection with creating
the same: (i) access to bank statements for the Audited Year and Stub Period, (ii) rent roll as of
the end of the Audited Year and Stub Period, (iii) operating statements for the Audited Year and
Stub Period (iv) access to the general ledger for the Audited Year and Stub Period, (v) cash
receipts schedule for each month in the Audited Year and Stub Period, (vi) access to invoices for
expenses and capital improvements in the Audited Year and Stub Period, (vii) accounts payable
ledger and accrued expense reconciliations in the Audited Year and Stub Period, (viii) check
register for the three (3) months following the Audited Year and Stub Period, (ix) the Lease and
five (5) year lease schedules, to the extent applicable, (x) copies of all insurance documentation for the
Audited Year and Stub Period, (xi) copies of accounts receivable aging as of the end of the Audited
Year and Stub Period along with an explanation for all accounts over thirty (30) days past due as
of the end of the Audited Year and Stub Period, and (xii) signed representation letter and audit
inquiry letter substantially in the forms attached hereto as Exhibit F and Exhibit
G, respectively. The provisions of this Section 25 shall survive the Closing.

26. Confidentiality. Neither Party shall make public disclosure with respect to this transaction before Closing
except:

               (a) as may be required by law, including without limitation disclosure required under Freedom
of Information Act (“FOIA”) request, securities laws, or by the Securities and Exchange
Commission, or by the rules of any stock exchange, or in connection with any filing or
registration;

               (b) to such attorneys, accountants, present or prospective sources of financing, partners,
directors, officers, employees and representatives of either Party or of such Party’s advisors who
need to know such information for the purpose of evaluating and consummating the transaction,
including the financing of the transaction;

               (c) Buyer may issue one (1) press release (the “Press Release”) upon full execution of
this Agreement by all parties announcing the transactions proposed herein

33

 

including the Purchase
Price. Such Press Release shall be in the form customarily used by Buyer;

               (d) Seller has notified Tenants to extent there is right of first refusal and/or any consent
is required from the applicable industrial development agency; and

               (e) Seller may notify Tenants in connection with its request for execution of the estoppel
certificates.

27. No Option; Binding Effect. The submission of this Agreement for examination and review does not constitute an option
to purchase the Property, an offer to sell the Property or an agreement to purchase and sell. This
Agreement shall have no binding effect and will only be effective upon Seller’s and Buyer’s
execution and mutual receipt of the others executed version of this Agreement. Escrow Holder’s
execution of this Agreement shall not be a prerequisite to the effectiveness of this Agreement.

28. No Warranties. Except as otherwise expressly set forth in this Agreement, Seller does not warrant, either
expressly or impliedly, the condition or fitness of the Property, including the building(s),
fixture(s) or improvement(s), if any, to be conveyed hereunder, or any use as to which any of the
foregoing may be put. Any such express or implied warranty being hereby
expressly disclaimed and negated. Except as expressly set forth herein or in the documents
executed and delivered by Seller to Buyer at the Closing (“Seller’s Closing Documents”),
Buyer further acknowledges that: (i) neither Seller, nor any officer, director, member,
shareholder, employee, agent, attorney, broker or other representative of Seller, has made any
representations or warranties of any kind whatsoever, either express or implied, with respect to
the Property; and (ii) Buyer is not relying on any representation, warranty or other statement or
covenant, express or implied, of Seller or any officer, director, shareholder, employee, agent,
member, attorney, broker of other representative of Seller, with respect to the Property or any
component thereof, except as provided in this Agreement.

29. AS-IS. Buyer shall, except as expressly set forth in this Agreement and Seller’s Closing
Documents, be deemed to and shall have (i) accepted the Property “As-Is”, in its present condition,
including, without limitation, any latent defects not observable or discoverable by inspection,
(ii) satisfied itself as to all matters described in Section 28 above and (iii) waived any
claim of any kind against Seller, its attorneys, agents and other representatives, its members and
their respective heirs, successors, personal representatives and assigns, with respect to the
Property. The provisions of this Section 29 shall survive the Closing or termination of
this Agreement.

30. Like-Kind Exchange Transaction . Seller and Buyer each acknowledge that the other may engage in a tax-deferred exchange (the
“Exchange”) pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, with
respect to Buyer’s acquisition and Seller’s disposition of the Property. As an accommodation to
each other, Seller and Buyer agree to reasonably cooperate with each other in connection with the
Exchange, and hereby consents to the assignment of this Agreement to the qualified intermediary,
but only on the condition that (i) the Exchange shall not delay Closing, (ii) the consummation or
accomplishment of the Exchange shall not be a condition precedent or condition subsequent to
Buyer’s or Seller’s obligations

34

 

under this Agreement, (iii) neither Seller or Buyer shall have any
obligation to take title to any property in connection with the Exchange, (iv) neither Seller nor
Buyer shall be required to incur any obligations or liabilities in connection with the Exchange,
(v) Buyer and Seller shall not be released of their obligations under this Agreement as a result of
the Exchange, (vi) Buyer or Seller, as applicable, shall provide notice to the other of the
Exchange at least ten (10) business days prior to the Closing, and (vii) Buyer and Seller shall
reimburse the other for all reasonable costs and expenses, if any, incurred in connection with the
Exchange. Seller and Buyer shall have no obligation to execute any documents or to undertake any
action by which any such party would or might incur any liability or obligation not otherwise
provided for in the other provisions of this Agreement. Buyer and Seller shall each indemnify and
defend each other and hold each other harmless from and against any and all claims, damages,
liabilities, losses, costs and expenses, including, without limitation, attorneys’ fees and costs,
arising out of or in any way connected with their Exchange.

31. Management and Leasing Agreement. Buyer agrees that Galesi Management Corporation shall manage and lease the Property on
behalf of Buyer for a term of two (2) years commencing from the date of Closing on the terms set
forth in the management agreement attached hereto as Exhibit H.

32. Limitation of Liability. Notwithstanding anything to the contrary contained in this Agreement, it is expressly
understood and agreed by and between the Parties that after the Closing: (i) the recourse of Buyer
or its successors or assigns against Seller or the Guarantors with respect to the alleged breach by
or on the part of Seller of any representation, warranty, covenant, undertaking, indemnity or
agreement contained in this Agreement shall be limited to an amount not to exceed Two Hundred
Ninety Eight Thousand Five Hundred Fifteen and 78/100 Dollars ($298,515.78) in the aggregate, of
all recourse of Buyer under this Agreement. This Section 32 shall in no way limit Buyer’s
right to pursue specific performance pursuant to Section 13.1.

33. Unit 1 Sale. This Agreement and the rights and obligations of the parties hereunder are
made expressly subject to the rights and obligations, if any, of the Unit Owners and the 1375
Washington Avenue Building Condominium Board of Managers, with respect to the transaction embodied
herein, pursuant to the terms of the Declaration of the 1375 Washington Avenue Building
Condominium, the By-laws of the Condominium, the Rules and Regulations of the Condominium and the
Ground Lease, as the same may be amended from time to time.

[Remainder of page intentionally left blank;

signatures begin following page]

35

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

SELLER:

1375 ASSOCIATES, L.L.C.,

a New York limited liability company

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

S-1

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

ERLY:

ERLY REALTY DEVELOPMENT, INC.

a New York corporation

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

S-2

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

In accordance with Section 2.4, Guarantor is hereby acknowledging this Agreement for the
sole purpose of obligating Guarantor to execute and deliver the Guaranty to Buyer at the Closing.

GUARANTOR:

JOSEPH R. NICOLLA

                    

S-3

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

In accordance with Section 2.4, Guarantor is hereby acknowledging this Agreement for the
sole purpose of obligating Guarantor to execute and deliver the Guaranty to Buyer at the Closing.

SWF, L.P.,

a New York limited partnership

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

S-4

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

In accordance with Section 2.4, Guarantor is hereby acknowledging this Agreement for the
sole purpose of obligating Guarantor to execute and deliver the Guaranty to Buyer at the Closing.

FRANCESCO GALESI

                    

S-5

 

SIGNATURE PAGE FOR PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

BUYER:

HTA — WASHINGTON MEDICAL ARTS II, LLC

a Delaware limited liability company

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

ESCROW HOLDER:

The undersigned Escrow Holder accepts the foregoing Purchase and Sale Agreement and Joint Escrow
Instructions and agrees to act as Escrow Holder under this Agreement in strict accordance with its
terms.

FIRST AMERICAN TITLE INSURANCE COMPANY

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

S-6

 

EXHIBIT A

LEGAL DESCRIPTION

LEGAL DESCRIPTION (FEE PARCELS)

1375A WASHINGTON AVENUE

ALL that parcel of land situate in the City of Albany, County of Albany, State of New York bounded
and described as follows:

BEGINNING at a point in the northwesterly line of lands now or formerly of Columbia Washington
Ventures, LLC, said point of beginning being more particularly described as follows: BEGINNING at a
point in the northeasterly line of Washington Avenue, at its intersection with the northwesterly
line of the lands now or formerly of Columbia Washington Ventures, LLC; which point is located
923.80 feet westerly as measured along the northeasterly line of Washington Avenue from its
intersection with the former westerly line of Tudor Road; thence N 37 deg. 41’ 40” E and running
along the northwesterly line of said lands now or formerly of Columbia Washington Ventures, LLC,
400.00 feet to the first mentioned point of beginning which point is the point of beginning of the
parcel herein described; THENCE N 52 deg. 18’ 20” W and running along an existing lease line 235.00
feet to a point; thence N 37 deg. 41’ 40” E and running through the lands now or formerly of Erly
Realty Development Corporation 255.27 feet to a point in the line of the lands of the People of the
State of New York; thence along the line of the lands of the People of the State of New York S 65
deg. 56’ 59” E, 241.82 feet to a point; thence S 37 deg. 41’ 40” W, 312.31 feet to POINT AND PLACE
OF BEGINNING.

1375 WASHINGTON AVENUE

ALL that parcel of land situate in the City of Albany, County of Albany, State of New York bounded
and described as follows:

BEGINNING at a point in the northeasterly line of Washington Avenue, at its intersection with the
northwesterly line of the lands now or formerly of Columbia Washington Ventures, LLC; which point
is located 923.80 feet westerly as measured along the northeasterly line of Washington Avenue from
its intersection with the former westerly line of Tudor Road; thence from said point of beginning,
thence N 52 deg. 18’ 20” W and running along the northeasterly line of Washington Avenue 235.00
feet to a point; thence N 37 deg. 41’ 40” E, 400.00 feet to a point; thence S 52 deg. 18’ 20” E and
running along an existing lease line 235.00 feet to a point; thence S 37 deg. 41’ 40” W and running
along the northwesterly line of said lands now or formerly of Columbia Washington Ventures, LLC,
400.00 feet to the POINT AND PLACE OF BEGINNING.

TOGETHER WITH AND SUBJECT TO the rights, easements, terms and provisions of a certain Declaration
of Reciprocal Easement Agreement made by and between Erly Realty Development, Inc., City of Albany
Industrial Development Agency, Columbia Washington Ventures, L.L.C.

Exhibit A - Page 1

 

and 1375 Associates, L.L.C. dated as of April 19, 2000 and recorded in the Albany County Clerk’s
Office on April 24, 2000 in Liber 2654 cp 514.

Exhibit A - Page 2

 

EXHIBIT B-1

ERLY DEED

RECORD AND RETURN TO:

_________________________

_________________________

_________________________

BARGAIN AND SALE DEED

THIS INDENTURE is made the _____ day of _______________, 2010,
between _________________________, a New York limited liability company with an address at 302
Washington Avenue Extension, Albany, New York 12203 (the “Grantor”) and _____________________, a
____________________ limited liability company with an address at ___________________________ (the
“Grantee”),

WITNESSETH: that the Grantor, in consideration of One Dollar ($1.00) lawful money of the United
States and other good and valuable consideration paid by the Grantee, the receipt of which is
hereby acknowledged by the Grantor, does hereby remise and release unto the Grantee,
his/her/their/its heirs, successors and assigns forever

ALL THAT CERTAIN LOT, PIECE OR PARCEL OF LAND with the buildings thereon, situate, lying and being
in the town of ___________, County of ________ and State of New York being more particularly set
forth on Schedule “A” attached hereto and by this reference made a part hereof (hereinafter called
the “Premises”).

BEING THE SAME PREMISES as were conveyed to the Grantor by deed from   dated _____ and recorded in the _____ County Clerk’s Office
on _______________ in Liber _____ cp _____.

SUBJECT TO all easements, restrictions, covenants and conditions of record affecting the Premises.

TOGETHER WITH the appurtenances and all the estate and rights of the Grantor in, and to, the
Premises.

TO HAVE AND TO HOLD the Premises granted unto the Grantee, his/her/their/its heirs, successors and
assigns forever.

AND the Grantor covenants that the Grantor has not done or suffered anything whereby the said
premises have been encumbered in any way whatever, except as aforesaid.

AND the Grantor, in compliance with Section 13 of the Lien Law, covenants that the Grantor will
receive the consideration for this conveyance and will hold the right to receive such

Exhibit B - Page 1

 

consideration as a trust fund to be applied first for the purpose of paying the cost of the
improvement and will apply the same first to the payment of the cost of the improvement before
using any part of the total of the same for any other purpose.

IN WITNESS WHEREOF, the Grantor has duly executed this instrument, all on the day and year first
above written.

GRANTOR:

__________________________________________

	 	 	 	 	 

	STATE OF NEW YORK

	 	) 	 	 
	 

	 	) 
	 	ss.:
	COUNTY OF ALBANY

	 	) 	 	 

     On the ___ day of _________________, 2010, before me the undersigned, a Notary Public in and
for said State, personally appeared ____________________, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or person upon behalf of which the individual acted,
executed the instrument.

__________________________________________

Notary Public

Exhibit B - Page 2

 

SCHEDULE “A”

LEGAL DESCRIPTION

Exhibit B - Page 3

 

EXHIBIT B-2

UNIT DEED

Record and Return to:

_____________________

_____________________

_____________________

UNIT DEED

1375 WASHINGTON AVENUE CONDOMINIUM

     THIS INDENTURE made this ____ day of _____________, 2010, between 1375 ASSOCIATES, L.L.C., a
New York limited liability company having its principal office at 695 Rotterdam Industrial Park,
Schenectady, New York 12306 (the “Grantor”) and _____________________, a ____________ limited
liability company having its principal office at ___________________________ (the “Grantee”).

WITNESSETH:

That the Grantor, in consideration of One Dollar ($1.00) lawful money of the United States and
other good and valuable consideration paid by the Grantee, does hereby grant and release unto the
Grantee, and to the successors and assigns of the Grantee, a _________ percent (____%) interest in
the unexpired term of a subleasehold condominium interest in and to (a) a Ground Lease entered into
by 1110 Western Albany Management Co., Inc., as Lessor, and 1375 Associates, L.L.C., as Lessee,
dated February 19, 1999, which was recorded in the Office of the County Clerk of the County of
Albany on the 30th day of March, 2000, in Liber 2653 of Deeds at page 31 and a
modification thereto dated October ____, 1999, for a term extending to April 30, 2055 (hereinafter
called the “Ground Lease”), of the land area described therein, together with an easement for
vehicular parking purposes on the parking easement area described in the Ground

Exhibit B - Page 4

 

Lease (the “Parking Easement”), and (b) the Unit known as Unit No. 1 (hereinafter called the
“Unit”) in a building known as 1375 Washington Avenue located in the City of Albany, County of
Albany, New York, designated and described in the Declaration establishing 1375 Washington Avenue
Building Condominium (hereinafter called the “Building”), made by the Grantor, as sponsor and the
Grantee, as co-sponsor under the Condominium Act of the State of New York (Article 9-B of the Real
Property Law of the State of New York), dated August 24, 2001, recorded in the Office of the County
Clerk of Albany County, simultaneously herewith (hereinafter called the “Declaration”), and
designated also as Tax Lot No. 53.14-1-1.11.101 on the floor plans of the Building, certified by a
Registered Architect, were filed in the said Clerk’s Office, as Condominium Map No. ______ in
Drawer ____, simultaneously herewith, containing approximately 39,000 square feet.

     The land area on which the Building containing the Unit is located and the land under the
Ground Lease and Parking Easement are commonly known as 1375 Washington Avenue, City of Albany,
County of Albany, State of New York, is designated in the aforementioned Ground Lease.

     TOGETHER WITH an undivided ________% interest in the common elements of the Property
(hereinafter called the “Common Elements”) appurtenant to the Unit;

     TOGETHER WITH the appurtenances and all the estate and rights of the Grantor in and to the
Unit;

     TOGETHER WITH AND SUBJECT TO an undivided ______% Condominium interest in the Ground Lease,
which shall be further confirmed by a simultaneous assignment of a fractional interest in said
Ground Lease;

Exhibit B - Page 5

 

     TOGETHER WITH AND SUBJECT TO all easements in favor of the Unit or in favor of other Units or
the Common Elements;

     TOGETHER WITH AND SUBJECT TO an easement for the continuance of all encroachments by the Unit
on any adjoining Units or Common Elements now existing as a result of construction of the Building
in which the Unit is located or which may come into existence hereafter as a result of settling or
shifting of the Building, or as a result of repair or restoration of the Building or of the Unit(s)
after damage or destruction by fire or other casualty, or after taking in condemnation or eminent
domain proceedings, or by reason of an alteration to the Common Elements, so that any such
encroachments may remain so long as the Building shall stand;

     TOGETHER WITH AND SUBJECT TO an easement in common with the Owners of other Units to use any
pipes, wires, ducts, cables, conduits, public utility lines, and other Common Elements located in
any of the other Units or elsewhere on the Condominium Property, and serving the Unit;

     TOGETHER WITH AND SUBJECT TO the provisions, benefits, rights, privileges, easements, burdens,
covenants and restrictions (collectively, the “Provisions”) of (a) the Declaration and of the
By-Laws of the Condominium (recorded simultaneously with and as a part of the Declaration) as the
same may be amended from time to time by instruments recorded in the Office of the Clerk of Albany
County, New York; and (b) the Ground Lease, which provisions, together with any amendments thereto,
shall constitute covenants running with the land and shall bind any person having at any time any
interest or estate in the Unit, as though such provisions were recited and stipulated at length
herein.

     TOGETHER WITH the benefits and subject to the burdens of other easements, agreements, rights
of way and restrictive covenants of record, if any;

Exhibit B - Page 6

 

     SUBJECT TO a right of reversion held by 1110 Western Albany Management Co., Inc. or its
successor at the end of the term of the Ground Lease; and further

     SUBJECT TO the possibility of reverter to 1110 Western Albany Management Co., Inc. in the
event of early termination of the Ground Lease, in its entirety.

     TO HAVE AND TO HOLD the same unto the Grantor, the successors and assigns of the Grantee, for
the duration of the Ground Lease or the early termination thereof.

     AND the Grantor covenants that the Grantor has not done or suffered anything whereby the said
premises have been encumbered in any way whatsoever, except as aforesaid.

     AND the Grantor, in compliance with Section 13 of the Lien Law, covenants that the Grantor
will receive the consideration for this conveyance and will hold the right to receive such
consideration as a trust fund for the purpose of paying the cost of the improvement and will apply
the same first to the payment or the cost of the improvement before using any part of the same for
any other purpose.

     AND the Grantee, by acceptance of this Unit Deed, (i) accepts and ratifies (a) the provisions
of the Declaration and By-Laws of the Condominium (recorded simultaneously with and as a part of
the Declaration), (b) the Rules and Regulations of the Condominium, and (c) the Ground Lease; (ii)
agrees to comply with all the terms and provisions of the foregoing, as the same may be amended
from time to time by instruments recorded in the Office of the Clerk of Albany County, New York.

     The use for which the Unit is intended is that of a general office use only, subject to the
applicable governmental regulations and the restrictions contained in the Declaration and Ground
Lease.

Exhibit B - Page 7

 

     This conveyance has been duly authorized by the members of the Grantor entitled to vote
thereon.

     This conveyance does not constitute a transfer of all or substantially all of the assets of
the Grantor.

     The terms “Grantor” and “Grantee” shall be read as “Grantors” and “Grantees” whenever the
sense of this Deed so requires.

     IN WITNESS WHEREOF, the Grantor has duly executed this Unit Deed the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	1375 ASSOCIATES, L.L.C.	 	 
	 

	 	By:
	 	CAMPUS ASSOCIATES, L.L.C., Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Joseph R. Nicolla, Member
	 	 

	 	 	 	 	 

	STATE OF NEW YORK

	 	) 	 	 
	 

	 	) 
	 	ss.:
	COUNTY OF ALBANY

	 	) 	 	 

     On the _____ day of ________________, 2010, before me, the undersigned, a Notary Public in and
for said State, personally appeared JOSEPH R. NICOLLA personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed in the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual or the person upon behalf of which the individual
acted, executed the instrument.

___________________________________

Notary Public

Exhibit B - Page 8

 

EXHIBIT B-3

FORM OF ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

     THIS ASSIGNMENT AND ASSUMPTION OF GROUND LEASE (this “Assignment”) is made as of the ___ day
of November, 2010 (the “Effective Date”), by and between _________________ LLC, a New York limited
liability company with an address at 302 Washington Avenue Extension, Albany, New York 12203
(“Assignor”) to _____________________, a ___________ limited liability company with an address at
___________________________ (“Assignee”).

WITNESSETH:

     WHEREAS, a Ground Lease dated _____________________ (the “Ground Lease”) was entered into by
and between ___________________, as landlord and Assignor, as tenant with respect to the property
known as ________________________, town of ________________, County of _________________, State of
New York as shown on Exhibit “A” attached hereto (the “Property”), a memorandum of which was
recorded in the _______________ County Clerk’s office on __________________ in Liber ____ cp _____;
and

     WHEREAS, Assignor desires to assign its interest as Tenant in and to the Ground Lease to
Assignee and Assignee agrees to assume all obligations of Assignee as Tenant under the Ground
Lease.

     NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee hereby agree as follows:

     1. Representations and Warranties. Assignor represents and warrants that the Ground Lease has
not been modified, amended or extended except as herein set forth; that there has been no prior
assignment of the Ground Lease.

     2. Assignment of Ground Lease. Assignor does hereby assign, set over and transfer unto
Assignee, without recourse, all of the rights of Assignor as tenant under the Ground Lease.

     3. Assumption of Ground Lease Obligations. Assignee hereby assumes all the obligations of
Assignor as tenant under said Ground Lease.

     4. No Waiver. No delay or failure on the part of Assignor or Assignee in the exercise of any
right or remedy shall operate as a waiver thereof, and no single or partial exercise by Assignor or
Assignee of any right or remedy shall preclude other or further exercise thereof or in the exercise
of any other right or remedy.

     5. Assignor’s Indemnity. Assignor hereby agrees to indemnify, protect, defend and
hold Assignee harmless from and against any and all claims, demands, liabilities, losses, costs,
damages or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising

Exhibit B - Page 9

 

out of or resulting from any breach or default by Assignor under the terms of the Leases and
Contracts arising prior to the Effective Date.

     6. Assignee’s Indemnity. Assignee hereby agrees to indemnify, protect, defend and
hold Assignor harmless from and against and any all claims, demands, liabilities, losses, costs,
damages or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising
out of or resulting from any breach or default by Assignee under the terms of the Leases and
Contracts arising on or after the Effective Date.

     7. Further Assurances. Assignor shall upon request of Assignee do, execute,
acknowledge and deliver all such further acts, assignments, conveyances and assurances as may
reasonably be required for the better assigning, assuring and confirming the assignment of the
Ground Lease to Assignee.

     8. Interpretation. This Assignment shall be binding upon and inure to the benefit of
the parties hereto, and their respective heirs, successors and assigns. Whenever possible, each
provision hereof shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision hereof shall be prohibited by or invalid under such law, then
such provision shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this Assignment.

     This Assignment may not be modified, amended, altered or changed, nor any provision hereof
waived, except in writing with the mutual consent of all parties hereto.

     This Assignment shall be governed by and construed in accordance with the laws of the
jurisdiction in which the Property is located.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment and Assumption of
Ground Lease as of the date first above written.

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	ASSIGNOR:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	LLC	 	 
	 

	 	 	 	 

	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	ASSIGNEE:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	LLC	 	 
	 

	 	 	 	 

	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

Exhibit B - Page 10

 

	 	 	 	 	 	 	 

	STATE OF NEW YORK	 	) 	 	 
	 

	 	 	 	) 
	 	ss.:
	COUNTY OF

	 	 	 	) 	 	 

     On the ___ day of November, 2010, before me, the undersigned, a Notary Public in and for said
State, personally appeared _______________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed in the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

_________________________________________

Notary Public

	 	 	 	 	 	 	 

	STATE OF NEW YORK	 	) 	 	 
	 

	 	 	 	) 
	 	ss.:
	COUNTY OF

	 	 	 	) 	 	 

     On the ___ day of November, 2010, before me, the undersigned, a Notary Public in and for said
State, personally appeared _____________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed in the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

_________________________________________

Notary Public

Exhibit B - Page 11

 

EXHIBIT “A” to ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

LEGAL DESCRIPTION

Exhibit B - Page 12

 

EXHIBIT B-4

FORM OF ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

     THIS ASSIGNMENT AND ASSUMPTION OF GROUND LEASE (this “Assignment”) is made as of the ___ day
of November, 2010 (the “Effective Date”), by and between _________________ LLC, a New York limited
liability company with an address at 302 Washington Avenue Extension, Albany, New York 12203
(“Assignor”) to _____________________, a ___________ limited liability company with an address at
___________________________ (“Assignee”).

WITNESSETH:

     WHEREAS, a Ground Lease dated _____________________ (the “Ground Lease”) was entered into by
and between ___________________, as landlord and Assignor, as tenant with respect to the property
known as ________________________, town of ________________, County of _________________, State of
New York as shown on Exhibit “A” attached hereto (the “Property”), a memorandum of which was
recorded in the _______________ County Clerk’s office on __________________ in Liber ____ cp _____;
and

     WHEREAS, Assignor desires to assign its interest as Tenant in and to the Ground Lease to
Assignee and Assignee agrees to assume all obligations of Assignee as Tenant under the Ground
Lease.

     NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee hereby agree as follows:

     1. Representations and Warranties. Assignor represents and warrants that the Ground Lease has
not been modified, amended or extended except as herein set forth; that there has been no prior
assignment of the Ground Lease.

     2. Assignment of Ground Lease. Assignor does hereby assign, set over and transfer unto
Assignee, without recourse, all of the rights of Assignor as tenant under the Ground Lease.

     3. Assumption of Ground Lease Obligations. Assignee hereby assumes all the obligations of
Assignor as tenant under said Ground Lease.

     4. No Waiver. No delay or failure on the part of Assignor or Assignee in the exercise of any
right or remedy shall operate as a waiver thereof, and no single or partial exercise by Assignor or
Assignee of any right or remedy shall preclude other or further exercise thereof or in the exercise
of any other right or remedy.

     5. Assignor’s Indemnity. Assignor hereby agrees to indemnify, protect, defend and hold
Assignee harmless from and against any and all claims, demands, liabilities, losses, costs, damages
or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising

Exhibit B - Page 13

 

out of or resulting from any breach or default by Assignor under the terms of the Leases and
Contracts arising prior to the Effective Date.

     6. Assignee’s Indemnity. Assignee hereby agrees to indemnify, protect, defend and hold
Assignor harmless from and against and any all claims, demands, liabilities, losses, costs, damages
or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising out of or
resulting from any breach or default by Assignee under the terms of the Leases and Contracts
arising on or after the Effective Date.

     7. Further Assurances. Assignor shall upon request of Assignee do, execute, acknowledge and
deliver all such further acts, assignments, conveyances and assurances as may reasonably be
required for the better assigning, assuring and confirming the assignment of the Ground Lease to
Assignee.

     8. Interpretation. This Assignment shall be binding upon and inure to the benefit of the
parties hereto, and their respective heirs, successors and assigns. Whenever possible, each
provision hereof shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision hereof shall be prohibited by or invalid under such law, then
such provision shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this Assignment.

     This Assignment may not be modified, amended, altered or changed, nor any provision hereof
waived, except in writing with the mutual consent of all parties hereto.

     This Assignment shall be governed by and construed in accordance with the laws of the
jurisdiction in which the Property is located.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment and Assumption of
Ground Lease as of the date first above written.

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	ASSIGNOR:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	LLC	 	 
	 

	 	 	 	 

	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	ASSIGNEE:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	LLC	 	 
	 

	 	 	 	 

	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

Exhibit B - Page 14

 

	 	 	 	 	 	 	 

	STATE OF NEW YORK	 	) 	 	 
	 

	 	 	 	) 
	 	ss.:
	COUNTY OF

	 	 	 	) 	 	 

     On the ___ day of November, 2010, before me, the undersigned, a Notary Public in and for said
State, personally appeared _______________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed in the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

_________________________________________

Notary Public

	 	 	 	 	 	 	 

	STATE OF NEW YORK	 	) 	 	 
	 

	 	 	 	) 
	 	ss.:
	COUNTY OF

	 	 	 	) 	 	 

     On the ___ day of November, 2010, before me, the undersigned, a Notary Public in and for said
State, personally appeared _____________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed in the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

_________________________________________

Notary Public

Exhibit B - Page 15

 

EXHIBIT “A” to ASSIGNMENT AND ASSUMPTION OF GROUND LEASE

LEGAL DESCRIPTION

Exhibit B - Page 16

 

EXHIBIT C

ASSIGNMENT AND ASSUMPTION AGREEMENT

     THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”) is entered into as of
______________, 2010 (the “Effective Date”), by and between 1375 ASSOCIATES, L.L.C., a New
York limited liability company (“Assignor”), and HTA – WASHINGTON MEDICAL ARTS II, LLC, a
Delaware limited liability company (“Assignee”).

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

1. Assignment. As of the Effective Date, Assignor hereby grants, conveys, transfers and
assigns to Assignee all of Assignor’s rights, title and interest in, to and under any and all of
the following to the extent they are related to that certain real property commonly known as
1375 Washington Avenue, Albany, New York 12206 and more particularly described in Exhibit A
attached hereto (the “Real Property”):

     (a) All tangible personal property now or hereafter owned by Assignor and located on or in, or
used in connection with, the Real Property (the “Personal Property”);

     (b) All leases, licenses and other occupancy agreements together with all associated
amendments, modifications, extensions or supplements thereto set forth on Exhibit B
attached hereto (collectively, the “Leases”), together with all deposits held in connection
with the Leases, including, without limitation, all security deposits, prepaid rent, guaranties,
letters of credit and other similar charges and credit enhancements providing additional security
for the Leases, as set forth on Exhibit B attached hereto;

     (c) To the extent assignable, all intangible personal property now or hereafter owned by
Assignor and used in the ownership, use, operation, occupancy, maintenance or development of the
Real Property and Personal Property, including, without limitation (i) all licenses, permits,
certificates, approvals, authorizations and other entitlements issued; (ii) all reports, test
results, environmental assessments, surveys, plans, specifications; (iii) all warranties and
guaranties from manufacturers, contractors, subcontractors, suppliers and installers; (iv) all
trade names, trademarks, service marks, building and property names and building signs used in
connection with the Real Property, including the name “_______________” and all variations thereof
(except that Seller retains the right to use the name of the Property in connection with the
marketing of its development and management activities); (v) all telephone numbers, domain names,
e-mail addresses and other means of contact utilized in connection with the Real Property; and (vi)
all other intangible property related to the Real Property (collectively, the “Intangible
Property”), but excluding all rents and other amounts due under the Leases for all periods
prior to the Effective Date of this Agreement; and

     (d) All service contracts, vending machine, telecommunications and other facilities leases,
utility contracts, maintenance contracts, management contracts, leasing contracts, equipment
leases, brokerage and leasing commission agreements and other agreements or rights

Exhibit C - Page 1

 

related to the construction, ownership, use, operation, occupancy, maintenance, repair or
development of the Property, as set forth on the attached Schedule 1 (the
“Contracts”).

2. Assumption. As of the Effective Date, Assignee hereby accepts the foregoing assignment
and assumes all of Assignor’s obligations under the Leases and Contracts with respect to the period
from and after the Effective Date.

3. Assignor’s Indemnity. Assignor hereby agrees to indemnify, protect, defend and hold
Assignee harmless from and against any and all claims, demands, liabilities, losses, costs, damages
or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising out of or
resulting from any breach or default by Assignor under the terms of the Leases and Contracts
arising prior to the Effective Date.

4. Assignee’s Indemnity. Assignee hereby agrees to indemnify, protect, defend and hold
Assignor harmless from and against and any all claims, demands, liabilities, losses, costs, damages
or expenses (including, without limitation, reasonable attorneys’ fees and costs) arising out of or
resulting from any breach or default by Assignee under the terms of the Leases and Contracts
arising on or after the Effective Date.

5. Further Assurances. Assignor hereby covenants that it will, at any time and from time
to time upon written request therefore and without the assumption of any additional liability
thereby, execute and deliver to Assignee, its successors and assigns, any new or confirmatory
instruments and take such further acts as Assignee may reasonably request to fully evidence the
assignment contained herein and to enable Assignee, its successors and assigns to fully realize and
enjoy the rights and interests assigned hereby.

6. Successors and Assigns. The provisions of this Assignment shall be binding upon, and
shall inure to the benefit of, the successors and assigns of Assignor and Assignee, respectively.

7. Counterparts. This Assignment may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which when taken together shall constitute one and
the same instrument.

[Signatures on next page]

Exhibit C - Page 2

 

     IN WITNESS WHEREOF, Assignor and Assignee have caused their duly authorized representatives to
execute this Assignment as of the date first above written.

ASSIGNOR:

1375 ASSOCIATES, L.L.C.,

a New York limited liability company

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

ASSIGNEE:

HTA – WASHINGTON MEDICAL ARTS II, LLC

a Delaware limited liability company

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit C - Page 3

 

EXHIBIT D

TENANT NOTIFICATION LETTER

[landlord name]

302 Washington Avenue Extension

Albany, New York 12203

Telephone: (518) 862-9133

November ___, 2010

All Tenants

[property address]

			
	Re:	 	Notice of Sale of Property

[landlord name] to HTA - ______________, LLC

[property address] (the “Property”)

Dear Sir or Madam:

     Please be advised [landlord name] (the “Prior Owner”) has sold its right, title and interest
in that certain Property known as [property address] to HTA
- __________________, LLC(the “New
Owner”). The New Owner has received an assignment of your lease and all rents and security
deposits (if any) and has agreed to perform all obligations of Landlord with respect to the
Property as of the date hereof.

     Please direct all notices and rental payments to the New Owner at the following address:

HTA – _____________, LLC

16435 North Scottsdale Road, Suite 320

Scottsdale, Arizona 85254

Attention: Mark D. Engstrom

Telephone: (480) 998-3478

Facsimile: (480) 991-0755

E-mail: markengstrom@htareit.com

Exhibit D - Page 1

 

     Please contact the New Owner should you need additional information in this regard.

	 	 	 	 	 	 	 

	 

	 	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[landlord name]	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Exhibit D - Page 2

 

EXHIBIT E

POST-CLOSING ESCROW AGREEMENT

          THIS POST-CLOSING ESCROW AGREEMENT (this “Agreement”) is entered into the ____ day of
____________, 2010 (“Effective Date”), by and among 1375 ASSOCIATES, L.L.C., a New York
limited liability company (“Seller”); HTA – WASHINGTON MEDICAL ARTS II, LLC, a Delaware
limited liability company (“Buyer”); and FIRST AMERICAN TITLE INSURANCE COMPANY
(“Escrow Holder”).

          WHEREAS, Buyer and Seller have entered into that certain Purchase and Sale Agreement dated
_______________, 2010 (the “Purchase Agreement”), whereby Seller has agreed to sell and
Buyer has agreed to purchase certain properties and interests in properties on lands more
particularly described on Exhibit “A” attached hereto;

          WHEREAS, pursuant to the terms of the Purchase Agreement, and as additional consideration
under the Purchase Agreement, Seller is obligated to deposit in escrow with the Escrow Holder the
Escrow Funds (defined below), for the period set forth herein and for the purpose of satisfying any
Post Closing Claim (defined below) under the terms of the Purchase Agreement;

          WHEREAS, Seller and Buyer desire to have the Escrow Holder hold the Escrow Funds for
disbursement to Seller and Buyer pursuant to the terms of this Agreement; and

          WHEREAS, Escrow Holder agrees to hold the Escrow Funds and disburse such Escrow Funds to
Seller and Buyer in accordance with the terms of this Agreement.

          NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

          1. Definitions. All capitalized terms used in this Agreement not otherwise expressly
defined in this Agreement shall have the same meanings assigned to such terms in the Purchase
Agreement.

          2. Deposit of Escrow Funds. Escrow Holder acknowledges the receipt from Seller of
Forty Nine Thousand Seven Hundred Fifty Two Dollars and 63/100 Dollars ($49,752.63) (the
“Escrow Funds”). The Escrow Funds are the property of Seller subject to the terms of this
Agreement. Escrow Holder shall disburse the Escrow Funds in strict accordance with the terms of
this Agreement.

          3. Deposit Information.

               (a) The Escrow Funds shall be deposited in a separately segregated interest bearing account or
accounts (the “Escrow Account”) at a financial institution insured by the FDIC. All
interest earned by the funds in the Escrow Account shall be accumulated in the Escrow Account,
become a part of the Escrow Funds and be disbursed as provided below.

Exhibit E - Page 1

 

               (b) Seller’s Employer Identification Number is _______________.

          4. Disbursement of Escrow Funds.

               (a) Post Closing Claims. If (i) within 180 days of the Closing Date, Buyer alleges, in good
faith with a good faith belief there is just cause, that Seller has breached any of its
representations, warranties, or covenants set out in Section 7 of the Purchase Agreement
that are to survive Closing (the “Post Closing Claim”); (ii) it is finally determined that
Seller breached such representations, warranties, or covenants; and (iii) the actual damages
incurred by Buyer, once finally determined, for such breaches, when combined with the damages
incurred by Buyer for all other breaches of such representations, warranties, or covenants, as
determined by a court of competent jurisdiction, are in excess of $10,000.00, then Buyer is
entitled to a disbursement of the Escrow Funds for the amount of damages caused by Seller’s breach;
provided, however, the aggregate amount the Buyer shall be entitled to recover will not exceed the
balance in the Escrow Account. At the end of 180 days after the Closing Date, the funds in the
Escrow Account (including all earnings and interest) shall be disbursed to Seller; provided,
however, if a Post Closing Claim has been made and is not finally determined at the end of the 180
day period, the portion of the Escrow Funds alleged by Buyer to be necessary to satisfy any such
Post Closing Claim shall not be disbursed until the Post Closing Claim is finally resolved or
determined by a court of competent jurisdiction or by mutual agreement of the parties. Buyer shall
timely submit any Post Closing Claim to Seller, in writing, setting forth, in detail, the specific
representations, warranties and/or covenants that have allegedly been breached and the factual
basis for the alleged breach, and the amount of damages allegedly incurred by Buyer (the “Claim
Notice”). Buyer shall simultaneously provide a copy of such Claim Notice to Escrow Holder.
The phrase “finally determined” means the sooner to occur of a final decision made by a court of
competent jurisdiction, settlement between Seller and Buyer, or a binding decision reached through
an alternative dispute resolution procedure approved by Seller and Buyer.

               (b) Within ten (10) business days following the date the Seller receives a Claim Notice, the
Seller shall notify the Buyer in reasonable detail of its dispute as to the allegations set forth
in Buyer’s Claim Notice or its approval of the Post Closing Claim. If Seller approves of the Post
Closing Claim, the Escrow Holder will promptly disburse from the Escrow Account to the Buyer the
amount of damages, but not to exceed the balance remaining in the Escrow Account. If Seller does
not dispute the Post Closing Claim within ten (10) business days of its receipt of the Claim
Notice, the Post Closing Claim shall be deemed to be disputed by the Seller. If Seller disputes or
is deemed to dispute the Post Closing Claim, the Escrow Holder shall retain the Escrow Funds in the
Escrow Account until such time as there is a final determination by a court of competent
jurisdiction as to whether the Seller breached any of its representations, warranties, or covenants
in Section 7 of the Purchase Agreement. A “final determination” means the sooner to occur
of a final decision made by a court of competent jurisdiction, settlement between Seller and Buyer,
or a binding decision reached through an alternative dispute resolution procedure approved by
Seller and Buyer.

               (c) If Escrow Holder receives a Claim Notice from Buyer within 180 days of the Closing Date,
Escrow Holder shall disburse the Escrow Funds in accordance with the joint written instructions of
Buyer and Seller or pursuant to a final determination (as defined

Exhibit E - Page 2

 

herein), within three (3) business days of the receipt of such joint written instructions or
final determination. Provided, however, despite the receipt of Claim Notice within the six (6)
month period, that Escrow Holder shall disburse Escrow Funds to Seller in an amount equal to the
Escrow Account balance less the amount of damages claimed by Buyer in the Claim Notice.

               (d) If Escrow Holder does not receive a Claim Notice from Buyer within 180 days of the Closing
Date, Escrow Holder shall, within three (3) business days of the expiration of such 180 day period,
disburse the balance of the Escrow Account (including all earnings and interest on the Escrow
Funds) to Seller in the manner directed by Seller.

          5. Third Party Claims. The Escrow Funds shall not be disbursed by Escrow Holder for
any Post Closing Claim which arises from a claim by a third party when that claim has been settled
by or on behalf of Buyer without Seller’s written approval, provided such written approval has not
been unreasonably withheld.

          6. Liability and Protection of Escrow Holder.

               (a) Powers — Generally. Escrow Holder has only the rights, powers, privileges, and
duties expressly set forth in this Agreement, together with those rights, powers, and privileges
reasonably incident thereto, and is not a party to, and is not bound by, or charged with notice of
any agreement other than this Agreement.

               (b) Actions on Notice, etc. Escrow Holder may rely upon any written notice, request,
waiver, consent, certificate, receipt, authorization, power of attorney or other document that
Escrow Holder, in good faith, reasonably believes to be genuine and to be signed by the proper
party or parties hereto.

               (c) Advice of Counsel. Escrow Holder may rely on the legal opinion of its legal
counsel in the event of any dispute or question concerning the construction of any provision of
this Agreement or its duties hereunder, and shall incur no liability as a result of reliance on
such opinion.

               (d) Compensation for Services. Escrow Holder shall be entitled to reasonable fees and
expenses for customary services, as Escrow Holder hereunder, according to its standard rate sheet
for these services and all such compensation shall be paid and shared one-half by Buyer and
one-half by Seller. The fees and expenses may be revised from time to time to reflect current
rates for such services.

               (e) Resignation. Escrow Holder may resign upon seven (7) days prior written notice to
the other parties to this Agreement. Escrow Holder may be removed by the mutual agreement of
Seller and Buyer. If Escrow Holder resigns or Seller and Buyer agree to remove the Escrow Holder,
then Seller and Buyer must use their best efforts to agree upon a substitute Escrow Holder. If
Escrow Holder resigns or is removed and no successor Escrow Holder is agreed upon within forty-five
(45) days following the resignation or removal of the existing Escrow Holder, Buyer may designate
the successor Escrow Holder provided such Escrow Holder must be a title company with an office
in ______________, __________.

Exhibit E - Page 3

 

               (f) Liability — Negligent Acts. Escrow Holder will not be liable for anything that it
may do or refrain from doing in connection with this Agreement, except for acts that constitute
gross negligence, willful misconduct, or constitute a breach of its fiduciary duties.

          7. Indemnity. Seller and Buyer agree, jointly and severally, to indemnify and hold
Escrow Holder harmless from and against all costs, damages, judgments, attorneys’ fees, expenses,
and obligations or liabilities of any kind or nature that Escrow Holder may incur or sustain in
connection with or arising out of this Agreement, except to the extent due to Escrow Holder’s gross
negligence, willful misconduct, or breach of fiduciary duties arising from this Agreement.

          8. Waiver. Neither this Agreement nor any of its provisions may be waived, modified,
amended, discharged, or terminated except by an instrument in writing signed by the parties against
which the enforcement of such waiver, modification, amendment, discharge, or termination is sought
and, then, only to the extent set forth in such instrument.

          9. Books and Records. Escrow Holder will maintain proper books and records for the
Escrow Account. All amounts to be disbursed by Escrow Holder under this Agreement shall be paid
solely out of the Escrow Funds.

          10. Notices. All notices to be given in connection with this Agreement shall be made
by (i) placing the notice in the United States mail, certified or registered, properly stamped,
(ii) delivered by fax transmission, (iii) delivered by overnight delivery service, or (iv) by
personal delivery, in each case addressed to the location shown below or such other addresses as
the respective party may direct in writing to the other, or to such address. Such notice shall be
deemed effective (A) on the day actually delivered or (B) upon confirmation of the completion of
the fax (electronic or otherwise) when delivered by fax, or (C) upon such personal delivery:

	 	 	 	 	 	 	 

	 

	 	If to Buyer, to:
	 	HTA – Washington Medical Arts II, LLC

16435 N. Scottsdale Rd., Ste. 320

Scottsdale, AZ 85254

Attention: Mark D. Engstrom

Telephone: (480) 998-3478

Facsimile: (480) 991-0755
	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	Cox, Castle & Nicholson LLP

2049 Century Park East, 28th Floor

Los Angeles, CA 90067

Attention: John F. Nicholson, Esq.

Telephone: (310) 277-4222

Facsimile: (310) 277-7889	 	 

Exhibit E - Page 4

 

	 	 	 	 	 	 	 

	 

	 	If to Seller, to:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

Telephone:
	 	 
	 

	 	 	 	Facsimile:	 	 
	 

	 	With a copy to:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

Telephone:
	 	 
	 

	 	 	 	Facsimile:	 	 
	 
	 

	 	If to Escrow Holder:
	 	First American Title Insurance Company

777 South Figueroa Street, Suite 400

Los Angeles, California 90017

Attention: Barbara Laffer

Telephone: (213) 271-1702

Facsimile: (818) 450-0135	 	 

          11. Invalidity. If any provision of this Agreement is held to be invalid, illegal, or
unenforceable in any respect, then such invalidity, illegality, or unenforceability will not affect
any other provision of this Agreement and this Agreement as so amended shall be construed as if the
offending provision had never been part of the Agreement.

          12. Time. Time is of the essence in the performance of each provision of this
Agreement.

          13. Counterparts and Facsimile Signatures. This Agreement may be executed in
counterparts, each of which shall be deemed an original and that together will constitute one and
the same agreement. Signatures sent by one party to the other via facsimile transmission shall be
deemed original signatures, binding upon the party so sending such signature, and shall be and
hereby are deemed original signatures.

          14. Successors and Assigns. The terms and provisions of this Agreement are binding
upon and inure to the benefit of each of the parties and their successors and assigns.

          15. Governing Law. This Agreement is being executed and delivered, and is intended to
be performed, and shall be governed, interpreted, construed, and enforced under the laws of the
State of __________ without regard to its conflict of laws, and exclusive jurisdiction and venue
for any claim concerning or arising out of it shall be only in district courts located in
_____________ County, ____________.

          16. WAIVER OF JURY TRIAL. EACH PARTY TO IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY
HAVE TO DEMAND THAT ANY ACTION,

Exhibit E - Page 5

 

PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT BE TRIED BY
JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING FORM ANY SOURCE,
INCLUDING BUT NOT LIMITED TO THE CONSTITUTION OF THE UNITED STATES, THE CONSTITUTION OF ANY STATE,
COMMON LAW OR ANY APPLICABLE STATUTE OR REGULATION. EACH PARTY HEREBY ACKNOWLEDGES THAT SUCH PARTY
IS KNOWINGLY AND VOLUNTARILY WAIVING THE RIGHT TO DEMAND TRIAL BY JURY.

          IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day
and year first above written.

[Signature pages to follow]

Exhibit E - Page 6

 

[Signature page to Escrow Agreement]

	 	 	 	 	 	 	 

	 	 	Escrow Holder:	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST AMERICAN TITLE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	Seller:	 	 
	 
	 	 	 	 	 	 
	 	 	1375 ASSOCIATES, L.L.C.,	 	 
	 	 	a New York limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	Buyer:	 	 
	 
	 	 	 	 	 	 
	 	 	HTA- WASHINGTON MEDICAL ARTS II, LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit E - Page 7

 

EXHIBIT F

SIGNED REPRESENTATION LETTER

[Date]

[Name of audit firm]

[Address of audit firm]

Dear [Name of Audit firm]:

We are providing this representation letter to you in connection with the contemplated transaction
for which we provided internally prepared financial statements prepared on the cash basis of
accounting (collectively, the “Financial Statements”) related to the _______________
medical office building (the “Property”) for the year ending December 31, 2009, and the
current fiscal year through __________, for the due diligence of the contemplated transaction.

Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatements of
accounting information that in light of surrounding circumstances, make it probable that the
judgment of a reasonable person relying on the information would be changed or influenced by the
omission or misstatement.

We confirm, to the best of our knowledge and belief, the following representation made to you
during your audit:

	1.	 	The Financial Statements are fairly presented based on modified cash basis accounting
methods.
	 
	2.	 	We have made available to you all financial records and related data, as requested.
	 
	3.	 	The general ledger details provided were generated from our general ledger system and are
complete.
	 
	4.	 	We have no knowledge of any fraud or suspected fraud affecting the Property involving (a)
management, (b) employees who have significant roles in internal control, or (c) others where
the fraud could have a material effect on the Financial Statements.
	 
	5.	 	We have no knowledge of any allegations of fraud or suspected fraud affecting the Property
received in communications from employees, former employees, analysts, regulators, short
sellers, or others.
	 
	6.	 	There have been no communications from regulatory agencies concerning noncompliance with or
deficiencies in financial reporting practices. We are not subject to regulatory review in
relationship to our financial records.

Exhibit F - Page 1 

 

	7.	 	There are no unasserted claims or assessments that legal counsel has advised us are probable
of assertion.
	 
	8.	 	The following, to the extent applicable, have been appropriately identified and properly
reflected in the Financial Statements:
	 
	(a)	 	Related-party transactions and associated amounts receivable or payable, including sales,
purchases, loans, transfers, leasing arrangements, and guarantees (written or oral).
	 
	(b)	 	Arrangements with financial institutions involving compensating balances or other
arrangements involving restrictions on cash balances and line-of-credit or similar
arrangements.
	 
	9.	 	There are no transactions that have not been properly recorded in the accounting records
underlying the Financial Statements.
	 
	10.	 	To the best of our knowledge, there are no:
	 
	(a)	 	Violations or possible violations of laws or regulations whose effects should be considered
for disclosure in the Financial Statements or as a basis for recording a loss contingency.
	 
	(b)	 	Other liabilities or gain or loss contingencies that are required to be accrued or disclosed
by FAS 5.
	 
	11.	 	The Property has no plans or intentions that may affect the carrying value or classification
of assets and liabilities.
	 
	12.	 	The Property has satisfactory title to all owned assets, and there are no liens or
encumbrances on such assets nor has any asset been pledged as collateral other than those
reflected in the public record or on the preliminary title report.
	 
	13.	 	The Property has complied with all aspects of contractual agreements that would have an
effect on the Financial Statements in the event of noncompliance.
	 
	14.	 	No events have occurred subsequent to __________, that require consideration as adjustments
to or disclosures in the Financial Statements.

[Remainder of page intentionally left blank;

Signatures begin on following page]

Exhibit F - Page 2 

 

	 	 	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	a	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Its:	 	[Chief Financial/Executive Officer]	 	 

Exhibit F - Page 3 

 

EXHIBIT A TO REPRESENTATION LETTER

STATEMENT ON AUDITING STANDARDS (SAS) NO. 99 QUESTIONNAIRE

In order for the auditor to obtain information that is used to identify the risks of material
misstatement due to fraud, the management of Buyer (as defined in the representation letter to
which this Exhibit A is attached and made a part) is required to respond to the below
referenced inquiries about the risks of fraud and how such risks are addressed:

1. Does management have knowledge of any actual fraud or suspicions of fraud affecting the
Property?

 

 

 

2. Does management have awareness of any allegations of fraud or suspected fraud affecting the
Property?

 

 

 

3. Does management have an understanding of the risks of fraud affecting the Property, including
any specific fraud risks that Buyer has identified or account balances or classes of transactions
that may be susceptible to fraud?

 

 

 

4. How does Buyer communicate to employees the importance of ethical behavior and appropriate
business practices?

 

 

 

5. What programs and controls has Buyer implemented to address identified fraud risks or otherwise
help prevent, deter, and detect fraud, and how are those programs and controls monitored?

 

 

 

Exhibit F - Page 4 

 

6. For entities with multiple properties, (a) what is the nature and extent of monitoring multiple
locations and (b) do any of the multiple locations have a higher level of fraud risk?

 

 

 

7. Has management reported to the audit committee (or its equivalent) how Buyer’s internal control
serves to prevent, deter, and detect material misstatements due to fraud?

 

 

 

8. With respect to Buyer (a) is Buyer in compliance with laws and regulations, (b) what are Buyer’s
policies relative to the prevention of illegal acts, and (c) does Buyer use of directives (for
example, a code of ethics) and periodic representations obtained from management-level employees
related to compliance with laws and regulations?

 

 

 

Exhibit F - Page 5 

 

EXHIBIT G

AUDIT INQUIRY LETTER

[Date]

[Name of Attorney]

[Address of Attorney]

Dear [Name of Attorney]:

For purposes of verification in connection with an audit of the statements of revenues and expenses
(collectively, “Financial Statements”) that relate to [enter the address of the property],
we hereby request that you furnish the auditors of our Financial Statements information with
respect to which you have been engaged and have devoted substantive attention on behalf of [enter
name of seller] (the “Company”) or any of its subsidiaries, if applicable, in the form of
legal consultation or representation.

Please include in your response to this letter such matters that existed as of [enter the date of
the last audited financial statement or the date of the last balance sheet] and during the period
from the date of this letter to the date of your response. This request is limited to
contingencies amounting to Ten Thousand Dollars ($10,000) individually or items involving lesser
amounts that exceed Ten Thousand Dollars ($10,000) in the aggregate. To facilitate the evaluation
of your response by the independent accountants, please respond by [enter a date that is no later
than five business days prior to the Closing Date]. They would appreciate receiving your reply by
that date with a specific effective date no earlier than [enter a date that is no earlier than
fifteen (15) business days prior to the Closing Date].

Pending and Threatened Litigation

Please furnish our auditors with details of any litigation or lawsuits with which Buyer is involved
in directly or indirectly, and any claims asserted against Buyer even though legal proceedings have
not started, including (1) the nature of any pending or threaten litigation, (2) the progress of
the matter to date, (3) the response which is being made or which will be made to the matter, and
(4) an evaluation of the likelihood of an unfavorable outcome and an estimate, if one can be made,
of the amount or range of potential loss.

Unasserted Claims and Assessments

Buyer’s management believes that there are no unasserted claims which are probable of assertion or
which, if asserted, would have at least a reasonable possibility of an unfavorable outcome.

It is our understanding that in the course of providing legal services for us regarding a matter
recognized to involve an unasserted possible claim or assessment, you may form a professional
conclusion as to the need to disclose such a possible claim or assessment. It is also our
understanding that whenever you have formed such a conclusion, you will, as a matter of
professional responsibility to us, advise us and consult us concerning the question of such

Exhibit G - Page 1 

 

disclosure and the applicable requirements of Statement of Financial Accounting Standard No. 5,
Accounting for Contingencies (“FAS 5”). Please specifically confirm to our auditors that
our understanding is correct.

We also hereby inform you that we have represented to our auditors that there are no unasserted
possible claims that you have advised are probable of assertion and must be disclosed in accordance
with FAS 5 in our financial statements dated as of [enter the date of the last audited financial
statements or the date of the last balance sheet] and for the year then ended. Please specifically
identify the nature and reasons for any limitation in your response to this letter.

Other Matters

We do not intend that either our request to you to provide information to our auditor or your
response to our auditor should be construed in any way to constitute a waiver of the
attorney-client privilege or the attorney work-product privilege.

Please furnish our auditors with the following:

	1.	 	Information about any financing statement filed under the Uniform Commercial Code or any
other assignments) of Buyer’s assets.

	2.	 	Amounts due you, if any, for services, whether billed or unbilled as of the date first
referenced above.

Lastly, please forward your reply directly to our auditors at ______________, Certified Public
Accountants, ___________________________, Attention: [_________________] and send a copy of your
reply to Healthcare Trust of America, Inc., 16435 North Scottsdale Road, Suite 320 Scottsdale,
Arizona 85254, Attention: Kellie S. Pruitt, as well as Cox, Castle & Nicholson LLP, 2049 Century
Park East, 28th Floor, Los Angeles, California 90067, Attention: John F. Nicholson,
Esq. We thank you for your cooperation.

	 	 	Sincerely,

	 	 	[Authorized Officer Name]

Exhibit G - Page 2 

 

EXHIBIT H

FORM OF MANAGEMENT AGREEMENT

[TO BE INSERTED]

Exhibit H - Page 3 

 

EXHIBIT I

[INTENTIONALLY DELETED]

Exhibit I - Page 1 

 

EXHIBIT J

PURCHASE AGREEMENT GUARANTY

     THIS PURCHASE AGREEMENT GUARANTY (this “Guaranty”) is given this ____ day of
__________, 2010 (“Effective Date”), by __________________________ (“Guarantor”),
to HTA - WASHINGTON MEDICAL ARTS II, LLC, a Delaware limited liability company (“Buyer”),
with respect to the following Recitals:

RECITALS

     A. 1375 ASSOCIATES, L.L.C., a New York limited liability company (“Seller”) and Buyer
have entered into that certain Purchase and Sale Purchase Agreement and Joint Escrow Instructions
dated _______________, 2010 (the “Purchase Agreement”) with respect to those certain
properties listed on Schedule 1 attached hereto (collectively, the “Property”). Terms used
and not otherwise defined in this Guaranty shall have the meanings given thereto in the Purchase
Agreement. This is the Guaranty contemplated by the Purchase Agreement.

     B. Guarantor, as the [direct or indirect member of Seller], is deriving substantial
consideration from the sale of the Property to Buyer, and is executing and delivering this Guaranty
to induce Buyer to acquire the Property. This Guaranty is a material portion of the consideration
to be received by Buyer pursuant to the Purchase Agreement. But for this Guaranty, Buyer would not
have entered into the Purchase Agreement or acquired the Property.

     [C. To secure Guarantor’s obligations under this Guaranty, Guarantor will execute the Guaranty
Holdback Agreement dated as of even date herewith. The SWF Guaranty Holdback will be held and
disbursed by Escrow Holder in compliance with the Guaranty Holdback Agreement.]

AGREEMENT

     NOW, THEREFORE, for and in consideration of the foregoing Recitals (which are incorporated
herein by this reference), the mutual covenants and agreements contained in this Guaranty, and
other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by
Guarantor, Guarantor hereby agrees as follows:

     1. Guarantor absolutely, unconditionally and irrevocably guarantees and promises to perform,
pay and be liable, without deduction, setoff or counterclaim, for any and all duties, obligations
and liabilities of Seller under Section 7 of the Purchase Agreement that expressly survive
the Closing (collectively, the “Guaranteed Obligations”), no matter how arising, in any way
related to or arising out of the Purchase Agreement or any other agreements entered into by Buyer
and Seller in connection therewith (each, a “Purchase Document” and collectively, the
“Purchase Documents”). If Seller shall at any time default in the punctual payment,
performance or observance of any of the Guaranteed Obligations, Guarantor shall also pay to Buyer
all reasonable and necessary incidental damages and expenses incurred by Buyer as a direct and
proximate result of Seller’s failure to pay, keep, perform or observe such Guaranteed

Exhibit J - Page 2 

 

Obligations, which expenses shall include reasonable attorneys’ fees and interest on all sums
due and owing Buyer by reason of Seller’s failure to pay same, at the maximum rate allowed by law.

     2. This Guaranty is, and is intended to be, an absolute, unconditional, irrevocable and
continuing guaranty which shall not be affected by any act or thing whatsoever except as herein
provided, and which shall be independent of and in addition to any other guaranty, endorsement or
collateral held by Buyer.

     3. Buyer may from time to time enforce this Guaranty against Guarantor without being required
first to proceed or exhaust its remedies against Seller or any other person or resorting to any
other means of obtaining payment or performance.

     4. To the fullest extent permitted by law, Guarantor hereby waives any and all suretyship and
any and all other rights or defenses arising by reason of any law related to enforcement by Buyer
of the Guaranteed Obligations. Without limiting the foregoing, Guarantor agrees that until the
Guaranteed Obligations are paid and performed in full, Guarantor shall not be released by or
because of: (i) any act or event which might otherwise discharge, reduce, limit or modify the
Guaranteed Obligations; (ii) any waiver, extension, modification, forbearance, delay or other act
or omission of Buyer, or its failure to proceed promptly or otherwise as against Guarantor; (iii)
any action, omission or circumstance which might increase the likelihood that Guarantor may be
called upon to perform under this Guaranty or which might affect the rights or remedies of [any]
Guarantor as against Buyer or Seller; or (iv) any dealings occurring at any time between Seller and
Buyer, relating to the transaction contemplated herein or otherwise, including, without limitation,
any change, amendment, modification or supplement to, or waiver or release of any provisions of,
the Purchase Document or any other pertinent document or agreement. Guarantor authorizes Buyer,
without notice, demand or Guarantor’s consent, and without affecting Guarantor’s liability
hereunder, from time to time to: (a) compromise, extend or otherwise change the terms of any of the
Guaranteed Obligations, (b) take and hold security for the payment of the Guaranteed Obligations,
and exchange, enforce, waive, and release any such security; and (c) apply such security and direct
the order or manner of sale thereof as Buyer in its reasonable discretion may determine in order to
satisfy the Guaranteed Obligations. Guarantor waives any right to require the marshalling of
assets of Seller, or any other entity or other person primarily or secondarily liable with respect
to any of the Guaranteed Obligations. Guarantor is informed of, and agrees that it will continue
to keep informed of, the financial condition of Seller and of all other circumstances which a
diligent inquiry would reveal and which bear upon the risk of nonpayment or nonperformance of the
Guaranteed Obligations, or (z) pursue any other remedy in Buyer’s power. Further, Guarantor
hereby waives notice of any change, amendment, supplement, waiver or release, and further agrees
that Guarantor’s duties, obligations and liabilities hereunder shall be unconditional and shall not
be subject to any defense, setoff or counterclaim whatsoever, or any other act, omission or
circumstance whatsoever which might constitute a legal or equitable discharge of a surety or
guarantor.

     5. The liability of Guarantor hereunder shall in no way be affected by: (a) the release or
discharge of Seller in any creditor’s, receivership, bankruptcy or other proceeding; (b) the
impairment, limitation or modification of the liability of Seller or the estate of Seller in
bankruptcy, or of any remedy for the enforcement of Seller’s liability under any Purchase Document
resulting from the operation of any present or future provision of any bankruptcy or

Exhibit J - Page 3 

 

insolvency code, or any amendments thereto, or other statute or from the decision of any court
(and no stay in any such action shall affect, stay or release Guarantor from the Guaranteed
Obligations); (c) the rejection or disaffirmance of any Purchase Document in any such proceedings;
(d) the assignment, encumbrance or transfer of any Purchase Document by Seller; (e) any right or
defense that may arise by reason of the incapacity, lack of authority, death or disability of
Seller or any other person; (f) any right or defense arising by reason of the absence, impairment,
modification, limitation, destruction or cessation (in bankruptcy, by an election of remedies, or
otherwise) of the liability of Seller or the subrogation, reimbursement, indemnification or
contribution rights of Guarantor; (g) the cessation from any cause whatsoever of the liability of
Seller other than the full and complete payment, performance and observance of all of Seller’s
duties, obligations and liabilities under any Purchase Document; or (h) the exercise by Buyer of
any of its rights or remedies under any Purchase Document or by law.

     6. Guarantor unconditionally waives any defense to the enforcement of this Guaranty based upon
any statute or rule of law which provides that the obligation of a surety must be neither larger in
amount nor in any other aspects more burdensome than that of a principal.

     7. Guarantor unconditionally waives any defense to the enforcement of this Guaranty based on
the lack of authority of the members, officers, directors, partners or agents acting or purporting
to act on behalf of Buyer, Guarantor or any principal of Buyer or Guarantor or any defect in the
formation of Buyer, Guarantor or any principal of Buyer or Guarantor as a legal entity.

     8. Should Buyer be obligated by any bankruptcy or other law to repay or refund to Seller, or
any trustee, receiver or other representative of Seller, any amounts previously paid by Seller to
Buyer pursuant to the terms and conditions of any Purchase Document, this Guaranty shall apply and
be reinstated with respect to any such repayments and refunds. Guarantor shall not commence, or
join with any other person in commencing, any bankruptcy, reorganization or insolvency proceeding
against Seller. The obligations of Guarantor under this Guaranty shall not be altered, limited or
affected by any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency,
receivership, reorganization, liquidation or arrangement of Seller, or by any defense which Seller
may have by reason of any order, decree or decision of any court or administrative body resulting
from any such proceeding.

     9. All monies or other property of Guarantor at any time in Buyer’s possession may be held by
Buyer as security for any and all Guaranteed Obligations no matter how or when arising, whether
absolute or contingent, whether due or to become due. The Guaranteed Obligations shall not be
considered fully paid, performed and discharged unless and until all payments to Buyer are no
longer subject to any right on the part of any person whomsoever, including, without limitation,
Seller, as a debtor-in-possession, and/or any trustee or receiver in bankruptcy, to set aside such
payments or seek to recoup the amount of such payments, or any part thereof. If any such payments
to Buyer are set aside after the making thereof, in whole or in part, or settled without
litigation, to the extent of such settlement, all of which shall be within Buyer’s reasonable
discretion, Guarantor shall be liable for the full amount Buyer is required to repay plus
out-of-pocket costs, interest, reasonable attorneys’ fees and any and all out-of-pocket expenses
which Buyer paid or incurred in connection therewith.

Exhibit J - Page 4 

 

     10. Until all of Seller’s duties, obligations and liabilities under all Purchase Documents are
satisfied in full Guarantor (a) shall have no right of subrogation against Seller by reason of any
payments or acts of performance by Guarantor under this Guaranty; and (b) subordinates any
liability or indebtedness of Seller now or hereafter owed to or held by Guarantor to the duties,
obligations and liabilities of Seller under, arising out of or related to the Purchase Documents.

     11. All rights and remedies afforded to Buyer by reason of this Guaranty or by law are
separate and cumulative and the exercise or waiver of one shall not in any way limit or prejudice
the exercise of any other such right or remedy. Guarantor’s performance of a portion, but not all,
of the Guaranteed Obligations shall in no way limit, affect, modify or abridge Guarantor’s
liability for that portion of the Guaranteed Obligations which is not performed. Without in any
way limiting the generality of the foregoing, in the event that Buyer is awarded a judgment in any
suit brought to enforce Guarantor’s covenant to perform a portion of the Guaranteed Obligations,
such judgment shall in no way be deemed to release Guarantor from its covenant to perform any
portion of the Guaranteed Obligations which is not the subject of such suit.

     12. Guarantor hereby expressly waives notice of acceptance of this Guaranty by Buyer.
Guarantor hereby waives and agrees not to assert or take advantage of any right or defense based on
the absence of any or all presentments, demands, notices and protests of each and every kind.

     13. Guarantor agrees, unless otherwise required by law or a specific agreement to the
contrary, all payments received by Buyer from Seller, or any other party other than such Guarantor,
with respect to the Guaranteed Obligations, shall be applied by Buyer in such manner and order as
Buyer desires, in its sole discretion. In that regard, Guarantor hereby waives any and all rights
it has or may have under applicable law which provides that if guarantor is “liable upon only a
portion of an obligation and the principal provides partial satisfaction of the obligation, the
principal may designate the portion of the obligation to be satisfied”. All payments received by
Buyer from Guarantor shall be applied by Buyer to the obligations of Guarantor to Buyer, in such
manner and order as Buyer desires in its sole discretion.

     14. Guarantor warrants and represents:

               (i) Guarantor has the capacity and authority to enter into this Guaranty and consummate the
transactions herein provided and nothing prohibits or restricts the right or ability of Guarantor
to enter into, or perform its obligations under, this Guaranty.

               (ii) Neither this Guaranty nor any agreement, document or instrument executed or to be
executed in connection with the same, nor anything provided in or contemplated by this Guaranty or
any such other agreement, document or instrument, does now or shall hereafter breach, invalidate,
cancel, make inoperative or interfere with, or result in the acceleration or maturity of, any
agreement, document, instrument, right or interest, affecting or relating to Guarantor.

Exhibit J - Page 5 

 

               (iii) Guarantor is related and/or affiliated with Seller, has personal knowledge of, is
familiar with Seller’s business affairs and books and records and warrants that Seller is in sound
financial condition as of the Effective Date.

               (iv) Guarantor has received copies of and is familiar with the Purchase Documents.

               (v) The most recent financial statement received by Buyer from such Guarantor dated as of
__________, _____ reflects the current financial condition of Guarantor in all material respects.

     15. Guarantor shall maintain at all times during the entire period this Guaranty remains in
effect (i) Liquid Assets (as defined below) in an amount equal to not less than
[___________________________] and No/Hundred Dollars ($[_______________]) and (ii) a Net Worth (as
defined below) in an amount equal to not less than [_________________] and No/Hundred Dollars
($[_________________]).

          “Liquid Assets” means unencumbered and unrestricted cash or other cash equivalent
investments owned directly by Guarantor that immediately can be liquidated into unencumbered and
unrestricted cash (e.g., publicly traded stock on the NYSE).

          “Net Worth” means all assets (excluding intangible assets, and assets either
restricted, pledged or encumbered by a security interest or lien) less liabilities determined in
accordance with generally accepted accounting principles consistently applied.

     16. This Guaranty shall remain in full force and effect until the earlier of (i) all of the
Guaranteed Obligations under the Purchase Documents have been satisfied in full and are no longer
subject to disgorgement under any applicable state or federal creditor rights or bankruptcy laws.
No delay on the part of Buyer in exercising any options, powers or rights, or the partial or single
exercise thereof, shall constitute a waiver thereof. Notwithstanding the foregoing, Buyer shall
have no right to assert a claim against Guarantor under this Guaranty after the period of nine (9)
months following Effective Date.

     17. Miscellaneous.

          (a) Notices. Any notice, consent or approval required or permitted to be given under
this Guaranty shall be in writing and shall be deemed to have been given upon (i) hand delivery or
facsimile transmission, (ii) one business day after being deposited with Federal Express or another
reliable overnight courier service for next day delivery, or (iii) the date of receipt or refusal
of delivery if deposited in the United States mail, registered or certified mail, postage prepaid,
return receipt required, and addressed as follows:

	 	 	 	 	 	 	 
	          If
to Guarantor:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	Attention:	 	 	 	 
	 
	 	 	 

	 	 
	 

	 	Phone: (___)	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Fax: (___)	 	 	 	 
	 

	 	 	 

	 	 

Exhibit J - Page 6 

 

	 	 	 	 	 	 	 

	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Attention:	 	 	 	 
	 

	 	 	 

	 	 
	 

	 	Phone: (___)	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Fax: (___)	 	 	 	 
	 

	 	 	 

	 	 
	 
	 	 	 	 	 	 
	          If
to Buyer:	 	HTA - Washington Medical Arts II, LLC

16435 North Scottsdale Road, Suite 320

Scottsdale, Arizona 85254

Attention: Mark D. Engstrom

Phone: (480) 998-3478

Fax: (480)991-0755	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 	 	Cox, Castle & Nicholson LLP

2049 Century Park East, Suite 2800

Los Angeles, California 90067

Attention: John F. Nicholson, Esq.

Phone: (310) 284-4222

Fax: (310) 277-7889	 	 

or such other address as either party may from time to time specify in writing to the other.

          (b) Successors and Assigns. This Guaranty may be assigned in whole or part by Buyer,
either voluntarily or by operation of law, but it may not be assigned by Guarantor. This Guaranty
shall be binding upon, and inure to the benefit of, the parties hereto and their respective
successors, heirs, administrators and permitted assignees.

          (c) No Third Party Beneficiary. This Guaranty is solely for the benefit of Buyer and
is not intended to nor shall it be deemed to be for the benefit of any third party, including
Seller.

          (d) Amendments. Except as otherwise provided herein, this Guaranty may be amended or
modified only by a written instrument executed by Buyer.

          (e) Governing Law. This Guaranty shall be governed by and construed in accordance
with the internal laws of the State of New York without reference to choice of law principles which
might indicate that the law of some other jurisdiction should apply.

          (f) Interpretation. The headings contained in this Guaranty are for reference
purposes only and shall not in any way affect the meaning or interpretation hereof. Whenever the
context hereof shall so require, the singular shall include the plural, the male gender shall
include the female gender and the neuter, and vice versa. This Guaranty shall not be construed
against either Buyer or Guarantor but shall be construed as a whole, in accordance with its fair
meaning, and as if prepared by Buyer and Guarantor jointly.

Exhibit J - Page 7 

 

          (g) Merger of Prior Guaranties. This Guaranty constitutes the entire agreement
between the parties and supersedes all prior agreement and understandings between the parties
relating to the subject matter hereof.

          (h) Dispute Resolution. The parties agree to use their good faith efforts to settle
promptly any disputes or claims arising out of or relating to this Guaranty through negotiation
conducted in good faith between executives having authority to reach such a settlement. Either
party may, by written notice to the other, refer any such dispute or claim for advice or resolution
to mediation by a suitable mediator. The mediator shall be chosen by the mutual agreement of the
parties within thirty (30) days of such written notice. If the parties are unable to agree on a
mediator within such time period, each party shall within fifteen (15) days thereafter designate a
qualified mediator who, together with the mediator designated by the other, shall choose, within
fifteen (15) days of being so designated, a single mediator for the particular dispute or claim.
The results of such mediation shall be non-binding. All negotiations and mediation discussions
pursuant to this Section 17(h) shall be confidential, subject to applicable law, and shall
be treated as compromise and settlement negotiations for purposes of Federal Rule of Evidence 408
and applicable state rules of evidence. In the event the parties are unable to resolve the dispute
through mediation within forty-five (45) days of selection of the mediator, either Party may bring
such action at law or in equity as it deems necessary or desirable and the prevailing party in such
action shall be awarded any and all costs and expenses incurred by the prevailing party in
enforcing, defending or establishing its rights hereunder or thereunder, including, without
limitation, court costs and attorneys and expert witness fees. In addition to the foregoing award
of costs and fees, the prevailing party shall also be entitled to recover its attorneys’ fees
incurred in any post judgment proceedings to collect or enforce any judgment.

          (i) Severability. If any provision of this Guaranty, or the application thereof to
any person, place, or circumstance, shall be held by a court of competent jurisdiction to be
invalid, unenforceable or void, the remainder of this Guaranty and such provisions as applied to
other persons, places and circumstances shall remain in full force and effect.

          (j) No Waiver. No delay or failure on the part of Buyer in exercising any right,
power or privilege under this Guaranty or under any other instrument or document given in
connection with or pursuant to this Guaranty shall impair any such right, power or privilege or be
construed as a waiver of any default or any acquiescence therein. No single or partial exercise of
any such right, power or privilege shall preclude the further exercise of such right, power or
privilege. No waiver shall be valid against Buyer unless made in writing and executed by Buyer,
and then only to the extent expressly specified therein.

          (k) Legal Representation. Each party has been represented by legal counsel in
connection with the negotiation of the transactions herein contemplated and the drafting and
negotiation of this Guaranty. Each party and its counsel have had an opportunity to review and
suggest revisions to the language of this Guaranty. Accordingly, no provision of this Guaranty
shall be construed for or against or interpreted to the benefit or disadvantage of any party by
reason of any party having or being deemed to have structured or drafted such provision.

          (l) Intentionally Deleted.

Exhibit J - Page 8 

 

          (m) Signer’s Warranty. Each individual executing this Guaranty on behalf of an entity
hereby represents and warrants to the other party or parties to this Guaranty that (i) such
individual has been duly and validly authorized to execute and deliver this Guaranty and any and
all other documents contemplated by this Guaranty on behalf of such entity; and (ii) this Guaranty
and all documents executed by such individual on behalf of such entity pursuant to this Guaranty
are and will be duly authorized, executed and delivered by such entity and are and will be legal,
valid and binding obligations of such entity.

          (n) Representation by Attorney. GUARANTOR ACKNOWLEDGES THAT GUARANTOR HAS BEEN
AFFORDED THE OPPORTUNITY TO READ THIS DOCUMENT CAREFULLY AND TO REVIEW IT WITH AN ATTORNEY OF
GUARANTOR’S CHOICE BEFORE SIGNING IT. GUARANTOR ACKNOWLEDGES HAVING READ AND UNDERSTOOD THE
MEANING AND EFFECT OF THIS DOCUMENT BEFORE SIGNING IT.

          (o) Counterparts. This Guaranty may be executed in any number of counterparts each of
which shall be deemed an original and all of which shall constitute one and the same Guaranty with
the same effect as if all parties had signed the same signature page. It shall not be necessary
that the signatures of, or on behalf of, each party, or that the signatures of all persons required
to bind any party, appear on a single counterpart, but it shall be sufficient that the signature
of, or on behalf of, each party, appear on one or more of the counterparts. Any signature page of
this Guaranty may be detached from any counterpart of this Guaranty or such other document and
reattached to any other counterpart of this Guaranty or such other document identical in form
hereto or thereto but having attached to it one or more additional signature pages. This Guaranty
shall be deemed executed and delivered upon each signator’s delivery of executed signature pages of
this Guaranty, which signature pages may be delivered by facsimile with the same effect as delivery
of the originals.

          (p) Waiver of Trial by Jury. GUARANTOR HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS GUARANTY. THIS
WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY GUARANTOR, AND GUARANTOR ACKNOWLEDGES
THAT BUYER HAS NOT MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN
ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. GUARANTOR FURTHER ACKNOWLEDGES THAT GUARANTOR HAS BEEN
REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS GUARANTY BY
INDEPENDENT LEGAL COUNSEL, SELECTED BY GUARANTOR, AND THAT GUARANTOR HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL. FURTHER, EXCEPT AS PROHIBITED BY LAW, GUARANTOR WAIVES ANY RIGHT
IT MAY HAVE TO CLAIM OR RECOVER, IN ANY SUIT, ACTION OR PRECEDING BROUGHT BY GUARANTOR ON OR WITH
RESPECT TO THIS GUARANTY, ANY SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR OTHER DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES.

     18. Liability. Notwithstanding anything to the contrary contained in this Guaranty,
it is expressly understood and agreed by and between the parties that after the Closing,

Exhibit J - Page 9 

 

the recourse of Buyer or its successors or assigns against Guarantor with respect to the
alleged breach by or on the part of Seller of any representation, warranty, covenant, undertaking,
indemnity or agreement contained in the Purchase Agreement shall be limited to [the SFW Guaranty
Holdback in] an amount not to exceed (a) _____________ and No/100 Dollars ($___________) [2.5% OF
THE PURCHASE PRICE] for the period commencing on the Closing Date and ending on the date that is
six (6) months after the Closing Date (the “Holdback Expiration Date”), and (b)
_____________ and No/100 Dollars ($___________) [3.0% OF THE PURCHASE PRICE] for the period
commencing on the Holdback Expiration Date and ending on the date of termination of this Guaranty,
each in the aggregate, of all recourse of Buyer under this Guaranty. Buyer hereby agrees to first
seek recourse against Seller under the Holdback (as defined in the Purchase Agreement) prior to
commencement of enforcement of this Guaranty.

     19. Termination of Guaranty. This Guaranty automatically terminates nine (9) months
after the Effective Date without further documentation required.

[Signature(s) on next page]

Exhibit J - Page 10 

 

     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first written above .

	 	 	 	 	 	 	 

	GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 
	a
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Exhibit J - Page 1 

 

EXHIBIT K

GUARANTY HOLDBACK AGREEMENT

     THIS GUARANTY HOLDBACK AGREEMENT (this “Agreement”) is entered into the ____ day of
____________, 2010 (“Effective Date”), by and among SWF, L.P., a New York limited
partnership (“Guarantor”); HTA -WASHINGTON MEDICAL ARTS II, LLC, a Delaware limited
liability company (“Buyer”); and FIRST AMERICAN TITLE INSURANCE COMPANY (“Escrow
Holder”).

     WHEREAS, Buyer and 1375 Associates, L.L.C. a New York limited liability company
(“Seller”) have entered into that certain Purchase and Sale Agreement dated
_______________, 2010 (the “Purchase Agreement”), whereby Seller has agreed to sell and
Buyer has agreed to purchase certain properties and interests in properties on lands more
particularly described on Exhibit “A” attached thereto;

     WHEREAS, pursuant to the terms of the Purchase Agreement, and as additional consideration
under the Purchase Agreement, Guarantor is obligated to deposit in escrow with the Escrow Holder
the Escrow Funds (defined below), for the period set forth herein and for the purpose of satisfying
any Claim (defined below) under the terms of the Guaranty;

     WHEREAS, Guarantor and Buyer desire to have the Escrow Holder hold the Escrow Funds for
disbursement to Guarantor and Buyer pursuant to the terms of this Agreement; and

     WHEREAS, Escrow Holder agrees to hold the Escrow Funds and disburse such Escrow Funds to
Guarantor and Buyer in accordance with the terms of this Agreement.

     NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

     1. Definitions. All capitalized terms used in this Agreement not otherwise expressly
defined in this Agreement shall have the same meanings assigned to such terms in the Purchase
Agreement.

     2. Deposit of Escrow Funds. Escrow Holder acknowledges the receipt from Seller of
_________________ Thousand and No/100 Dollars ($____________.00) (the “Escrow Funds”). The
Escrow Funds are the property of Guarantor subject to the terms of this Agreement. Escrow Holder
shall disburse the Escrow Funds in strict accordance with the terms of this Agreement.

     3. Deposit Information.

          (a) The Escrow Funds shall be deposited in a separately segregated interest bearing account or
accounts (the “Escrow Account”) at a financial institution insured by the FDIC. All
interest earned by the funds in the Escrow Account shall be accumulated in the Escrow Account,
become a part of the Escrow Funds and be disbursed as provided below.

Exhibit K - Page 1

 

          (b) Guarantor’s Employer Identification Number is ______________.

     4. Disbursement of Escrow Funds.

          (a) Claims. If within 270 days of the Closing Date, Buyer has a “good faith claim” under the
Guaranty (the “Claim”), then Buyer is entitled to a disbursement of the Escrow Funds for
the amount of such Claim; provided, however, the aggregate amount the Buyer shall be entitled to
recover will not exceed the balance in the Escrow Account. At the end of 270 days after the
Closing Date, the funds in the Escrow Account (including all earnings and interest) shall be
disbursed to Guarantor; provided, however, if a Claim has been made and has not been disbursed to
Buyer prior the end of the 270 day period, the portion of the Escrow Funds alleged by Buyer to be
necessary to satisfy any such Claim shall not be disbursed. Buyer shall timely submit any Claim to
Escrow Holder, in writing, setting forth, in detail, the amount of the Claim (the “Claim
Notice”). Buyer shall simultaneously provide a copy of such Claim Notice to Guarantor. The
phrase “good faith” means that (i) Buyer has previously alleged that Seller has breached a
representation or warranty under Section 7 of the Purchase Agreements that survives the
Closing, (b) the Claim has been “finally determined” in favor of Buyer pursuant to the terms of the
Post-Closing Escrow Agreement or Seller has approved the Claim and (c) the Holdback has been
depleted.

          (c) If Escrow Holder receives a Claim Notice from Buyer within 270 days of the Closing Date,
Escrow Holder shall disburse the amount set forth in the Claim from the Escrow Funds to Buyer,
within three (3) business days of the receipt of such Claim Notice.

          (d) If Escrow Holder does not receive a Claim Notice from Buyer within 270 days of the Closing
Date, Escrow Holder shall, within three (3) business days of the expiration of such 270 day period,
disburse the balance of the Escrow Account (including all earnings and interest on the Escrow
Funds) to Guarantor in the manner directed by Guarantor.

     5. Third Party Claims. The Escrow Funds shall not be disbursed by Escrow Holder for
any Claim which arises from a claim by a third party when that claim has been settled by or on
behalf of Buyer without Guarantor’s written approval, provided such written approval has not been
unreasonably withheld.

     6. Liability and Protection of Escrow Holder.

          (a) Powers — Generally. Escrow Holder has only the rights, powers, privileges, and
duties expressly set forth in this Agreement, together with those rights, powers, and privileges
reasonably incident thereto, and is not a party to, and is not bound by, or charged with notice of
any agreement other than this Agreement.

          (b) Actions on Notice, etc. Escrow Holder may rely upon any written notice, request,
waiver, consent, certificate, receipt, authorization, power of attorney or other document that
Escrow Holder, in good faith, reasonably believes to be genuine and to be signed by the proper
party or parties hereto.

Exhibit K - Page 2

 

          (c) Advice of Counsel. Escrow Holder may rely on the legal opinion of its legal
counsel in the event of any dispute or question concerning the construction of any provision of
this Agreement or its duties hereunder, and shall incur no liability as a result of reliance on
such opinion.

          (d) Compensation for Services. Escrow Holder shall be entitled to reasonable fees and
expenses for customary services, as Escrow Holder hereunder, according to its standard rate sheet
for these services and all such compensation shall be paid and shared one-half by Buyer and
one-half by Guarantor. The fees and expenses may be revised from time to time to reflect current
rates for such services.

          (e) Resignation. Escrow Holder may resign upon seven (7) days prior written notice to
the other parties to this Agreement. Escrow Holder may be removed by the mutual agreement of
Guarantor and Buyer. If Escrow Holder resigns or Guarantor and Buyer agree to remove the Escrow
Holder, then Guarantor and Buyer must use their best efforts to agree upon a substitute Escrow
Holder. If Escrow Holder resigns or is removed and no successor Escrow Holder is agreed upon
within forty-five (45) days following the resignation or removal of the existing Escrow Holder,
Buyer may designate the successor Escrow Holder provided such Escrow Holder must be a title company
with an office in ______________, _________.

          (f) Liability — Negligent Acts. Escrow Holder will not be liable for anything that it
may do or refrain from doing in connection with this Agreement, except for acts that constitute
gross negligence, willful misconduct, or constitute a breach of its fiduciary duties.

     7. Indemnity. Guarantor and Buyer agree, jointly and severally, to indemnify and hold
Escrow Holder harmless from and against all costs, damages, judgments, attorneys’ fees, expenses,
and obligations or liabilities of any kind or nature that Escrow Holder may incur or sustain in
connection with or arising out of this Agreement, except to the extent due to Escrow Holder’s gross
negligence, willful misconduct, or breach of fiduciary duties arising from this Agreement.

     8. Waiver. Neither this Agreement nor any of its provisions may be waived, modified,
amended, discharged, or terminated except by an instrument in writing signed by the parties against
which the enforcement of such waiver, modification, amendment, discharge, or termination is sought
and, then, only to the extent set forth in such instrument.

     9. Books and Records. Escrow Holder will maintain proper books and records for the
Escrow Account. All amounts to be disbursed by Escrow Holder under this Agreement shall be paid
solely out of the Escrow Funds.

     10. Notices. All notices to be given in connection with this Agreement shall be made
by (i) placing the notice in the United States mail, certified or registered, properly stamped,
(ii) delivered by fax transmission, (iii) delivered by overnight delivery service, or (iv) by
personal delivery, in each case addressed to the location shown below or such other addresses as
the respective party may direct in writing to the other, or to such address. Such notice shall be

Exhibit K - Page 3

 

deemed effective (A) on the day actually delivered or (B) upon confirmation of the completion
of the fax (electronic or otherwise) when delivered by fax, or (C) upon such personal delivery:

	 	 	 	 	 	 	 

	 

	 	If to Buyer, to:
	 	HTA - Washington Medical Arts. LLC
	 	 
	 

	 	 	 	16435 N. Scottsdale Rd., Ste. 320	 	 
	 

	 	 	 	Scottsdale, AZ 85254	 	 
	 

	 	 	 	Attention: Mark D. Engstrom	 	 
	 

	 	 	 	Telephone: (480) 998-3478	 	 
	 

	 	 	 	Facsimile: (480) 991-0755	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	Cox, Castle & Nicholson LLP	 	 
	 

	 	 	 	2049 Century Park East, 28th Floor	 	 
	 

	 	 	 	Los Angeles, CA 90067	 	 
	 

	 	 	 	Attention: John F. Nicholson, Esq.	 	 
	 

	 	 	 	Telephone: (310) 277-4222	 	 
	 

	 	 	 	Facsimile: (310) 277-7889	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Guarantor, to:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Telephone:	 	 
	 

	 	 	 	Facsimile:	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Telephone:	 	 
	 

	 	 	 	Facsimile:	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Escrow Holder:
	 	First American Title Insurance Company	 	 
	 

	 	 	 	777 South Figueroa Street, Suite 400	 	 
	 

	 	 	 	Los Angeles, California 90017	 	 
	 

	 	 	 	Attention: Barbara Laffer	 	 
	 

	 	 	 	Telephone: (213) 271-1702	 	 
	 

	 	 	 	Facsimile: (818) 450-0135	 	 

     11. Invalidity. If any provision of this Agreement is held to be invalid, illegal, or
unenforceable in any respect, then such invalidity, illegality, or unenforceability will not affect
any other provision of this Agreement and this Agreement as so amended shall be construed as if the
offending provision had never been part of the Agreement.

     12. Time. Time is of the essence in the performance of each provision of this
Agreement.

Exhibit K - Page 4

 

     13. Counterparts and Facsimile Signatures. This Agreement may be executed in
counterparts, each of which shall be deemed an original and that together will constitute one and
the same agreement. Signatures sent by one party to the other via facsimile transmission shall be
deemed original signatures, binding upon the party so sending such signature, and shall be and
hereby are deemed original signatures.

     14. Successors and Assigns. The terms and provisions of this Agreement are binding
upon and inure to the benefit of each of the parties and their successors and assigns.

     15. Governing Law. This Agreement is being executed and delivered, and is intended to
be performed, and shall be governed, interpreted, construed, and enforced under the laws of the
State of __________ without regard to its conflict of laws, and exclusive jurisdiction and venue
for any claim concerning or arising out of it shall be only in district courts located in
_____________ County, ___________.

     16. WAIVER OF JURY TRIAL. EACH PARTY TO IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY
HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO
THIS AGREEMENT BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY
JURY ARISING FORM ANY SOURCE, INCLUDING BUT NOT LIMITED TO THE CONSTITUTION OF THE UNITED STATES,
THE CONSTITUTION OF ANY STATE, COMMON LAW OR ANY APPLICABLE STATUTE OR REGULATION. EACH PARTY
HEREBY ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING THE RIGHT TO DEMAND TRIAL
BY JURY.

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day
and year first above written.

[Signature pages to follow]

Exhibit K - Page 5

 

[Signature page to Guaranty Holdback Agreement]

	 	 	 	 	 	 	 

	 	 	Escrow Holder:	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST AMERICAN TITLE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Guarantor:	 	 
	 
	 	 	 	 	 	 
	 	 	SWF, L.P.,	 	 
	 	 	a New York limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Buyer:	 	 
	 
	 	 	 	 	 	 
	 	 	HTA- WASHINGTON MEDICAL ARTS II, LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit K - Page 6

 

SCHEDULE 1.5-1

LEASES

[To Be Inserted]

Schedule 1.5-1 - Page 1

 

SCHEDULE 1.5-2

SECURITY DEPOSITS

[To Be Inserted]

Schedule 1.5-2 - Page 1

 

SCHEDULE 2.1.3

LIST OF PROPERTIES

	1.	 	Washington Medical Arts I, Albany, New York
	 
	2.	 	Putnam Ambulatory Care Center, Carmel, New York
	 
	3.	 	Capital Region Health Park, Latham, New York
	 
	4.	 	St. Peter’s Children’s Center, Albany, New York
	 
	5.	 	Florida Orthopaedic Institute Surgery Center, Temple Terrace, Florida
	 
	6.	 	Patroon Creek Medical Center, Albany, New York
	 
	7.	 	CDPHP Corporate Headquarters, Albany, New York
	 
	8.	 	Northern Berkshire Ambulatory Care Center, Massachusetts

Schedule 2.1.3 - Page 1

 

SCHEDULE 4

DUE DILIGENCE ITEMS

For the Property, Seller shall provide the following to Buyer:

	 	 	 	 	 
	 	 	 	 	1375
WA
	1

	 	Operating Statements (2006, 2007, 2008, 2009, 2010 YTD)
	 	X
	2

	 	Operating Budget (2010)
	 	X
	3

	 	Tenant Financial Statements (2006, 2007, 2008, 2009, 2010 YTD)
	 	X
	4

	 	Personal Property Inventory
	 	NA
	5

	 	Title Reports
	 	X
	6

	 	Title Documents
	 	X
	7

	 	ALTA Surveys
	 	X
	8

	 	Service Contracts
	 	X
	9

	 	Property Tax Bills
	 	X
	10 / 11

	 	Environmental Reports (Phase I / II)
	 	X
	12

	 	Engineering / Property Condition Reports
	 	NA
	13

	 	Appraisal
	 	NA
	14

	 	Site / Floor / Building Plans
	 	X
	15

	 	Seismic Report
	 	NA
	16

	 	Certificates of Occupancy
	 	X
	17

	 	Property Photographs
	 	X
	18

	 	REA (Declarations)
	 	X
	19

	 	Property Insurance Certificates
	 	X
	20

	 	Flood Plan Insurance
	 	NA
	21

	 	Schedule of Litigation
	 	NA
	22

	 	Roof / Parking Information
	 	X
	23

	 	Building Permits / Warranties
	 	NA
	24

	 	Zoning
	 	NA
	25

	 	Development Agreements
	 	NA
	26

	 	Easement / Parking Agreements
	 	X

Schedule 4 - Page 1

 

	 	 	 	 	 
	 	 	 	 	1375

WA
	27

	 	Life Safety / ADA Compliance Reports
	 	NA
	28

	 	Tenants Leases (inc. amendments, exhibits, correspondence)
	 	X
	29

	 	Regulatory and Agency Correspondence
	 	NA
	30

	 	Seller, Lessee, Guarantor Legal Agreements
	 	NA
	31

	 	CAM reconciliations — Historical (3 Years)
	 	X
	32

	 	Delinquency Reports (Tenant Aged AR)
	 	X
	33

	 	Geotechnical Reports
	 	NONE
	34

	 	Ground Leases (including MOUs)
	 	X
	35

	 	Rent Roll (Certified)
	 	X
	36

	 	Sales Tax Bills (if applicable)
	 	NA
	37

	 	Utility Bills
	 	X
	38

	 	Asbestos Report/Surveys
	 	NA
	39

	 	Assessors Statement
	 	NA
	40

	 	Commissioning Report
	 	NA
	41

	 	Existing Loan Documents
	 	X
	42

	 	Financials for Tenant Guarantor Entity
	 	NA
	43

	 	Five Year Loss Runs (Property & Liability)
	 	X
	44

	 	Leasing and Brokerage Agreements
	 	NA
	45

	 	Letters of Credit
	 	NA
	46

	 	List of Utility Deposits and Bonds posted
	 	NA
	47

	 	O&M Manual (Existing or New)
	 	X
	48

	 	Outstanding Leasing Commissions
	 	NA
	49

	 	Repair and Maintenance Records
	 	NA
	50

	 	Seller Entity Financials (Parent), Property Manager
	 	NA
	51

	 	Standard Lease Form
	 	NA
	52

	 	Tenant Ledgers / Maintenance Files
	 	X
	53

	 	Operating Agreements / Certificates of Formation / Org Charts
	 	NA
	54

	 	Industrial Development Agency Documents / PILOT Agreements
	 	NA
	55

	 	Underground Storage Tanks (including tank tightness test, etc.)
	 	 NA

Schedule 4 - Page 2

 

	 	 	 	 	 
	LEGEND
	X

	 	Completed
	 	 
	NA

	 	Not Applicable	 	 

Schedule 4 - Page 3

 

SELLER TO PROVIDE BUYER WITH CURRENT FINANCIALS, ALL ORIGINAL TENANT LEASES (INCLUDING ALL
AMENDMENTS, EXHIBITS AND CORRESPONDENCE) WITHIN ONE (1) BUSINESS DAY FOLLOWING THE CLOSE OF
ESCROW.

Schedule 4 - Page 4

 

SCHEDULE 5.2.3

SERVICE CONTRACTS

[To Be Inserted]

Schedule 5.2.3 - Page 1

 

SCHEDULE 7.1

COMPLETION OBLIGATIONS

[To Be Inserted]

Schedule 7.1 - Page 1exv10w1

Exhibit 10.1

DATED 27 OCTOBER 2009

(AS AMENDED AND

RESTATED ON 20 DECEMBER 2010)

COEUR ALASKA INC.

(as Borrower)

THE FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1

(as Original Lenders)

CREDIT SUISSE AG

(as Arranger)

CREDIT SUISSE AG

(as Security Agent)

CREDIT SUISSE AG

(as Facility Agent)

-and-

CREDIT SUISSE INTERNATIONAL

(as Hedge Provider)

TERM FACILITY

AGREEMENT

relating to

US$100 million secured financing

 

 

CONTENTS

	 	 	 	 	 

	1. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	2. THE FACILITY
	 	 	24	 
	3. PURPOSE AND USE OF PROCEEDS
	 	 	24	 
	4. CONDITIONS OF UTILISATION
	 	 	25	 
	5. UTILISATION
	 	 	25	 
	6. REPAYMENT
	 	 	26	 
	7. PREPAYMENT AND CANCELLATION
	 	 	27	 
	8. INTEREST
	 	 	30	 
	9. INTEREST PERIODS
	 	 	31	 
	10. CHANGES TO THE CALCULATION OF INTEREST
	 	 	31	 
	11. FEES
	 	 	32	 
	12. TAX GROSS-UP AND INDEMNITIES
	 	 	33	 
	13. INCREASED COSTS
	 	 	36	 
	14. OTHER INDEMNITIES
	 	 	37	 
	15. MITIGATION
	 	 	39	 
	16. COSTS AND EXPENSES
	 	 	39	 
	17. REPRESENTATIONS
	 	 	40	 
	18. INFORMATION UNDERTAKINGS
	 	 	48	 
	19. INSURANCE
	 	 	51	 
	20. FINANCIAL COVENANTS
	 	 	54	 
	21. PROJECT UNDERTAKINGS
	 	 	56	 
	22. GENERAL UNDERTAKING
	 	 	59	 
	23. ACCOUNTS AND PAYMENT WATERFALL
	 	 	63	 
	24. EVENTS OF DEFAULT
	 	 	67	 
	25. CHANGES TO THE LENDERS
	 	 	74	 
	26. CHANGES TO THE OBLIGORS
	 	 	77	 

 

 

	 	 	 	 	 

	27. ROLE OF THE ADMINISTRATIVE PARTIES
	 	 	77	 
	28. CONDUCT OF BUSINESS BY THE FINANCE PARTIES
	 	 	83	 
	29. SHARING AMONG THE FINANCE PARTIES
	 	 	84	 
	30. PAYMENT MECHANICS
	 	 	85	 
	31. SET-OFF
	 	 	88	 
	32. NOTICES
	 	 	88	 
	33. CALCULATIONS AND CERTIFICATES
	 	 	90	 
	34. PARTIAL INVALIDITY
	 	 	91	 
	35. REMEDIES AND WAIVERS
	 	 	91	 
	36. AMENDMENTS AND WAIVERS
	 	 	91	 
	37. COUNTERPARTS
	 	 	92	 
	38. GOVERNING LAW
	 	 	92	 
	39. ENFORCEMENT
	 	 	92	 
	SCHEDULE 1
	 	 	94	 
	Original Lenders
	 	 	94	 
	SCHEDULE 2
	 	 	95	 
	Conditions Precedent
	 	 	95	 
	SCHEDULE 3
	 	 	99	 
	Utilisation Request
	 	 	99	 
	SCHEDULE 4
	 	 	101	 
	Information Package
	 	 	101	 
	SCHEDULE 5
	 	 	102	 
	Form of Transfer Certificate
	 	 	102	 
	SCHEDULE 6
	 	 	104	 
	Security Provisions
	 	 	104	 
	SCHEDULE 7
	 	 	107	 
	Capital Equipment Leases
	 	 	107	 
	SCHEDULE 8
	 	 	108	 

 

 

	 	 	 	 	 

	Repayment Schedule
	 	 	108	 
	SIGNATURES
	 	 	109	 

 

 

THIS AGREEMENT originally dated 27 October 2009 (and as amended and restated on 20 December 2010)

BETWEEN

	(1)	 	COEUR ALASKA INC., a company incorporated in the State of Delaware of the United States of
America, acting through its office at 505 Front Avenue, Coeur d’Alene, ID 83814, United
States, as borrower (the “Borrower”);
	 
	(2)	 	THE FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 (Original Lenders), as lenders (in this
capacity, each an “Original Lender”);
	 
	(3)	 	CREDIT SUISSE AG, a banking institution incorporated under the laws of Switzerland, acting
through its office at Paradeplatz 8, 8001 Zurich, Switzerland as arranger of the Facility (in
this capacity, the “Arranger”);
	 
	(4)	 	CREDIT SUISSE AG, as security agent of the Finance Parties (in this capacity, the “Security
Agent”); and
	 
	(5)	 	CREDIT SUISSE AG, as facility agent of the Finance Parties (in this capacity, the “Facility
Agent”); and
	 
	(6)	 	CREDIT SUISSE INTERNATIONAL, a banking institution incorporated under the laws of England and
Wales, acting through its office at One Cabot Square, London, England, as additional hedge provider
to the Borrower (in this capacity, the “Hedge Provider”).

IT IS AGREED:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“2010 Amendment and Restatement Agreement” means the amendment and restatement agreement to
the Agreement dated 20 December 2010 and made between among others the Facility Agent and
the Borrower;
	 
	 	 	“Account” means together the Proceeds Account and Debt Service Reserve Account;
	 
	 	 	“Account Bank” means the Facility Agent in its capacity as account bank for the Debt Service
Reserve Account and the Proceeds Account;
	 
	 	 	“Additional Hedging Arrangement” means any agreement, option or arrangements based on the
2002 ISDA Master Agreement, as published by the International Swaps & Derivatives
Association, Inc. (including the relevant confirmation and schedule) to be entered between
the Borrower and the Hedge Provider on or about the date of the 2010 Amendment and
Restatement Agreement for the purpose of providing hedge protection against fluctuations in
the price of Gold, in accordance with the Additional Hedging Strategy Letter;
	 
	 	 	“Additional Hedging Strategy Letter” means the letter dated on or about the date of the 2010
Amendment and Restatement Agreement between the Hedge Provider and the Borrower setting out
the policies agreed between them for the provision of the Additional Hedging Arrangements;

 

 

	 	 	“Administrative Party” means an Agent or the Arranger;
	 
	 	 	“Affiliate” means, in relation to any person, a Subsidiary of that person or a Parent
Undertaking of that person or any other Subsidiary of that Parent Undertaking;
	 
	 	 	“Agent” means the Facility Agent or the Security Agent;
	 
	 	 	“Amendment to the Deed of Trust” means the amendment to the Deed of Trust dated 20 December
2010 and made between amongst others the Facility Agent and the Borrower;
	 
	 	 	“Applicable Permit” shall mean at any time any Permit that is necessary to be obtained by or
on behalf of the Borrower at such time in light of the stage of development, construction or
operation of the Project to enable the Borrower to construct, test, operate, maintain,
repair, own its interest in or use the Project;
	 
	 	 	“Approved Insurer” means Munich Re, Zurich, Arch, Swiss Re or any other insurer as the
Facility Agent may approve from time to time, acting reasonably;
	 
	 	 	“Approved Offtaker” means The Rand Refinery, Barrick Goldstrike, Xstrata, Penoles, Aurubis,
Umicore, Dowa, Sumitomo, Mitsubishi International Corporation, Minmetals and Auramet and any
other Offtakers approved from time to time by the Facility Agent, acting reasonably;
	 
	 	 	“Auramet Contract” means the master purchase contract & bill of sale entered into between
Auramet and the Borrower and dated 6 September 2010;
	 
	 	 	“Aurubis Contract” means the sale and purchase contract entered into between Aurubis and the
Borrower and dated 12 August 2010;
	 
	 	 	“Aurubis / Auramet Offtake Arrangement” means the combined arrangement involving the offtake
of Production, advance payment facility and upfront settlement of ninety (90%) of the
purchase price of Production sold, and as a result the Aurubis Contract, the Auramet
Contract and assignment thereunder operate in conjunction with each other and as one
composite agreement;
	 
	 	 	“Authorisation” means an authorisation, consent, approval, resolution, license, exemption,
filing, notarisation, order, or registration and, if the same is conditional, the compliance
with all the conditions stipulated therein;
	 
	 	 	“Authorised Officer” means in respect of any Obligor, any director, attorney, the president,
chief financial officer or company secretary, or any other person from time to time
authorised by directors’ resolution (a certified copy of which is delivered to the Facility
Agent) or nominated by any Obligor by a written notice to the Facility Agent, as an
authorised officer to sign notices or documents on its behalf in connection with any of the
Finance Documents;
	 
	 	 	“Authorised Recipient” means:

	 	(a)	 	any Finance Party;
	 
	 	(b)	 	any Affiliate, head office or branch of a Finance Party;
	 
	 	(c)	 	any employee, officer, representative or adviser of a Finance Party (or any
other person providing professional services to a Finance Party which is required to
receive any information in relation to any Finance Document);

 

 

	 	(d)	 	any agent or independent contractor of a Finance Party which is under a
contractual obligation of confidentiality to that Finance Party;
	 
	 	(e)	 	a party which is, or could reasonably be expected to be, an assignee, novatee,
transferee or participant (or any agent or adviser of any of the foregoing) in relation
to all or any of a Finance Party’s rights and/or obligations under any Finance
Document;
	 
	 	(f)	 	any person with (or through) whom (or any agent or adviser of any such person)
a Lender enters into (or shows a demonstrable intention to enter into) any
sub-participation in relation to this Agreement or any Obligor or in relation to any
other transaction under which payments are to be made by reference to this Agreement or
any Obligor;
	 
	 	(g)	 	any rating agency, insurer or insurance broker of, or any direct or indirect
provider of credit protection to, a Finance Party;
	 
	 	(h)	 	any regulatory, supervisory or Governmental Authority which has jurisdiction
over a Finance Party;
	 
	 	(i)	 	any Obligor or any shareholder of an Obligor;
	 
	 	(j)	 	any person permitted by any Obligor;
	 
	 	(k)	 	any person who is succeeding (or shows a demonstrable intention to succeed) an
Agent in such capacity;
	 
	 	(l)	 	any person to whom a Finance Party is required by Law, regulation or competent
court or tribunal to make disclosure; or
	 
	 	(m)	 	any person to whom a Finance Party is under a legal duty to disclose or, where
such person is a regulatory authority, which has requested such disclosure in
compliance with any regulation,

	 	 	provided that, in relation to paragraphs (d), (e) and (f) above, the person to whom the
information is to be given has entered into a Confidentiality Undertaking;
	 
	 	 	“Availability Period” means the period from and including the Conditions Precedent
Satisfaction Date to the date following 3 months after the Conditions Precedent Satisfaction
Date, unless otherwise extended by agreement between the Borrower and the Facility Agent
(acting on the instructions of all the Lenders).
	 
	 	 	“Available Commitment” means a Lender’s Commitment minus:

	 	(a)	 	the amount of its participation in any outstanding Loans; and
	 
	 	(b)	 	in relation to any proposed Utilisation, the amount of its participation in the
Loans that are due to be made on or before the proposed Utilisation Date;

	 	 	“Available Facility” means the aggregate for the time being of each Lender’s Available
Commitment;
	 
	 	 	“Base Currency” means US Dollars;

 

 

	 	 	“Base Currency Amount” means in relation to a Utilisation, the amount specified in the
Utilisation Request delivered by a Borrower for that Utilisation (or, if the amount
requested is not denominated in the Base Currency, that amount converted into the Base
Currency at the Spot Rate of Exchange on the date which is three Business Days before the
Utilisation Date or, if later, on the date the Agent receives the Utilisation Request in
accordance with the terms of this Agreement) as adjusted to reflect any repayment,
prepayment, consolidation or division of a Utilisation;
	 
	 	 	“Benefit Plan” shall mean any employee pension benefit plan (other than a Multiemployer
Plan) that is a defined benefit plan, as defined in section 3(35) of ERISA, and that is
subject to the provisions of Title IV of ERISA or section 412 of the Code or section 307 of
ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under section 4069 of ERISA be deemed to be) an “employer” as defined in
section 3(5) of ERISA;
	 
	 	 	“Borrower Change of Control” means any event or circumstance whereby the Guarantor ceases to
Control the Borrower;
	 
	 	 	“Borrower Change of Ownership” means any event or circumstance whereby the Guarantor ceases
to own, legally and beneficially, 100 per cent of the Borrower’s issued shared capital; save
where:

	 	(a)	 	the Guarantor thereafter continues to own, legally and beneficially, more than
75 per cent of the Borrower’s issued shared capital;
	 
	 	(b)	 	the Facility Agent has given its prior written consent to such change (such
consent not to be unreasonably withheld or delayed); and
	 
	 	(c)	 	the Facility Agent has approved (acting reasonably) the terms of the relevant
agreement with the incoming shareholders;

	 	 	“Borrower Funds” means any amounts invested in or paid to the Borrower by the Guarantor by
way of equity or fully subordinated debt and credited to the Proceeds Account;
	 
	 	 	“Borrower Security Agreement” means the security agreement, in form and substance
satisfactory to the Security Agent, pursuant to which the Borrower has granted a first
priority security interest in all of its personal property for the benefit of the Security
Agent (on behalf of the Finance Parties) as security for the discharge of the Secured
Liabilities;
	 
	 	 	“Break Costs” means the amount (if any) by which:

	 	(a)	 	the interest (excluding Margin) which a Lender should have received for the
period from the date of receipt of all or any part of its participation in the Loan or
Unpaid Sum to the last day of the current Interest Period in respect of the Loan or
Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day
of that Interest Period;

	 	 	exceeds:

	 	(b)	 	the amount which that Lender would be able to obtain, such amount to be
determined on the basis of the Screen Rate, by placing an amount equal to the principal
amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant
Interbank Market for a period starting on the Business Day following receipt or
recovery and ending on the last day of the current Interest Period;

 

 

	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in:

	 	(a)	 	in relation to determination of a Quotation Day, Zurich and London; and
	 
	 	(b)	 	for all other purposes, Zurich and New York;

	 	 	“Capital Equipment Leases” means the leases and hire purchase contracts for capital
equipment used on the Project which have been entered into or are to be entered into after
the date of this Agreement and which constitute Finance Leases for US GAAP, being those set
out in schedule 7 (Capital Equipment Leases);
	 
	 	 	“Code” shall mean the Internal Revenue Code of 1986, as amended;
	 
	 	 	“Collateral” means all property and assets of the Borrower, now owned or hereafter acquired,
upon which a Lien is purported to be created by any Security Document;
	 
	 	 	“Commitment” means:

	 	(a)	 	in relation to an Original Lender, the amount set opposite its name under the
heading “Commitment” in schedule 1 (Original Lenders) and the amount of any other
Commitment transferred to it under this Agreement; and
	 
	 	(b)	 	in relation to any other Lender, the amount of any Commitments transferred to
it under this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement;
	 
	 	 	“Conditional Waiver Letter” means the conditional waiver letter dated 7 September 2010
regarding the Aurubis / Auramet Offtake Arrangements entered into by the Borrower, Guarantor
and Facility Agent;
	 
	 	 	“Conditions Precedent Satisfaction Date” means the date upon which the Facility Agent gives
written confirmation to the Borrower that it has received (or waived the requirement to
receive, in whole or in part) all of the documents and/or evidence set out in schedule 2
(Conditions Precedent) of the 2010 Amendment and Restatement Agreement and in each case in
the form and substance satisfactory to the Facility Agent;
	 
	 	 	“Confidentiality Undertaking” means a confidentiality undertaking substantially in a form
recommended for the time being by the LMA for such purpose or in any other form agreed
between the Borrower and the Facility Agent;
	 
	 	 	“Control” means, in relation to a company, any person or persons acting in concert:

	 	(a)	 	controlling or being able to control (whether directly or indirectly) the
composition of the board of directors or management board of that company;
	 
	 	(b)	 	in accordance with whose directions a majority of the members of the board of
directors or management board of that company are or become accustomed to act; or
	 
	 	(c)	 	able to direct (whether directly or indirectly) the affairs of that company;

	 	 	“Controlled Group” shall mean all members of a controlled group of corporations and all
trades or businesses (whether or not incorporated) under common control which, together

 

 

	 	 	with the Borrower, are treated as a single employer under section 414(b) or 414(c) of the
Code;

	 	 	“Debt Service Reserve Account” means the US Dollar denominated account (account no
0835-1170990-62 designation “Coeur Alaska Inc. — Debt Service Reserve Account”)
established by the Borrower in Zurich, Switzerland with the Account Bank (and any
sub-account or substitute account from time to time);
	 
	 	 	“Debt Service Reserve Account Charge” means the account charge governed by Swiss law dated
on or around the same date as this Agreement given by the Borrower for the benefit of the
Security Agent on behalf of the Finance Parties pursuant to which a charge is created over
the Debt Service Reserve Account as security for the discharge of the Secured Liabilities;
	 
	 	 	“Deed of Trust” means the deed of trust deed to be granted by the Borrower in favour of the
Security Agent comprising Security over the Property Rights (including the Mineral Rights)
as more particularly set out therein and as amended by the Amendment to the Deed of Trust;
	 
	 	 	“Default” means an Event of Default or any event or circumstance specified in clause 24
(Events of Default) which would (with the expiry of a grace period or other lapse of time,
the giving of notice, the making of any determination under the Finance Documents or any
combination of any of the foregoing) be an Event of Default;
	 
	 	 	“Delegate” means any delegate, agent, or attorney appointed by the Security Agent;
	 
	 	 	“Disruption Event” means either or both of:

	 	(a)	 	a material disruption to those payment or communications systems or to those
financial markets which are, in each case, required to operate in order for payments to
be made in connection with the Facility (or otherwise in order for the transactions
contemplated by the Finance Documents to be carried out) which disruption is not caused
by, and is beyond the control of, any of the Parties; or
	 
	 	(b)	 	the occurrence of any other event which results in a disruption (of a technical
or systems-related nature) to the treasury or payments operations of a Party preventing
that, or any other Party:

	 	(i)	 	from performing its payment obligations under the Finance Documents; or
	 
	 	(ii)	 	from communicating with other Parties in accordance with the
terms of the Finance Documents,

	 	 	 	and which (in either such case) is not caused by, and is beyond the control of, the
Party whose operations are disrupted;

	 	 	“Easements” shall mean the easements appurtenant, easements in gross, license agreements and
other rights running in favour of the Borrower and/or appurtenant to the Site, including
without limitation those certain easements and licenses described in the Title Policy;
	 
	 	 	“Effective Date” means the date on which the Facility Agent gives written notice (including
by way of email) to the Borrower named that it has received each of the documents and other
evidence listed in schedule 2 (Conditions Precedent) of the Amendment and Restatement
Agreement in a form and substance satisfactory to the Facility Agent or receipt of such
documents and other evidence has been waived;

 

 

	 	 	“Eminent Domain Proceeds” shall mean all amounts and proceeds (including instruments)
received in respect of any Event of Eminent Domain;
	 
	 	 	“Environmental Claim” shall mean any and all liabilities, losses, administrative, regulatory
or judicial actions, suits, written demands, decrees, written claims, liens, judgments,
warning notices, notices of noncompliance or violation, governmental investigations,
governmental proceedings, removal or remedial actions, orders, or damages (foreseeable and
unforeseeable, including consequential and punitive damages), penalties, fees, out-of-pocket
costs, expenses, disbursements, attorneys’ or consultants’ fees, relating in any way to any
Environmental Law or any Permit issued under any such Environmental Law (hereafter
“Claims”), including (a) any and all Claims by Governmental Authorities for enforcement,
investigation, cleanup, removal, response, remedial or other actions or fines, penalties or
damages pursuant to any applicable Environmental Law, and (b) any and all Claims by any
third party seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Substances or arising from alleged injury or
threat of injury to human health and safety or the environment under any Environmental Law;
	 
	 	 	“Environmental Law” shall mean any federal, state or local Law relating to the protection of
the environment, natural resources, human health and safety, including the Clean Air Act,
the Comprehensive Environmental Response, Compensation and Liability Act, the Federal Water
Pollution Control Act, the Resource Conservation and Recovery Act of 1976, the Safe Drinking
Water Act, the Toxic Substances Control Act, the Hazardous & Solid Waste Amendments Act of
1984, the Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials
Transportation Act, the Oil Pollution Act of 1990, the Emergency Planning and Community
Right-to-Know Act, the Atomic Energy Act of 1954, the Federal Insecticide, Fungicide, and
Rodenticide Act of 1972, the Occupational Safety and Health Act, the Atomic Energy Act of
1954, the Surface Mining Control and Reclamation Act of 1974, the Uranium Mill Tailings
Radiation Control Act of 1978, and any federal, state and local Laws, rules or regulations
implementing or comparable to the foregoing requirements, as the same has been or may be
amended or supplemented;
	 
	 	 	“ERISA Event” shall mean:

	 	(a)	 	any “reportable event”, as defined in section 4043 of ERISA or the regulations
issued thereunder, with respect to a Benefit Plan (other than an event for which the
30-day notice period is waived);
	 
	 	(b)	 	the existence with respect to any Benefit Plan of an “accumulated funding
deficiency” (as defined in section 412 of the Code or section 302 of ERISA), whether or
not waived;
	 
	 	(c)	 	the filing pursuant to section 412(d) of the Code or section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any Benefit
Plan;
	 
	 	(d)	 	the incurrence by the Borrower or any of its ERISA Affiliates of any liability
under Title IV of ERISA with respect to the termination of any Benefit Plan or the
withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from
any Benefit Plan or Multiemployer Plan;
	 
	 	(e)	 	the receipt by the Borrower or any of its ERISA Affiliates from the PBGC or a
plan administrator of any notice relating to the intention to terminate any Benefit
Plan or Benefit Plans or to appoint a trustee to administer any Benefit Plan;

 

 

	 	(f)	 	the adoption of any amendment to a Benefit Plan that would require the
provision of security pursuant to section 401(a)(29) of the Code or section 307 of
ERISA;
	 
	 	(g)	 	the receipt by the Borrower or any of its ERISA Affiliates of any notice, or
the receipt by any Multiemployer Plan from the Borrower or any of its ERISA Affiliates
of any notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in reorganisation,
within the meaning of Title IV of ERISA;
	 
	 	(h)	 	the occurrence of a “prohibited transaction” with respect to which the Borrower
is a “disqualified person” (within the meaning of section 4975 of the Code) or with
respect to which the Borrower could otherwise be liable; or
	 
	 	(i)	 	any other event or condition with respect to a Benefit Plan or Multiemployer
Plan that could reasonably be expected to result in liability of the Borrower;

	 	 	“ERISA Plan” shall mean any employee benefit plan (a) maintained by the Borrower or any
member of the Controlled Group, or to which any of them contributes or is obligated to
contribute, for its employees, and (b) covered by Title IV of ERISA or to which section 412
of the Code applies;
	 
	 	 	“Event of Default” means any event or circumstance specified as such in clause 24 (Events of
Default) (excluding clause 24.24 (Acceleration));
	 
	 	 	“Event of Eminent Domain” shall mean any compulsory transfer or taking by condemnation,
eminent domain or exercise of a similar power, or transfer under threat of such compulsory
transfer or taking, of any part of the Collateral, by any agency, department, authority,
commission, board, instrumentality or political subdivision of the State of Alaska, the
United States or another Governmental Authority having jurisdiction;
	 
	 	 	“Existing Lender” has the same meaning given to the term in clause 25.1 (Assignments and
transfers by the Lenders);
	 
	 	 	“Facility” means the term loan facility made available under this Agreement as described in
clause 2 (The Facility);
	 
	 	 	“Facility Guarantee” means a guarantee and indemnity to be entered into by the Guarantor in
favour of the Security Agent in respect of the Borrower’s obligations under the Finance
Documents on or around the date of this Agreement and as amended by the Guarantor Side
Letter;
	 
	 	 	“Facility Office” means the office or offices notified by a Lender to the Facility Agent in
writing on or before the date it becomes a Lender (or, following that date, by not less than
five Business Days’ written notice) as the office or offices through which it will perform
its obligations under this Agreement;
	 
	 	 	“Fee Letter” means any letter dated on or about the date of the 2010 Amendment and
Restatement Agreement between one or more Finance Parties and the Borrower setting out any
of the fees referred to in clause 11 (Fees);

 

 

	 	 	“Final Maturity Date” means 31 December 2015;
	 
	 	 	“Finance Document” means:

	 	(a)	 	this Agreement as amended by the 2010 Amendment and Restatement Agreement;
	 
	 	(b)	 	any Fee Letter;
	 
	 	(c)	 	any Security Document;
	 
	 	(d)	 	the Original Hedging Strategy Letter;
	 
	 	(e)	 	the Additional Hedging Strategy Letter;
	 
	 	(f)	 	the 2010 Amendment and Restatement Agreement;
	 
	 	(g)	 	any Hedging Arrangement;
	 
	 	(h)	 	any subordination agreement or other document which has the effect of
subordinating any borrowing or other indebtedness owed by the Borrower to the Guarantor
(or any Subsidiary of the Guarantor); and
	 
	 	(i)	 	any other document designated as such from time to time by the Facility Agent
and the Borrower,

	 	 	provided that where the term “Finance Document” is used in, and construed for the purposes
of this Agreement, each Hedging Arrangement shall be a Finance Document only for the
purposes of:

	 	(a)	 	the definition of “Default”;
	 
	 	(b)	 	the definition of “Material Adverse Effect”;
	 
	 	(c)	 	the definition of “Secured Liabilities”;
	 
	 	(d)	 	paragraph (a)(vi) of clause 1.3 (Interpretation);
	 
	 	(e)	 	clause 24 (Events of Default) (other than clause 24.24 (Acceleration));
	 
	 	(f)	 	clause 27.1 (Appointment of the Agents); and
	 
	 	(g)	 	clause 31 (Set-off); and
	 
	 	(h)	 	schedule 6 (Security Provisions);

	 	 	“Finance Party” means an Administrative Party or a Lender or the Hedge Provider and the term
“Finance Parties” shall mean all of them, provided that where the term “Finance Party” is
used in, and construed for the purposes of, this Agreement, the Hedge Provider shall be a
Finance Party only for the purposes of:

	 	(a)	 	the definition of “Secured Liabilities”;
	 
	 	(b)	 	the definition of “Authorised Recipient”;

 

 

	 	(c)	 	paragraph 1.3(a)(i) of clause 1.3 (Interpretation);
	 
	 	(d)	 	paragraph (b) of the definition of “Material Adverse Effect”;
	 
	 	(e)	 	clause 17.30 (Ranking);
	 
	 	(f)	 	clause 27.1(b) (Appointment of the Agents);
	 
	 	(g)	 	clause 28(Conduct of business by the finance parties);
	 
	 	(h)	 	clause 31 (Set-off); and
	 
	 	(i)	 	schedule 6 (Security Provisions);

	 	 	“Financial Indebtedness” means any indebtedness for or in respect of (without double
counting):

	 	(a)	 	money borrowed;
	 
	 	(b)	 	any amount raised by acceptance under any acceptance credit facility or
dematerialised equivalent;
	 
	 	(c)	 	any amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;
	 
	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract
which would, in accordance with US GAAP, be treated as a finance or capital lease;
	 
	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they
are sold on a non-recourse basis);
	 
	 	(f)	 	any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;
	 
	 	(g)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value shall be taken into
account) including (without limitation) any Hedging Arrangement;
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a bank or
financial institution; and
	 
	 	(i)	 	the amount of any liability in respect of any guarantee or indemnity for any of
the items referred to in paragraphs (a) to (h) above;

	 	 	“Fiscal Quarter” means any quarter in a Fiscal Year;
	 
	 	 	“Fiscal Year” means any period of twelve consecutive calendar months ending on December 31;
references to a Fiscal Year with a number corresponding to any calendar year (eg the “2008
Fiscal Year”) refer to the Fiscal Year ending on the December 31 occurring during such
calendar year;

 

 

	 	 	“F.R.S. Board” means the Board of Governors of the Federal Reserve System of the United
States of America or any successor thereto;
	 
	 	 	“Gold” means loco London unallocated gold bullion measured in Ounces and (unless otherwise
agreed by the Borrower and the Facility Agent) which complies with the rules of the LBMA
relating to good delivery and fineness as from time to time in effect;
	 
	 	 	“Governmental Authority” shall mean the government of the United States of America or any
other nation, any political subdivision thereof, whether 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;
	 
	 	 	“Guarantor” means Coeur d’Alene Mines Corporation, a company incorporated in the State of
Idaho of the United States of America whose registered office is located at 505 Front
Avenue, Coeur d’Alene, ID 83814, United States;
	 
	 	 	“Guarantor Pledge Agreement” means the pledge agreement, in form and substance satisfactory
to the Security Agent, pursuant to which the Guarantor has pledged 100 per cent of its
shares in the Borrower, for the benefit of the Security Agent (on behalf of the Finance
Parties) as security, amongst other things, for the discharge of the Secured Liabilities;
	 
	 	 	“Guarantor Side Letter” shall means the side letter to the 2010 Amendment and Restatement
Agreement dated 20 December 2010 and entered into between the Facility Agent and the
Guarantor;
	 
	 	 	“Hazardous Substances” shall mean substances defined, used or listed as “hazardous wastes”,
“extremely hazardous wastes”, “restricted hazardous wastes”, “hazardous materials”,
“hazardous substances”, “toxic substances”, “solid wastes”, “harmful physical agents”,
“chemicals of concern”, “pollutants” or “contaminants” by or under any Environmental Law and
any pollutants, contaminants, chemicals or toxics, petroleum hydrocarbons, asbestos, lead,
polychlorinated biphenyls, hazardous or radioactive materials, wastes, or substances that
are regulated under any Environmental Law;
	 
	 	 	“Hedging Arrangements” means the hedging arrangements entered into for the purposes of
providing hedge protection against fluctuations in the price of Gold, pursuant to:

	 	(a)	 	the Original Hedging Strategy Letter and Original Hedging Arrangement entered
into on or about the date of the Agreement; and
	 
	 	(b)	 	the Additional Hedging Strategy Letter and Additional Hedging Arrangement
entered into or on about the date of the 2010 Amendment and Restatement Agreement;

	 	 	“Hedging Exposure” means in respect of the Hedge Provider (and in respect of a Lender, where
such Lender is the Hedge Provider) at the relevant time, the aggregate of:

	 	(a)	 	the amount payable under the Hedging Arrangements to which the Hedge Provider
and the Borrower are a party if such Hedging Arrangements were to be terminated at the
relevant time, provided that it will be a positive number if it represents a liability
of the Borrower to the Hedge Provider and a negative number if it represents a
liability of the Hedge Provider to the Borrower; and
	 
	 	(b)	 	(without double counting under paragraph (a) above), any amount due and payable
(or the monetary equivalent of any asset due for delivery) under a Hedging

 

 

	 	 	 	Arrangement on or prior to the relevant time, which is a positive number if it
represents amounts owing or deliverable by the Borrower to the Hedge Provider and a
negative number if it represents amounts owing by the Hedge Provider to the
Borrower,

	 	 	and if the foregoing would result in an aggregate negative number for Hedging Exposure it
will be deemed zero for the Hedge Provider and, for the purpose of the calculation of the
foregoing, positive numbers and negative numbers will be netted, without affecting the
obligations of the Borrower under the relevant Hedging Arrangements;
	 
	 	 	“Indemnitee” shall have the meaning given to such term in clause 14.2 (Expenses; Indemnity);
	 
	 	 	“Information Package” means the reports listed in schedule 4 (Information Package);
	 
	 	 	“Insurable Property” means any and all Collateral which is of an insurable nature;
	 
	 	 	“Insurance” means the insurance required to be taken out or maintained by, or on behalf or
for the benefit of, the Borrower to comply with the provisions of the Finance Documents, and
applicable Law, as approved by the Facility Agent;
	 
	 	 	“Insurance Proceeds” shall mean, to the extent payable to the Borrower, all amounts and
proceeds (including instruments) in respect of the proceeds of any casualty insurance policy
required to be maintained by the Borrower hereunder;
	 
	 	 	“Interest Period” means, in relation to the Loan, each period determined in accordance with
clause 9 (Interest periods) and, in relation to an Unpaid Sum, each period determined in
accordance with clause 8.3 (Default interest);
	 
	 	 	“Intra-Company Loans” means the total amount outstanding from time to time with respect to
principal, premium, if any, and interest owing from the Borrower to the Guarantor;
	 
	 	 	“Law” means any supranational, national, regional, tribal or local statute, law (including
common law), rule, treaty, convention, regulation, order, decree, directive, consent decree,
code, writ, judgment, injunction, determination, resolution, administrative decision,
disposition, circular, communication, instruction, judicial or legally binding agency
interpretation, policy or guidance, Authorisation or other requirement (whether or not
having the force of law but being one which a prudent organisation would regard as binding
on it) and, where applicable, any interpretation thereof by any Government Authority having
jurisdiction with respect thereto or charged with the administration or interpretation
thereof;
	 
	 	 	“LBMA” means the London Bullion Market Association and its successor organisations;
	 
	 	 	“Legal Opinion” means the legal opinions delivered to the Facility Agent as to matters of
Alaska, Idaho, Delaware, New York and English law in connection with this Agreement in
accordance with paragraph 2 of schedule 2 (Conditions Precedent) of the Facility Agreement
and paragraph 3 of schedule 2 (Conditions Precedent) of the 2010 Amendment and Restatement
Agreement;
	 
	 	 	“Legal Reservations” means:

	 	(a)	 	the common law principle that equitable remedies may be granted or refused at
the discretion of a court and the limitation of enforcement by Laws relating to
insolvency, reorganisation and other Laws generally affecting the rights of creditors;

 

 

	 	(b)	 	applicable statutes-of-limitations; and
	 
	 	(c)	 	any other matters which are set out as qualifications or reservations as to
matters of law of general application in the Legal Opinions;

	 	 	“Lender” means:

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any New Lender which has become a Party in accordance with clause 25 (Changes
to the Lenders),

	 	 	which in each case has not ceased to be a Party in accordance with the terms of this
Agreement;
	 
	 	 	“LIBOR” means, in relation to the Loan:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for US Dollars for the applicable Interest
Period) the arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Facility Agent at its request quoted by the Reference Banks to leading
banks in the Relevant Interbank Market,

	 	 	on or around 11.00am on the Quotation Day for the offering of deposits in US Dollars and for
a period comparable to the Interest Period;
	 
	 	 	“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
hypothecation, pledge, encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or
title retention agreement (or any financing lease having substantially the same economic
effect as any of the foregoing) relating to such asset and (c) in the case of securities,
any purchase option, call or similar right of a third party with respect to such securities
to the extent having an effect equivalent to that of a security interest in such securities;
	 
	 	 	“Life of Mine” means the period over which the Life of Mine Plan has been prepared;
	 
	 	 	“Life of Mine Plan” means the base case, life of mine plan and cash flow, including a
financial model of the projected Production, income and expenditure of the Borrower and the
Project in respect of (a) each monthly period for the period from the date of this Agreement
until the end of the first calendar year of Production, (b) each calendar quarter until the
end of the second calendar year of Production, and (c) annually thereafter, as amended or
updated with the prior written approval of the Facility Agent, as initialled for the
purposes of identification by the Borrower and delivered to the Facility Agent pursuant to
paragraph 4 of schedule 2 (Conditions Precedent);
	 
	 	 	“Loan” means each loan made or to be made under the Facility or the principal amount
outstanding for the time being of that loan;
	 
	 	 	“LMA” means the Loan Market Association;
	 
	 	 	“Loss Proceeds” shall mean Insurance Proceeds (excluding Insurance Proceeds relating to
liabilities to be paid to any third party and relating to business interruption) and Eminent
Domain Proceeds;

 

 

	 	 	“Majority Lenders” means:

	 	(a)	 	if there are no Loans then outstanding, a Lender or Lenders whose Commitments
and/or Hedging Exposure, in aggregate, are greater than
662/3
 per cent of the Total
Commitments and the total Hedging Exposure of the Hedge Provider (or, if the Total
Commitments or Hedging Exposure of the Hedge Provider have been reduced to zero, in
aggregate, are greater than 662/3 per cent of the Total Commitments and Hedging Exposure
of the Hedge Provider immediately prior to the reduction); or
	 
	 	(b)	 	at any other time, a Lender or Lenders whose participations in the Loan then
outstanding and Hedging Exposure aggregate more than 662/3 per cent of the Loan and
Hedging Exposure of the Hedge Provider then outstanding;

	 	 	“Margin” means four and a half per cent (4.5 per cent) per annum from the Effective Date;
	 
	 	 	“Material Adverse Effect” means any event or circumstance, which in the opinion of Facility
Agent (acting on the instructions of the Majority Lenders), is reasonably likely to
adversely affect:

	 	(a)	 	the ability of the Borrower (or, in relation to clause 17.21(b), the Guarantor)
to perform its payment obligations under any of the Finance Documents;
	 
	 	(b)	 	the ability of the Borrower (or, in relation to clause 17.21(b), the Guarantor)
to perform its obligations under clause 20.1 (Financial covenants);
	 
	 	(c)	 	on the business, operations, property, assets, financial or trading position,
or prospects of the Borrower, such that the Borrower would in the reasonable opinion of
the Facility Agent (acting on the instructions of the Majority Lenders) be expected to
be unable fully and punctually to perform its obligations under any Finance Document to
which it is a party;
	 
	 	(d)	 	subject to the Legal Reservations, on the validity, legality or enforceability of:

	 	(i)	 	any material provision of any Finance Document; or
	 
	 	(ii)	 	any right or remedy of any Finance Party under any Finance Document;

	 	(e)	 	subject to the Legal Reservations, on the validity, legality, effectiveness or
enforceability of the Security granted or created (or which the relevant Obligor
undertakes to grant or create) pursuant to any Security Document or on the priority and
ranking of any of that Security; or
	 
	 	(f)	 	the ability of the Borrower to develop, complete or operate the Project in a
manner substantially consistent with the financial projections and other information
contained in the Life of Mine Plan;

	 	 	“Mineral Rights” means:

	 	(a)	 	all interests in the surface of any lands, the minerals in (or that may be
extracted from) any lands and any other mineral right from time to time comprising the
Project;
	 
	 	(b)	 	all leases, governmental permits, Easements, licenses, claims, subleases,
rights of way or other rights to carry out or conduct mining operations connected with
the mineral rights referred to in paragraph (a) or (b) above issued or transferred to
or held by or

 

 

	 	 	 	on behalf of the Borrower or in which the Borrower has or acquires any interest or
shares therein (only to the extent relevant to the Project),

	 	 	and includes:

	 	(c)	 	all applications for, or mineral rights issued in place of, those referred to above; and
	 
	 	(d)	 	the mineral rights referred to above as renewed, extended, modified or varied
from time to time;

	 	 	“Minimum Balance” means an amount equal to 66.6% of the relevant Repayment Amount due for
the quarter following the relevant Repayment Date;
	 
	 	 	“Mining Laws” means the collection of rules applicable to the Borrower whether local, state,
federal, international or subject to trade industry custom and practice that establish the
rights, obligations and proceedings related to the acquisition, exploitation and uses of
mineral substances;
	 
	 	 	“Mining Report” means a report delivered by the Borrower to the Facility Agent providing an
opinion by the Borrower’s Legal Counsel as to the Borrower’s title to the minerals and the
lands, mining claims and leases included in the Site;
	 
	 	 	“Mitsubishi Facility” means the Metals Lease Agreement dated 12 December 2008 between the
Guarantor and Mitsubishi International Corporation;
	 
	 	 	“Mortgage” means the mortgage of those Property Rights included in the Deed of Trust under
the law of the State of Alaska, in form and substance satisfactory to the Security Agent, as
the same may be amended, supplemented, replaced or otherwise modified from time to time in
accordance with this Agreement;
	 
	 	 	“Multiemployer Plan” shall mean a multiemployer plan as defined in section 4001(a)(3) of
ERISA;
	 
	 	 	“New Lender” has the same meaning given to the term in clause 25.1 (Assignments and
transfers by the Lenders);
	 
	 	 	“Obligor” means the Borrower and/or the Guarantor;
	 
	 	 	“Offtake Contract” means each agreement for the sale or other disposal, including delivery
of Products for the purpose of refining and smelting, entered into between the Borrower as
seller and an Approved Offtaker as buyer, including the Auramet Contract and Aurubis
Contract;
	 
	 	 	“Offtake Contract Assignment” means any agreement or agreements of assignment by way of
security made subject to the appropriate Law (as required in order to achieve a perfected
security interest in each case) of all of the Borrower’s rights under each Offtake Contract
for the benefit of the Security Agent on behalf of the Finance Parties as security for the
discharge of the Secured Liabilities;
	 
	 	 	“Offtaker” means in respect of any Offtake Contract, the counterparty to such Offtake
Contract;

 

 

	 	 	“Original Financial Statements” means:

	 	(a)	 	in respect of the Guarantor, each of:

	 	(i)	 	its most recent annual audited consolidated financial
statements produced before the date of this Agreement; and
	 
	 	(ii)	 	its most recent quarterly unaudited financial statements
produced before the date of this Agreement;

	 	(b)	 	in respect of the Borrower, its most recent Quarterly Management Accounts
produced before the date of this Agreement;

	 	 	“Original Hedging Arrangements” means the agreement entered into based on the 2002 ISDA
Master Agreement, as published by the International Swaps & Derivatives Association Inc.
(including the relevant Confirmation and Schedule) entered into between the Borrower and
Credit Suisse AG for the purposes of providing hedge protection against fluctuations in the
price of Gold, in accordance with the Original Hedging Strategy Letter, and as novated from
Credit Suisse AG to Credit Suisse International on or about the date of the 2010 Amendment
and Restatement Agreement;
	 
	 	 	“Original Hedging Strategy Letter” means the letter dated on the 6 November 2009 between the
Facility Agent and the Borrower setting out the policies agreed between them for the
provision of the Original Hedging Arrangements;
	 
	 	 	“Ounce” means a fine ounce troy, consisting of 31.1034768 grams;
	 
	 	 	“Parent Undertaking” means in relation to a company or corporation, any other company or
corporation in respect of which it is a Subsidiary;
	 
	 	 	“Party” means a party to this Agreement;
	 
	 	 	“PBGC” means the Pension Benefit Guaranty Corporation;
	 
	 	 	“Permits” shall mean any and all franchises, licenses, leases, permits, approvals,
notifications, certifications, registrations, authorisations, exemptions, qualifications,
Easements, rights of way, Liens and other rights, privileges and approvals required under
any Governmental Law;
	 
	 	 	“Permitted Disposal” means any sale, lease, licence, transfer or other disposal which is on
arms’ length terms:

	 	(a)	 	of Products to an Offtaker pursuant to an Offtake Contract;
	 
	 	(b)	 	of any other inventory items made in the ordinary course of trading of the
disposing entity;
	 
	 	(c)	 	of fixed assets, the proceeds of which are applied in exchange for other fixed
assets of comparable or superior type, value or quality as soon as possible after
disposal (provided the proceeds of such disposal are held pending each replacement
purchase, in the Proceeds Account);
	 
	 	(d)	 	of obsolete or redundant vehicles, plant and equipment for cash; or

 

 

	 	(e)	 	to which the Facility Agent has (acting reasonably and on the instructions of the
Majority Lenders) given its prior written consent;

	 	 	“Permitted Financial Indebtedness” means Financial Indebtedness of the Borrower:

	 	(a)	 	incurred in the ordinary course of business of the Borrower;
	 
	 	(b)	 	incurred under or pursuant to this Agreement or any other Finance Document;
	 
	 	(c)	 	incurred by the Borrower under or pursuant to an unsecured, fully subordinated
loan from the Guarantor or any Subsidiary of the Guarantor (and subject to the Facility
Agent’s approval of the relevant subordinated loan agreement);
	 
	 	(e)	 	incurred pursuant to the Capital Equipment Leases;
	 
	 	(f)	 	approved in writing by the Facility Agent in its sole discretion; or
	 
	 	(g)	 	any Financial Indebtedness not falling within paragraphs (a) to (f) above and
incurred by the Borrower under or pursuant to a fully subordinated loan from a third
party (in form and substance reasonably satisfactory to the Facility Agent), the
aggregate outstanding principal amount of which does not at any time exceed
US$5,000,000;

	 	 	“Permitted Lien” means:

	 	(a)	 	any Lien created under the terms of this Agreement and the Security Documents; and
	 
	 	(b)	 	any minor defects in title or standard exceptions or exclusions in each case
set out in the Title Policy which the Facility Agent (acting reasonably) does not
require to be cured, remedied or otherwise addressed by the Borrower;
	 
	 	(c)	 	any Lien arising by operation of Law in the ordinary course of trading and not
as a result of any default or omission by the Borrower;

	 	 	“Proceeds Account” means the US Dollar denominated account (account no 0835-1170990-62-2
designation “Coeur Alaska Inc. — Proceeds Account”) established by the Borrower in Zurich,
Switzerland with the Account Bank (and any sub-account or substitute account from time to
time) into which Product Proceeds are paid from time to time;
	 
	 	 	“Proceeds Account Charge” means the account charge or account charges governed by Swiss law
given by the Borrower for the benefit of the Security Agent on behalf of the Finance Parties
pursuant to which a charge is created over the Proceeds Account, as security for the
discharge of the Secured Liabilities;
	 
	 	 	“Process Agent” means any person appointed as a process agent pursuant to clause 39.2
(Service of process);
	 
	 	 	“Production” means, for any period, the amount of Gold and other minerals which has been
produced, or in the case of any period or portion thereof to occur in the future, which is
scheduled to be produced in the Life of Mine Plan, at the Project during such period;
	 
	 	 	“Production Report” means a report (in the form required by this Agreement) as to the
monthly Production volume and Production price for the Borrower, a pro forma of which as
initialled for the purposes of identification by the Borrower and delivered to the Facility
Agent pursuant to paragraph 4 of schedule 2 (Conditions Precedent);

 

 

	 	 	“Product Proceeds” means all monies payable to or received by the Borrower arising from the
sale of Product and all other monetary amounts whatsoever payable to or received by the
Borrower from any third party while the Loan is outstanding;
	 
	 	 	“Products” means Gold, unrefined gold-bearing ore and any other minerals produced by the
Project;
	 
	 	 	“Project” means the project for the construction and the operation of the Kensington mine
located on the Site;
	 
	 	 	“Project Documents” means any instruments, contracts and agreements which are now existing
or are entered into in the future, with any Approved Offtaker, Approved Contractor,
Government Authority or any other person in connection with the Project, including without
limitation:

	 	(a)	 	each Offtake Contract;
	 
	 	(b)	 	each Construction Contract;
	 
	 	(c)	 	each Capital Equipment Lease;
	 
	 	(d)	 	each Authorisation which is issued to or held by or on behalf or for the
benefit of the Borrower in connection with the construction, operation or development
of the Project, or by or on behalf or for the benefit of the Borrower in connection
with the Borrower’s business or premises, where the failure of such Authorisation to be
issued or held, or the breach or non-performance of the terms and conditions of such
Authorisation, would constitute a Material Adverse Effect; and
	 
	 	(e)	 	any other document executed from time to time by or on behalf or for the
benefit of the Borrower with respect to the construction, development, maintenance,
repair, operation or use of the Project, where the breach or non-performance of the
terms and conditions of such document, would constitute a Material Adverse Effect;

	 	 	“Property Rights” means the Borrower’s rights, title, and interest in and to the surface and
the sub-surface land comprising the Site (whether in fee simple, leasehold, license or
otherwise) including all Mineral Rights in favour of the Security Agent pursuant to the Deed
of Trust, Easements, rights-of-way, and servitude;
	 
	 	 	“Quarterly Management Accounts” means the Borrower’s quarterly balance sheet and income and
cashflow statements;
	 
	 	 	“Quotation Day” means, in relation to any period for which an interest rate is to be
determined, two Business Days before the first day of that period unless market practice
differs in the Relevant Interbank Market in which case the Quotation Day will be determined
by the Facility Agent in accordance with market practice in the Relevant Interbank Market
(and if quotations would normally be given by leading banks in the Relevant Interbank Market
on more than one day, the Quotation Day will be the last of those days);
	 
	 	 	“Receiver” means a receiver, trustee, custodian, sequestrator, conservator or similar
official in respect of the whole or any part of the Collateral;
	 
	 	 	“Reference Banks” means the principal London offices of Credit Suisse, Deutsche Bank,
Citibank and/or such other banks as may be appointed by the Facility Agent in consultation
with the Borrower;

 

 

	 	 	“Related Parties” shall mean, with respect to any specified person, such person’s Affiliates
and the respective directors, officers, employees, agents and advisors of such person and
such person’s Affiliates;
	 
	 	 	“Release” shall mean any spilling, seeping, emitting, leaking, pumping, injecting, pouring,
emptying, depositing, disposing, discharging, dispersing, dumping, escaping, leaching, or
migrating of Hazardous Substances into the environment (including the air, soil, surface
water, groundwater, sewer, septic system, or waste treatment, storage, or disposal systems)
of any kind whatsoever, including the abandonment or discarding of barrels, containers,
tanks or other receptacles containing or previously containing any Hazardous Substances;
	 
	 	 	“Relevant Interbank Market” means the London interbank market;
	 
	 	 	“Relevant Jurisdiction” means any jurisdiction whose governing law applies to a Finance
Document;
	 
	 	 	“Repayment Amount” means on any Repayment Date, the amount set out against such date in
schedule 8 (Repayment Schedule).
	 
	 	 	“Repayment Date” means each date on which a repayment of principal is to be made in
accordance with clause 6 (Repayment), being each date as set out in schedule 8 (Repayment
Schedule).
	 
	 	 	“Repeating Representations” means each of the representations set out in clause 17
(Representations) (excluding clauses 17.2 (Organisation, Powers), 17.17 (Deduction of Tax),
17.18 (No filing or stamp taxes), 17.19(a), 17.20 (No misleading information), 17.21 (No
changes), 17.22(a) and 17.22(b) (Financial statements), 17.24 (No winding-up) and
17.36(Repetition));
	 
	 	 	“Rochester Mine” means the Rochester Mine, located in Western Nevada, at which the Guarantor
has conducted operations since September 1986;
	 
	 	 	“Screen Rate” means the British Bankers’ Association Interest Settlement Rate for US Dollars
for the relevant period, displayed at or about noon CET on the appropriate page of the
Reuters screen. If the agreed page is replaced or service ceases to be available, the
Facility Agent may specify another page or service displaying the appropriate rate after
consultation with the Borrower and the Lenders;
	 
	 	 	“SEC” means the Securities and Exchange Commission of the United States of America;
	 
	 	 	“Secured Liabilities” means all present and future indebtedness and liabilities due, owing
or incurred by the Borrower to any Finance Party from time to time under or in connection
with any Finance Document (in each case whether alone or jointly, or jointly and severally,
with any other person, whether actually or contingently or whether as principal, surety or
otherwise);
	 
	 	 	“Security” means a mortgage, charge, pledge, lien, security assignment or other security
interest securing any obligation of any person or any other agreement or arrangement having
a similar effect or having the effect of providing a security or preferential treatment to a
creditor;
	 
	 	 	“Security Document” means:

	 	(a)	 	the Debt Service Reserve Account Charge;

 

 

	 	(b)	 	the Proceeds Account Charge;
	 
	 	(c)	 	the Guarantor Pledge Agreement;
	 
	 	(d)	 	the Borrower Security Agreement;
	 
	 	(e)	 	the Mortgage (as such may form part of the Deed of Trust);
	 
	 	(f)	 	the Deed of Trust;
	 
	 	(g)	 	the Amendment to the Deed of Trust
	 
	 	(h)	 	each Offtake Contract Assignment (as such may form part of the Borrower
Security Agreement);
	 
	 	(i)	 	the Facility Guarantee;
	 
	 	(j)	 	the Guarantor Side Letter;
	 
	 	(k)	 	any document or instrument required to be executed or delivered pursuant to any
Security Document;
	 
	 	(l)	 	any other document evidencing any Security held by the Security Agent on behalf
of any of the Finance Parties as security, amongst other things, for the discharge of
the Secured Liabilities; or
	 
	 	(m)	 	any other document designated as such from time to time by the Facility Agent
and the Borrower;

	 	 	“Senior Notes” means the Senior Term Notes of the Guarantor due 31 December 2012;
	 
	 	 	“Site” means the land located in Juneau Recording District, Alaska on which the Project is
located;
	 
	 	 	“Spot Rate” means at any date in relation to any Administrative Party, that Administrative
Party’s spot rate of exchange (as determined conclusively by that Administrative Party save
in the case of manifest error) for the purchase of the relevant currency in the London
foreign exchange market using the Base Currency at or around 11.00am (London time) on that
date;
	 
	 	 	“Subsidiary” means in respect of a company or corporation, any other company or corporation:

	 	(a)	 	which is controlled, directly or indirectly, by the first-mentioned company or
corporation;
	 
	 	(b)	 	more than half the issued share capital of which is beneficially owned,
directly or indirectly, by the first-mentioned company or corporation; or
	 
	 	(c)	 	which is a subsidiary of another subsidiary of the first-mentioned company or
corporation

	 	 	and, for these purposes, a company or corporation shall be treated as being controlled by
another if that other company or corporation is able to direct its affairs and/or to control
the composition of its board of directors or equivalent body;

 

 

	 	 	“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same);
	 
	 	 	“Title Insurer” means Alaska Escrow & Title Insurance Agency, Inc.;
	 
	 	 	“Title Policy” shall mean such policy issued by the Title Insurer in respect of the Project
and the Property Rights, in form and substance satisfactory to the Facility Agent;
	 
	 	 	“Total Commitments” means the aggregate of the Commitments, being USD $100,000,000 at the
date of this Agreement;
	 
	 	 	“Transaction Documents” means each Offtake Contract and any other document designated in
writing as such by the Borrower and the Facility Agent;
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set out in schedule 5
(Form of Transfer Certificate) or any other form agreed between the Facility Agent and the
Borrower;
	 
	 	 	“Transfer Date” means, in relation to a transfer pursuant to clause 25 (Changes to the
Lenders), the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer Certificate; and
	 
	 	(b)	 	the date on which the Facility Agent executes the Transfer Certificate;

	 	 	“Unpaid Sum” means any sum due and payable but unpaid by the Borrower under the Finance
Documents;
	 
	 	 	“US Dollars” and “US$” mean the lawful currency of the United States of America;
	 
	 	 	“US GAAP” means generally accepted accounting principles as in effect from time to time in
the United States, consistently applied;
	 
	 	 	“Utilisation” means the drawdown of the Loan;
	 
	 	 	“Utilisation Date” means the date of the Utilisation;
	 
	 	 	“Utilisation Request” means a notice substantially in the form set out in schedule 3
(Utilisation Request); and
	 
	 	 	“VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any other
tax of a similar nature imposed in any applicable jurisdiction at any time on or after the
date of this Agreement.
	 
	1.2	 	Financial covenant definitions
	 
	 	 	The definitions in clause 20.1 (Financial covenants) shall also apply to this Agreement.

 

 

	1.3	 	Interpretation

	 	(a)	 	Unless a contrary indication appears, any reference in this Agreement to:

	 	(i)	 	any “Finance Party”, any “Obligor” or any “Party” shall be
construed so as to include its successors in title, permitted assignees and
permitted transferees;
	 
	 	(ii)	 	persons “acting in concert” comprise persons who, pursuant to
an agreement or understanding (whether formal or informal), co-operate to
obtain, maintain or consolidate control of a company. A person (who is a
company) and each of its Affiliates will be deemed to be acting in concert all
with each other; a person (who is a natural person), each company that he or
she Controls and each Affiliate of each such company will be deemed to be
acting in concert all with each other;
	 
	 	(iii)	 	“assets” includes present and future properties, revenues and
rights of every description;
	 
	 	(iv)	 	“arm’s length basis” means in relation to a transaction entered
into by a person that the terms thereof are no less favourable or onerous to
that person than could reasonably be expected to be obtained in a comparable
transaction made on commercial terms with a person who is not an Affiliate of
that person;
	 
	 	(v)	 	where a sum is quoted as the equivalent in one currency (the
“first currency”) of a specified amount denominated in another currency (the
“second currency”), such sum, on the date that the calculation is made, shall
be equal to the amount of the first currency which could be purchased by the
specified amount denominated in the second currency using the Facility Agent’s
Spot Rate on that date;
	 
	 	(vi)	 	a “Finance Document” or any other agreement or instrument is a
reference to that Finance Document or other agreement or instrument as amended,
novated, supplemented, extended or restated (in each case, in accordance with
its terms);
	 
	 	(vii)	 	“guarantee” means any guarantee, letter of credit, bond,
indemnity or similar assurance against loss, or any obligation, direct or
indirect, actual or contingent, to purchase or assume any indebtedness of any
person or to make or to make an investment in or loan to any person, where, in
each case, such obligation is assumed in order to maintain or assist the
ability of such person to meet its indebtedness;
	 
	 	(viii)	 	“indebtedness” includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of money, whether present or future,
actual or contingent;
	 
	 	(ix)	 	“Month” means a period starting on one day in a calendar month
and ending on the numerically corresponding day in the next calendar month,
except that:

	 	(A)	 	(subject to clause 1.3(c) below) if the
numerically corresponding day is not a Business Day, that period shall
end on the next Business Day in that calendar month in which that
period is to end if there is one, or if there is not, on the
immediately preceding Business Day;

 

 

	 	(B)	 	if there is no numerically corresponding day in
the calendar month in which that period is to end, that period shall
end on the last Business Day in that calendar month; and
	 
	 	(C)	 	if an Interest Period begins on the last
Business Day of a calendar month, that Interest Period shall end on the
last Business Day in the calendar month in which that Interest Period
is to end.

	 	(x)	 	a “person” includes any individual, firm, company, corporation,
government, state or agency of a state or any association, trust, joint
venture, consortium or partnership (whether or not having separate legal
personality), or two or more of the foregoing;
	 
	 	(xi)	 	a “regulation” includes any regulation, rule, official
directive, request or guideline (whether or not having the force of law, but,
if not having the force of law, being of a type with which any person to which
it applies is accustomed to comply) of any Governmental Authority;
	 
	 	(xii)	 	a provision of any Law or regulation is a reference to that
provision as amended or re-enacted (and includes any subordinate legislation);
	 
	 	(xiii)	 	a document in “agreed form” is a document which is previously agreed in
writing by or on behalf of the Borrower and the Facility Agent or, if not so
agreed, is in the form specified by the Facility Agent (acting reasonably);
	 
	 	(xiv)	 	a gender includes all other genders;
	 
	 	(xv)	 	the singular includes plural and vice versa;
	 
	 	(xvi)	 	a “clause” or a “schedule” is a reference to a clause of or a
schedule to this Agreement;
	 
	 	(xvii)	 	a time of day is a reference to Zurich time (unless otherwise specified);
	 
	 	(xviii)	 	when something is specified to occur:

	 	(A)	 	“after” a certain date or day, it shall be
taken to refer to “after (but not including)” that date or day; and
	 
	 	(B)	 	“before” a certain date or day, it shall be
taken to refer to “before (but not including)” that date or day; and

	 	(xix)	 	“including” shall not be interpreted narrowly but shall be
interpreted to mean “including (but not limited to)” or “including without
prejudice to the foregoing”, and “include” and “included” shall be interpreted
accordingly.

	 	(b)	 	Section, clause and schedule headings are for ease of reference only, and shall
not affect the interpretation of any provision of this Agreement.
	 
	 	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document
or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

 

 

	 	(d)	 	A Default (other than an Event of Default) is “continuing” if it has not been
remedied or waived in writing and an Event of Default is “continuing” if it has not
been waived in writing, in each case to the satisfaction of the Agent.

	1.4	 	Third party rights

	 	(a)	 	Unless expressly provided to the contrary in a Finance Document a person who is
not a Party has no right (whether pursuant to the Contracts (Rights of Third Parties)
Act 1999 or otherwise) to enforce or to enjoy the benefit of any provision of this
Agreement.
	 
	 	(b)	 	Notwithstanding any provision of any Finance Document the consent of any person
who is not a Party is not required to rescind or vary this Agreement at any time.

	2.	 	THE FACILITY
	 
	2.1	 	The Facility
	 
	 	 	Subject to the terms of this Agreement, the Lenders make available to the Borrower a US
Dollar-denominated term loan facility in an aggregate amount equal to the Total Commitments.
	 
	2.2	 	Finance Parties’ rights and obligations

	 	(a)	 	The obligations of each Finance Party under the Finance Documents are several.
Failure by a Finance Party to perform its obligations under the Finance Documents does
not affect the obligations of any other Party under the Finance Documents. No Finance
Party is responsible for the obligations of any other Finance Party under the Finance
Documents.
	 
	 	(b)	 	The rights of each Finance Party under or in connection with the Finance
Documents are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from an Obligor shall be a separate and independent debt.
	 
	 	(c)	 	A Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

	3.	 	PURPOSE AND USE OF PROCEEDS
	 
	3.1	 	Purpose and Use of Proceeds
	 
	 	 	The Borrower shall use all amounts borrowed by it under the Facility Agreement:

	 	(a)	 	to credit the Debt Service Reserve Account with an amount sufficient to ensure
compliance with clause 20.1(d) from time to time;
	 
	 	(b)	 	for general corporate and working capital purposes of the Borrower;
	 
	 	(c)	 	repayment in whole or in part of the Intra-Company Loans;
	 
	 	(d)	 	part repayment of the Mitsubishi Facility, part repayment of the outstanding
debt obligations on the balance sheet of the Guarantor, including the Senior Notes,
capital

 

 

	 	 	 	expenditures at the Rochester Mine and for general corporate and working capital
purposes of the Guarantor.

	3.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.
	 
	4.	 	CONDITIONS OF UTILISATION
	 
	4.1	 	Further conditions precedent
	 
	 	 	The Lenders will only be obliged to comply with clause 5.4 (Lenders’ participation) in
relation to any Utilisation if on the date of the Utilisation Request and on the proposed
Utilisation Date:

	 	(a)	 	no Default has occurred and is continuing or would result from the proposed
Loan;
	 
	 	(b)	 	there has been no Borrower Change of Control;
	 
	 	(c)	 	there has been no Borrower Change of Ownership; and
	 
	 	(d)	 	the Repeating Representations to be made by the Borrower are true in all
material respects and are not misleading, and will not become untrue in any material
respect or become misleading as a result of making the proposed Loan or Utilisation.

	4.2	 	Waiver
	 
	 	 	The conditions specified in clause 4.1 (Further conditions precedent) are inserted solely
for the benefit of the Lenders and may be waived by the Facility Agent (acting on the
instructions of all the Lenders), in whole or in part and with or without conditions,
without prejudicing the right of the Facility Agent or the Lenders to require fulfilment of
such conditions in whole in respect of any other Utilisation. If compliance with any of the
conditions specified in clause 4.1 (Further conditions precedent) is so waived with
conditions or on condition that the Borrower shall comply at or before a particular time,
the Borrower shall so comply.
	 
	4.3	 	Conditions Subsequent
	 
	 	 	The Parties shall ensure that, within 30 days of the Effective Date, the Amendment to the
Deed of Trust shall be executed and recorded at the registry in Juneau, Alaska.
	 
	5.	 	UTILISATION
	 
	5.1	 	Delivery of a Utilisation Request
	 
	 	 	The Borrower may utilise the Facility from time to time by delivery to the Facility Agent of
a duly completed Utilisation Request not later than 11.00 am (Zurich time) on the second
Business Day before the proposed Utilisation Date.
	 
	5.2	 	Completion of a Utilisation Request
	 
	 	 	Each Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

 

 

	 	(a)	 	Except in relation to the Utilisation on or around the 2010 Amendment and
Restatement Agreement, the proposed Utilisation Date is the first Business Day of a
Month within the Availability Period;
	 
	 	(b)	 	the currency and amount of the Utilisation comply with clause 5.3 (Currency and
amount); and
	 
	 	(c)	 	the proposed Interest Period complies with clause 9 (Interest periods).

	5.3	 	Currency and amount

	 	(a)	 	The currency specified in the Utilisation Request must be the Base Currency.
	 
	 	(b)	 	The amount of each proposed Utilisation must be in an amount not less than
US$10,000,000 million or, if greater, integral multiples of US$5,000,000 million.

	5.4	 	Lenders’ participation

	 	(a)	 	If the conditions set out in clauses 4 (Conditions of Utilisation) and 5.1
(Delivery of a Utilisation Request) to 5.3 (Currency and amount) have been met, each
Lender shall make its participation in the Loan available by the Utilisation Date
through its Facility Office.
	 
	 	(b)	 	The amount of each Lender’s participation in the Loan will be equal to the
proportion borne by that Lender’s Available Commitment to the Available Facility
immediately prior to making the Loan.
	 
	 	(c)	 	The Facility Agent shall notify each Lender of the amount of the Loan and the
amount of its participation in the Loan by 2.00pm on the third Business Day before the
proposed Utilisation Date.

	5.5	 	Utilisation Funding
	 
	 	 	Except as set out in any Utilisation Request, the amount of each Lender’s participation in
each Loan shall be provided to the Borrower, on the applicable Utilisation Date, by transfer
of immediately available funds to the Borrower’s account specified on Schedule 9 (Borrower’s
Account) or otherwise agreed by the Facility Agent from time to time.
	 
	5.6	 	Cancellation of Commitment

	 	(a)	 	If a Lender’s Available Commitment is reduced in accordance with the terms of
this Agreement after the Facility Agent has received a Utilisation Request and such
reduction was not taken into account in the calculation of the Available Facility, then
the amount of that Utilisation shall be reduced accordingly.
	 
	 	(b)	 	The Total Commitments shall be immediately cancelled at the end of the
Availability Period in accordance with clause 7.3 (Automatic cancellation).

	6.	 	REPAYMENT

	 	(a)	 	Following the expiry of the Availability Period, the Borrower shall repay the
principal amount of the Loan by paying to the Facility Agent on each Repayment Date an
amount equal to the Repayment Amount.

 

 

	 	(b)	 	The frequency of the Repayment Dates may be altered by agreement between the
Borrower and the Facility Agent (acting on the instruction of the Majority Lenders).
	 
	 	(c)	 	No amount may remain outstanding after the Final Maturity Date.
	 
	 	(d)	 	For the avoidance of doubt the Borrower confirms and acknowledges that its
obligations under the Finance Documents including without limitation its repayment
obligations exist independent of, and are in no way contingent or conditional upon, its
performance under any Offtake Contract.

	7.	 	PREPAYMENT AND CANCELLATION
	 
	7.1	 	Illegality
	 
	 	 	If at any time it is or will become unlawful in any applicable jurisdiction for a Lender to
perform any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in the Loan:

	 	(a)	 	that Lender shall promptly notify the Facility Agent upon becoming aware of
that event;
	 
	 	(b)	 	the Facility Agent shall promptly notify the Borrower thereof;
	 
	 	(c)	 	upon the Facility Agent notifying the Borrower, the Commitment of that Lender
will be immediately cancelled; and
	 
	 	(d)	 	where that Lender:

	 	(i)	 	has not funded any participation in the Loan, it shall have no
further funding obligation; or
	 
	 	(ii)	 	has funded all or part of its Commitment, the Borrower shall
repay that Lender’s participation in the Loan on the last day of the Interest
Period occurring after the Facility Agent has notified the Borrower or, if
earlier, the date specified by the Lender in the notice delivered to the
Facility Agent (being no earlier than the last day of any applicable grace
period permitted by law).

	7.2	 	Mandatory Prepayment

	 	(a)	 	If a Borrower Change of Control or Borrower Change of Ownership occurs:

	 	(i)	 	the Borrower shall promptly notify the Facility Agent upon
becoming aware of that event or if the Facility Agent otherwise becomes aware
of such event the Facility Agent shall notify the Borrower accordingly;
	 
	 	(ii)	 	the Facility Agent shall promptly notify the Lenders thereof;
	 
	 	(iii)	 	no Lender shall be obliged to fund any Utilisation; and
	 
	 	(iv)	 	if a Lender so requires and notifies the Facility Agent within
five Business Days of that Lender being notified by the Facility Agent of the
event the Facility Agent shall, by not less than five Business Days’ notice to
the Borrower, cancel the Commitment of that Lender and declare the

 

 

	 	 	 	participation of that Lender in all outstanding Loans, together with accrued
interest, and all other amounts accrued under the Finance Documents
immediately due and payable, whereupon the Commitment of that Lender will be
cancelled and all such outstanding amounts will become immediately due and
payable.

	 	(b)	 	If at any time the Tangible Net Worth of the Guarantor is less than
US$1,000,000,000:

	 	(i)	 	the Borrower shall promptly notify the Facility Agent upon
becoming aware of that event or if the Facility Agent otherwise becomes aware
of such event the Facility Agent shall notify the Borrower accordingly;
	 
	 	(ii)	 	the Facility Agent shall promptly notify the Lenders thereof;
	 
	 	(iii)	 	no Lender shall be obliged to fund any Utilisation; and
	 
	 	(iv)	 	if a Lender so requires and notifies the Facility Agent within
five Business Days of that Lender being notified by the Facility Agent of the
event the Facility Agent shall, by not less than 45 days’ notice to the
Borrower, cancel the Commitment of that Lender and declare the participation of
that Lender in all outstanding Loans, together with accrued interest, and all
other amounts accrued under the Finance Documents immediately due and payable,
whereupon the Commitment of that Lender will be cancelled and all such
outstanding amounts will become immediately due and payable.

	7.3	 	Automatic cancellation
	 
	 	 	Any part of the Facility which remains undrawn at the close of business in Zurich,
Switzerland, on the last day of the Availability Period shall be automatically and
immediately cancelled and each Lender’s Commitment then outstanding shall be reduced to
zero.
	 
	7.4	 	Voluntary cancellation
	 
	 	 	The Borrower may at any time during the Availability Period, if it gives the Facility Agent
not less than four Business Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, cancel the whole or any part of the Available Facility. Any cancellation
under this clause 7.4 (Voluntary cancellation) shall reduce the Commitments of the Lenders
rateably.
	 
	7.5	 	Voluntary prepayment of Loans

	 	(a)	 	Subject to clause 7.5(c) below, the Borrower may, at any time after the date
falling 12 months after the first Utilisation Date (or subject to the prior written
consent of the Facility Agent in its absolute discretion, at any earlier date), if it
gives the Facility Agent not less than 10 Business Days’ prior written notice, prepay
the whole or any part of the Loan (but, if in part, being a minimum amount of
US$5,000,000 and thereafter, in integral multiples of US$5,000,000 or, if less, the
remainder of such Loan).
	 
	 	(b)	 	Any prepayment under this clause 7.5 (Voluntary prepayment of Loans) shall
satisfy the obligations of the Borrower under clause 6 (Repayment) in reverse order of
maturity and be applied rateably among the participations of all Lenders.

 

 

	 	(c)	 	The Borrower may not make any prepayment of all of the Loans then outstanding,
under clause 7.5(a) above, from the proceeds of any Financial Indebtedness incurred by
it or any of its Affiliates unless it has entered into discussions in good faith with
the Facility Agent to allow Credit Suisse the opportunity to offer to the Borrower a
refinance of the Loan on terms competitive with the proposed provider of that Financial
Indebtedness at such time.

	7.6	 	Right of prepayment and cancellation in relation to a single Lender

	 	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by the Borrower is required to be
increased under 12.2(c); or
	 
	 	(ii)	 	any Lender claims indemnification under clause 12.3 (Tax
indemnity) or clause 13.1 (Increased Costs), the Borrower may, whilst the
circumstance giving rise to the requirement for indemnification continues, give
the Facility Agent notice of the cancellation of the Commitment of that Lender
and its intention to prepay that Lender’s participation in the Loan.

	 	(b)	 	On receipt of a notice referred to in clause 7.6(a) above, the Commitment of
that Lender shall immediately be reduced to zero.
	 
	 	(c)	 	On the last day of each Interest Period which ends after the Borrower has given
notice under clause 7.6(a) above (or, if earlier, the date specified by the Borrower in
that notice), the Borrower shall prepay that Lender’s participation in the Loan
together with Break Costs (if any) relating to such prepayment.

	7.7	 	Restrictions

	 	(a)	 	Any notice of cancellation or prepayment given by any Party under this clause 7
(Prepayment and cancellation) shall be irrevocable and, unless a contrary indication
appears in this Agreement, shall specify the date or dates upon which the relevant
cancellation or prepayment is to be made and the amount of that cancellation or
prepayment.
	 
	 	(b)	 	Any prepayment under this Agreement shall be made together with accrued
interest on the amount prepaid and, subject to any Break Costs, without premium or
penalty.
	 
	 	(c)	 	The Borrower may not reborrow any part of the Facility which is repaid or
prepaid.
	 
	 	(d)	 	The Borrower shall not repay or prepay all or any part of the Loan or cancel
all or any part of the Commitments except at the times and in the manner expressly
provided for in this Agreement.
	 
	 	(e)	 	No amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated.
	 
	 	(f)	 	If the Facility Agent receives a notice under this clause 7 (Prepayment and
cancellation) it shall promptly forward a copy of that notice to either the Borrower or
the affected Lender, as appropriate.

 

 

	8.	 	INTEREST
	 
	8.1	 	Calculation of interest
	 
	 	 	The rate of interest on the Loan for each Interest Period is the percentage rate per annum
which is the aggregate of the applicable:

	 	(a)	 	Margin; and
	 
	 	(b)	 	LIBOR.

	8.2	 	Payment of interest
	 
	 	 	The Borrower shall pay accrued interest on the Loan on the last day of each Interest Period
(and, if the Interest Period is longer than six Months, on the dates falling at six monthly
intervals after the first day of the Interest Period).
	 
	8.3	 	Default interest

	 	(a)	 	If the Borrower fails to pay any amount payable by it under a Finance Document
on its due date, interest shall accrue on the Unpaid Sum from the due date up to the
date of actual payment (both before and after judgment) at a rate which, subject to
clause 8.3(b) below, is two per cent higher than the rate which would have been payable
if the Unpaid Sum had, during the period of non-payment, constituted a Loan in the
currency of the Unpaid Sum for successive Interest Periods, each of a duration selected
by the Facility Agent (acting reasonably). Any interest accruing under this clause 8.3
(Default interest) shall be immediately payable by the Borrower on demand by the
Facility Agent.
	 
	 	(b)	 	If any Unpaid Sum consists of all or part of the Loan which became due on a day
which was not the last day of an Interest Period relating to the Loan:

	 	(i)	 	the first Interest Period for that Unpaid Sum shall have a
duration equal to the unexpired portion of the current Interest Period relating
to the Loan; and
	 
	 	(ii)	 	the rate of interest applying to the Unpaid Sum during that
first Interest Period shall be two per cent higher than the rate which would
have applied if the Unpaid Sum had not become due.

	 	(c)	 	Default interest (if unpaid) arising on an Unpaid Sum will be compounded with
the Unpaid Sum at the end of each Interest Period applicable to that Unpaid Sum but
will remain immediately due and payable.

	8.4	 	Notification of rates of interest
	 
	 	 	The Facility Agent shall promptly notify the Lenders and the Borrower of the determination
of a rate of interest under this Agreement.

 

 

	9.	 	INTEREST PERIODS
	 
	9.1	 	Interest Periods

	 	(a)	 	Subject to this clause 9 (Interest periods), the duration of Interest Periods
for all Loans shall be:

	 	(i)	 	three Months; or
	 
	 	(ii)	 	any other period agreed between a Borrower and the Facility
Agent (acting then on the instructions of all the Lenders), provided that the
first Interest Period for the Loan relating to the Utilisation to be made on or
about the date of the 2010 Amendment and Restatement Agreement shall be of such
lesser duration to ensure that the last day of that Interest Period is the same
day as that of each Loan made under the Facility.

	 	(b)	 	Notwithstanding any other provision of this Agreement, an Interest Period for
the Loan shall not extend beyond the Final Maturity Date.
	 
	 	(c)	 	Each Interest Period for the Loan shall start on the Utilisation Date or (if
already made) on the last day of its preceding Interest Period.

	9.2	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	10.	 	CHANGES TO THE CALCULATION OF INTEREST
	 
	10.1	 	Absence of quotations
	 
	 	 	Subject to clause 10.2 (Market disruption), if LIBOR is to be determined by reference to the
Reference Banks but a Reference Bank does not supply a quotation by 11.00am on the Quotation
Day, the applicable LIBOR shall be determined on the basis of the quotations of the
remaining Reference Banks.
	 
	10.2	 	Market disruption

	 	(a)	 	If a Market Disruption Event occurs in relation to the Loan for any Interest
Period, then the rate of interest on each Lender’s share of the Loan for the Interest
Period shall be the percentage rate per annum which is the sum of:

	 	(i)	 	the Margin; and
	 
	 	(ii)	 	the rate notified to the Facility Agent by that Lender as soon
as practicable and in any event before interest is due to be paid in respect of
that Interest Period, to be that which expresses as a percentage rate per annum
the cost to that Lender of funding its participation in the Loan from whatever
source it may reasonably select.

 

 

	 	(b)	 	The Facility Agent shall promptly notify the Borrower of the occurrence, or if
applicable the cessation, of a Market Disruption Event.
	 
	 	(c)	 	In this Agreement, “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest
Period the Screen Rate is not available (or the Screen Rate is zero or
negative) and none or only one of the Reference Banks supplies a rate to the
Facility Agent to determine LIBOR for US Dollars for the relevant Interest
Period; or
	 
	 	(ii)	 	before close of business in London on the Quotation Day for the
relevant Interest Period, the Facility Agent receives notifications from a
Lender or Lenders (whose participations in the Loan exceed 10 per cent of the
Loan) that the cost to it or them of obtaining matching deposits in the
Relevant Interbank Market would be in excess of LIBOR.

	10.3	 	Alternative basis of interest or funding

	 	(a)	 	If a Market Disruption Event occurs and the Facility Agent or the Borrower so
requires, the Facility Agent and the Borrower shall enter into negotiations (for a
period of not more than 30 days) with a view to agreeing a substitute basis for
determining the rate of interest.
	 
	 	(b)	 	Any alternative basis agreed pursuant to clause 10.3(a) above shall, with the
prior consent of all the Lenders and the Borrower, be binding on all Parties.

	10.4	 	Break Costs

	 	(a)	 	The Borrower shall, within four Business Days of demand by a Finance Party, pay
to that Finance Party its Break Costs attributable to all or any part of the Loan or
Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest
Period for the Loan or Unpaid Sum.
	 
	 	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the
Facility Agent, provide a certificate confirming the amount of its Break Costs for any
Interest Period in which they accrue.

	11.	 	FEES
	 
	11.1	 	Arrangement fee
	 
	 	 	The Borrower shall pay to the Agent (for the account of the Arranger) an arrangement fee in
the amount and at the times agreed in the relevant Fee Letter.
	 
	11.2	 	Agency fee
	 
	 	 	The Borrower shall pay to the Facility Agent (for its own account) an agency fee in the
amount and at the times agreed in the relevant Fee Letter.
	 
	11.3	 	Commitment fee

	 	(a)	 	Subject to clause 11.3(b) below, the Borrower shall pay to the Facility Agent
(for the account of each Lender) a fee computed on a daily basis (based on a 360 day
year) at the rate of 0.25 per cent per annum on that Lender’s Available Commitment
during

 

 

	 	 	 	the period starting on and from date of this Agreement and ending on and including
the last day of the Availability Period.

	 	(b)	 	The accrued commitment fee is payable on the last day of each successive period
of three Months which ends during the Availability Period, on the last day of the
Availability Period and, if any Commitment is cancelled, on the cancelled amount of the
relevant Lender’s Commitment at the time the cancellation is effective

	12.	 	TAX GROSS-UP AND INDEMNITIES
	 
	12.1	 	Definitions

	 	(a)	 	In this Agreement:
	 
	 	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any
Tax;
	 
	 	 	 	“Tax Deduction” means a deduction or withholding for or on account of Tax from a
payment under a Finance Document;
	 
	 	 	 	“Tax Payment” means an increase in a payment made by the Borrower to a Finance Party
under clause 12.2 (Tax gross-up) or a payment under clause 12.3 (Tax indemnity).
	 
	 	(b)	 	Unless a contrary indication appears, in this clause 12 (Tax gross-up and
indemnities) a reference to “determines” or “determined” means a determination made in
the reasonable discretion of the person making the determination.

	12.2	 	Tax gross-up

	 	(a)	 	The Borrower shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by Law.
	 
	 	(b)	 	The Borrower shall promptly upon becoming aware that it must make a Tax
Deduction (or that there is any change in the rate or the basis of a Tax Deduction)
notify the Facility Agent accordingly. Similarly, a Lender shall promptly notify the
Facility Agent on becoming so aware in respect of a payment payable to that Lender. If
the Facility Agent receives such notification from a Lender it shall promptly notify
the Borrower.
	 
	 	(c)	 	If a Tax Deduction is required by Law to be made by the Borrower, the amount of
the payment due from the Borrower shall be increased to an amount which (after making
any Tax Deduction) leaves an amount equal to the payment which would have been due if
no Tax Deduction had been required.
	 
	 	(d)	 	If the Borrower is required to make a Tax Deduction, the Borrower shall make
that Tax Deduction and any payment required in connection with that Tax Deduction
within the time allowed and in the minimum amount required by Law.
	 
	 	(e)	 	Within 30 days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the Borrower shall deliver to the Facility Agent
for the Finance Party entitled to the payment evidence reasonably satisfactory to that
Finance Party that the Tax Deduction has been made or (as applicable) any appropriate
payment paid to the relevant taxing authority.

 

 

	 	(f)	 	Each Lender, including any person that becomes a Lender after the date hereof,
shall deliver to Facility Agent and to Borrower, (i) two original copies of Internal
Revenue Service Form W-8BEN or Internal Revenue Service Form W-9 (or any successor
form), as applicable, properly completed and duly executed by such Lender, and such
other documentation reasonably requested by Borrower to establish that such Lender is
not subject to deduction or withholding of U.S. federal income or backup withholding
tax with respect to any payments to such Lender of principal, interest, fees or other
amounts payable under any of the Finance Documents. Each Lender required to deliver
any forms, certificates or other evidence with respect to U.S. federal income tax
withholding matters pursuant to this Section 12.2(f) hereby agrees, from time to time
after the initial delivery by such Lender of such forms, certificates or other
evidence, whenever a change in a Lender’s circumstances renders such forms,
certificates or other evidence obsolete or inaccurate in any material respect, that
such Lender shall promptly deliver to Facility Agent and to Borrower two new original
copies of Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-9 (or
any successor form), as the case may be, properly completed and duly executed by such
Lender, and such other documentation reasonably requested by Borrower to confirm or
establish that such Lender is not subject to deduction or withholding of U.S. federal
income tax with respect to payments to such Lender.
	 
	 	(g)	 	If a Lender fails to deliver the forms, certificates or other evidence referred
to in clause 12.2(f) above, the Borrower shall withhold the taxes due on payments to
such Lender and solely to the extent that such withholding was the result of the
Lender’s non-compliance with the requirement that it deliver such forms, certificates
or other evidence referred to in clause 12.2(f) above, the payments required pursuant
to clauses 12.2(c) and 13.1(a) shall be reduced.

	12.3	 	Tax indemnity

	 	(a)	 	Without prejudice to clause 12.2 (Tax gross-up), if any Finance Party is
required to make any payment of or on account of Tax on or in relation to any sum
received or receivable under any Finance Document (including any sum deemed for
purposes of Tax to be received or receivable by such Finance Party whether or not
actually received or receivable) or if any liability in respect of any such payment is
asserted, imposed, levied or assessed against any Finance Party, the Borrower shall,
within three Business Days of demand of the Facility Agent, promptly indemnify the
Finance Party which suffers a loss or liability as a result against such payment or
liability, together with any costs and expenses payable or incurred in connection
therewith in each case, except to the extent that such costs and expenses contemplated
by this clause arose solely as a result of any negligence or malfeasance of such
Finance Party.
	 
	 	(b)	 	Clause 12.3(a) above shall not apply:

	 	(i)	 	with respect to any Tax assessed on a Finance Party:

	 	(A)	 	under the Law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for
tax purposes; or
	 
	 	(B)	 	under the Law of the jurisdiction in which that
Finance Party’s Facility Office is located in respect of amounts
received or receivable in that jurisdiction,

 

 

	 	 	 	if that Tax is imposed on or calculated by reference to the net income
received or receivable by that Finance Party;
	 
	 	(ii)	 	to the extent a loss, liability or cost is compensated for by
an increased payment under clause 12.2 (Tax gross-up) or
	 
	 	(iii)	 	to the extent that such Tax would not have been payable but
for such Lender’s failure for any reason to deliver any of the forms referred
to in clause 12.2(f).

	 	(c)	 	A Finance Party making, or intending to make, a claim under clause 12.3(a)
above shall promptly notify the Facility Agent of the event which will give, or has
given, rise to the claim, following which the Facility Agent shall promptly notify the
Borrower.
	 
	 	(d)	 	A Finance Party shall, on receiving a payment from the Borrower under this
clause 12.3 (Tax indemnity), notify the Facility Agent.

	12.4	 	Tax Credit

	 	(a)	 	If the Borrower makes a Tax Payment and the relevant Finance Party determines
that:

	 	(i)	 	a Tax Credit is attributable either to an increased payment of
which that Tax Payment forms part, or to that Tax Payment; and
	 
	 	(ii)	 	that Finance Party has obtained, utilised and retained that Tax
Credit,

	 	 	 	the Finance Party shall pay an amount to the Borrower which that Finance Party
determines will leave it (after that payment) in the same after-Tax position as it
would have been in had the Tax Payment not been required to be made by the Borrower.
The Borrower may, upon written request, require a Lender to produce reasonable
evidence (without being obliged in any way to disclose to the Borrower any
information of a confidential nature relating to its tax affairs) as to whether or
not the criteria set out in clause 12.4(a)(i) and 12.4(a)(ii) above are satisfied.
A Finance Party shall use reasonable endeavours to complete, as soon as reasonably
practicable, any formalities to have the benefit of any available Tax Credits or
relief which it is aware of at such time.

	 	(b)	 	If any Finance Party makes any payment to the Borrower pursuant to this clause
12.4 (Tax Credit) and such Finance Party subsequently determines that the Tax Credit in
respect of which such payment was made was not available or is required to be repaid by
it or that it was not permitted to use such Tax Credit in full, the Borrower shall
reimburse that Finance Party such amount (being an amount no greater than the amount
paid by that Finance Party to the Borrower pursuant to this clause 12.4 (Tax Credit))
as that Finance Party reasonably determines is necessary to place it in the same
after-Tax position as it would have been in if such Tax Credit had been obtained and
fully used and retained by such Finance Party.

	12.5	 	Stamp taxes
	 
	 	 	The Borrower shall pay and, within three Business Days of demand, indemnify each Finance
Party against any cost, loss or liability that Finance Party incurs in relation to all stamp
duty, registration and other similar Taxes payable in respect of any Finance Document.

 

 

	12.6	 	Value added tax

	 	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any
Party to a Finance Party which (in whole or in part) constitute the consideration for
VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such
supply, and accordingly, subject to clause 12.6(c) below, if VAT is chargeable on any
supply made by any Finance Party to any Party under a Finance Document, that Party
shall pay to the Finance Party (in addition to and at the same time as paying the
consideration) an amount equal to the amount of the VAT (and such Finance Party shall
promptly provide an appropriate VAT invoice to such Party).
	 
	 	(b)	 	If VAT is chargeable on any supply made by any Finance Party (the “Supplier”)
to any other Finance Party (the “Recipient”) under a Finance Document, and any Party
(the “Relevant Party”) is required by the terms of any Finance Document to pay an
amount equal to the consideration for such supply to the Supplier (rather than being
required to reimburse the Recipient in respect of that consideration), such Party shall
also pay to the Supplier (in addition to and at the same time as paying such amount) an
amount equal to the amount of such VAT. The Recipient will promptly pay to the
Relevant Party an amount equal to any credit or repayment from the relevant tax
authority which it reasonably determines relates to the VAT chargeable on that supply.
So far as the Facility Agent is aware (without representing the Borrower) the Original
Lenders are not as at the date of this Agreement required to charge VAT on any supply
made or to be made under the Finance Documents.
	 
	 	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for
any costs or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all VAT incurred by the Finance Party in respect of the costs or
expenses to the extent that the Finance Party reasonably determines that neither it nor
any other member of the group of which it is a member for VAT purposes is entitled to
credit or repayment from the relevant tax authority in respect of the VAT.

	13.	 	INCREASED COSTS
	 
	13.1	 	Increased Costs

	 	(a)	 	Subject to clause 13.3 (Exceptions) the Borrower shall, within four Business
Days of a demand by the Facility Agent, pay for the account of a Finance Party the
amount of any Increased Costs incurred by that Finance Party or any of its Affiliates
as a result of:

	 	(i)	 	the introduction of or any change after the date of this
Agreement in (or in the interpretation, administration or application of) any
Law or regulation; or
	 
	 	(ii)	 	compliance with any Law or regulation made after the date of
this Agreement.

	 	 	 	The terms “Law” and “regulation” in this clause 13.1(a) shall include any law or
regulation concerning capital adequacy, capital ratios, reserve requirements on
contingent liabilities, prudential limits, liquidity, reserve assets or Tax.

	 	(b)	 	In this Agreement “Increased Costs” means:

	 	(i)	 	a reduction in the rate of return from the Facility or on a
Finance Party’s (or its Affiliate’s) overall capital;

 

 

	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance
Document,

	 	 	 	which is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Finance Document.

	13.2	 	Increased cost claims

	 	(a)	 	A Finance Party intending to make a claim pursuant to clause 13.1 (Increased
Costs) shall notify the Facility Agent of the event giving rise to the claim, following
which the Facility Agent shall promptly notify the Borrower.
	 
	 	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Facility
Agent, provide a certificate confirming the amount of its Increased Costs and
describing in reasonable detail the circumstances giving rise to the claim.

	13.3	 	Exceptions

	 	(a)	 	Clause 13.1 (Increased Costs) does not apply to the extent any Increased Cost
is:

	 	(i)	 	attributable to a Tax Deduction required by Law to be made by
the Borrower;
	 
	 	(ii)	 	compensated for by clause 12.3 (Tax indemnity) (or would have
been compensated for under clause 12.3 (Tax indemnity) but was not so
compensated solely because any of the exclusions in clause 12.3(b) applied); or
	 
	 	(iii)	 	attributable to the wilful breach by the relevant Finance
Party or its Affiliates of any Law or regulation or a failure by the relevant
Finance Party to make any relevant filings with any regulatory authority.

	 	(b)	 	In this clause 13.3 (Exceptions), a reference to a “Tax Deduction” has the same
meaning given to the term in clause 12.1 (Definitions).

	14.	 	OTHER INDEMNITIES
	 
	14.1	 	Currency indemnity

	 	(a)	 	If any sum due from the Borrower under the Finance Documents (a “Sum”), or any
order, judgment or award given or made in relation to a Sum, has to be converted from
the currency (the “First Currency”) in which that Sum is payable into another currency
(the “Second Currency”) for the purpose of:

	 	(i)	 	making or filing a claim or proof against the Borrower; or
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation
to any litigation or arbitration proceedings,

	 	 	 	the Borrower shall as an independent obligation, within three Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost, loss
or liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the First

 

 

	 	 	 	Currency into the Second Currency and (B) the rate or rates of exchange available to
that person at the time of its receipt of that Sum.

	 	(b)	 	The Borrower waives any right it may have in any jurisdiction to pay any amount
under the Finance Documents in a currency or currency unit other than that in which it
is expressed to be payable.

	14.2	 	Expenses; Indemnity

	 	(a)	 	The Borrower agrees to indemnify the Administrative Parties, each Lender and
each Related Party of any of the foregoing persons (each such person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related costs and expenses, including reasonable
counsel fees, disbursements and other charges, incurred by or asserted against any
Indemnitee arising out of, in any way connected with, or as a result of (i) the
execution or delivery of this Agreement or any other Finance Document or any agreement
or instrument contemplated thereby, the performance by the parties thereto of their
respective obligations thereunder or the consummation of the transactions and the other
transactions contemplated thereby, (ii) the use of the proceeds of the Loans, (iii) any
claim, litigation, investigation or proceeding relating to any of the foregoing,
whether or not any Indemnitee is a party thereto, or (iv) any actual or alleged
presence or Release of Hazardous Substances on any property owned or operated by the
Borrower or any Environmental Claim related to the operations of the Borrower; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related costs and expenses are determined
by a court of competent jurisdiction to have resulted from primarily the gross
negligence or wilful misconduct of such Indemnitee (and, upon any such determination,
any indemnification payments with respect to such losses, claims, damages, liabilities
or related costs and expenses previously received by such Indemnitee shall be subject
to reimbursement by such Indemnitee);
	 
	 	(b)	 	To the extent permitted by applicable Law, the Borrower shall not assert, and
each hereby waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Loan or the use of the proceeds
thereof.
	 
	 	(c)	 	The provisions of this clause 14.2 (Expenses; Indemnity) shall remain operative
and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the Transactions or the other transactions contemplated
hereby, the repayment of any of the Loans, the expiration of the Commitments, the
invalidity or unenforceability of any term or provision of this Agreement or any other
Finance Document, or any investigation made by or on behalf of the Administrative
Parties or any Lender. All amounts due under this clause 14.2 (Expenses; Indemnity)
shall be payable on written demand therefor.

	14.3	 	Indemnity to the Security Agent
	 
	 	 	The Security Agent may, in priority to any payment to the Finance Parties, indemnify itself
out of the Collateral in respect of, and pay and retain, all sums necessary to give effect
to the indemnity in this clause 14.3 (Indemnity to the Security Agent) and shall have a lien
on the Collateral and the proceeds of the enforcement of the Collateral for all moneys
payable to it.

 

 

	15.	 	MITIGATION
	 
	15.1	 	Mitigation

	 	(a)	 	Each Finance Party shall, in consultation with the Borrower, take all
reasonable steps to mitigate any circumstances which arise and which would result in
any amount becoming payable under or pursuant to, or cancelled pursuant to, any of
clause 12 (Tax gross-up and indemnities) or clause 13 (Increased Costs) including (but
not limited to) transferring its rights and obligations under the Finance Documents to
another Affiliate or Facility Office.
	 
	 	(b)	 	Clause 15.1(a) does not in any way limit the obligations of the Borrower under
the Finance Documents.

	15.2	 	Limitation of liability

	 	(a)	 	The Borrower shall promptly indemnify each Finance Party for all costs and
expenses reasonably incurred by that Finance Party as a result of steps taken by it
under clause 15.1 (Mitigation).
	 
	 	(b)	 	A Finance Party is not obliged to take any steps under clause 15.1 (Mitigation)
if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

	16.	 	COSTS AND EXPENSES
	 
	16.1	 	Transaction expenses
	 
	 	 	Irrespective of whether or not any Commitment or Loan under this Agreement is implemented,
cancelled, utilised or otherwise withdrawn, the Borrower shall, within four Business Days of
demand, pay the Administrative Parties the amount of all costs and expenses (including legal
fees) reasonably incurred by any of them in connection with the negotiation, preparation,
printing, execution and syndication of:

	 	(a)	 	the Finance Documents and any associated or ancillary documents executed on or
around the date of this Agreement; and
	 
	 	(b)	 	any other Finance Documents and any associated or ancillary documents executed
after the date of this Agreement.

	16.2	 	Amendment costs
	 
	 	 	If:

	 	(a)	 	the Borrower requests an amendment, waiver or consent in relation to a Finance
Document; or
	 
	 	(b)	 	an amendment is required pursuant to clause 30.9 (Change of currency),

	 	 	the Borrower shall, within three Business Days of demand, reimburse each Agent for the
amount of all costs and expenses (including legal fees) reasonably incurred by that Agent in
responding to, evaluating, negotiating or complying with that request or requirement.

 

 

	16.3	 	Enforcement costs
	 
	 	 	The Borrower shall, within three Business Days of demand, pay to each Finance Party the
amount of all costs and expenses (including legal fees) incurred by that Finance Party in
connection with the enforcement of, or the preservation of any rights under, any Finance
Document.
	 
	16.4	 	Borrower’s costs
	 
	 	 	The Borrower shall itself bear any costs and expenses incurred by itself which are similar
to those costs and expenses contemplated in clauses 16.1 (Transaction expenses) to 16.3
(Enforcement costs).
	 
	17.	 	REPRESENTATIONS
	 
	17.1	 	General
	 
	 	 	The Borrower makes the representations and warranties set out in this clause 17
(Representations) to each Finance Party on the date of this Agreement and as set out in
clause 17.36 (Repetition) (and “it”, when used herein, shall be deemed to refer to the
Borrower.)
	 
	17.2	 	Organisation, Powers
	 
	 	 	The Borrower (a) is duly organised, validly existing and in good standing under the Laws of
its jurisdiction of organisation, (b) has all requisite corporate power and authority, and
the legal right, to own and operate its property and assets, to lease the property it
operates as lessee and to carry on its business as now conducted and as proposed to be
conducted in respect of the Project, (c) is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required except where the
failure to so qualify would not reasonably be expected to result in a Material Adverse
Effect and (d) has the power and authority, and the legal right, to execute, deliver and
perform its obligations under this Agreement, each of the other Finance Documents and each
other agreement or instrument contemplated hereby or thereby to which it is or will be
party, including, to borrow hereunder.
	 
	17.3	 	Authorisation, No Conflicts
	 
	 	 	This Agreement, each Finance Document and the transactions contemplated thereunder: (a) have
been duly authorised by all requisite corporate, and, if required, stockholder action on the
part of the Borrower and (b) will not (i) violate (A) any provision of Law, statute, rule or
regulation, or the organisational documents of the Borrower, (B) any order of any
Governmental Authority or arbitrator applicable to the Borrower or (C) any provision of any
Project Document, indenture, agreement or other instrument to which the Borrower is a party
or by which the Borrower or any of the Borrower’s property is or may be bound, except any of
the foregoing that would not reasonably be expected to result in a Material Adverse Effect;
(ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse
of time or both) a default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such Project Document,
indenture, agreement or other instrument except any of the foregoing that would not
reasonably be expected to result in a Material Adverse Effect; or (iii) result in the
creation or imposition of any Lien upon or with respect to any property or assets now owned
or hereafter acquired by the Borrower (other than Permitted Liens).

 

 

	17.4	 	Governing law and enforcement
	 
	 	 	Subject to the Legal Reservations:

	 	(a)	 	the choice of governing law of each of the Finance Documents will be recognised
and enforced in its Relevant Jurisdictions; and
	 
	 	(b)	 	any judgment obtained in relation to a Finance Document in the jurisdiction of
the governing law of that Finance Document will be recognised and enforced in its
Relevant Jurisdictions.

	17.5	 	Enforceability
	 
	 	 	Subject to any Legal Reservations, this Agreement has been duly executed and delivered by
the Borrower and constitutes, and each other Finance Document when executed and delivered by
the Borrower will constitute, a legal, valid and binding obligation of the Borrower
enforceable against it in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganisation, 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. None of the Finance Documents to which the Borrower is
party has been amended or modified subsequent to having been delivered to the Facility
Agent, except as permitted under this Agreement.
	 
	17.6	 	Governmental Approvals
	 
	 	 	No action, consent or approval of, registration or filing with, Permit from, notice to, or
any other action by, any Governmental Authority is required in connection with the
transactions contemplated by the Finance Documents, except for (a) the filing of Uniform
Commercial Code financing statements, (b) recordation of the Deed of Trust, (c) such as have
been made or obtained and are in full force and effect and (d) such minor approvals the
absence of which would not be considered material by a prudent mining industry operator or
owner (of a similar project, similarly situated) and which would not or would not be
reasonably likely to have a Material Adverse Effect.
	 
	17.7	 	Title to Properties; Possessions Under Leases
	 
	 	 	Except in relation to any minor defects in title or standard exceptions or exclusions in
each case set out in the Title Policy which the Facility Agent (acting reasonably) does not
require to be cured, remedied or otherwise addressed by the Borrower:

	 	(a)	 	the Borrower has good and, with respect to all Property Rights included in the
Title Policy, insurable title to, or valid leasehold interests in, all its material
properties and assets (including all Property Rights), except for minor defects in
title that, in the aggregate, are not substantial in amount and do not materially
detract from the value of the property subject thereto or interfere with its ability to
conduct its business as currently conducted or to utilize such properties and assets
for their intended purposes. The Project is free from material structural defects and
all systems contained therein are in good working order and condition, ordinary wear
and tear excepted, suitable for the purposes for which they are currently being used.
No portion of the Property Rights has suffered any material damage by fire or other
casualty loss that has not heretofore been completely repaired and restored to its
original condition. Each parcel of Property Rights and the current use thereof
complies with all applicable Laws (including building and zoning ordinances and codes)
and with all insurance requirements except for such noncompliance which

 

 

	 	 	 	would not or would not be reasonably likely to have a Material Adverse Effect;
the Borrower is not a non-conforming user of any Property Rights.
	 
	 	(b)	 	the Borrower, and, to the knowledge of the Borrower, each other party thereto,
has complied with all obligations under all material leases to which it is a party and
all such leases are legal, valid, binding and in full force and effect and are
enforceable in accordance with their terms. The Borrower enjoys peaceful and
undisturbed possession under all such material leases. No landlord Lien has been
filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect
to any lease payment under any material lease. None of the Property Rights included in
the Mortgage and Deed of Trust is subject to any lease, sublease, license or other
agreement granting to any person (other than the Borrower) any right to the use,
occupancy, possession or enjoyment of the Property Rights or any portion thereof,
except for non-possessory rights to ingress or egress or other minor rights which do
not materially interfere with the Borrower’s use occupancy, possession or enjoyment of
the Property Rights and            which would not or would not be reasonably likely to
have a Material Adverse Effect.
	 
	 	(c)	 	the Borrower has not received any notice of, nor has any knowledge of, any
pending or contemplated condemnation proceeding affecting the Property Rights or any
sale or disposition thereof in lieu of condemnation.
	 
	 	(d)	 	the Borrower is not obligated under any right of first refusal, option or other
contractual right to sell, assign or otherwise dispose of any Property Rights or any
interest therein.
	 
	 	(e)	 	there are no pending or, to the knowledge of the Borrower, proposed special or
other assessments for public improvements or otherwise affecting any material portion
of the owned Property Rights, nor are there any contemplated improvements to such owned
Property Rights that may result in such special or other assessments. The Borrower has
not suffered, permitted or initiated the joint assessment of any owned Property Rights
with any other Property Rights constituting a separate tax lot. Each owned parcel of
Property Rights is comprised of one or more parcels, each of which constitutes a
separate tax lot and none of which constitutes a portion of any other tax lot.
	 
	 	(f)	 	the Borrower has obtained all permits, licenses, variances and certificates
required by applicable Law to be obtained and necessary to the use and operation of
each parcel of Property Rights, except where the failure to have such permit, license,
certificate or variance would not prohibit the use of such parcel of Property Rights as
it is currently being used. The use being made of each parcel of Property Rights
conforms with the certificate of occupancy and/or such other permits, licenses,
variances and certificates for such Property Rights and any other restrictions,
covenants or conditions affecting such Property Rights, except for any such
nonconformity that could not reasonably be expected to be enjoined or to result in
material fines.

	17.8	 	Title to Production
	 
	 	 	Except as may arise by virtue of any minor defects in title set out in the Mining Report
which the Facility Agent does not require to be cured, remedied or otherwise addressed by
the Borrower, the Borrower has the capacity and the right to assign to the Finance Parties
legal and beneficial title to all Gold and other Production which it may contract to deliver
to such parties under any Finance Document, free and clear of all Liens or claims except for
Permitted Liens and the royalty and earn-in arrangements.

 

 

	17.9	 	Permits

	 	(a)	 	Having made due and careful enquiry, the Borrower has and is in possession of
all Applicable Permits and is in compliance with all the material terms thereof.
	 
	 	(b)	 	The Borrower has and is in possession of all Permits under existing Laws
required or necessary for the conduct of the business of the Borrower (other than
Applicable Permits) which, if the same were not held, would or would be reasonably
likely to have a Material Adverse Effect.
	 
	 	(c)	 	In relation to the Permits held by the Borrower as described in clauses 17.9(a)
and 17.9(b) above, the same are in full force and effect and, except as disclosed
therein, are not subject to any current legal proceeding to which the Borrower is a
party or, to the Borrower’s knowledge, to any unsatisfied condition that would or would
be reasonably likely to have a Material Adverse Effect, and, except as disclosed
therein, all statutorily prescribed appeal periods with respect to the issuance of such
Permits have expired. The Borrower is in compliance with all Permits except to the
extent that such non-compliance would not or would not be reasonably likely to result
in a Material Adverse Effect.

	17.10	 	Hazardous Substances

	 	(a)	 	To the knowledge of the Borrower: (A) it is not in violation of (or received
any notice that it is in violation of) any Environmental Law which violation would
reasonably be expected to subject the Finance Parties to liability or to result in an
Environmental Claim against the Borrower or its properties and assets; (B) it has not
Released any Hazardous Substances in, on, or under the Site in violation of
Environmental Law that would reasonably be expected to subject the Finance Parties to
liability or the Borrower to liability, under any Environmental Law; (C) there are no
underground tanks, whether operative or temporarily or permanently closed, located on
the Site; and (D) there are no Hazardous Substances used, generated, manufactured,
produced, transported thereto or therefrom, stored or present at or on the Site, except
as necessary in the ordinary course of business and in material compliance with
Environmental Laws, in each case of (A) through (D) above that would or would be
reasonably likely to have a Material Adverse Effect.
	 
	 	(b)	 	To the knowledge of the Borrower, there is no pending or threatened
Environmental Claims by any Governmental Authority (including the U.S. Environmental
Protection Agency) or any non-governmental third party with respect to the presence or
Release of Hazardous Substances in, on or from the Site or the Improvements, that would
reasonably be expected to have a Material Adverse Effect.

	17.11	 	Labour Disputes
	 
	 	 	Neither the business nor the properties of the Borrower are being affected by any strike,
lockout or other labour dispute which would reasonably be expected to have a Material
Adverse Effect.
	 
	17.12	 	Taxes
	 
	 	 	Each Obligor has filed all material federal, state and local tax returns that it is required
to file, has paid all material taxes that it is required to pay to the extent due (other
than those taxes that it is contesting in good faith and by appropriate proceedings, with
adequate, segregated

 

 

	 	 	reserves established for such taxes) and, to the extent such taxes are not due, has
established reserves that are adequate for the payment thereof and are required by US GAAP.
	 
	17.13	 	Intellectual Property

	 	(a)	 	The Borrower owns or has the right to use all patents, trademarks, service
marks, trade names, copyrights, licenses and other rights which are necessary for the
operation of its business (the “IP Rights”) and which the failure of the Borrower to so
own or have the right to use would reasonably be expected to result in a Material
Adverse Effect. No material product, process, method, substance, part or other
material presently contemplated to be sold or employed by the Borrower in connection
with its business will infringe any patent, trademark, service mark, trade name,
copyright, license or other right owned by any other person which would or would be
reasonably likely to have a Material Adverse Effect.
	 
	 	(b)	 	The Borrower does not require any licence from, or the consent of the Guarantor
or any third party to use, the IP Rights which relate to the Project.

	17.14	 	Validity and admissibility in evidence
	 
	 	 	It maintains and is in compliance with all Authorisations required under any applicable Law
or regulation:

	 	(a)	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations in each Finance Document to which it is a party; and
	 
	 	(b)	 	to make each Finance Document to which it is a party admissible in evidence in
its jurisdiction of incorporation.

	17.15	 	Compliance with Laws
	 
	 	 	It is conducting its business and operations in compliance with all Laws and regulations to
which it may be subject, and is otherwise in compliance with all Laws and regulations
applicable to it, except to the extent that failure to so comply would not be considered
material by a prudent mining industry operator or owner (of a similar project, similarly
situated) and which would not or would not be reasonably likely to have a Material Adverse
Effect.
	 
	17.16	 	Regulations T, U and X
	 
	 	 	It is not engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock, and no proceeds of the Loans will be used for a purpose which
violates, or would be inconsistent with, F.R.S. Board Regulation U or X. Terms for which
meanings are provided in F.R.S. Board Regulation T, U or X or any regulations substituted
therefor, as from time to time in effect, are used in this clause with such meanings.
	 
	17.17	 	Deduction of Tax
	 
	 	 	It is not required under the Law of its jurisdiction of incorporation to make any deduction
or withholding for or on account of Tax from any payment it may make under any Finance
Document.

 

 

	17.18	 	No filing or stamp taxes
	 
	 	 	As at the date of this Agreement, under the Law of its jurisdiction of incorporation it is
not necessary:

	 	(a)	 	that any Finance Document be filed, recorded or enrolled with any court or
other authority in that jurisdiction; or
	 
	 	(b)	 	that any stamp, registration or similar tax be paid on or in relation to any
Finance Document or the transactions contemplated by any Finance Document, except for
local costs for the recording of such documents as required by this Agreement

	17.19	 	No default

	 	(a)	 	No Default is continuing or would reasonably be expected to result from the
making of the Utilisation.
	 
	 	(b)	 	(No other event or circumstance is continuing which constitutes a default or an
event of default (howsoever described) under any other agreement or instrument which is
binding on it or to which its assets are subject which might constitute or result in a
Material Adverse Effect.

	17.20	 	No misleading information

	 	 	As of the Closing Date, there is no fact, which has had or would be reasonably likely to
have a Material Adverse Effect which has not been set forth in this Agreement or which has
not otherwise been disclosed to the Administrative Parties by the Borrower prior to the
Closing Date in connection with the transactions contemplated hereby or thereby. As of the
Closing Date, all factual statements made to the Administrative Parties and all
documentation furnished to the Administrative Parties by the Obligors, taken as a whole,
including written updated or supplemented information delivered on or prior to the Closing
Date, are true and correct in all material respects.
	 
	17.21	 	No changes

	 	(a)	 	Since the date of its Original Financial Statements, the Borrower has not:

	 	(i)	 	entered into any amalgamation, demerger, merger or corporate
reconstruction (or any analogous procedure or step in any jurisdiction) without
the prior written consent of the Facility Agent (acting on the instructions of
the Majority Lenders); or
	 
	 	(ii)	 	made any substantial change to the general nature of its
business.

	 	(b)	 	Since the date of the Original Financial Statements, the Borrower represents
that there has been no change in the financial condition of the Guarantor which could
reasonably be expected to have a Material Adverse Effect.

	17.22	 	Financial statements

	 	(a)	 	Any Original Financial Statements were prepared in accordance with US GAAP
consistently applied.

 

 

	 	(b)	 	Any Original Financial Statements fairly represent the Guarantors consolidated
financial condition and operations (consolidated in the case of the Guarantor) during
the relevant period.
	 
	 	(c)	 	There has been no Material Adverse Effect since the last date of the period for
which the Original Financial Statements were prepared or since the last date of the
period for which the most recent set of financial statements were prepared and which
are required to be delivered by the Borrower to the Facility Agent pursuant to clause
18.1 (Financial statements and Project reports).

	17.23	 	No undisclosed liabilities
	 
	 	 	As at the date as of which its most recent audited financial statements were prepared
(which, at the date of this Agreement, are the Original Financial Statements), it did not
have any material liabilities (contingent or otherwise) which were not disclosed thereby (or
by the notes thereto) or reserved against therein nor any unrealised or anticipated losses
arising from commitments entered into by it which were not so disclosed or reserved against.
	 
	17.24	 	No winding-up
	 
	 	 	It has not taken any corporate action, nor have any other steps been taken or legal
proceedings been started or threatened against it for its winding-up, dissolution,
administration or reorganisation or for the appointment by it (or on its behalf) of a
receiver, administrator, administrative receiver, trustee or similar officer in relation to
itself or all or any of its assets or revenues.
	 
	17.25	 	No proceedings pending or threatened
	 
	 	 	No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency (including any relating to Environmental Law) which, if adversely determined,
might reasonably be expected to constitute or result in a Material Adverse Effect, have (to
the best of its knowledge and belief) been started or threatened against it.
	 
	17.26	 	No Security
	 
	 	 	There is no Security affecting any property or assets of the Borrower other than the
Permitted Liens.
	 
	17.27	 	No immunity
	 
	 	 	Subject to the Legal Reservations, in any proceedings taken in any jurisdiction in relation
to any Finance Document, it is not entitled to claim for itself or any of its assets
immunity from suit, execution, attachment or other legal process.
	 
	17.28	 	Insurance
	 
	 	 	The Borrower maintains Insurance in full force and effect at all times which satisfies
clause 19 (Insurance) herein.
	 
	17.29	 	Financial Indebtedness
	 
	 	 	The Borrower has no Financial Indebtedness save for Permitted Financial Indebtedness.

 

 

	17.30	 	Ranking
	 
	 	 	Subject to the Legal Reservations, the Liens granted to the Security Agent pursuant to the
Security Documents (a) constitute first priority valid and subsisting liens of record on
such rights, title or interest as the Borrower shall from time to time have in all Property
Rights covered by the Mortgage, (b) constitute first priority perfected security interests
in such rights, title or interest as the Borrower shall from time to time have in all
personal property included in the Collateral, (c) constitute first priority perfected
security interests in the Guarantor’s right, title, and interest to the 100 per cent of the
shares of the Borrower and (d) in each case with respect to (a)-(c) above are subject to no
Liens except Permitted Liens. Except (i) to the extent possession of portions of the
Collateral is required for perfection, (ii) in relation to any IP Rights (as such term is
defined in clause 17.13(a)) or motor vehicles which are part of the Collateral or (iii) as
otherwise agreed by the Borrower and the Facility Agent, all such action as is necessary has
been taken to establish and perfect the Security Agent’s rights in and to the Collateral,
including any recording, filing, registration, giving of notice or other similar action
(assuming proper recordation of any such documents). Except as otherwise agreed by the
Borrower and the Facility Agent, the Borrower and Guarantor have properly delivered or
caused to be delivered to the Security Agent all Collateral that requires perfection of the
Liens and security interests described above by possession.
	 
	17.31	 	Certified Copies
	 
	 	 	Any copy of a document (the “original document”) provided to any Finance Party by or on
behalf of it which purports to be certified by one of its duly authorised officers or
directors as a true, complete and up-to-date copy of the original document is a true,
complete and accurate copy of the original document and is up to date as at the date on
which it was provided.
	 
	17.32	 	Transaction Documents

	 	(a)	 	It has not breached any of the terms of any Transaction Document to which it is
a party, other than any minor breach that would not or would not be reasonably likely
to have a Material Adverse Effect.
	 
	 	(b)	 	It is not aware of any dispute or potential dispute with any counterparty to a
Transaction Document to which it is a party.

	17.33	 	Investment Company Act
	 
	 	 	The Borrower is not required to register as an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940, as amended.
	 
	17.34	 	Employee Benefit Plans
	 
	 	 	The Borrower does not sponsor a Benefit Plan.
	 
	17.35	 	Project Construction
	 
	 	 	The Project has been designed and constructed in a good and workmanlike manner.
	 
	17.36	 	Repetition

	 	(a)	 	The Repeating Representations are deemed to be made by the Borrower by
reference to the facts and circumstances then existing on submission of the Utilisation
Request, on the Utilisation Date and on the first day of each Interest Period
thereafter.

 

 

	 	(b)	 	Each representation and warranty deemed to be made after the date of this
Agreement shall be deemed to be made by reference to the facts and circumstances
existing at the date the representation or warranty is deemed to be made.

	18.	 	INFORMATION UNDERTAKINGS
	 
	 	 	The undertakings in this clause 18 (Information undertakings) shall remain in force from the
date of this Agreement for so long as any amount is outstanding under the Finance Documents
or any Commitment is in force.
	 
	18.1	 	Financial statements and Project reports
	 
	 	 	The Borrower shall supply to the Facility Agent in sufficient copies for all the Lenders:

	 	(a)	 	In respect of the Guarantor:

	 	(i)	 	as soon as the same become available, but in any event within
10 days after the date of filing with the SEC, a copy of the SEC Form 10-k
filed by the Guarantor with the SEC for such Fiscal Year, or if no such Form
10-k was filed by the Guarantor for such Fiscal Year, the audited consolidated
financial statements of the Guarantor and its subsidiaries for that Fiscal
Year;
	 
	 	(ii)	 	as soon as the same become available, but in any event within
10 days after the date of filing with the SEC, a copy of the SEC Form 10-Q
filed by the Guarantor with the SEC for each such Fiscal Quarter, or if no such
Form 10-Q is available, the unaudited consolidated financial statements of the
Guarantor for that quarter; and
	 
	 	(iii)	 	promptly, but not later than 10 days after the date of filing
with the SEC, copies of all financial statements and reports that Guarantor
sends to its shareholders, and copies of all financial statements and regular,
periodical or special reports (including Forms 8-K, 10-K and 10-Q) that
Guarantor or any of its Subsidiaries may make to, or file with, the SEC or any
securities exchange;

	 	 	 	(such requirement in respect of the Guarantor shall be satisfied by way of
subscription by the Facility Agent, which the Guarantor shall facilitate, to receive
all publically available financial information circulated by the Guarantor by email
from time to time, unless such information is not for any reason available or is not
duly delivered pursuant to such subscription within the timescales set out above).
	 
	 	(b)	 	in respect of the Borrower:

	 	(i)	 	as soon as the same become available, but in any event not
later than the time specified for the Guarantor under clause 18.1(a)(i), the
unaudited financial statements of the Borrower for that Fiscal Year;
	 
	 	(ii)	 	as soon as the same become available, but in any event not
later than the time specified for the Guarantor under clause 18.1(a)(ii), the
Quarterly Management Accounts of the Borrower for that Fiscal Quarter;
	 
	 	(iii)	 	as soon as it becomes available, but in any event with 30 days
of the end of each calendar month, the Production Report of the Borrower for
that month;

 

 

	 	(iv)	 	a certified board-approved revised Life of Mine Plan within 30
days of such board approval and not more than 365 days after the provision of
the previous Life of Mine Plan and in respect of which revised Life of Mine
Plan all revisions will be subject to review and approval in accordance with
clause 21.6 (Amendment of and exercise of rights under the Transaction
Documents and Amendment of Life of Mine Plan).

	 	(c)	 	If at any time the Guarantor ceases to be subject to the requirement to file
accounts with the SEC, the Borrower shall procure the delivery of the information
specified in clause 18.1(a) and 18.1(b) within the period or periods specified by the
Facility Agent, acting reasonably (but in any event, no earlier than the date on which
such information should have been provided if the Guarantor had remained subject to the
requirements of the SEC).

	18.2	 	Requirements as to financial statements

	 	(a)	 	Each set of financial statements delivered by the Borrower pursuant to clause
18.1 (Financial statements and Project reports) and 18.1(b)(i) and 18.1(b)(ii) shall be
certified by an officer of the relevant Obligor as fairly representing its financial
condition as at the date as at which those financial statements were drawn up.
	 
	 	(b)	 	The Borrower shall ensure that each set of financial statements of the
Guarantor delivered pursuant to clause 18.1 (Financial statements and Project reports)
is prepared using US GAAP, accounting practices and financial reference periods
consistent with those applied in the preparation of the Original Financial Statements
for the Guarantor unless, in relation to any set of financial statements, it notifies
the Facility Agent that there has been a change in US GAAP, the accounting practices or
reference periods and its auditors (or, if appropriate, the auditors of the Guarantor)
deliver to the Facility Agent, a description of any change necessary for those
financial statements to reflect the US GAAP, accounting practices and reference periods
upon which the Guarantor’s Original Financial Statements were prepared.

	 	 	Any reference in this Agreement to those financial statements shall be construed as a
reference to those financial statements as adjusted to reflect the basis upon which the
Original Financial Statements were prepared.
	 
	18.3	 	Information: miscellaneous
	 
	 	 	The Borrower shall supply to the Facility Agent (in sufficient copies for all the Lenders,
if the Facility Agent so requests):

	 	(a)	 	all documents dispatched by each Obligor to its shareholders (or any class of
them) or its creditors generally at the same time as they are dispatched (such
requirement in respect of the Guarantor to be satisfied by way of subscription by the
Facility Agent, which the Guarantor shall facilitate, to receive all publically
available information circulated by the Guarantor by email from time to time);
	 
	 	(b)	 	promptly upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against any Obligor, and which might, if adversely determined, constitute a Material
Adverse Effect; and

 

 

	 	(c)	 	promptly, such further information regarding the financial condition, business
and operations of any Obligor as any Finance Party (through the Facility Agent) may
reasonably request,

	 	 	in each case, only where such disclosure or provision of information or documents would not
be in breach of any Law.
	 
	18.4	 	Access to Collateral
	 
	 	 	If an Event of Default has occurred and is continuing, upon the request of the Facility
Agent (on the instruction of any Lender) the Borrower shall provide the Facility Agent and
any of its representatives, professional advisers and contractors with access to inspect the
Collateral of the Borrower, in each case at reasonable times and upon reasonable notice,
subject to any reasonable confidentiality requirements of the Borrower.
	 
	18.5	 	Notification of Default

	 	(a)	 	The Borrower shall notify the Facility Agent of any Default (and the steps, if
any, being taken to remedy it) promptly upon becoming aware of its occurrence.
	 
	 	(b)	 	Promptly upon a request by the Facility Agent, the Borrower shall supply to the
Facility Agent a certificate signed by two of its officers on its behalf certifying
that no Default is continuing (or if a Default is continuing, specifying the Default
and the steps, if any, being taken to remedy it).

	18.6	 	Notification of noncompliance
	 
	 	 	The Borrower shall notify the Facility Agent of any: (A) fact, circumstance, condition or
occurrence at, on or arising from, the Site or the Project that results in noncompliance
with any Environmental Law having, individually or in the aggregate, a Material Adverse
Effect or any Release of Hazardous Substances on or from the Project or any other part of
the Property Rights that has resulted in a Material Adverse Effect, and (B) pending
Environmental Claim having, individually or in the aggregate, a Material Adverse Effect
against the Borrower or, to the Borrower’s knowledge, any of its Affiliates, contractors or
lessees arising in connection with its or their occupying or conducting operations on or at
the Project.
	 
	18.7	 	Notification of misrepresentation
	 
	 	 	The Borrower shall notify the Facility Agent promptly upon becoming aware that any
representation made or deemed to be made by an Obligor under any Finance Document has become
untrue or misleading in any material respect.
	 
	18.8	 	Disputes
	 
	 	 	The Borrower shall inform the Facility Agent promptly (and with reasonable detail) upon
becoming aware of any dispute or potential dispute with any counterparty to a Transaction
Document, save where such dispute is minor or frivolous and is resolved amicably within 10
Business Days of such dispute arising.

 

 

	18.9	 	“Know your customer” checks

	 	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation,
administration or application of) any Law or regulation made after the date of
this Agreement;
	 
	 	(ii)	 	any change in the status of an Obligor after the date of this
Agreement; or
	 
	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its
rights and obligations under this Agreement to a party that is not a Lender
prior to such assignment or transfer,

	 	 	 	obliges the Facility Agent or any Lender (or, in the case of clause 18.9(a)(iii)
above, any prospective new Lender) to comply with “know your customer” or similar
identification procedures, in circumstances where the necessary information is not
already available to it, the Borrower shall (and shall procure that the Guarantor
shall) promptly upon the request of the Facility Agent or any Lender supply, or
procure the supply of, such documentation and other evidence as is reasonably
requested by the Facility Agent (for itself or on behalf of any Lender) or any
Lender (for itself or, in the case of the event described in clause 18.9(a)(iii)
above, on behalf of any prospective new Lender) in order for the Facility Agent,
such Lender or, in the case of the event described in clause 18.9(a)(iii) above, any
prospective new Lender to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable Laws and
regulations pursuant to the transactions contemplated in the Finance Documents.
	 
	 	(b)	 	Each Lender shall promptly upon the request of the Facility Agent supply, or
procure the supply of, such documentation and other evidence as is reasonably requested
by the Facility Agent (for itself) in order for the Facility Agent to carry out and be
satisfied that it has complied with all necessary “know your customer” or other similar
checks under all applicable Laws and regulations pursuant to the transactions
contemplated in the Finance Documents.

	19.	 	INSURANCE
	 
	19.1	 	Insurance
	 
	 	 	So long as any Secured Liabilities remain outstanding, the Borrower, to the satisfaction of
the Facility Agent, shall:

	 	(a)	 	Insure or cause to be insured all Insurable Property then owned by it against:

	 	(i)	 	loss, theft, damage, destruction and the usual risks against
which a prudent owner of property of a similar type to that property and in a
similar business and location would insure and any other risks specified by the
Facility Agent and as is necessary in order to comply with any applicable Law;
and
	 
	 	(ii)	 	any liability from time to time of each Finance Party and the
Loan Party arising from its ownership, use or occupation of Property Rights,

 

 

	 	 	 	and for greater certainty, such insurance will include (but not be limited to)
coverage of the following:

	 	(iii)	 	public liability;
	 
	 	(iv)	 	marine cargo, loss of shipment (if applicable);
	 
	 	(v)	 	workers’ compensation;
	 
	 	(vi)	 	motor vehicle;
	 
	 	(vii)	 	any other insurance required by applicable Law; and
	 
	 	(viii)	 	business interruption.

	 	(b)	 	Ensure that all Insurance will:

	 	(i)	 	be placed with an Approved Insurer and fully underwritten;
	 
	 	(ii)	 	have each Finance Party named as an additional insured (if
permitted by the insurer under the applicable policy) and loss payee;

	 	(c)	 	Supply to the Facility Agent, prior to the renewal of or anniversary of any
Insurance, a list of insurers to be approved by the Facility Agent (acting reasonably).
If the Facility Agent does not approve any such insurers they shall not be or shall
cease to be (as applicable) Approved Insurers for the purpose of clause 19.1(b) above.
	 
	 	(d)	 	Ensure that all Insurance against loss, theft, damage or destruction of the
Insurable Property will be for the full reinstatement value thereof from time to time,
unless the Facility Agent otherwise agrees in writing.
	 
	 	(e)	 	Ensure that copies of all documents relating to the Insurance effected by it,
including the certificate of Insurance, the relevant policies, all renewal
certificates, certificates of currency and endorsement slips, are to be delivered by it
to the Facility Agent promptly on request.
	 
	 	(f)	 	Maintenance of Insurance.

	 	(i)	 	Duly and punctually pay or cause to be paid all premiums and
other money payable under, and perform, observe and fulfil the terms of, all
Insurance;
	 
	 	(ii)	 	promptly upon request, forward a copy of the current policies
to the Facility Agent;
	 
	 	(iii)	 	provide to the Facility Agent, annually no later than 30 days
prior to the end of each calendar year, an insurance certificate in form and
substance reasonably satisfactory to the Facility Agent from its insurers and
brokers confirming the Insurance herein contemplated;
	 
	 	(iv)	 	ensure that every policy of Insurance:

	 	(A)	 	contains an agreement by the insurer that,
notwithstanding the lapse of any policy (except by reason of expiration
in accordance with its terms) or any right of cancellation of the
insurer or any cancellation

 

 

	 	 	 	by the Borrower (whether voluntary or involuntary), such policy will
continue in force for the benefit of each Finance Party in
accordance with good industry practice until written notice of
cancellation has been sent by certified mail to the Facility Agent
and that no reduction in limits or coverage in that policy in whole
or part will be effected except with the prior consent of the
Facility Agent; and
	 
	 	(B)	 	insures each Finance Party’s interest up to the
limits of the policy regardless of any breach or violation by the
Borrower of any warranties, declarations or conditions contained in
that policy.

	 	(g)	 	Not cause and will not permit anything to be done which may:

	 	(i)	 	render any part of the Insurance void, voidable or otherwise
unenforceable;
	 
	 	(ii)	 	hinder or prevent in any material respect the recovery of any
money in respect of the Insurance; or
	 
	 	(iii)	 	in any respect cause the premiums and other money payable to
any insurer to be increased.

	19.2	 	No Liability
	 
	 	 	No Finance Party will incur any liability to the Borrower or any other person arising out of
any failure by any Finance Party to effect or renew any Insurance, nor will any Finance
Party incur any liability arising out of any failure by the insurer for any reason to meet
any claim under any Insurance.
	 
	19.3	 	Options as to Payments

	 	(a)	 	If any part of the property, assets or undertaking of the Borrower that is the
subject of the Insurance is lost, stolen, damaged or destroyed and any sum becomes
payable under any Insurance, then the sum received under any Insurance will be credited
to the Proceeds Account and will thereafter be applied as follows:

	 	(i)	 	if the sum is below US$500,000, towards the replacement or
repair of such property ; or
	 
	 	(ii)	 	if the sum is equal to or above US$500,000, then at the option
of the Security Agent, acting reasonably:

	 	(A)	 	as contemplated by section 19.3(a)(i);
	 
	 	(B)	 	in prepayment of the Loan in accordance with
this Agreement; or
	 
	 	(C)	 	towards any purpose otherwise approved by the
Facility Agent.

	 	(b)	 	Any sum received by the Facility Agent under any Insurance (other than a sum
which is payable to a third party that is not an Obligor) will be held by the Facility
Agent in an interest bearing account pending application in accordance with this clause
19.3 (Options as to Payments).

 

 

	20.	 	FINANCIAL COVENANTS
	 
	 	 	In this Agreement:
	 
	 	 	“Cash Operating Costs” means with respect to the Borrower for any period, the sum (without
duplication) of the following amounts, in each case to the extent paid by or on behalf of
the Borrower in relation to the Project during such period: (a) all mining costs, (b)
processing costs and (c) general and administrative costs, as each such category of costs
are set out in the Life of Mine Plan and as such costs are reflected in the financial
statements of the Borrower from time to time;
	 
	 	 	“Capital Expenditures” means with respect to the Borrower for any period, expenditures or
costs for fixed or capital assets made during such period which in accordance with US GAAP
are characterised as capital expenditures;
	 
	 	 	“Debt to Equity Ratio” means the ratio, expressed as a percentage of Total Financial
Indebtedness to Equity.
	 
	 	 	“Debt Service Cover” means for any Fiscal Quarter or other period of determination, means
the ratio of Project Cash Flow for such period to Debt Service for such period. For the
purposes of this definition, if the interest payable on the Loan for any future period in
question is not determinable in advance because the interest rate is not a fixed rate, it
shall be assumed that the Loan will bear interest during such future period at the average
interest rate in effect with respect thereto during the three months immediately preceding
such period;
	 
	 	 	“Debt Service” means for any period of determination, the sum, without duplication, of (a)
all amounts payable by the Borrower during such period in respect of the principal of, and
interest on, the Loan, plus (b) fees payable hereunder or otherwise in respect of the
Commitment, plus (d) all other amounts in respect of principal, interest and fees payable by
the Borrower during such period to the Finance Parties pursuant to the Finance Documents
(upon the payment date thereof, by acceleration or otherwise);
	 
	 	 	“Equity” means the amount of the paid up share capital of the Borrower less the aggregate
nominal value of the shares in the capital of the Borrower held by the Guarantor (if any)
plus the aggregate amount of any subordinated loans or other contributions to the Borrower
which are treated as equity of the Borrower in accordance with US GAAP, as applicable, and
plus without limitation the amount of any reserves, but excluding any interest paid or
payable in respect of such amount including deferred, capitalised and default interest;
	 
	 	 	“Maximum Production Cost” means the actual cost expressed in US Dollars per Ounce for
production of Gold by the Borrower during the relevant period as set out in the relevant
Production Report (inclusive of smelting and refining costs of Product), but excluding
non-recurring costs as set out in the Production Report;
	 
	 	 	“Project Cash Flow” means for any period of determination, the amount, if any, by which
Project Revenues of the Borrower for such period exceed the Cash Operating Costs of the
Borrower for such period;
	 
	 	 	“Project Revenues” means for any period of determination, the sum (without duplication) of
(a) all revenues received by the Borrower under the Offtake Agreements and from sales of
Gold during such period, plus (b) all other revenues received by the Borrower during such
period from the sale of Products generated by the Project plus (c) all earnings during such
period on Investments, cash, cash equivalents, securities and other amounts deposited in the

 

 

	 	 	Accounts, plus (d) all proceeds of business interruption and delayed opening insurance
received by the Borrower during such period;
	 
	 	 	“Tangible Net Worth” means at any time the aggregate at such time of:

	 	(a)	 	the amounts paid up, or credited as paid up, on the issued share capital of the
Guarantor and/or (as the case may be) the Borrower, as determined under US GAAP;
	 
	 	(b)	 	any balance on the profit and loss account of the Guarantor and/or (as the case
may be) the Borrower under US GAAP including retained earnings);
	 
	 	(c)	 	any amount standing to the credit of any other capital and revenue reserves of
the Guarantor and/or (as the case may be) the Borrower under US GAAP including any
contributed surplus and capital redemption reserve; and
	 
	 	(d)	 	the amount of any fully subordinated loans made by the Guarantor to the
Borrower,

	 	 	less the aggregate at such time of:

	 	(a)	 	all amounts attributable to goodwill and other intangible assets; and
	 
	 	(b)	 	any reserves attributable to interests of minority shareholders in the
Guarantor and/or (as the case may be) the Borrower;

	 	 	“Testing Date” means:

	 	(a)	 	for the Fiscal Quarter of the Guarantor and/or (as the case may be) the
Borrower ending 31 December in any Fiscal Year, the date of receipt by the Facility
Agent of the audited annual consolidated financial statements for such Fiscal Year of
the Guarantor and/or (as the case may be) the Borrower as delivered by the Borrower to
the Facility Agent in accordance with clause 18.1 (Financial statements and Project
reports); and
	 
	 	(b)	 	for each Fiscal Quarter of the Guarantor ending 31 March, 30 June and 30
September in any Fiscal Year, the date of receipt by the Facility Agent of the
quarterly of the unaudited consolidated financial statements of the Guarantor or (as
the case may be) the Borrower for that Fiscal Quarter, as delivered by the Borrower to
the Facility Agent in accordance with clause 18.1(a)(ii) (Financial statements and
Project reports);

	 	 	“Total Financial Indebtedness” means the aggregate of:

	 	(a)	 	all amounts outstanding as Loans pursuant to this Facility; and
	 
	 	(b)	 	all other amounts outstanding under any other Financial Indebtedness of the
Borrower.

	20.1	 	Financial covenants

	 	(a)	 	Guarantor Tangible Net Worth:
	 
	 	 	 	The Borrower shall ensure that at all times the Tangible Net Worth of the Guarantor
is no less than US$1,000,000,000.

 

 

	 	(b)	 	Borrower Tangible Net Worth:
	 
	 	 	 	The Borrower shall ensure that at all times the Tangible Net Worth of the Borrower
is not less than US$325,000,000.
	 
	 	(c)	 	The Borrower shall ensure that at all times the Debt to Equity Ratio of the
Borrower is not higher than 40 per cent.
	 
	 	(d)	 	Debt Service Cover Ratio:
	 
	 	 	 	The Borrower shall ensure that at all times the Debt Service Cover of the Borrower
is not less than 125 per cent.

	20.2	 	Testing of Financial Covenants
	 
	 	 	Each of the financial covenants in respect of the Guarantor as set out clauses 20.1(a) to
20.1(d) shall be tested by calculation of the Facility Agent as at each Testing Date by
reference to the figures set out:

	 	(a)	 	in respect of the Fiscal Quarter in each Fiscal Year ending 31 December, in the
audited annual consolidated financial statements of the Guarantor and/or the Borrower
(as the case may be) as delivered by the Borrower to the Facility Agent in accordance
with clause 18.1 (Financial statements and Project reports); and
	 
	 	(b)	 	in respect of each other Fiscal Quarter in each Fiscal Year, in the unaudited
consolidated financial statements of the Guarantor and/or the Borrower (as the case may
be) for that Fiscal Quarter, as delivered by the Borrower to the Facility Agent in
accordance with clause 18.1 (Financial statements and Project reports).

	21.	 	PROJECT UNDERTAKINGS
	 
	 	 	The undertakings in this clause 21 (Project undertakings) shall remain in force from the
date of this Agreement for so long as any amount is outstanding under the Finance Documents
or any Commitment is in force.
	 
	21.1	 	Life of Mine Plan
	 
	 	 	The Borrower shall conduct its business operations at all times substantially in accordance
with the Life of Mine Plan in effect at such time.
	 
	21.2	 	Project Maintenance and Management
	 
	 	 	The Borrower shall ensure that:

	 	(a)	 	the Project is managed, developed and operated and Production is maintained
materially in accordance with the Life of Mine Plan;
	 
	 	(b)	 	the Project is managed, developed and operated as would a prudent mining
industry operator or owner (of a similar project, similarly situated) and in accordance
with generally accepted mining industry practices and all applicable Laws;
	 
	 	(c)	 	the Site and the Collateral is maintained, protected and kept in a good state
of repair and in good working order and condition, and that it makes all necessary
repairs,

 

 

	 	 	 	renewals, replacements, additions and improvements thereto (except where the same is
obsolete or redundant); and
	 
	 	(d)	 	all necessary geotechnical work is carried out on the Site prior to
commencement of the Project.

	21.3	 	Production
	 
	 	 	The Borrower will ensure that all Product is promptly delivered to each Offtaker in
compliance with the relevant Offtake Contract.
	 
	21.4	 	Bank inspection

	 	(a)	 	The Borrower shall:

	 	(i)	 	permit the engineering representatives of the Facility Agent, upon giving
reasonable notice to the Borrower, to make an inspection of the Project at least
once annually and shall facilitate the ability of such representatives to assess
comprehensively the operation of the Project; and
	 
	 	(ii)	 	comply with all due expedition with any recommendations made by such
representatives, acting reasonably, as to the conduct of the Project.

	21.5	 	Performance of Offtake Contracts and other Transaction Documents

	 	(a)	 	The Borrower shall:

	 	(i)	 	duly perform and observe in all material respects, all its
obligations under any Transaction Document to which it is a party;
	 
	 	(ii)	 	not novate, assign or transfer any of its rights or obligations
under or in connection with any Transaction Document to which it is a party,
other than to the Security Agent under the relevant Security Document;
	 
	 	(iii)	 	not do (or omit to do) anything which could reasonably be
expected to have a Material Adverse Effect on the performance by any
counterparty of any of its obligations under each Transaction Document to which
it is a party;
	 
	 	(iv)	 	not exercise or rely upon any right of set-off, counterclaim or
analogous right so as to reduce any amount payable to it under any Transaction
Document to which it is a party;
	 
	 	(v)	 	as long as the Aurubis / Auramet Offtake Arrangement is in
force, comply fully with the terms and conditions of the Conditional Waiver
Letter;
	 
	 	(vi)	 	notify the Facility Agent no later than five Business Day prior
to any termination of the Aurubis / Auramet Offtake Arrangement and forward a
copy of a termination notice received by it in relation to the Aurubis /
Auramet Offtake Arrangement to the Facility Agent;
	 
	 	(vii)	 	not to terminate or amend the Aurubis / Auramet Offtake
Arrangement without the prior written consent of the Facility Agent (acting
reasonably).

 

 

	 	(b)	 	The Borrower shall exercise all its rights, powers and discretions under each
Transaction Document to which it is a party, except as to matters which do not
materially affect the interests of the Finance Parties, in accordance with the
instructions of the Facility Agent.
	 
	 	(c)	 	The Borrower shall ensure (to the best of its ability and control) that it
pursues all claims which may arise under any Transaction Document appropriately.
	 
	 	(d)	 	Notwithstanding any term of any Offtake Contract to the contrary, the Borrower
shall not suspend production of Products at any time, except on a short term temporary
basis in the ordinary course of trading where such temporary suspension of production
would not in any way whatsoever result in the Borrower being unable fully and
punctually to perform its obligations under any Finance Document or Transaction
Document to which it is a party.
	 
	 	(e)	 	The Borrower shall not accept payment under any Offtake Contract in Gold or
otherwise than in cash without the prior written consent of the Facility Agent.
	 
	 	(f)	 	The Borrower shall not enter into any Offtake Contracts with credit terms of
more than 120 days.
	 
	 	(g)	 	The Borrower shall not enter into any Offtake Contract without prior approval
of the Facility Agent as to the terms thereof, provided that the Facility Agent’s
approval shall be limited to matters affecting the rights (including security rights)
of the Finance Parties under the Finance Documents or otherwise as might have a
Material Adverse Effect, such consent not to be unreasonably withheld or delayed.

	21.6	 	Amendment of and exercise of rights under the Transaction Documents and Amendment of Life of
Mine Plan
	 
	 	 	The Borrower shall not:

	 	(a)	 	amend, supplement, vary, waive, modify or concur in the amendment, supplement,
variation, waiver or modification of any material provision of any Transaction Document
to which it is a party;
	 
	 	(b)	 	cancel, terminate, rescind, suspend, surrender or exercise any right to cancel,
terminate, rescind, suspend or surrender any Transaction Document to which it is a
party or any provision of any Transaction Document to which it is a party;
	 
	 	(c)	 	release any counterparty from any material obligation under any Transaction
Document to which it is a party;
	 
	 	(d)	 	waive any breach by any counterparty to a material provision of any Transaction
Document to which it is a party or consent to any act or omission which would otherwise
constitute such a breach; or
	 
	 	(e)	 	amend the Life of Mine Plan then in effect,

	 	 	except with the prior consent of the Facility Agent (such consent not to be unreasonably
withheld or delayed).

 

 

	21.7	 	Protection of Mineral Rights
	 
	 	 	The Borrower will:

	 	(a)	 	duly and punctually observe and comply with all work, expenditure and other
obligations (or obtain exemptions therefrom) required under or otherwise applicable to
the Mineral Rights;
	 
	 	(b)	 	duly and punctually observe and comply with all conditions of the Mineral
Rights and all provisions of the Mining Laws required to prevent the Mineral Rights
being liable to forfeiture;
	 
	 	(c)	 	save as otherwise permitted in this Agreement from time to time, do whatever
may be necessary for procuring the renewal or extension of the Mineral Rights according
to applicable Laws prior to the date on which the Mineral Rights lapse or expire; and
	 
	 	(d)	 	not surrender or make any application for the surrender of any Mineral Right.

	21.8	 	All Plans and reports
	 
	 	 	All plans and reports which constitute any part of the Information Package shall be produced
and delivered to the Facility Agent in the form and with the level of content which has been
agreed between the Borrower and the Facility Agent prior to the Conditions Precedent
Satisfaction Date.
	 
	22.	 	GENERAL UNDERTAKING
	 
	 	 	The undertakings in this clause 22 (General undertaking) shall remain in force from the date
of this Agreement for so long as any amount is outstanding under the Finance Documents or
any Commitment is in force.
	 
	22.1	 	Authorisations
	 
	 	 	The Borrower shall promptly:

	 	(a)	 	obtain, comply with and do all that is necessary to maintain in full force and
effect; and
	 
	 	(b)	 	if so requested from time to time, supply certified copies to the Facility
Agent of,

	 	 	any Authorisation required under any applicable Law or regulation to enable it to perform
its obligations under any Finance Document and to ensure (subject to the Legal Reservations)
the legality, validity, enforceability or admissibility in evidence in its jurisdiction of
incorporation of any Finance Document.
	 
	22.2	 	Compliance with Laws
	 
	 	 	The Borrower shall comply in all respects with all Laws and regulations to which it may be
subject, except to the extent that failure to so comply would not or would not be reasonably
likely to have a Material Adverse Effect.

 

 

	22.3	 	No Liens

	 	(a)	 	The Borrower shall not create or permit to subsist any Security over any of its
property or assets.
	 
	 	(b)	 	The Borrower shall not:

	 	(i)	 	sell, transfer or otherwise dispose of any of its property or
assets on terms whereby they are or may be leased to or re-acquired by the
Borrower;
	 
	 	(ii)	 	sell, transfer or otherwise dispose of any of its property or
assets on recourse terms;
	 
	 	(iii)	 	enter into any arrangement under which any of its property or
assets may be applied, set-off or made subject to a combination of accounts; or
	 
	 	(iv)	 	enter into any other preferential arrangement having a similar
effect in respect of any of its property or assets,

	 	 	 	in circumstances where the arrangement or transaction is entered into primarily as a
method of raising Financial Indebtedness or of financing the acquisition of an
asset.
	 
	 	(c)	 	Clauses 22.3(a) and 22.3(b) above do not apply to Permitted Liens.

	22.4	 	No disposals

	 	(a)	 	The Borrower shall not enter into a single transaction or a series of
transactions (whether related or not and whether voluntary or involuntary) to sell,
lease, transfer or otherwise dispose of any of the Collateral.
	 
	 	(b)	 	Clause 22.4(a) above does not apply to Permitted Disposals.

	22.5	 	Merger
	 
	 	 	The Borrower shall not enter into any amalgamation, demerger, merger or corporate
reconstruction, except with the prior written consent of the Facility Agent (acting on the
instructions of the Majority Lenders).
	 
	22.6	 	Change of business
	 
	 	 	The Borrower shall ensure that no substantial change is made to the general nature of its
business from that carried on at the date of this Agreement.
	 
	22.7	 	Prompt payment of Taxes
	 
	 	 	The Borrower shall promptly pay all Taxes payable by it other than:

	 	(a)	 	any deferred Taxes as expressly disclosed in writing to the Facility Agent
prior to the date of this Agreement; and
	 
	 	(b)	 	those taxes which are being contested in good faith and in respect of which
adequate reserves have been established and other than in respect of an aggregate
amount of unpaid Taxes due and payable by the Borrower at any time of no more than
US$100,000.

 

 

	22.8	 	Corporate Existence
	 
	 	 	The Borrower shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence, right and franchises.
	 
	22.9	 	Corporate matters

	 	(a)	 	The Borrower shall keep proper books of record and account and maintain proper
accounting, management information and control systems in accordance with US GAAP for
the time being in force in the relevant jurisdiction applicable to it from time to
time.
	 
	 	(b)	 	The Borrower shall not change its Fiscal Year end from 31 December or its
auditors (other than as required by applicable Law) without the prior written consent
of the Facility Agent (acting on the instructions of the Majority Lenders).
	 
	 	(c)	 	The Borrower shall not change the structure or nature of its share capital,
save for an increased authorised share capital, where to do so would result in, or
could be reasonably be expected to result in, a breach of any provision of clause 20.1
(Financial covenants), other than with the prior written consent of the Facility Agent
(acting on the instructions of the Majority Lenders).
	 
	 	(d)	 	The Borrower shall not make any material changes to its constitutional
documents without the prior written consent of the Facility Agent.

	22.10	 	Use of proceeds
	 
	 	 	The Borrower shall ensure and the Borrower shall procure that the Guarantor shall ensure
that:

	 	(a)	 	all the proceeds of the Loan advanced under this Agreement are used strictly in
accordance with the purpose set out in clause 3.1 (Purpose and Use of Proceeds);
	 
	 	(b)	 	no proceeds of the Loan will be used for, or could be construed as being used
for, the financing of trade in military equipment or weapons or in the illegal traffic
of drugs or other prohibited substances; and
	 
	 	(c)	 	no proceed of the Loan will be used to fund the business activities relating to Iran,
Myanmar (Burma), North Korea, Sudan, Cuba, and Syria or for business activities relating to
other countries that are subject to economic and trade sanctions as communicated by the
Facility Agent and/or any other Original Lender (directly or through the Facility Agent) to
the Borrower. Furthermore, the Borrower undertakes not to use the funds under this framework
agreement for business activities that are subject to sanctions/embargos imposed by the
Swiss State Secretariat for Economic Affairs (SECO), the United Nations (UN), the European
Union (EU) and/or the US Office of Foreign Assets Control (OFAC). This includes in
particular business activities involving persons named on any sanctions lists issued by one
of the above-mentioned bodies.

 

 

	22.11	 	Restricted payments

	 	(a)	 	Subject to clause 22.11(b) below, The Borrower shall not:

	 	(i)	 	pay, repay or prepay any principal, interest or other amount on
or in respect of, or redeem, purchase or cancel any Financial Indebtedness owed
actually or contingently, to any if its shareholder or to any Affiliate of any
of its shareholders;
	 
	 	(ii)	 	accept payment, repayment or prepayment of any principal,
interest or other amount on or in respect of, or allow the redemption, purchase
or cancellation of any Financial Indebtedness owed actually or contingently, to
it;
	 
	 	(iii)	 	declare, pay or make any dividend or other payment or
distribution of any kind on or in respect of any class of its shares without
the prior written consent of the Facility Agent (acting on the instructions of
the Majority Lenders);
	 
	 	(iv)	 	reduce, return, purchase, repay, cancel or redeem any of its
share capital; or
	 
	 	(v)	 	pay for any expenditures or other costs not contemplated in the
Life of Mine Plan.

	 	(b)	 	Clause 22.11(a) shall not apply (and accordingly any such payments will
constitute a Permitted Disposal) provided that in the opinion of the Facility Agent (in
its discretion, but acting reasonably) no Default has occurred and is continuing or
would occur as a result of such declaration or payment, if such Default would or would
be reasonably likely to have a Material Adverse Effect.

	22.12	 	No borrowings
	 
	 	 	The Borrower shall not directly or indirectly create, incur, assume or otherwise become or
remain directly or indirectly liable with respect to any Financial Indebtedness except
Permitted Financial Indebtedness.
	 
	22.13	 	Subsidiaries
	 
	 	 	The Borrower shall not create or hold any new Subsidiaries, without the prior consent of the
Facility Agent (acting on the instructions of the Majority Lenders).
	 
	22.14	 	Arm’s length transactions

	 	(a)	 	The Borrower shall not enter into any agreement or arrangement with any person
other than on terms that are no less favourable to it than a transaction entered into
on an arm’s length basis.
	 
	 	(b)	 	Clause 22.14(a) above shall not apply to any Financial Indebtedness to the
extent that the same:

	 	(i)	 	constitutes Permitted Financial Indebtedness; and
	 
	 	(ii)	 	is on terms which are equal to or more favourable to it than a
transaction entered into on an arm’s length basis.

 

 

	22.15	 	Environmental undertakings
	 
	 	 	The Borrower shall:

	 	(a)	 	comply with all Environmental Laws to which it may be subject;
	 
	 	(b)	 	obtain all Applicable Permits required in connection with its business; and
	 
	 	(c)	 	comply with the terms of all those Applicable Permits,

	 	 	in each case where failure to do so would result in a Material Adverse Effect.
	 
	22.16	 	Environmental claims
	 
	 	 	The Borrower shall promptly notify the Facility Agent of any Environmental Claim, which
could result in a Material Adverse Effect. In such case, the Borrower shall submit to the
Facility Agent in writing a plan to respond to and address such Environmental Claim as soon
as practicable. The Facility Agent may consult with the Independent Engineer in its review
of such plan.
	 
	22.17	 	ERISA
	 
	 	 	The Borrower shall not establish, maintain, contribute to or become obligated to contribute
to any Benefit Plan.
	 
	23.	 	ACCOUNTS AND PAYMENT WATERFALL
	 
	23.1	 	Debt Service Reserve Account

	 	(a)	 	The Borrower shall open and maintain the Debt Service Reserve Account with the
Facility Agent.
	 
	 	(b)	 	Cash balances in the Debt Service Reserve Account shall bear interest at the
rate and in the manner agreed between the Facility Agent and the Borrower.
	 
	 	(c)	 	The credit balance of the Debt Service Reserve Account must at all times be at
least equal to the aggregate of the applicable Minimum Balance.
	 
	 	(d)	 	An amount equal to the Minimum Balance will not be disbursed to the Borrower
and will instead be withheld by the Facility Agent from the Utilisation of the Facility
and credited by the Facility Agent to the Debt Service Reserve Account.
	 
	 	(e)	 	The Borrower must ensure that sufficient funds are provided to the Facility
Agent for onward credit to the Debt Service Reserve Account such that as of any
determination date, the credit balance of the Debt Service Reserve Account is equal to
the aggregate of the Minimum Balance that shall be applicable as at such date.
	 
	 	(f)	 	The Borrower hereby authorises the Facility Agent (if there is any default in
payment by the Borrower under this Agreement) to debit amounts standing to the credit
of the Debt Service Reserve Account, interest accrued and outstanding and all other
amounts owed by the Borrower to the Finance Parties under this Agreement.
	 
	 	(g)	 	If at any time pursuant to a debit of the Debt Service Reserve Account in
accordance with clause 23.1(f) above the credit balance of the Debt Service Reserve
Account is

 

 

	 	 	 	less than the applicable Minimum Balance, the Borrower shall ensure that no later
than the date falling five calendar days after any such debit of the Debt Service
Reserve Account, sufficient funds are provided by the Borrower to the Facility Agent
for deposit to the Debt Service Reserve Account so as to ensure that the credit
balance of the Debt Service Reserve Account is equal to or greater than the
applicable Minimum Balance. If as at the date falling five calendar days after any
debit of the Debt Service Reserve Account pursuant to clause 23.1(b) above, the
credit balance of the Debt Service Reserve Account is less than the applicable
Minimum Balance, this shall constitute an immediate Event of Default pursuant to
clause 23.2(d).
	 
	 	(h)	 	Subject to no Event of Default having occurred and being continuing, at such
time, any amount standing to the credit of the Debt Service Reserve Account which is in
excess of the Minimum Balance shall be paid by the Facility Agent to such account as
the Borrower may direct for application as the Borrower sees fit.

	23.2	 	Proceeds Account — Collections and Payment Waterfall

	 	(a)	 	The Borrower shall open and maintain the Proceeds Account with the Facility
Agent. Cash balances in the Proceeds Account shall bear interest at the rate and in
the manner agreed between the Facility Agent and the Borrower.
	 
	 	(b)	 	Unless otherwise directed by the Facility Agent, all payments for Product
delivered under each Offtake Contract shall be made by the relevant Offtakers in each
case making payment in US Dollars directly to the Proceeds Account (or such other
account as the Facility Agent may direct).
	 
	 	(c)	 	With the consent of the Facility Agent (on behalf of the Majority Lenders) the
Borrower may establish US-domiciled bank accounts for the collection of Product
Proceeds, but only on the basis that the Security Agent is granted full security rights
over, and the right to control withdrawals from, any such account(s) for the purpose of
remitting Product Proceeds to the Proceeds Account.
	 
	 	(d)	 	Subject to the rights, powers and remedies of the Finance Parties under the
Finance Documents and so long as no Event of Default or Default has occurred and is
continuing, the Borrower may make withdrawals or transfers from the Proceeds Account
for the following purposes only and in the following order of priority:

	 	(i)	 	first, in payment of operating costs of the Project consistent
with the Life of Mine Plan;
	 
	 	(ii)	 	secondly, in payment of:

	 	(A)	 	government royalties; and
	 
	 	(B)	 	Taxes in relation to the Project;

	 	(iii)	 	thirdly, in payment of:

	 	(A)	 	any payments required to be made to the Hedge
Provider under the Hedging Arrangements; and
	 
	 	(B)	 	any payments of any interest and fees then due
and payable to the Finance Parties under or pursuant to the Facility,

 

 

	 	 	 	and any such payments in this clause 23.2(d)(iii) shall be ranked pari passu
between the Hedge Provider and any Finance Party;
	 
	 	(iv)	 	fifthly, in or towards payment of any principal then due and
payable to the Finance Parties under or pursuant to the Facility;
	 
	 	(v)	 	sixthly, for transfer to the Debt Service Reserve Account in
such amount as may be required to maintain the balance in the Debt Service
Reserve Account at the Minimum Balance;
	 
	 	(vi)	 	seventhly, at the request of the Borrower in voluntary
prepayment of the Secured Liabilities; and
	 
	 	(vii)	 	eighthly, any balance may be used by the Borrower for any
lawful purpose in its discretion.

	23.3	 	Proceeds of Enforcement — Payment Waterfall
	 
	 	 	Following the occurrence of an Event of Default which is continuing, all amounts standing to
the credit of any Account together with any proceeds of enforcement of the Security
Documents and any other amounts paid to the Security Agent or the Facility Agent shall be
applied in the following order:

	 	(a)	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of
the Administrative Parties under the Finance Documents;
	 
	 	(b)	 	secondly, in or towards payment of any outstanding amounts due to each Lender
and the Hedge Provider (on a pari passu basis);
	 
	 	(c)	 	thirdly, in or towards payment pro rata of any other amounts due to any other
Finance Party; and
	 
	 	(d)	 	fourthly, any surplus (if any) to the Borrower or any other party thereto.

	23.4	 	Accounts — General

	 	(a)	 	Without prejudice to the Facility Agent’s general rights of set-off over any
credit balance which may be held in the Debt Service Reserve Account from time to time,
the Facility Agent may at any time and from time to time withdraw any amount standing
to the credit of the Debt Service Reserve Account or Proceeds Account in settlement of
any of the Secured Liabilities then due and payable or to apply it in any manner
provided by the Finance Documents.
	 
	 	(b)	 	If any account terms and conditions applying to the Debt Service Reserve
Account and the Proceeds Account are inconsistent with the terms of any Finance
Document, the terms of the relevant Finance Document shall prevail to the extent of the
inconsistency.
	 
	 	(c)	 	Nothing contained in any Finance Document shall oblige any withdrawal to be
made from the Debt Service Reserve Account or the Proceeds Account which would result
in it going into overdraft.
	 
	 	(d)	 	In relation to all aspects of the Debt Service Reserve Account and the Proceeds
Account, the Facility Agent shall act in accordance with the terms of the Finance

 

 

	 	 	 	Documents. The Borrower shall not be entitled to give any instructions to the
Facility Agent in relation to any aspect of the Debt Service Reserve Account or make
any withdrawals or transfers, save as contemplated in clause 23.1(h) above.
	 
	 	(e)	 	To the extent that there is any inconsistency between the terms of this
Agreement and those of the Debt Service Reserve Account Charge or any Proceeds Account
Charge, the terms of the Debt Service Reserve Account Charge or any Proceeds Account
Charge shall take precedence to the extent of the inconsistency.

	23.5	 	Separateness
	 
	 	 	The Borrower will (in each case, to the extent within its control) maintain its separate
existence and identity and will take all steps necessary to make it apparent to third
parties that the Borrower is an entity with assets and liabilities distinct from those of
Guarantor or any Affiliate of any thereof. In addition to the foregoing, such steps and
indicia of the Borrower’s separate identity include the following:

	 	(a)	 	the Borrower will maintain its own stationery and other business forms separate
from those of any other Person (including Guarantor), and will conduct business in its
own name except that certain of the Persons may act on behalf of the Borrower as an
agent;
	 
	 	(b)	 	the Borrower will maintain separate office space of its own as part of its
operations. The corporate records, the other books and records, and the other assets
of the Borrower will be segregated from the property of Guarantor;
	 
	 	(c)	 	each of the UCC financing statements filed and real estate recordings made in
connection with the transactions described in the Finance Documents and Transaction
Documents will show that the property that is the subject thereof belongs to the
Borrower and not show that any of it is the property of the Guarantor;
	 
	 	(d)	 	either (x) the Borrower will pay its own operating expenses and liabilities
from its own funds or (y) to the extent that the Guarantor pays on behalf of the
Borrower any of the Borrower’s operating expenses or liabilities, the Guarantor will
account for such payment by recording the amount paid on behalf of the Borrower as an
inter-company advance to the Borrower and the Borrower will record it as an
inter-company payable to the Guarantor;
	 
	 	(e)	 	each of the Borrower and Guarantor or any Affiliate of any thereof will
maintain its assets and liabilities in such a manner that it is not costly or difficult
to segregate, ascertain or otherwise identify the Borrower’s individual assets and
liabilities from those of Guarantor or any Affiliate thereof or from those of any other
person or entity. Except as set forth below, the Borrower will maintain its own books
of account and corporate records separate from Guarantor or any Affiliate thereof.
Monetary transactions, including those between the Borrower, on the one hand, and the
Guarantor and its Affiliates, on the other hand, will be properly reflected in their
respective financial records. The Borrower will not commingle or pool its funds or
other assets or liabilities with those of Guarantor or any Affiliate thereof except (x)
as part of the Guarantor’s cash management system under which receipts and
disbursements for it and its subsidiaries are deposited to and made from common
accounts and contemporaneously therewith appropriate entries are made crediting
receipts and charging disbursements to the inter-company accounts of the appropriate
entities (the “Consolidated Cash Management System”) and (y) with respect to, if
applicable, any such party’s retention in their capacity as agent, trustee or custodian

 

 

	 	 	 	for the Borrower, of the books and records pertaining to the Project and the Site.
However, any such agent, trustee or custodian will not generally make the books and
records relating to the Project and the Site available to any creditors or other
interested persons of Guarantor or any Affiliate of any thereof. Except as
described above in connection with the Consolidated Cash Management System, the
Borrower does not maintain joint bank accounts or other depository accounts to which
Guarantor or any Affiliate thereof has independent access;
	 
	 	(f)	 	the Borrower will strictly observe corporate formalities, and the Guarantor and
each Affiliate thereof will strictly observe corporate formalities with respect to its
dealings with the Borrower. Specifically, no transfer of assets between the Guarantor
or any Affiliate thereof, on the one hand, and the Borrower, on the other, will be made
without being recorded as an inter-company advance or liability, as appropriate, or
otherwise following appropriate corporate formalities;
	 
	 	(g)	 	save pursuant to the terms of this Agreement, the Facility Guarantee and the
Guarantor Pledge Agreement, the Guarantor will not be, or will not hold itself out to
be, responsible for the debts of the Borrower;
	 
	 	(h)	 	all distributions made by the Borrower to the Guarantor as its sole member (if
permitted by the terms of this Agreement) shall be in accordance with its governing
documents and with applicable Laws;
	 
	 	(i)	 	any other transactions between the Borrower and Guarantor or any Affiliate
thereof not described in this clause 23.5 that are permitted by (although not expressly
provided for in) the Finance Documents will be fair and equitable to each of the
parties, will be the type of transaction that would be entered into by a prudent person
or entity, and have been and will be on terms that are at least as favourable as may be
obtained from a third-party Person, it being understood that the foregoing does not
apply to the Borrower’s participation in either the Consolidated Cash Management
System, any joint insurance policies covering both the Guarantor and the Borrower and
other Affiliates thereof or any arm’s length transaction permitted by the terms of
clause 22.14 (Arm’s length transactions);
	 
	 	(j)	 	whenever the Borrower is named, directly or indirectly, as a direct or
contingent beneficiary or loss payee on any jointly-maintained insurance policy
covering both its assets and the assets of the Guarantor the Borrower will cause the
proceeds of any claims payment under any such policy to be paid to it, and it will not
retain any claims payment under any such policy to the extent that it does not relate
to the property of the Borrower; and
	 
	 	(k)	 	the Borrower will be held out to the public as a separate entity apart from
Guarantor or any Affiliate thereof.

	24.	 	EVENTS OF DEFAULT
	 
	 	 	Each of the events or circumstances set out in clause 24 (Events of Default) (save for
clause 24.24 (Acceleration)) is an Event of Default.

 

 

	24.1	 	Non-payment

	 	 	An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at
the place and in the currency in which it is expressed to be payable unless:

	 	(a)	 	its failure to pay is caused by:

	 	(i)	 	administrative or technical error; or
	 
	 	(ii)	 	a Disruption Event; and

	 	(b)	 	payment is made within three Business Days of its due date.

	24.2	 	Specific covenants

	 	(a)	 	Any requirement of clause 20 (Financial covenants) is not satisfied; or
	 
	 	(b)	 	the credit balance of the Debt Service Reserve Account is less than the
aggregate of the Minimum Balance for a period of five consecutive days.

	24.3	 	Other obligations

	 	(a)	 	An Obligor does not comply with any provision of any Finance Document to which
it is a party, other than those referred to in:

	 	(i)	 	clause 24.1 (Non-payment);
	 
	 	(ii)	 	clause 24.2 (Specific covenants); and
	 
	 	(iii)	 	clause 10.1(b) of the Facility Guarantee (but without
prejudice to the Borrower’s obligations under clause 7.2(b) of this Agreement).

	 	(b)	 	No Event of Default under clause 24.3(a) above will occur if the failure to
comply is capable of remedy and is remedied within 15 Business Days of the Facility
Agent giving notice to the Borrower or, if earlier, the Borrower becoming aware of the
failure to comply, save that this clause 24.3(b) shall not apply to:

	 	(i)	 	an Event of Default under clauses 24.6 (Insolvency) to 24.8
(Creditors’ process); or
	 
	 	(ii)	 	a breach of clause 22.10 (Use of proceeds).

	 	(c)	 	The Borrower fails to satisfy the conditions subsequent set out in clause 4.3
(Conditions Subsequent) within the prescribed period of time.

	24.4	 	Misrepresentation

	 	(a)	 	Any representation or statement made or deemed to be made by an Obligor in the
Finance Documents or any other document delivered by or on behalf of any Obligor under
or in connection with any Finance Document is or proves to have been incorrect or
misleading in any material respect when made or deemed to be made.
	 
	 	(b)	 	No Event of Default under clause 24.4(a) above will occur if the
misrepresentation or misstatement is capable of remedy and is remedied within 15
Business Days of the

 

 

	 	 	 	Facility Agent giving notice to the Borrower or, if earlier, the Borrower becoming
aware of the failure to comply.

	24.5	 	Cross default

	 	(a)	 	Any Financial Indebtedness of any Obligor is not paid when due nor within any
originally applicable grace period.
	 
	 	(b)	 	Any Financial Indebtedness of any Obligor is declared to be or otherwise
becomes due and payable prior to its specified maturity as a result of an event of
default (however described).
	 
	 	(c)	 	Any commitment for any Financial Indebtedness of any Obligor is cancelled or
suspended by a creditor of any Obligor as a result of an event of default (however
described).
	 
	 	(d)	 	Any creditor of any Obligor becomes entitled to declare any Financial
Indebtedness of any Obligor due and payable prior to its specified maturity as a result
of an event of default (however described).
	 
	 	(e)	 	No Event of Default will occur under this clause 24.5 (Cross default) if the
aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness of
the Borrower, falling within clauses 24.5(a) to 24.5(d) above, is less than
US$1,000,000 (or its equivalent in any other currency or currencies).
	 
	 	(f)	 	No Event of Default will occur under this clause 24.5 (Cross default) if the
aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness, of
the Guarantor, falling within clauses 24.5(a) to 24.5(d) above is less than
US$25,000,000 (or its equivalent in any other currency or currencies).

	24.6	 	Insolvency

	 	(a)	 	An Obligor is unable or admits inability to pay its debts as they fall due,
suspends making payments on any of its debts or, by reason of actual or anticipated
financial difficulties, commences negotiations with one or more of its creditors with a
view to rescheduling any of its indebtedness.
	 
	 	(b)	 	The value of the assets of any Obligor is less than its liabilities (taking
into account contingent and prospective liabilities as recognised in accordance with US
GAAP).
	 
	 	(c)	 	A moratorium is declared in respect of any indebtedness of any Obligor.

	24.7	 	Insolvency proceedings

	 	 	Any corporate action, legal proceedings or other procedure or step is taken in relation to:

	 	(a)	 	the suspension of payments, a moratorium of any indebtedness, winding-up,
dissolution, administration or reorganisation (by way of voluntary arrangement, scheme
of arrangement or otherwise) of any Obligor;
	 
	 	(b)	 	a composition, compromise, assignment or arrangement with any creditor of any
Obligor;

 

 

	 	(c)	 	the appointment of a liquidator, receiver, administrative receiver,
administrator, compulsory manager or other similar officer in respect of any Obligor or
any of its assets; or
	 
	 	(d)	 	enforcement of any Security over any assets of any Obligor,

	 	 	or any analogous procedure or step is taken in any jurisdiction, where such corporate
action, legal proceedings or other procedure or step is not dismissed, stayed, discharged,
struck out, withdrawn or otherwise cancelled within 15 Business Days of being commenced.

	24.8	 	Creditors’ process

	 	 	Any expropriation, attachment, sequestration, distress or execution affects any asset or
assets of the Borrower and is not discharged within 10 Business Days.

	24.9	 	Unlawfulness

	 	(a)	 	It is or becomes unlawful for an Obligor to perform any of its obligations
under any Finance Document.
	 
	 	(b)	 	Any obligation of any Obligor under any Finance Document is not, or ceases to
be, legal, valid and binding.

	24.10	 	Repudiation

	 	 	An Obligor repudiates a Finance Document (or any of its obligations under a Finance
Document) or evidences an intention to repudiate a Finance Document (or any such
obligation).

	24.11	 	Material Adverse Effect

	 	(a)	 	A Material Adverse Effect occurs.
	 
	 	(b)	 	No Event of Default under clause 24.11(a) above will occur if the Material
Adverse Effect is capable of remedy and is remedied within 15 Business Days of the
Facility Agent giving notice to the Borrower or, if earlier, any Borrower becoming
aware of the Material Adverse Effect.

	24.12	 	Expropriation

	 	 	At any time after the date of this Agreement, by or under the authority of any Governmental
Authority:

	 	(a)	 	the management board, board of directors or the general director of the
Borrower is wholly or partially displaced or the authority of the Borrower in the
conduct of a material portion of its business is curtailed;
	 
	 	(b)	 	any of the revenues of the Borrower are, nationalised, expropriated or
compulsorily acquired;
	 
	 	(c)	 	any of the material assets of the Borrower are seised, nationalised,
expropriated or compulsorily acquired; or

 

 

	 	(d)	 	the Borrower is otherwise deprived or prevented from exercising ownership or
control of its business, assets or rights.

	24.13	 	Loss of or Failure to Obtain Applicable Permits

	 	(a)	 	The Borrower shall fail to obtain any Permit on or before the date that such
Permit becomes an Applicable Permit and such failure would (in the absence of any
remedial action) have a Material Adverse Effect; provided that no Event of Default
shall occur for a period of up to thirty (30) days following any such failure so long
as (x) the Borrower is diligently seeking to remedy such failure, (y) the Borrower
continues to operate the Project as contemplated by the Facility Documents and the
Project Documents and (z) at all times during such 30-day period there has not
occurred, nor after consideration of the nature of the Borrower’s efforts to remedy
such failure, would there reasonably be expected to occur, a Material Adverse Effect.
	 
	 	(b)	 	Any Applicable Permit necessary for operation of the Project by the Borrower
shall be materially modified (other than modifications requested by the Borrower and
approved in writing in advance of such modification by the Facility Agent acting at the
direction of the Required Lenders, which approval shall not be unreasonably withheld),
revoked, cancelled or not renewed by the issuing agency or other Governmental Authority
having jurisdiction and loss of such Permit would reasonably be expected to have a
Material Adverse Effect; provided that no Event of Default shall occur for a period up
to 120 days following any such modification, revocation, cancellation or non-renewal so
long as (x) the Borrower is diligently appealing (or causing to be appealed) such
modification, revocation or cancellation, (y) the Borrower continues to operate the
Project as contemplated by the Finance Documents and the Project Documents and the
enforcement of such modification, revocation or cancellation is effectively stayed
during such period of operation, and (z) at all times during the pendency of such
appeal, there has not occurred, nor after consideration of the nature of the Borrower’s
efforts in respect of such appeal, would there reasonably be expected to occur, a
Material Adverse Effect.

	24.14	 	Moratorium

	 	 	A moratorium is established on the payment of interest or repayment of principal on
international debts of borrowers in London, Zurich, Delaware, Idaho or Alaska generally or a
class of such borrower into which any Obligor falls.

	24.15	 	Authorisations

	 	 	Any Authorisation of an Obligor is revoked, suspended or is modified in a manner which, in
the opinion of the Majority Lenders, may have a Material Adverse Effect, or restrictions or
conditions are, or it is threatened that they will be, or proceedings have begun which may
result in such restrictions or conditions being, imposed on any Authorisation so as to
impede that Obligor’s ability to perform its obligations under the Finance Documents to
which it is a party and/or may mean that any Finance Document is not legally valid, binding,
enforceable and admissible in evidence to the courts of London, Zurich, Alaska, Delaware, or
Idaho.

	24.16	 	Failure to comply with final judgment

	 	 	The Borrower fails to comply with, or pay any sum due by it under:

	 	(a)	 	any final civil judgment; or

 

 

	 	(b)	 	any civil final order,

	 	 	in either case, made or given by any court of London, Zurich, Delaware, Idaho, or Alaska, in
relation to a claim not covered by insurance and which is greater than or equal to
US$1,000,000 (or its equivalent in another currency or currencies).

	24.17	 	No dividends

	 	 	The Borrower pays, makes or declares any dividend or other distribution in an amount
exceeding its annual net profit (calculated in accordance with US GAAP) for the Fiscal Year
in relation to which the dividend or other distribution is proposed to be made.

	24.18	 	Environmental Laws

	 	 	The Borrower does not comply with any Environmental Laws to which it is subject and such
non-compliance results in a Material Adverse Effect.

	24.19	 	Security

	 	 	Any of the Security Documents, once executed and delivered, shall, except as the result of
the acts or omissions of the Administrative Parties (or other Finance Parties) (except any
such omission in respect of which the Borrower is expressly obligated under the Finance
Documents), in any material respect cease to be in full force and effect as applied to the
Borrower or Guarantor, or fail to provide the Administrative Parties (or other Finance
Parties) the Liens and associated rights and remedies permitted by Law purported to be
created thereby.

	24.20	 	Destruction of the Project

	 	 	All or a material portion of the assets or operations of the Project are destroyed, or
suffer an actual or constructive loss or material damage, and:

	 	(a)	 	thereafter, the following conditions are not met:

	 	(i)	 	a decision has been made to repair or restore the Project by
the Majority Lenders;
	 
	 	(ii)	 	all Insurance Proceeds and/or Eminent Domain Proceeds received
by the Borrower shall be deposited into the Debt Service Reserve Account; and
	 
	 	(iii)	 	the Borrower certifies, and the Facility Agent determines in
its reasonable judgment that a sufficient amount of funds is or will be
available to the Borrower in the Debt Service Reserve Account to make repairs
and restorations (and to continue to make all payments in accordance with
clause 23.1 (Debt Service Reserve Account) which will become due during and
following such repair period);or

	 	(b)	 	the Project ceases to operate for a period beyond the later of (i) 60 days
after the receipt of Insurance Proceeds from or (ii) 120 days after the event of loss
unless restoration or repair shall have been approved in accordance with, clause
24.20(a) above.

 

 

	24.21	 	Transaction Documents

	 	(a)	 	Any Transaction Document is terminated, suspended or otherwise ceases to be
valid and in full force and effect and a replacement Transaction Document substantially
similar in all respects is not entered within 45 days of the same.
	 
	 	(b)	 	If any of the events or circumstances set out in clauses 24.6 (Insolvency) to
24.8 (Creditors’ process) occurs in relation to any party to a Transaction Document
(excepting the Obligors) including the Offtakers.

	24.22	 	Environmental claim

	 	 	Any action is taken, proposed or indicated by the federal government of the United States,
the United States federal courts or any other federal authority or body in the United
States, in respect of any Environmental Claim against the Borrower which the Facility Agent
in its discretion (acting reasonably) considers would or may result in a Lien being imposed
on upon all or any part of the Borrower’s assets which has the ability to rank in priority
to any Lien created pursuant to any of the Finance Documents.

	24.23	 	ERISA

	 	 	If the Borrower or any ERISA Affiliate should establish, maintain, contribute to or become
obligated to contribute to any Benefit Plan and (i) a reportable event (as defined in
section 4043(b) of ERISA for which notice has not been waived by the PBGC) shall have
occurred with respect to any Benefit Plan and, within 30 days after the reporting of such
reportable event to the Facility Agent by the Borrower and the furnishing of such
information as the Facility Agent may reasonably request with respect thereto, the Facility
Agent shall have notified the Borrower in writing that (A) the Facility Agent has made a
reasonable determination that, on the basis of such reportable event, there are reasonable
grounds for the termination of such ERISA Plan by the PBGC or for the appointment by the
appropriate United States District Court of a trustee to administer such Benefit Plan, and
(B) as a result thereof, an Event of Default exists hereunder; or (ii) a trustee shall be
appointed by a United States District Court to administer any Benefit Plan; or (iii) the
PBGC shall institute proceedings to terminate any Benefit Plan; or (iv) a complete or
partial withdrawal by the Borrower or any ERISA Affiliate from any Multiemployer Plan shall
have occurred, or any Multiemployer Plan shall enter reorganisation status, become insolvent
or terminate (or notify the Borrower or ERISA Affiliate of its intent to terminate) under
section 4041A of ERISA and, within thirty (30) days after the reporting of any such
occurrence to the Facility Agent by the Borrower and the furnishing of such information as
the Facility Agent may reasonably request with respect thereto, the Facility Agent shall
have notified the Borrower in writing that the Facility Agent has made a determination that,
on the basis of such occurrence, an Event of Default exists hereunder, provided that the
events described in this clause 24.4 (Misrepresentation) will not result in an Event of
Default unless the subject event involves (x) one or more Benefit Plans that are
single-employer plans (as defined in section 4001(a)(l5) of ERISA) and under which the
aggregate gross amount of unfunded benefit liabilities (as defined in section 400l(a)(16) of
ERISA), including vested unfunded liabilities which arise or would reasonably be expected to
arise as the result of the termination of such Benefit Plans, exceeds $1,000,000, and/or (y)
one or more Multiemployer Plans to which the aggregate withdrawal liabilities of the
Borrower and all ERISA Affiliates exceeds $1,000,000.

 

 

	24.24	 	Acceleration

	 	 	On and at any time after the occurrence of an Event of Default which is continuing the
Facility Agent may, and shall, if so directed by the Majority Lenders, by notice to the
Borrower:

	 	(a)	 	cancel the Total Commitments whereupon they shall immediately be cancelled;
	 
	 	(b)	 	declare that all or part of the Loan, together with accrued interest, and all
other amounts accrued or outstanding under the Finance Documents be immediately due and
payable, whereupon they shall become immediately due and payable;
	 
	 	(c)	 	declare that all or part of the Loan be payable on demand, whereupon they shall
immediately become payable on demand by the Facility Agent on the instructions of the
Majority Lenders; and/or
	 
	 	(d)	 	declare any Security created pursuant to the Security Documents to be
enforceable and take any steps to preserve or enforce such Security.

	25.	 	CHANGES TO THE LENDERS

	25.1	 	Assignments and transfers by the Lenders

	 	 	Subject to this clause 25 (Changes to the Lenders), a Lender (the “Existing Lender”) may:

	 	(a)	 	assign any of its rights; and/or
	 
	 	(b)	 	transfer by novation any of its rights and obligations;

	 	 	under any of the Finance Documents to a bank or financial institution or to a trust, fund or
other entity which is regularly engaged in or established for the purpose of making,
purchasing or investing in loans, securities or other financial assets (the “New Lender”).

	25.2	 	Conditions of assignment or transfer

	 	(a)	 	The consent of the Borrower is required for an assignment or transfer by an
Existing Lender, unless the assignment or transfer is to another Lender or an Affiliate
of a Lender. No such consent shall be required if an Event of Default has occurred and
is continuing.
	 
	 	(b)	 	The consent of the Borrower to an assignment or transfer must not be
unreasonably withheld. The Borrower will be deemed to have given its consent five
Business Days after the Existing Lender has requested it unless consent is expressly
refused by the Borrower within that time. Any refusal of consent by the Borrower must
be accompanied by a written explanation for the reasons behind the refusal.
	 
	 	(c)	 	An assignment will only be effective on:

	 	(i)	 	receipt by the Facility Agent of written confirmation from the
New Lender (in form and substance satisfactory to the Facility Agent) that the
New Lender will assume the same obligations to the other Finance Parties as it
would have been under if it was an Original Lender; and

 

 

	 	(ii)	 	performance by the Facility Agent of all necessary “know your
customer” or other similar checks under all applicable Laws and regulations in
relation to such assignment to a New Lender, the completion of which the
Facility Agent shall promptly notify to the Existing Lender and the New Lender.

	 	(d)	 	A transfer will only be effective if the procedure set out in clause 25.5
(Procedure for transfer) is complied with.
	 
	 	(e)	 	If:

	 	(i)	 	a Lender assigns or transfers any of its rights or obligations
under the Finance Documents or changes its Facility Office; and
	 
	 	(ii)	 	as a result of circumstances existing at the date the
assignment, transfer or change occurs, the Borrower would be obliged to make a
payment to the New Lender or Lender acting through its new Facility Office
under clause 12 (Tax gross-up and indemnities) or clause 13 (Increased Costs),

	 	 	 	then the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those clauses to the same extent as the Existing
Lender or Lender acting through its previous Facility Office would have been if the
assignment, transfer or change had not occurred.

	25.3	 	Assignment or transfer fee

	 	 	The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to
the Facility Agent (for its own account) a fee of US$2,000.

	25.4	 	Limitation of responsibility of Existing Lenders

	 	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of the
Finance Documents or any other documents;
	 
	 	(c)	 	the financial condition of any Obligor;
	 
	 	(d)	 	the performance and observance by any Obligor of its obligations under the
Finance Documents or any other documents; or
	 
	 	(e)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Finance Document or any other document,
	 
	 	 	 	and any representations or warranties implied by Law are excluded.
	 
	 	(f)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties
that it:

	 	(i)	 	has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of each
Obligor and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by
the Existing Lender in connection with any Finance Document; and

 

 

	 	(ii)	 	will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities whilst any amount is
or may be outstanding under the Finance Documents or any Commitment is in
force.

	 	(g)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and
obligations assigned or transferred under this clause 25 (Changes to the
Lenders); or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New
Lender by reason of the non-performance by any Obligor of its obligations under
the Finance Documents or otherwise.

	25.5	 	Procedure for transfer

	 	(a)	 	Subject to the conditions set out in clause 25.2 (Conditions of assignment or
transfer) a transfer is effected in accordance with clause 25.5(c) below when the
Facility Agent counter-signs an otherwise duly completed Transfer Certificate delivered
to it by the Existing Lender and the New Lender. The Facility Agent shall, subject to
paragraph 25.5(b) below, as soon as reasonably practicable after receipt by it of a
duly completed Transfer Certificate appearing on its face to comply with the terms of
this Agreement and delivered in accordance with the terms of this Agreement, execute
that Transfer Certificate.
	 
	 	(b)	 	The Facility Agent shall only be obliged to execute a Transfer Certificate
delivered to it by the Existing Lender and the New Lender once it is satisfied it has
complied with all necessary “know your customer” or other similar checks under all
applicable Laws and regulations in relation to the transfer to such New Lender.
	 
	 	(c)	 	On the Transfer Date:

	 	(i)	 	to the extent that in the Transfer Certificate the Existing
Lender seeks to transfer by novation its rights and obligations under the
Finance Documents each of the Obligors and the Existing Lender shall be
released from further obligations towards one another under the Finance
Documents and their respective rights against one another under the Finance
Documents shall be cancelled (being the “Discharged Rights and Obligations”);
	 
	 	(ii)	 	the Borrower and the New Lender shall assume obligations
towards one another and/or acquire rights against one another which differ from
the Discharged Rights and Obligations only insofar as the Borrower and the New
Lender have assumed and/or acquired the same in place of the Borrower and the
Existing Lender;
	 
	 	(iii)	 	the Administrative Parties, the New Lender and other Lenders
shall acquire the same rights and assume the same obligations between
themselves as they would have acquired and assumed had the New Lender been an
Original Lender with the rights and/or obligations acquired or assumed by it as
a result of the transfer and to that extent the Administrative Parties and the
Existing Lender shall each be released from further obligations to each other
under the Finance Documents; and
	 
	 	(iv)	 	the New Lender shall become a Party as a “Lender”.

 

 

	25.6	 	Copy of Transfer Certificate to Borrower

	 	 	The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Borrower a copy of that Transfer Certificate.

	25.7	 	Disclosure of information

	 	 	Any Finance Party may disclose to any Authorised Recipient any relevant information about
any Obligor, the Facility and the Finance Documents as that Lender shall consider
appropriate.

	25.8	 	Information sharing

	 	 	Subject to the entry by the relevant Finance Party into a Confidentiality Undertaking, each
of the Finance Parties may exchange, use, analyse and assess information held about the
Borrower and the Guarantor, including information about the Project, and any other
relationships such Finance Party may have with the Borrower or Guarantor, with any other of
the Finance Parties. The Borrower and Guarantor hereby irrevocably wave their irrespective
rights to have such information kept confidential by the relevant Finance Party under the
applicable Swiss banking regulations and all other laws

	26.	 	CHANGES TO THE OBLIGORS
	 
	26.1	 	Assignment and transfer by Obligors

	 	 	The Borrower may not assign any of its rights or transfer any of its rights or obligations
under the Finance Documents, other than with the prior written consent of the Facility
Agent.

	27.	 	ROLE OF THE ADMINISTRATIVE PARTIES

	27.1	 	Appointment of the Agents

	 	(a)	 	Each Finance Party appoints the Facility Agent to act as its agent under and in
connection with the Finance Documents.
	 
	 	(b)	 	Each Finance Party appoints the Security Agent to act as its agent and trustee
under and in connection with the Finance Documents and the Collateral an in accordance
with the terms of schedule 6 (Security Provisions).
	 
	 	(c)	 	Each of the Finance Parties authorises each Agent to:

	 	(i)	 	exercise the rights, powers, authorities and discretions
specifically given to that Agent under or in connection with the Finance
Documents together with any other incidental rights, powers, authorities and
discretions; and
	 
	 	(ii)	 	to execute each of the Finance Documents (to which that Agent
is expressed to be a party) and all other documents that may be approved by (in
the case of the Facility Agent) the Majority Lenders or (in the case of the
Security Agent) the Facility Agent, for execution by it.

	27.2	 	Duties of the Agents

	 	(a)	 	The Facility Agent shall promptly forward to a Party the original or a copy of
any document which is delivered to the Facility Agent for that Party by any other
Party.

 

 

	 	(b)	 	Except where a Finance Document specifically provides otherwise, the Facility
Agent is not obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party.
	 
	 	(c)	 	If the Facility Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a Default, it shall
promptly notify the Finance Parties.
	 
	 	(d)	 	If the Facility Agent is aware of the non-payment of any principal, interest or
fee payable to a Finance Party (other than the Administrative Parties) under this
Agreement it shall promptly notify the other Finance Parties.
	 
	 	(e)	 	The Facility Agent shall promptly send the Security Agent such certification as
the Security Agent may require from time to time pursuant to schedule 6 (Security
Provisions).
	 
	 	(f)	 	The duties of each Agent under the Finance Documents are solely mechanical and
administrative in nature and no Agent is obliged to exercise any discretion, whether in
relation to the exercise of a power or otherwise, under the Finance Document, without
first receiving the instructions of, in the case of the Facility Agent, the Majority
Lenders or, in the case of the Security Agent, the Facility Agent. No Agent shall have
any other duties save as expressly provided for in the Finance Documents.

	27.3	 	Role of the Arranger

	 	 	Except as specifically provided in the Finance Documents, the Arranger has no obligations of
any kind to any other Party under or in connection with any Finance Document.

	27.4	 	No fiduciary duties

	 	(a)	 	Nothing in this Agreement constitutes any Administrative Party (save for the
Security Agent in relation to the Charged Property and as expressly provided in
schedule 6 (Security Provisions) and the Security Documents) as a trustee or fiduciary
of any other person.
	 
	 	(b)	 	No Administrative Party shall be bound to account to any Finance Party for any
sum or the profit element of any sum received by it for its own account.

	27.5	 	Business with the Borrower

	 	 	The Administrative Parties may accept deposits from, lend money to and generally engage in
any kind of banking or other business with the Borrower.

	27.6	 	Rights and discretions of the Agents

	 	(a)	 	Each Agent may rely on:

	 	(i)	 	any representation, notice or document believed by it to be
genuine, correct and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or
employee of any person regarding any matters which may reasonably be assumed to
be within his knowledge or within his power to verify.

 

 

	 	(b)	 	Each Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Lenders) that:

	 	(i)	 	no Default has occurred (unless it has actual knowledge of a
Default arising under clause 24.1 (Non-payment));
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party
or the Majority Lenders has not been exercised; and
	 
	 	(iii)	 	any notice or request made by the Borrower (other than a
Utilisation Request) is made on behalf of and with the consent and knowledge of
all the Obligors.

	 	(c)	 	Each Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.
	 
	 	(d)	 	Each Agent may act in relation to the Finance Documents through its personnel
and agents.
	 
	 	(e)	 	Each Agent may disclose to any other Party any information it reasonably
believes it has received as agent under this Agreement.
	 
	 	(f)	 	Each Agent may retain for its own benefit and without liability to account any
fee or other sum received by it for its own account.
	 
	 	(g)	 	Notwithstanding any other provision of any Finance Document to the contrary, no
Administrative Party is obliged to do or omit to do anything if it would or might in
its reasonable opinion constitute a breach of any Law or regulation or a breach of a
fiduciary duty or duty of confidentiality.

	27.7	 	Majority Lenders’ instructions

	 	(a)	 	Unless a contrary indication appears in a Finance Document:

	 	(i)	 	the Facility Agent shall:

	 	(A)	 	exercise any right, power, authority or
discretion vested in it as Facility Agent, or otherwise act, in
accordance with any instructions given to it by the Majority Lenders
(or, if so instructed by the Majority Lenders, refrain from exercising
any right, power, authority or discretion vested in it as Facility
Agent); and
	 
	 	(B)	 	not be liable for any act (or omission) if it
acts (or refrains from taking any action) in accordance with an
instruction of the Majority Lenders;

	 	(ii)	 	the Security Agent shall:

	 	(A)	 	exercise any right, power, authority or
discretion vested in it as Security Agent in accordance with any
instructions given to it by the Facility Agent (or, if so instructed by
the Facility Agent, refrain from exercising any right, power, authority
or discretion vested in it as Security Agent); and

 

 

	 	(B)	 	not be liable for any act (or omission) if it
acts (or refrains from taking any action) in accordance with such an
instruction of the Facility Agent.

	 	(b)	 	Unless a contrary indication appears in a Finance Document, any instructions
given by the Majority Lenders (in the case of the Facility Agent) or the Facility Agent
(in the case of the Security Agent) will be binding on all the Finance Parties.
	 
	 	(c)	 	Each Agent may refrain from acting in accordance with the instructions of the
Majority Lenders (in the case of the Facility Agent) or the Facility Agent (in the case
of the Security Agent) or under clause 27.7(d) below until it has received such
security as it may require for any cost, loss or liability (together with any
associated Tax) which it may incur in complying with the instructions.
	 
	 	(d)	 	In the absence of instructions from the Majority Lenders, or if appropriate the
Lenders (in the case of the Facility Agent) or the Facility Agent (in the case of the
Security Agent), each Agent may act (or refrain from taking action) as it considers to
be in the best interest of the Lenders.
	 
	 	(e)	 	No Agent is authorised to act on behalf of a Lender (without first obtaining
that Lender’s consent) in any legal or arbitration proceedings relating to any Finance
Document.
	 
	 	(f)	 	If a Lender does not respond (whether positively or negatively) to any request
made by the Facility Agent for any instruction or any approval or any consent under or
in connection with any Finance Document within 10 Business Days of the Facility Agent’s
request for instruction, approval or consent then that Lender’s participation in all
Loans or Commitments shall be excluded from the aggregate for the purpose of
determining whether the necessary percentage has been achieved for the definition of
Majority Lenders.

	27.8	 	Responsibility for documentation

	 	 	No Administrative Party:

	 	(a)	 	is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by any Administrative Party, any Obligor
or any other person given in or in connection with any Finance Document; or
	 
	 	(b)	 	is responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance
Document.

	27.9	 	Exclusion of liability

	 	(a)	 	Without limiting clause 27.9(b) below (and without prejudice to the provisions
of clause 30.10(e) (Disruption to Payment Systems etc.)), no Agent will be liable to
any Finance Party (including for negligence or any other category of liability
whatsoever) for any action taken, or omitted to be taken, by it under or in connection
with any Finance Document, unless directly caused by its gross negligence or wilful
misconduct.

 

 

	 	(b)	 	No Party (other than the relevant Agent) may take any proceedings against any
officer, employee or agent of any Agent in respect of any claim it might have against
that Agent or in respect of any act or omission of any kind by that officer, employee
or agent in relation to any Finance Document and any officer, employee or agent of that
Agent may rely on this clause subject to clause 1.4 (Third party rights).
	 
	 	(c)	 	No Agent will be liable to any Finance Party for any delay (or any related
consequences) in crediting an account with an amount required under the Finance
Documents to be paid by that Agent if that Agent has taken all necessary steps as soon
as reasonably practicable to comply with the regulations or operating procedures of any
recognised clearing or settlement system used by that Agent for that purpose.
	 
	 	(d)	 	Nothing in this Agreement shall oblige any Administrative Party to carry out
any “know your customer” or other checks in relation to any person on behalf of any
Lender and each Lender confirms to each Administrative Party that it is solely
responsible for any such checks it is required to carry out and that it may not rely on
any statement in relation to such checks made by any Administrative Party.

	27.10	 	Lenders’ Indemnity to the Agents

	 	 	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify each Agent, within three Business Days of demand, against any
cost, loss or liability (including for negligence or any other category of liability
whatsoever) incurred by that Agent (otherwise than by reason of that Agent’s gross
negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to
clause 30.10 (Disruption to Payment Systems etc.) notwithstanding that Agent’s negligence,
gross negligence or any other category of liability whatsoever but not including any claim
based on the fraud of that Agent) in acting as Facility Agent or Security Agent (as the case
may be) under the Finance Documents (unless that Agent has been reimbursed by an Obligor
pursuant to a Finance Document).

	27.11	 	Resignation of an Agent

	 	(a)	 	An Agent may resign and appoint one of its Affiliates as successor by giving
notice to the other Finance Parties and the Borrower.
	 
	 	(b)	 	Alternatively an Agent may resign by giving notice to the other Finance Parties
and the Borrower, in which case the Majority Lenders (after consultation with the
Borrower) may appoint a successor Agent (acting through an office as contemplated in
clause 27.11(a) above).
	 
	 	(c)	 	If the Majority Lenders have not appointed a successor Agent in accordance with
clause 27.11(b) above within 30 days after notice of resignation was given, the
relevant Agent (after consultation with the Borrower) may appoint a successor Agent
(acting through an office as contemplated in clause 27.11(a) above).
	 
	 	(d)	 	The retiring Agent shall, at its own cost, make available to the successor
Agent such documents and records and provide such assistance as the successor Agent may
reasonably request for the purposes of performing its functions as the relevant Agent
under the Finance Documents.
	 
	 	(e)	 	An Agent’s resignation notice shall only take effect upon the appointment of a
successor.

 

 

	 	(f)	 	Upon the appointment of a successor, the retiring Agent shall be discharged
from any further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this clause 27 (Role of the Administrative Parties). Its
successor and each of the other Parties shall have the same rights and obligations
amongst themselves as they would have had if such successor had been an original Party.
	 
	 	(g)	 	After consultation with the Borrower, the Majority Lenders may, by notice to an
Agent, require it to resign in accordance with clause 27.11(b) above, whereupon such
resignation shall occur automatically 10 Business Days later. In this event, that
Agent shall resign in accordance with clause 27.11(b) above.
	 
	 	(h)	 	At any time after the appointment of a successor Security Agent, the retiring
Security Agent shall do and execute all acts, deeds and documents reasonably required
by its successor to transfer to it (or its nominee, as it may direct) any Collateral
vested in the retiring Agent pursuant to the Security Documents and which shall not
have vested in its successor by operation of Law. All such acts, deeds and documents
shall be done or, as the case may be, executed at the cost of the retiring Security
Agent.

	27.12	 	Confidentiality; common parties

	 	(a)	 	In acting as a representative of the Finance Parties, each Agent shall be
regarded as acting through its agency division which shall be treated as a separate
entity from any other of its divisions or departments.
	 
	 	(b)	 	If information is received by another division or department of the Facility
Agent, it may be treated as confidential to that division or department and the
Facility Agent shall not be deemed to have notice of it.
	 
	 	(c)	 	Notwithstanding that the Facility Agent and/or the Security Agent may from time
to time be the same person, the Facility Agent and the Security Agent have entered into
the Finance Documents (to which they are party) in their separate capacities as
Facility Agent for the Finance Parties and as Security Agent for the Finance Parties
provided that, where any Finance Document provides for the Facility Agent or Security
Agent to communicate with or provide instructions to the other, while the two Agents
are the same person, it will not be necessary for there to be any such formal
communication or instructions notwithstanding that the Finance Documents provide in
certain cases for the same to be in writing.

	27.13	 	Relationship with the Lenders

	 	 	The Facility Agent may treat each Lender as a Lender, entitled to payments under this
Agreement and acting through its Facility Office unless it has received not less than five
Business Days prior notice from that Lender to the contrary in accordance with the terms of
this Agreement.

	27.14	 	Credit appraisal by the Lenders

	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the Administrative
Parties that it has been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in connection with any
Finance Document including:

	 	(a)	 	the financial condition, status and nature of each Obligor;

 

 

	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;
	 
	 	(c)	 	whether that Lender has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document; and
	 
	 	(d)	 	the adequacy, accuracy and/or completeness of any information provided by the
Facility Agent, any Party or by any other person under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document.

	27.15	 	Reference Banks

	 	 	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Facility Agent shall (in consultation with the
Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

	27.16	 	Deduction from amounts payable by the Agents

	 	 	If any Party owes an amount to an Agent under the Finance Documents that Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from any payment to
that Party which that Agent would otherwise be obliged to make under the Finance Documents
and apply the amount deducted in or towards satisfaction of the amount owed. For the
purposes of the Finance Documents that Party shall be regarded as having received any amount
so deducted.

	27.17	 	Administrative Parties as Lenders

	 	 	If an Administrative Party is or becomes a Lender, that Administrative Party shall have the
same rights and powers with respect to its Commitment as any other Lender and may exercise
those rights and powers as if it were not also acting as an Administrative Party.

	27.18	 	Security provisions

	 	 	The provision of schedule 6 (Security Provisions) shall bind each party.

	28.	 	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

	 	 	No provision of this Agreement will:

	 	(a)	 	interfere with the right of any Finance Party to arrange its affairs (tax or
otherwise) in whatever manner it thinks fit;
	 
	 	(b)	 	oblige any Finance Party to investigate or claim any credit, relief, remission
or repayment available to it or the extent, order and manner of any claim; or
	 
	 	(c)	 	oblige any Finance Party to disclose any information relating to its affairs
(tax or otherwise) or any computations in respect of Tax.

 

 

	29.	 	SHARING AMONG THE FINANCE PARTIES

	29.1	 	Payments to the Finance Parties

	 	 	If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an
Obligor other than in accordance with clause 30 (Payment mechanics) and applies that amount
to a payment due under the Finance Documents then:

	 	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details
of the receipt or recovery, to the Facility Agent;
	 
	 	(b)	 	the Facility Agent shall determine whether the receipt or recovery is in excess
of the amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Facility Agent and distributed in accordance with
clause 30 (Payment mechanics), without taking account of any Tax which would be imposed
on the Facility Agent in relation to the receipt, recovery or distribution; and
	 
	 	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the
Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to
such receipt or recovery less any amount which the Facility Agent determines may be
retained by the Recovering Finance Party as its share of any payment to be made, in
accordance with clause 30.5 (Partial payments).

	29.2	 	Redistribution of payments

	 	 	The Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant
Obligor and distribute it between the Finance Parties (other than the Recovering Finance
Party) in accordance with clause 30.5 (Partial payments).

	29.3	 	Recovering Finance Party’s rights

	 	(a)	 	On a distribution by the Facility Agent under clause 29.2 (Redistribution of
payments), the Recovering Finance Party will be subrogated to the rights of the Finance
Parties which have shared in the redistribution.
	 
	 	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on
its rights under clause 29.3(a) above, the relevant Obligor shall be liable to the
Recovering Finance Party for a debt equal to the Sharing Payment which is immediately
due and payable.

	29.4	 	Reversal or redistribution

	 	 	If any part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party, then:

	 	(a)	 	each Finance Party which has received a share of the relevant Sharing Payment
pursuant to clause 29.2 (Redistribution of payments) shall, upon request of the
Facility Agent, pay to the Facility Agent for account of that Recovering Finance Party
an amount equal to the appropriate part of its share of the Sharing Payment (together
with an amount as is necessary to reimburse that Recovering Finance Party for its
proportion of any interest on the Sharing Payment which that Recovering Finance Party
is required to pay); and

 

 

	 	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

	29.5	 	Exceptions

	 	(a)	 	This clause 29 (Sharing among the Finance Parties) shall not apply to the
extent that the Recovering Finance Party would not, after making any payment pursuant
to this clause, have a valid and enforceable claim against the relevant Obligor.
	 
	 	(b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a result of
taking legal or arbitration proceedings, if:
	 
	 	(c)	 	it notified that other Finance Party of the legal or arbitration proceedings;
and
	 
	 	(d)	 	that other Finance Party had an opportunity to participate in those legal or
arbitration proceedings but did not do so as soon as reasonably practicable having
received notice and did not take separate legal or arbitration proceedings.

	30.	 	PAYMENT MECHANICS

	30.1	 	Payments to the Facility Agent

	 	(a)	 	On each date on which an Obligor or a Lender is required to make a payment
under a Finance Document, that Obligor or Lender shall make the same available to the
Facility Agent (unless a contrary indication appears in a Finance Document) for value
on the due date at the time and in such funds specified by the Facility Agent as being
customary at the time for settlement of transactions in the relevant currency in the
place of payment.
	 
	 	(b)	 	Payment shall be made to such account in the principal financial centre of the
country of that currency with such bank as the Facility Agent specifies.

	30.2	 	Distributions by the Agents

	 	 	Each payment received by an Agent under the Finance Documents for another Party shall,
subject to clause 30.3 (Distributions to an Obligor) and clause 30.4 (Clawback) be made
available by that Agent as soon as practicable after receipt to the Party entitled to
receive payment in accordance with this Agreement (in the case of a Lender, for the account
of its Facility Office), to such account as that Party may notify to that Agent by not less
than five Business Days’ notice with a bank in the principal financial centre of the country
of that currency.

	30.3	 	Distributions to an Obligor

	 	 	Each Agent may (with the consent of the Obligor or in accordance with clause 31 (Set-off))
apply any amount received by it for that Obligor in or towards payment (on the date and in
the currency and funds of receipt) of any amount due from that Obligor under the Finance
Documents or in or towards purchase of any amount of any currency to be so applied. Any
amount payable to an Obligor shall be credited by the Agent to that Obligor as soon as
reasonably practicable after receipt by the Agent.

 

 

	30.4	 	Clawback

	 	(a)	 	Where a sum is to be paid to an Agent under the Finance Documents for another
Party, that Agent is not obliged to pay that sum to that other Party (or to enter into
or perform any related exchange contract) until it has been able to establish to its
satisfaction that it has actually received that sum.
	 
	 	(b)	 	If an Agent pays an amount to another Party and it proves to be the case that
such Agent had not actually received that amount, then the Party to whom that amount
(or the proceeds of any related exchange contract) was paid by that Agent shall on
demand refund the same to that Agent together with interest on that amount from the
date of payment to the date of receipt by that Agent, calculated by that Agent to
reflect its cost of funds.

	30.5	 	Partial payments

	 	(a)	 	If the Facility Agent receives a payment that is insufficient to discharge all
the amounts then due and payable by an Obligor under the Finance Documents, the
Facility Agent shall apply that payment towards the obligations of that Obligor under
the Finance Documents in the following order:

	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs
and expenses of the Administrative Parties under the Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of any accrued default
interest due but unpaid under this Agreement;
	 
	 	(iii)	 	thirdly, in payment of:

	 	(A)	 	any payments required to be made to the Hedge
Provider under the Hedging Arrangements; and
	 
	 	(B)	 	any payments of any interest and fees then due
and payable to the Finance Parties under or pursuant to the Facility,

	 	 	 	and any such payments in this clause 30.5(a)(iii) shall be ranked pari passu
between the Hedge Provider and any Finance Party;
	 
	 	(iv)	 	fourthly, in or towards payment pro rata of any principal due
but unpaid under this Agreement; and
	 
	 	(v)	 	fifthly, in or towards payment pro rata of any other sum due
but unpaid under the Finance Documents.

	 	(b)	 	The Facility Agent shall, if so directed by the Majority Lenders, vary the
order set out in clauses 30.5(a)(ii) to 30.5(a)(v) above.
	 
	 	(c)	 	Clauses 30.5(a) and 30.5(b) above will override any appropriation made by an
Obligor.

	30.6	 	No set-off by Obligors

	 	 	All payments to be made by an Obligor under the Finance Documents shall be calculated and be
made without (and free and clear of any deduction for) set-off or counterclaim.

 

 

	30.7	 	Business Days

	 	(a)	 	Notwithstanding clause 30.7(b) below, if the Final Repayment Date falls on a
day that is not a Business Day, any payment due on such date shall be made on the
preceding Business Day.
	 
	 	(b)	 	Any payment which is due to be made on a day that is not a Business Day shall
be made on the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not).
	 
	 	(c)	 	During any extension of the due date for payment of any principal or Unpaid Sum
under this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

	30.8	 	Currency of account

	 	(a)	 	Subject to clauses 30.8(b) and 30.8(c) below, US Dollars is the currency of
account and payment for any sum due from an Obligor under any Finance Document.
	 
	 	(b)	 	Each payment in respect of costs, expenses or Taxes shall be made in the
currency in which the costs, expenses or Taxes are incurred.
	 
	 	(c)	 	Any amount expressed to be payable in a currency other than US Dollars shall be
paid in that other currency.

	30.9	 	Change of currency

	 	(a)	 	Unless otherwise prohibited by Law, if more than one currency or currency unit
are at the same time recognised by the central bank of any country as the lawful
currency of that country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations
arising under the Finance Documents in, the currency of that country shall be
translated into, or paid in, the currency or currency unit of that country
designated by the Facility Agent (after consultation with the Borrower); and
	 
	 	(ii)	 	any translation from one currency or currency unit to another
shall be at the official rate of exchange recognised by the relevant central
bank for the conversion of that currency or currency unit into the other,
rounded up or down by the Facility Agent (acting reasonably).

	 	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the
extent the Facility Agent (acting reasonably and after consultation with the Borrower)
specifies to be necessary, be amended to comply with any generally accepted conventions
and market practice in the Relevant Interbank Market and otherwise to reflect the
change in currency.

	30.10	 	Disruption to Payment Systems etc.

	 	 	If either the Facility Agent determines (in its discretion) that a Disruption Event has
occurred or the Facility Agent is notified by the Borrower that a Disruption Event has
occurred:

	 	(a)	 	the Facility Agent may, and shall if requested to do so by the Borrower,
consult with the Borrower with a view to agreeing with the Borrower such changes to the

 

 

	 	 	 	operation or administration of the Facility as the Facility Agent may deem necessary
in the circumstances;
	 
	 	(b)	 	the Facility Agent shall not be obliged to consult with the Borrower in
relation to any changes mentioned in clause 30.10(a) above if, in its opinion, it is
not practicable to do so in the circumstances and, in any event, shall have no
obligation to agree to such changes;
	 
	 	(c)	 	the Facility Agent may consult with the Finance Parties in relation to any
changes mentioned in clause 30.10(a) above but shall not be obliged to do so if, in its
opinion, it is not practicable to do so in the circumstances;
	 
	 	(d)	 	any such changes agreed upon by the Facility Agent and the Borrower shall
(whether or not it is finally determined that a Disruption Event has occurred) be
binding upon the Parties as an amendment to (or, as the case may be, waiver of) the
terms of the Finance Documents notwithstanding the provisions of clause 36 (Amendments
and waivers);
	 
	 	(e)	 	the Facility Agent shall not be liable for any damages, costs or losses
whatsoever (including for negligence, gross negligence or any other category of
liability whatsoever but not including any claim based on the fraud of the Facility
Agent) arising as a result of its taking, or failing to take, any actions pursuant to
or in connection with this clause 30.10 (Disruption to Payment Systems etc.); and
	 
	 	(f)	 	the Facility Agent shall notify the Finance Parties of all changes agreed
pursuant to clause 30.10(d) above.

	31.	 	SET-OFF

	 	(a)	 	A Finance Party may set off any matured obligation due from the Borrower under
the Finance Documents (to the extent beneficially owned by that Finance Party) against
any matured obligation owed by that Finance Party to the Borrower, regardless of the
place of payment, booking branch or currency of either obligation. If the obligations
are in different currencies, the Finance Party may convert either obligation at a
market rate of exchange in its usual course of business for the purpose of the set-off.
	 
	 	(b)	 	The Security Agent shall not set-off or apply any proceeds held or recovered by
it in connection with the Accounts or the Security Documents against any indebtedness
due by the Borrower to the Security Agent which is not indebtedness due to the Security
Agent under any Finance Document or due to any Finance Party pursuant to any Secured
Liabilities.

	32.	 	NOTICES

	32.1	 	Communications in writing

	 	 	Any communication to be made under or in connection with the Finance Documents shall be made
in writing and, unless otherwise stated, may be made by fax or letter.

	32.2	 	Addresses

	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with the Finance Documents is:

 

 

	 	(a)	 	in the case of the Borrower, that identified with its name on the signature
page;
	 
	 	(b)	 	in the case of each Finance Party (other than the Facility Agent), that
notified in writing to the Facility Agent on or prior to the date on which it becomes a
Party; and
	 
	 	(c)	 	in the case of each Agent, that identified with its name on the signature page,

	 	 	or any substitute address or fax number or department or officer as the Party may notify to
the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is
made by the Facility Agent) by not less than five Business Days’ notice.

	32.3	 	Delivery

	 	(a)	 	Any communication or document made or delivered by one person to another under
or in connection with the Finance Documents will only be effective:

	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being submitted to courier in an envelope
addressed to it at that address,

	 	 	 	and, if a particular department or officer is specified as part of its address
details provided under clause 32.2 (Addresses), if addressed to that department or
officer.
	 
	 	(b)	 	Any communication or document to be made or delivered to the Facility Agent
will be effective only when actually received by the Facility Agent and then only if it
is expressly marked for the attention of the department or officer identified with the
Facility Agent’s signature below (or any substitute department or officer as the
Facility Agent shall specify for this purpose).
	 
	 	(c)	 	All notices from or to the Borrower shall be sent through the Facility Agent.

	32.4	 	Notification of address and fax number

	 	 	Promptly upon receipt of notification of an address or fax number or change of address or
fax number pursuant to clause 32.2 (Addresses) or changing its own address or fax number,
the Facility Agent shall notify the other Parties.

	32.5	 	Electronic communication

	 	(a)	 	Any communication to be made between the Borrower, Agent and a Lender under or
in connection with the Finance Documents may be made by electronic mail or other
electronic means, if the Borrower, Agent and the relevant Lender:

	 	(i)	 	agree that, unless and until notified to the contrary, this is
to be an accepted form of communication (and for the avoidance of doubt the
Parties hereby so agree that it is an accepted form of communication under the
Finance Documents); and
	 
	 	(ii)	 	notify each other in writing of their electronic mail address
and/or any other information required to enable the sending and receipt of
information by that means.

 

 

	 	(b)	 	The Borrower, Agent and each Lender shall notify each other of any change to
their electronic mail address or any other such information supplied by them.
	 
	 	(b)	 	Any electronic communication made between the Borrower, Agent and a Lender will
be effective only when actually received in readable form and in the case of any
electronic communication made by the Borrower or a Lender to an Agent only if it is
addressed in such a manner as that Agent shall specify for this purpose.

	32.6	 	English language

	 	(a)	 	Any notice given under or in connection with any Finance Document must be in
English.
	 
	 	(b)	 	All other documents provided under or in connection with any Finance Document
must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Facility Agent,
accompanied by a certified English translation and, in this case, the English
translation will prevail unless the document is a constitutional, statutory or
other official document.

	33.	 	CALCULATIONS AND CERTIFICATES

	33.1	 	Accounts

	 	 	In any litigation or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by a Finance Party are prima facie
evidence of the matters to which they relate.

	33.2	 	Certificates and Determinations

	 	 	Any certification or determination by a Finance Party of a rate or amount under any Finance
Document is, in the absence of manifest error, conclusive evidence of the matters to which
it relates.

	33.3	 	Day count convention

	 	 	Any interest, commission or fee accruing under a Finance Document will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a year of 360
days or, in any case where the practice in the Relevant Interbank Market differs, in
accordance with that market practice.

	33.4	 	Currency conversion

	 	 	If at any time for any purpose (including for converting any sum received by an
Administrative Party under any Finance Document or otherwise which is denominated in a
currency which is not US Dollars) an Administrative Party is required or wishes to convert a
sum of money into another currency, it shall use that Administrative Party’s Spot Rate.

 

 

	34.	 	PARTIAL INVALIDITY

	 	 	If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any Law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the Law of any other jurisdiction will in any way be
affected or impaired.

	35.	 	REMEDIES AND WAIVERS

	 	 	No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Finance Documents shall operate as a waiver, nor shall any single
or partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement
are cumulative and not exclusive of any rights or remedies provided by Law.

	36.	 	AMENDMENTS AND WAIVERS

	36.1	 	Required consents

	 	(a)	 	Subject to clause 36.2 (Exceptions):

	 	(i)	 	a Finance Document may be amended only with the consent of the
Majority Lenders and the relevant Obligor party thereto;
	 
	 	(ii)	 	compliance by the relevant Obligor with any provision of a
Finance Document may be waived only with the consent of the Majority Lenders;
and
	 
	 	(iii)	 	compliance by a Finance Party with any provision of a Finance
Document may be waived only with the consent of the Majority Lenders and the
relevant Obligor party thereto.

	 	 	 	Any such amendment or waiver shall be binding on all Parties.
	 
	 	(b)	 	The Facility Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this clause.

	36.2	 	Exceptions

	 	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of “Majority Lenders” in clause 1.1
(Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the
Finance Documents;
	 
	 	(iii)	 	an extension of the Availability Period;
	 
	 	(iv)	 	a reduction in the Margin or a reduction in the amount of any
payment of principal, interest, fees or commission payable;
	 
	 	(v)	 	an increase in or an extension of any Commitment;
	 
	 	(vi)	 	a change in the currency of the Facility;

 

 

	 	(vii)	 	a change to the Obligors;
	 
	 	(viii)	 	any provision which expressly requires the consent of all the Lenders;
	 
	 	(ix)	 	clause 2.2 (Finance Parties’ rights and obligations), clause 25
(Changes to the Lenders), clause 26 (Changes to the Obligors), clause 27.10
(Lenders’ Indemnity to the Agents) or this clause 36 (Amendments and waivers);
or
	 
	 	(x)	 	the release of any Charge (or part thereof) or of any
Collateral (or part thereof) (except as provided in any Security Document),

	 	 	 	shall not be made without the prior consent of all the Lenders.
	 
	 	(b)	 	An amendment or waiver which relates to the rights or obligations of any
Administrative Party may not be effected without the consent of that Administrative
Party.

	37.	 	COUNTERPARTS

	 	 	Each Finance Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the Finance
Document.

	38.	 	GOVERNING LAW

	 	 	This Agreement and any non-contractual obligations arising out of or in connection with it
shall be governed by English law.

	39.	 	ENFORCEMENT

	39.1	 	Jurisdiction of English courts

	 	(a)	 	The courts of England have exclusive jurisdiction to settle any dispute arising
out of or in connection with this Agreement (including a dispute relating to the
existence, validity or termination of this Agreement or any non-contractual obligation
arising out of or in connection with this Agreement (whether in whole or in part)) (a
“Dispute”).
	 
	 	(b)	 	The Parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.
	 
	 	(c)	 	This clause 39.1 (Jurisdiction of English courts) is for the benefit of the
Finance Parties only. As a result, no Finance Party shall be prevented from taking
proceedings relating to a Dispute in any other courts with jurisdiction. To the extent
allowed by law, the Finance Parties may take concurrent proceedings in any number of
jurisdictions.

	39.2	 	Service of process

	 	 	Without prejudice to any other mode of service allowed under any relevant law, each Obligor:

	 	(a)	 	irrevocably appoints Law Debenture Corporate Services Limited as its agent for
service of process in relation to any proceedings before the English courts in

 

 

	 	 	 	connection with any Finance Document (and the Borrower by its execution of this
Agreement, accepts that appointment); and
	 
	 	(b)	 	agrees that failure by an agent for service of process to notify the Borrower
of the process will not invalidate the proceedings concerned.

	 	 	If any person appointed as an agent for service of process is unable for any reason to act
as agent for service of process, the Borrower must immediately (and in any event within five
days of such event taking place) appoint another agent on terms acceptable to the Agent.
Failing this, the Agent may appoint another agent for this purpose.
	 
	 	 	The Borrower expressly agrees and consents to the provisions of this clause 39 (Enforcement)
and clause 38 (Governing law).

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

 

SCHEDULE
1

Original Lenders

	 	 	 	 	 
	Name of Original Lender	 	Commitment (US$)
	Credit Suisse AG
	 	US$	100,000,000	 
	Total
	 	US$	100,000,000	 

 

 

SCHEDULE 2

Conditions Precedent

	1.	 	Obligors

	 	(a)	 	A copy of the constitutional documents of each Obligor (including Articles of
Incorporation and Bylaws).

	 	(b)	 	A copy of a resolution of the board of directors of each Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Finance Documents to which it is a party and resolving that it execute,
deliver and perform the Transaction Documents to which it is a party;

	 	(ii)	 	authorising a specified person or persons to execute the
Finance Documents to which it is a party on its behalf; and

	 	(iii)	 	authorising a specified person or persons, on its behalf, to
sign and/or despatch all documents and notices (including, if relevant, any
Utilisation Request) to be signed and/or despatched by it under or in
connection with the Finance Documents to which it is a party.

	 	(c)	 	A Good Standing Certificate of the Borrower and Guarantor.

	 	(d)	 	An Incumbency Certificate of the Borrower and Guarantor.

	 	(e)	 	An Officer’s Certificate of the Borrower and Guarantor including:

	 	(i)	 	confirmation that its borrowing or guaranteeing or securing, as
appropriate, the Total Commitments would not cause any borrowing, guarantee,
security or similar limit binding on it to be exceeded;

	 	(ii)	 	certification that each copy document relating to it specified
in this part 1 of schedule 2 is correct, complete and in full force and effect
and has not been amended or superseded as at a date no earlier than the date of
this Agreement; and

	 	(iii)	 	a specimen of the signature of each person authorised by the
resolution referred to in paragraph 1(b) above in relation to the Finance
Documents and related documents.

	2.	 	Finance documents

	 	(a)	 	This Agreement executed by the Borrower.

	 	(b)	 	The Fee Letter and the Original Hedging Strategy Letter executed by the
Borrower.

	 	(c)	 	At least two originals of each of the Security Documents executed by the
applicable Obligors.

	 	(d)	 	Any Hedging Arrangement which is to be executed on or before the first
Utilisation Date pursuant to the Hedging Strategy Letter.

 

 

	 	(e)	 	All share certificates, transfers and stock transfer forms or equivalent duly
executed by the Guarantor in blank in relation to the assets subject to or expressed to
be subject to the Guarantor Pledge Agreement and all other documents of title to be
provided under the Security Documents.

	3.	 	Legal opinions

	 	(a)	 	A legal opinion of DLA Piper UK LLP, legal advisers to the Agent and the
Arranger as to English law.

	 	(b)	 	A legal opinion of Perkins Coie LLP, legal advisers to the Borrower, as to
Alaska law in relation to the Deed of Trust and any other Finance Documents governed by
Alaska law.

	 	(c)	 	A legal opinion of Gibson, Dunn & Crutcher LLP, legal advisers to the Borrower,
as to Delaware law in relation to the status and capacity of the Borrower and its entry
into and submission to the laws of Relevant Jurisdictions of each of the Finance
Documents.

	 	(d)	 	A legal opinion of Perkins Coie LLP, legal advisers to the Borrower, as to
Idaho law in relation to the status and capacity of the Guarantor and its entry into
and submission to the laws of Relevant Jurisdictions of the Facility Guarantee and the
Project Cost Guarantee (and any other Finance Documents to which it is a party).

	 	(e)	 	A legal opinion of Gibson, Dunn & Crutcher LLP, legal advisers to the Borrower,
as to New York law in relation to the Finance Documents governed by that law.

	4.	 	Other documents and evidence

	 	(a)	 	Evidence that the fees, costs and expenses then due from the Borrower pursuant
to clause 11 (Fees), clause 16 (Costs and Expenses) and clause 12.5 (Stamp taxes) have
been paid or will be paid by or immediately after the first Utilisation Date.

	 	(b)	 	Evidence that the Borrower has given irrevocable instructions to the Facility
Agent to deposit into the Debt Service Reserve Account the Minimum Balance immediately
upon the first Utilisation Date.

	 	(c)	 	A certified copy of the Original Financial Statements and most recent
management accounts of each Obligor.

	 	(d)	 	The Life of Mine Plan.

	 	(e)	 	The Original Construction Plan.

	 	(f)	 	The Capex Budget.

	 	(g)	 	The format as previously agreed between the Borrower and the Facility Agent of:

	 	(i)	 	the Monthly Construction Report;

	 	(ii)	 	the Monthly Expenditure Statement; and

	 	(iii)	 	the Production Report.

 

 

	 	(h)	 	Delivery to the Facility Agent of all existing surveys of the Site in the
possession of the Borrower.

	 	(i)	 	Approval by the Facility Agent of the Construction Contracts (a review to the
extent that any provision of such contracts might have a Material Adverse Effect) and a
waiver or removal of the ban on assignment in the Knight Piesold Construction Contract
and the Golder Paste Technology Limited Construction Contract.

	 	(j)	 	Approval by the Facility Agent of the lease between the Borrower and Hyak
Mining Company (the “Hyak Lease”) as to assignability and any other matters potentially
adversely affecting the interests of the Finance Parties.

	 	(k)	 	A lessor’s confirmation to be entered into by Hyak Mining Company in favour of
the Finance Parties, and duly acknowledged by the Borrower, in form and substance
satisfactory to the Facility Agent, incorporating a confirmation by the lessor that
there is no outstanding default by the Borrower under the Hyak lease and an agreement
by the lessor to notify the Facility Agent (at the same time as it so notifies the
Borrower) of any default whether non-payment of rent or otherwise by the Borrower under
the Hyak lease and giving the Finance Parties the same opportunity to cure or remedy
such breach as the Borrower has under the terms of the Hyak lease and that it will not
terminate the Hyak Lease if so cured or remedied.

	 	(l)	 	A lessor’s confirmation to be entered into by the lessors of the Diana/Falls
lease in favour of the Finance Parties, and duly acknowledged by the Borrower, in form
and substance satisfactory to the Facility Agent, incorporating a confirmation by the
lessors that there is no outstanding default by the Borrower under the Diana/Falls
lease and an agreement by the lessors to notify the Facility Agent (at the same time as
it so notifies the Borrower) of any default whether non-payment of rent or otherwise by
the Borrower under the Diana/Falls lease and giving the Finance Parties the same
opportunity to cure or remedy such breach as the Borrower has under the terms of the
Diana/Falls lease and that it will not terminate the Diana/Falls lease if so cured or
remedied.

	 	(m)	 	Any third party consents required by the Facility Agent (acting reasonably) in
connection with the Borrower Security Agreement in respect of the Capital Equipment
Leases and the Construction Contracts.

	 	(n)	 	Filing of the Deed of Trust with:

	 	(i)	 	the real property records of the Juneau Recording District as a
deed of trust (which will also serve as a fixture filing);

	 	(ii)	 	the real property records of the Juneau Recording District as a
financing statement; and

	 	(iii)	 	the UCC records of the Juneau Recording District as a
financing statement.

	 	(o)	 	UCC-1 Financing Statement in respect of Guarantor (to be filed with Idaho SOS).

	 	(p)	 	UCC-1 Financing Statement in respect of Borrower (to be filed with Delaware
SOS).

	 	(q)	 	UCC-1 Financial Statement in respect of Borrower (to be filed with Anchorage
SOS).

	 	(r)	 	Satisfactory Idaho SOS lien search in respect of the Guarantor.

 

 

	 	(s)	 	Satisfactory Delaware SOS lien search in respect of Borrower.

	 	(t)	 	Satisfactory Alaska SOS lien search in respect of Borrower.

	 	(u)	 	Evidence of the release of all third party liens or encumbrances registered
against the name of the Borrower in the Alaska UCC filing records.

	 	(v)	 	The Title Policy.

	 	(w)	 	Initial Alaska searches against the Borrower and Guarantor for encumbrances,
liens, taxes and judgments affecting the real property of the Borrower. Searches to
extend to records held at the Juneau and (if applicable) Federal Courts, Juneau
Recording District and other locations necessary to identify all encumbrances affecting
the real property of the Borrower.

	 	(x)	 	A copy of any other Authorisation or other document, opinion or assurance which
the Facility Agent considers to be necessary in connection with the entry into and
performance of the transactions contemplated by any Finance Document or for the
validity and enforceability of any Finance Document.

 

 

SCHEDULE 3

Utilisation Request

	 	 	 
	From:

	 	Coeur Alaska Inc.
	To:

	 	Credit Suisse
	Dated:

	 	[u           ]

Dear Sirs

	Coeur Alaska Inc.  — US$100,000,000 facility agreement dated [u           ] (the
“Facility Agreement”)

	1.	 	We refer to the Facility Agreement. This is a Utilisation Request. Terms defined in the
Facility Agreement have the same meaning in this Utilisation Request unless given a different
meaning in this Utilisation Request.

	2.	 	We wish to borrow the Loan on the following terms:

	 	 	Proposed Utilisation Date: [u           ] (or, if that is not a Business Day,
the next Business Day)
	 
	 	 	Amount: US$ [55,000,000] or, if less, the Available Facility
	 
	 	 	Interest Period: [Three] months

	3.	 	We confirm that each condition specified in clause 4.1 (Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	4.	 	The proceeds of this Loan should be credited to:

	 	(a)	 	in respect of an amount equal to the Minimum Balance as at the Utilisation Date
being, [u          ], to be credited to Debt Service Reserve Account;
	 
	 	(b)	 	US$[u          ] in respect of the arrangement fee payable in
accordance with clause 11.1 (Arrangement fee) to the Facility Agent;
	 
	 	(c)	 	US$[u          ] in respect of the agency fee payable in
accordance with clause 11.2 (Agency fee) to the Facility Agent;
	 
	 	(d)	 	[u          ] to the Facility Agent for payment by the Facility
Agent of invoiced legal fees of counsel to the Finance Parties; and
	 
	 	(e)	 	[u          ] in respect of the balance of the Utilisation less
the amounts referred to in paragraphs (a) to (d) above to the Borrower’s Account.

 

 

	5.	 	This Utilisation Request is irrevocable.

Yours faithfully

For and on behalf of

Coeur Alaska Inc.

(Sign)                     

Name: [u          ]

Title: [u          ]

 

 

SCHEDULE 4

Information Package

Monthly Construction Reports

Monthly Expenditure Statements

Capex Budget

Project Schedule

Production Reports

Life of Mine Plan

Original Construction Plan

 

 

SCHEDULE 5

Form of Transfer Certificate

	 	 	 

	To:

	 	Credit Suisse, as Facility Agent
	 
	 	 
	From:

	 	[Insert name of Existing Lender] (the “Existing Lender”)
	 
	 	 
	and
	 	 
	 
	 	 
	 

	 	[Insert name of New Lender] (the “New Lender”)
	 
	 	 
	Dated:

	 	[          ]

Dear Sirs

COEUR ALASKA INC.  — US$45,000,000 facility agreement dated [u          ]
(the
“Facility Agreement”)

	1.	 	We refer to the Facility Agreement. This is a Transfer Certificate. Terms defined in the
Facility Agreement have the same meaning in this Transfer Certificate unless given a different
meaning in this Transfer Certificate.

	2.	 	We refer to clause 25.5 (Procedure for transfer) of the Facility Agreement:

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender
transferring to the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the schedule hereto in accordance
with clause 25.5 (Procedure for transfer) of the Facility Agreement.

	 	(b)	 	The proposed Transfer Date is [u          ].

	 	(c)	 	The Facility Office and address, fax number and attention details for notices
of the New Lender for the purposes of clause 32.2 (Addresses) of the Facility Agreement
are set out in the schedule.

	3.	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in clause 25.4(c) (Limitation of responsibility of Existing Lenders).

	4.	 	This Transfer Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Transfer
Certificate.
	 
	5.	 	This Transfer Certificate is governed by the law of the State of New York.

 

 

THE SCHEDULE

Commitment/rights and obligations to be transferred

[Insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for

payments,]

	 	 	 

	[Existing Lender]

	 	[New Lender]
	By:                                        

	 	By:                                        

This Transfer Certificate is accepted by the Facility Agent and the Transfer Date is confirmed as
[Insert date].

For and on behalf of

Credit Suisse (in its capacity as Facility Agent)

	 	 	 

	(Sign)                                         
	 
	 	 
	Name:

	 	[u          ]
	 
	 	 
	Title:

	 	[u          ]
	 
	 	 
	Date:

	 	[u          ]

 

 

SCHEDULE 6

Security Provisions

	1.	 	Defects in Security

	 	 	The Security Agent shall not be liable for any failure or omission to perfect, or defect in
perfecting, the Security created pursuant to any Security Document, including:

	 	(a)	 	failure to obtain any Authorisation for the execution, validity, enforceability
or admissibility in evidence of any Security Document; or

	 	(b)	 	failure to effect or procure registration of or otherwise protect or perfect
any of the Security created by the Security Documents under any Laws in any territory.

	2.	 	No enquiry

	 	 	The Security Agent may accept without enquiry, requisition, objection or investigation such
title as the Borrower may have to any Collateral.

	3.	 	Retention of documents

	 	 	The Security Agent may hold title deeds and other documents relating to any of the
Collateral in such manner as it sees fit (including allowing the Borrower to retain them).

	4.	 	Indemnity out of the Collateral

	 	 	The Security Agent and every Receiver, Delegate, or other similar person appointed under any
Security Document may indemnify itself out of the Collateral against any cost, loss or
liability incurred by it in that capacity (otherwise than by reason of its own gross
negligence or wilful misconduct).

	5.	 	Basis of distribution

	 	 	To enable it to make any distribution, the Security Agent may fix a date as at which the
amount of the Secured Liabilities is to be calculated and may require, and rely on, a
certificate from any Finance Party giving details of:

	 	(a)	 	any sums due or owing to any Finance Party as at that date; and

	 	(b)	 	such other matters as it thinks fit.

	6.	 	No duty to collect payments

	 	 	The Security Agent shall not have any duty:

	 	(a)	 	to ensure that any payment or other financial benefit in respect of any of the
Collateral is duly and punctually paid, received or collected; or

	 	(b)	 	to ensure the taking up of any (or any offer of any) stocks, shares, rights,
moneys or other property accruing or offered at any time by way of interest, dividend,
redemption, bonus, rights, preference, option, warrant or otherwise in respect of any
of the Collateral.

 

 

	7.	 	Appropriation

	 	(a)	 	Each Party irrevocably waives any right to appropriate any payment to, or other
sum received, recovered or held by, the Security Agent in or towards payment of any
particular part of the Secured Liabilities and agrees that the Security Agent shall
have the exclusive right to do so.

	 	(b)	 	Paragraph (a) above will override any application made or purported to be made
by any other person.

	8.	 	Investments

	 	 	All money received or held by the Security Agent under the Finance Documents may, in the
name of, or under the control of, the Security Agent:

	 	(a)	 	be invested in any investment it may select; or

	 	(b)	 	be deposited at such bank or institution (including itself, any other Finance
Party or any Affiliate of any Finance Party) as it thinks fit.

	9.	 	Suspense Account

	 	 	Subject to paragraph 10 below the Security Agent may:

	 	(a)	 	hold in an interest bearing suspense account any money received by it from the
Borrower or any other person; and

	 	(b)	 	invest an amount equal to the balance from time to time standing to the credit
of that suspense account in any of the investments authorised by paragraph 8 above.

	10.	 	Timing of Distributions

	 	 	Distributions by the Security Agent shall be made as and when determined by it.

	11.	 	Delegation

	 	(a)	 	The Security Agent may:

	 	(i)	 	employ and pay an agent selected by it to transact or conduct
any business and to do all acts required to be done by it (including the
receipt and payment of money);

	 	(ii)	 	delegate to any person on any terms (including power to
sub-delegate) all or any of its functions; and

	 	(iii)	 	with the prior consent of the Majority Lenders, appoint, on
such terms as it may determine, or remove, any person to act either as separate
or joint security trustee or agent with those rights and obligations vested in
the Security Agent by this Agreement or any Security Document.

 

 

	 	(b)	 	The Security Agent will not be:

	 	(i)	 	responsible to anyone for any misconduct or omission by any
agent, delegate or security trustee or agent appointed by it pursuant to
paragraph (a) above; or

	 	(ii)	 	bound to supervise the proceedings or acts of any such agent,
delegate or security trustee or agent,

	 	 	provided that it exercises reasonable care in selecting that agent, delegate or security
trustee or agent.

	12.	 	Unwinding

	 	 	Any appropriation or distribution which later transpires to have been or is agreed by the
Security Agent to have been invalid or which has to be refunded shall be refunded and shall
be deemed never to have been made.

	13.	 	Lenders

	 	 	The Security Agent shall be entitled to assume that each Lender is a Lender unless notified
by the Facility Agent to the contrary.

 

 

SCHEDULE 7

Capital Equipment Leases

 

 

SCHEDULE 8

Repayment Schedule

	 	 	 	 	 
	Repayment Date	 	Repayment Amount
	March 31, 2011
	 	USD$4,984,375.00
	June 30, 2011
	 	USD$6,974,506.58
	September 30, 2011
	 	USD$6,974,506.58
	December 31, 2011
	 	USD$6,974,506.58
	March 31, 2012
	 	USD$3,849,506.58
	June 30, 2012
	 	USD$3,849,506.58
	September 30, 2012
	 	USD$3,849,506.58
	December 31, 2012
	 	USD$3,849,506.58
	March 31, 2013
	 	USD$6,349,506.58
	June 30, 2013
	 	USD$6,349,506.58
	September 30, 2013
	 	USD$6,349,506.58
	December 31, 2013
	 	USD$6,349,506.58
	March 31, 2014
	 	USD$4,224,506.58
	June 30, 2014
	 	USD$4,224,506.58
	September 30, 2014
	 	USD$4,224,506.58
	December 31, 2014
	 	USD$4,224,506.58
	March 31, 2015
	 	USD$4,099,506.58
	June 30, 2015
	 	USD$4,099,506.58
	Sept 30, 2015
	 	USD$4,099,506.58
	December 31, 2015
	 	USD$4,099,506.56
	Repayment Final Maturity
	 	USD$100,000,000.00

 

 

SIGNATURES

	 	 	 

	Borrower
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	COEUR ALASKA INC.

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	Address:

	 	3031 Clinton Drive, Suite 202 
	 

	 	Juneau, AK 99801
	 

	 	United States
	 
	 	 
	Attention:

	 	The General Manager
	 
	 	 
	Telephone:

	 	+1 208 667-3511 
	 
	 	 
	Fax:

	 	+1 208 667-2213 
	 
	 	 
	Email:

	 	KKast@coeur.com
	 
	 	 
	With a copy to:

	 	505 Front Avenue, PO Box 1
	 

	 	Coeur d’Alene, ID 83814-0316 
	 

	 	United States
	 
	 	 
	Attention:

	 	Mitchell J. Krebs
	 
	 	 
	Telephone:

	 	+1 208 769 8152 
	 
	 	 
	Fax:

	 	+1 208 667 2213 
	 
	 	 
	Email:

	 	MKrebs@coeur.com

 

 

	 	 	 

	Security Agent
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	CREDIT SUISSE AG

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	and
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	Address:

	 	Giesshuebelstrasse 30, 8070 Zurich
	 

	 	Switzerland
	 
	 	 
	Attention:

	 	Flavia Sennhauser / Erik Boehmer
	 
	 	 
	Telephone:

	 	+41 44 334 68 43 / +41 44 333 21 39 
	 
	 	 
	Fax:

	 	+41 44 333 21 04 
	 
	 	 
	Email:

	 	flavia.r.sennhauser@credit-suisse.com /
	 

	 	erik.boehmer@credit-suisse.com
	 
	 	 
	Facility Agent
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	CREDIT SUISSE AG

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	and
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	Address:

	 	Giesshuebelstrasse 30, 8070 Zurich
	 

	 	Switzerland

 

 

	 	 	 

	Attention:

	 	Flavia Sennhauser / Erik Boehmer
	 
	 	 
	Telephone:

	 	+41 44 334 68 43 / +41 44 333 21 39 
	 
	 	 
	Fax:

	 	+41 44 333 21 04 
	 
	 	 
	Email:

	 	flavia.r.sennhauser@credit-suisse.com /
	 

	 	erik.boehmer@credit-suisse.com
	 
	 	 
	Arranger
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	CREDIT SUISSE AG

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	and
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	Original Lender
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	CREDIT SUISSE AG

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	and
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 

 

 

	 	 	 

	Hedge Provider
	 	 
	 
	 	 
	 
	 	 
	EXECUTED by:

	 	) 
	CREDIT SUISSE 

INTERNATIONAL

	 	) 
	 
	 	 
	Acting by:
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	and
	 	 
	 
	 	 
	Name:
	 	 
	 
	 	 
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]