Document:

EX-10.1

ASSET PURCHASE AGREEMENT

dated as of

December 23, 2013

by and among

MIMIO, LLC,

LAZEL, INC.

and

CAMBIUM LEARNING GROUP, INC.

(solely for purposes of Section 8.14)

TABLE OF CONTENTS

Page

	 	 	 	 	 
	ARTICLE I DEFINITIONS; INTERPRETATIONS
	 	 	1	 
	Section 1.01Definitions
	 	 	1	 
	Section 1.02Interpretation
	 	 	8	 
	ARTICLE II PURCHASE AND SALE
	 	 	8	 
	Section 2.01Purchase and Sale of Assets
	 	 	8	 
	Section 2.02Retained Assets
	 	 	9	 
	Section 2.03Assumed Liabilities
	 	 	9	 
	Section 2.04Excluded Liabilities
	 	 	10	 
	Section 2.05Consideration
	 	 	11	 
	Section 2.06Withholding Tax
	 	 	12	 
	Section 2.07Purchase Price Adjustment
	 	 	12	 
	Section 2.08Allocation of Purchase Price
	 	 	15	 
	Section 2.09Consent of Third Parties
	 	 	15	 
	ARTICLE III CLOSING
	 	 	16	 
	Section 3.01Closing
	 	 	16	 
	Section 3.02Holdback
	 	 	16	 
	Section 3.03Closing Deliverables
	 	 	16	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	18	 

	 	 	 	Section 4.01 Organization, Good Standing and Authority of Seller;
Enforceability of Seller 18	 

	 	 	 	 	 	 	 	 	 
	Section 4.02
	 	No Conflicts; Consents	 	 	19	 
	Section 4.03
	 	Title to Purchased Assets	 	 	19	 
	Section 4.04
	 	Personal Property	 	 	19	 
	Section 4.05
	 	Real Property	 	 	20	 
	Section 4.06
	 	Absence of Questionable Payments	 	 	20	 
	Section 4.07
	 	Financial Statements; Books and Records	 	 	20	 
	Section 4.08
	 	No Undisclosed Liabilities	 	 	20	 
	Section 4.09
	 	Absence of Certain Developments	 	 	20	 
	Section 4.10
	 	Intellectual Property	 	 	21	 
	Section 4.11
	 	Inventory	 	 	22	 
	Section 4.12
	 	Material Contracts	 	 	22	 
	Section 4.13
	 	Benefit Arrangements	 	 	24	 
	Section 4.14
	 	Labor	 	 	25	 
	Section 4.15
	 	Taxes	 	 	27	 
	Section 4.16
	 	Compliance With Laws; Orders; Permits	 	 	28	 
	Section 4.17
	 	Legal Proceedings	 	 	28	 
	Section 4.18
	 	Insurance	 	 	28	 
	Section 4.19
	 	Brokers	 	 	29	 
	Section 4.20
	 	Disclosure	 	 	29	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	29	 
	Section 5.01
	 	Organization and Authority of Buyer; Enforceability of Buyer	 	 	29	 
	Section 5.02
	 	No Conflicts; Consents	 	 	29	 
	Section 5.03
	 	Legal Proceedings	 	 	29	 
	Section 5.04
	 	Brokers	 	 	30	 
	ARTICLE VI COVENANTS
	 	 	 	 	 	 	30	 
	Section 6.01
	 	Public Announcements	 	 	30	 
	Section 6.02
	 	Transfer Taxes	 	 	30	 
	Section 6.03
	 	Non-Competition and Confidentiality Agreement	 	 	30	 
	Section 6.04
	 	Employment Matters	 	 	32	 
	Section 6.05
	 	Commercially Reasonable Efforts; Further Assurances	 	 	32	 
	Section 6.06
	 	Business Communications	 	 	33	 
	Section 6.07
	 	Release of Guarantees	 	 	33	 
	Section 6.08
	 	Receivables	 	 	33	 
	ARTICLE VII INDEMNIFICATION
	 	 	33	 
	Section 7.01
	 	Survival	 	 	33	 
	Section 7.02
	 	Indemnification	 	 	34	 
	Section 7.03
	 	Indemnity Holdback	 	 	36	 
	Section 7.04
	 	Procedures for Third Party Claims	 	 	36	 
	Section 7.05
	 	Procedures for Inter-Party Claims	 	 	37	 
	Section 7.06
	 	Cumulative Remedies	 	 	38	 
	ARTICLE VIII MISCELLANEOUS
	 	 	 	 	 	 	38	 
	Section 8.01
	 	Notices	 	 	38	 
	Section 8.02
	 	Expenses	 	 	39	 
	Section 8.03
	 	Governing Law; Consent to Jurisdiction	 	 	39	 
	Section 8.04
	 	Assignment; Successors and Assigns; No Third Party Rights	 	 	40	 
	Section 8.05
	 	Counterparts; Facsimile	 	 	40	 
	Section 8.06
	 	Headings	 	 	40	 
	Section 8.07
	 	Entire Agreement	 	 	40	 
	Section 8.08
	 	Amendment and Modification	 	 	40	 
	Section 8.09
	 	Waiver	 	 	40	 
	Section 8.10
	 	Severability	 	 	40	 
	Section 8.11
	 	Joint Negotiation and Drafting	 	 	40	 
	Section 8.12
	 	Waiver of Trial by Jury	 	 	41	 
	Section 8.13
	 	Attorneys’ Fees	 	 	41	 
	Section 8.14
	 	Parent Guarantee	 	 	41	 

ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement (this “Agreement”), dated as of December 23, 2013, is
entered into by and among Mimio, LLC, a Delaware limited liability company (“Seller”),
LAZEL, Inc., a Delaware corporation (“Buyer”), and, for purposes of Section 8.14
only, Cambium Learning Group, Inc., a Delaware corporation (“Parent”).

RECITALS

WHEREAS, Seller is engaged in the business of designing and developing interactive educational
products under the Headsprout brand, including, without limitation, the technology-based products
described on Schedule 1(a) (the “Business”);

WHEREAS, Seller is willing to sell to Buyer substantially all of the assets utilized by Seller
in, and Buyer is willing to assume from Seller certain of the liabilities and obligations related
to, operating the Business in exchange for the Purchase Price, all in accordance with the terms and
conditions set forth herein; and

WHEREAS, Parent has agreed to become a party to this Agreement, for purposes of
Section 8.14 only, in order to induce Seller to execute this Agreement and consummate the
transactions contemplated hereunder.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS; INTERPRETATIONS

Section 1.01 Definitions. As used in this Agreement, the following terms shall have the
respective meanings set forth below:

“Accounting Principles” means GAAP, subject to the accounting methods, principles or
calculations as set forth in Schedule 1.01(b), consistently applied. For purposes of any
application of the Accounting Principles hereunder, GAAP is to be applied on a basis consistent
with those principles reflected by the Business in the preparation of the Financial Statements.

“Affiliate” means, with respect to any Person, any other Person who directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person. The term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise, and the terms “controlled” and
“controlling” have meanings correlative thereto.

“Balance Sheet Date” means September 30, 2013.

“Benefit Arrangement” means, as it relates to each Transferred Business Employee only,
(i) employee benefit plan, as defined in Section 3(3) of ERISA (whether or not subject to ERISA),
(ii) employment agreement, offer letter or similar arrangement and (iii) bonus, commission, fee
sharing, deferred compensation, incentive compensation, performance compensation, stock purchase,
stock bonus, stock option, stock appreciation, restricted stock, restricted stock unit, phantom
stock, savings, profit sharing, severance, retention, stay-bonus, change in control, termination
pay, health or other medical, salary continuation, cafeteria, dependent care, vacation, sick leave,
paid-time off, holiday pay, fringe benefit, reimbursement, life insurance, disability or other
insurance, supplementary unemployment, pension retirement, supplementary retirement, welfare or
other plan, program, policy or arrangement, whether written or unwritten, which any current or
former employee, consultant, manager or director of Seller or any ERISA Affiliate participated or
participates in or was or is covered under, or was or is otherwise a party, and with respect to
which Seller or any ERISA Affiliate is or ever was a sponsor or participating employer, or had or
has an obligation to make contributions, or was or is otherwise a party.

“Business Day” means a day, other than a Saturday or Sunday, on which commercial banks
in New York City are open for the general transaction of business.

“Buyer Documents” means this Agreement and each other agreement, document, instrument
or certificate to be executed and delivered by Buyer hereunder or in connection with the
consummation of the transactions contemplated hereby.

“Code” means the Internal Revenue Code of 1986, as amended.

“Confidential Information” means nonpublic information, knowledge, or data relating to
the Business, including, without limitation, (i) all forms and types of financial, business,
customer and supplier lists, formulae, know-how, processes, secrets and Trade Secrets, consultant
contracts, pricing information, marketing plans, Product development plans, business acquisition
plans, and all other information relating to the operation of the Business, whether tangible or
intangible, whether oral or in writing, and whether or not marked, labeled, or otherwise identified
as “confidential” or the like and whether or not developed independently prior to or during any
affiliation with Seller; and (ii) all copies of any of the foregoing or any analyses, studies or
reports that contain, are based on, or reflect any of the foregoing.  Information which enters the
public domain or is publicly available loses its confidential status hereunder so long as neither
Seller nor its Affiliates directly or indirectly cause such information to enter the public domain
or become publicly available.

“Contract” means any contract, agreement, indenture, note, bond, mortgage, hypothec,
loan, instrument, lease, license, commitment or other arrangement, understanding, undertaking,
commitment or obligation, whether written or oral.

“Current Assets” means trade receivables (net of allowance for doubtful accounts) and
gross finished goods inventory, each determined in accordance with the Accounting Principles.

“Current Liabilities” means trade payables, checks-in-transit and other payments which
have been issued but not yet been funded, deferred compensation and accrued expenses for
Transferred Business Employees (including, without limitation, accrued payroll, accrued and unused
vacation time and other paid time off and accrued bonuses and commissions for Transferred Business
Employees), customer accruals (but specifically excluding accruals for revenue recognition),
spending and other accruals, accrued Taxes, and any unpaid transaction expenses incurred by Seller,
each determined in accordance with the Accounting Principles.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“ERISA Affiliate” means, with respect to Seller, any other Person that, together with
Seller, would be treated as a single employer under Section 414 of the Code.

“Extended Representations” means Section 4.13 (Benefit Arrangements),
Section 4.14 (Labor) and Section 4.15 (Taxes).

“Fundamental Representations” means Section 4.01 (Organization, Good Standing
and Authority of Seller; Enforceability of Seller), Section 4.02 (No Conflicts; Consents),
Section 4.03 (Title to Purchased Assets), Section 4.04 (Personal Property),
Section 4.10 (Intellectual Property), Section 5.01 (Organization, Good Standing and
Authority of Buyer; Enforceability of Buyer), and Section 5.02 (No Conflicts; Consents).

“GAAP” means generally accepted accounting principles as in effect in the United
States on the date of this Agreement.

“Governmental Authority” means any U.S. or other national, federal, state, provincial,
county, municipal or local government, foreign or domestic, or the government of any political
subdivision of any of the foregoing, or any entity, authority, agency, ministry or other similar
body exercising executive, legislative, judicial, regulatory or administrative authority or
functions of or pertaining to government, including any authority or other self-regulatory
organization or quasi-governmental entity established to perform any of such functions, and also
including any non-governmental trade association, union or organization, guild or similar body.

“Indebtedness” means at a particular time, without duplication, (i) any obligations
under any indebtedness for borrowed money (including, without limitation, all principal, interest,
premiums, penalties, fees, expenses, indemnities and breakage costs), (ii) any indebtedness
evidenced by any note, bond, debenture or other debt security, (iii) deferred purchase price of
more than sixty (60) days from the date of invoice for assets, property or services, whether
contingent, fixed or otherwise, (iv) any commitment by which a Person assures a creditor against
loss (including contingent reimbursement obligations with respect to letters of credit), (v) any
indebtedness pursuant to a guarantee, (vi) any obligations under capitalized leases or with respect
to which a Person is liable, contingently or otherwise, as obligor, guarantor or otherwise, or with
respect to which obligations a Person assures a creditor against loss, and (vii) any indebtedness
secured by a Lien on a Person’s assets.

“Intellectual Property” means any or all of the following and all rights in, arising
out of, or associated therewith: (i) all United States, international, and foreign patents and
applications therefor and all reissues, divisions, divisionals, renewals, extensions, provisionals,
continuations and continuations-in-part thereof, and all patents, applications, documents and
filings claiming priority to or serving as a basis for priority thereof (“Patents”);
(ii) discoveries, concepts, ideas, research and development, know-how, formulae, inventions,
compositions, technical data, procedures, designs, drawings, specifications, and other proprietary
and confidential information, including customer lists, supplier lists, pricing and cost
information, and business and marketing plans and proposals, in each case excluding any rights in
respect of any of the foregoing that comprise or are protected by Copyrights or Patents (“Trade
Secrets”); (iii) all copyrights and similar rights in protectable material, including mask
works, including rights to Use and all renewals and extensions thereof and registrations of the
foregoing and applications therefor, and equivalents of the foregoing throughout the world
(“Copyrights”); (iv) all industrial designs and any registrations and applications therefor
throughout the world; (v) all trade names (including fictitious, assumed, and d/b/a names), logos,
trade dress, common law trademarks and service marks, trademark and service mark registrations and
applications therefor throughout the world, together will the goodwill associated with any of the
foregoing (“Trademarks”); (vi) all databases and data collections and all rights therein
throughout the world; (vii) all moral rights, economic rights, rights of attribution of authors and
inventors, rights of privacy, and rights of publicity, however denominated, throughout the world;
(viii) all Web addresses, URLs, sites and domain names and numbers, all names and/or channels
registered under accounts with YouTube or any similar website operator, and all social media
handles (i.e. twitter, facebook, Google+, etc.); (ix) Software and Technology; and (x) any similar
or equivalent rights to any of the foregoing anywhere in the world.

“Law” means any domestic, foreign, federal, state or local law (including common law),
statute, code, ordinance, rule, regulation, policy or other requirement, bylaws or rules of any
Governmental Authority applicable to its members or participants, including, without limitation,
the Securities Act of 1933, as amended.

“Legal Proceeding” means any judicial, administrative or arbitral actions, suits,
investigations, inquiries, proceedings or claims by or before a Governmental Authority.

“Material Adverse Effect” means a change, effect, event, occurrence or circumstance
that, taken as a whole, is materially adverse to: (i) the business, assets, properties, results of
operations, management, condition (financial or otherwise) or prospects of Seller, or (ii) the
ability of Seller to consummate the transactions contemplated by this Agreement or perform its
obligations under this Agreement or the other Transaction Documents; provided,
however, that none of the following shall be taken into account in determining whether
there has been or will be, a Material Adverse Effect: any adverse change, effect, event,
occurrence, state of facts or development attributable to (a) the announcement or pendency of the
transactions contemplated by this Agreement; (b) conditions generally affecting the industry in
which the Business participates, the U.S. economy as a whole or the capital markets in general or
the markets in which the Business operates; (c) compliance with the terms of, or the taking of any
action required by, this Agreement, but not including, for the avoidance of doubt, any breach or
violation of a Contract resulting from Seller’s execution, delivery and performance of this
Agreement or the consummation of the Transactions; (d) any change in Laws or the interpretation
thereof; (e) actions required to be taken under applicable Laws; (f) any change in GAAP or other
accounting requirements or principles or any change in related Laws or the interpretation thereof;
or (f) the commencement, continuation or escalation of a war, material armed hostilities or other
material international or national calamity or act of terrorism directly or indirectly involving
the United States of America.

“Order” means any order, injunction, judgment, decree, ruling, writ, inspection
report, assessment or arbitration award of a Governmental Authority.

“Ordinary Course of Business” means, with respect to Seller, the ordinary and usual
course of day-to-day operations of the Business through the date hereof consistent with past
practice.

“Permits” means any approvals, authorizations, consents, licenses, permits or
certificates of a Governmental Authority.

“Person” means an individual, partnership, corporation, limited liability company,
joint stock company, unincorporated organization or association, trust or joint venture, or a
Governmental Authority or political subdivision thereof.

“Real Property Lease” means that certain Lease, dated November 22, 2011, by and
between Blue Rome Building LLC and Headsprout, Inc., for the premises located at 617 Eastlake
Avenue East, Floor 1, Seattle, Washington.

“Registered Intellectual Property” means all United States and foreign: (1) issued
Patents and applications for Patents; (2) registered Trademarks, applications to register
Trademarks, including intent-to-use applications and other registrations or applications related to
Trademarks; (3) Copyright registrations and applications to register Copyrights; (4) URL
registrations and applications to register URLs; and (5) any other Intellectual Property that is
the subject of an application, certificate, filing, registration or other document issued by, filed
with, or recorded by, any state, government or other public legal authority at any time.

“Seller Documents” means this Agreement and each other agreement, document, instrument
or certificate to be executed and delivered by Seller hereunder or in connection with the
consummation of the transactions contemplated hereby.

“Seller Guaranty” shall mean any guaranty, letter of credit, indemnity or contribution
agreement or other similar agreement entered into by Seller or any Seller Affiliate in favor of any
third party guaranteeing or assuring such third party of the payment of any actual or potential
liability or obligation exclusively related to the Business to such third party.

“Software” means any and all (i) computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code or object code,
(ii) databases and compilations, including any and all data and collections of data, whether
machine readable or otherwise, (iii) descriptions, flow-charts and other work product used to
design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats,
firmware, development tools, templates, menus, buttons and icons, and (iv) all documentation
including user manuals and other training documentation related to any of the foregoing.

“Tax”, “tax”, “Taxes” or “taxes” means (i) all federal, state,
local or foreign taxes, charges, fees, imposts, levies or other assessments, including, without
limitation, all net income, alternative minimum or add-on minimum tax, gross income, gross
receipts, capital, paid-up capital, sales, use, ad valorem, value added, transfer, franchise,
profits, inventory, capital stock, license, withholding, payroll, employment, social security,
unemployment, excise, severance, stamp, occupation, property and estimated taxes, environmental,
windfall profits, customs duties, fees, or other like assessments and charges of any kind
whatsoever, (ii) all interest, penalties, fines, additions to tax or additional amounts imposed by
any Taxing Authority in connection with any item described in clause (i), and (iii) any transferee
liability in respect of any items described in clauses (i) and/or (ii) payable by reason of
Contract, assumption, transferee liability, operation of Law, Treasury Regulations Section
1.1502-6(a) (or any predecessor or successor thereof of any analogous or similar provision under
Law) or otherwise, in each case whether or not disputed.

“Taxing Authority” means the U.S. Internal Revenue Service and any other Governmental
Authority responsible for the administration of any Tax.

“Tax Return” or “tax return” means any return, report, declaration, election,
notice, form, designation or statement filed or required to be filed with respect to any Tax
(including any attachments thereto, and any amendment thereof) including any information return,
claim for refund, amended return or declaration of estimated Tax.

“Technology” means, collectively, (i) all designs, formulae, algorithms, procedures,
methods, techniques, ideas, know-how, research and development, technical data, programs,
subroutines, tools, materials, specifications, processes, inventions (whether patentable or
unpatentable and whether or not reduced to practice), apparatus, creations, improvements, works of
authorship and other similar materials, (ii) all recordings, graphs, drawings, reports, analyses,
and other writings, and other tangible embodiments of any of the foregoing, in any form whether or
not specifically listed herein, and (iii) all related technology that is used in, incorporated in,
embodied in, displayed by or relate to any of the foregoing.

“Transaction Documents” means the Buyer Documents and the Seller Documents.

“Use” means to use, reproduce, modify, prepare derivative works based upon,
distribute, perform, display, make, have made, sell, license, sublicense, and otherwise exploit.

“Working Capital” means, as of the Closing Date, Current Assets less Current
Liabilities.

The following terms are defined in the section or subsection of this Agreement set forth after
such term below:

	 	 	 	 	 
	Term	 	Section
	Action
	 	 	4.17	 
	 
	 	 	 	 
	Agreement
	 	Preamble
	 
	 	 	 	 
	Allocation Schedule
	 	 	2.08	 
	 
	 	 	 	 
	Arbitrator
	 	 	2.07	(g)(i)
	 
	 	 	 	 
	Assignment and Assumption Agreement
	 	3.03(a)(ii)
	 
	 	 	 	 
	Assumed Contracts
	 	 	4.12	(c)
	 
	 	 	 	 
	Assumed Liabilities
	 	 	2.03	 
	 
	 	 	 	 
	Business
	 	Recitals
	 
	 	 	 	 
	Business Inbound Intellectual Property Licenses
	 	 	4.10	(b)
	 
	 	 	 	 
	Business Intellectual Property Licenses
	 	 	4.10	(b)
	 
	 	 	 	 
	Business Outbound Intellectual Property Licenses
	 	 	4.10	(b)
	 
	 	 	 	 
	Business Intellectual Property
	 	 	4.10	(c)
	 
	 	 	 	 
	Business Owned Intellectual Property
	 	 	4.10	(c)
	 
	 	 	 	 
	Business Service Providers
	 	 	4.14	(a)
	 
	 	 	 	 
	Business Software
	 	 	4.10	(g)
	 
	 	 	 	 
	Buyer
	 	Preamble
	 
	 	 	 	 
	Buyer Indemnified Parties
	 	 	7.02	(a)
	 
	 	 	 	 
	Cap Amount
	 	 	7.02	(d)
	 
	 	 	 	 
	Cash Consideration
	 	 	2.05	 
	 
	 	 	 	 
	Closing
	 	 	3.01	 
	 
	 	 	 	 
	Closing Date
	 	 	3.01	 
	 
	 	 	 	 
	Closing Statement
	 	 	2.07	(c)(i)
	 
	 	 	 	 
	Closing Working Capital
	 	 	2.07	(c)(i)
	 
	 	 	 	 
	Collar Amount
	 	 	2.07	(i)
	 
	 	 	 	 
	Damages
	 	 	7.02	(a)
	 
	 	 	 	 
	Domain Name Assignment Agreement
	 	3.03(a)(vi)
	 
	 	 	 	 
	Excluded Liabilities
	 	 	2.04	 
	 
	 	 	 	 
	Final Statement
	 	 	2.07	(c)(i)
	 
	 	 	 	 
	Financial Statements
	 	 	4.07	(a)
	 
	 	 	 	 
	Holdback Amount
	 	 	2.05	 
	 
	 	 	 	 
	Holdback Release Amount
	 	 	3.02	 
	 
	 	 	 	 
	Holdback Release Date
	 	 	3.02	 
	 
	 	 	 	 
	HRS Agreement
	 	3.03(a)(viii)
	 
	 	 	 	 
	Indemnified Party
	 	 	7.02	(c)
	 
	 	 	 	 
	Indemnifying Party
	 	 	7.02	(c)
	 
	 	 	 	 
	Inventory
	 	 	2.01	(i)
	 
	 	 	 	 
	Liens
	 	 	2.01	 
	 
	 	 	 	 
	Material Contracts
	 	 	4.12	(a)
	 
	 	 	 	 
	Material Owned Intellectual Property
	 	 	4.10	(a)
	 
	 	 	 	 
	Nonassignable Assets
	 	 	2.09	 
	 
	 	 	 	 
	Notice of Disagreement
	 	2.07(d)(ii)
	 
	 	 	 	 
	Offer Employees
	 	 	6.04	 
	 
	 	 	 	 
	Patent Assignment Agreement
	 	 	3.03	(a)(v)
	 
	 	 	 	 
	Personal Property Leases
	 	 	4.04	 
	 
	 	 	 	 
	Preliminary Closing Statement
	 	 	2.07	(a)
	 
	 	 	 	 
	Preliminary Closing Working Capital
	 	 	2.07	(a)
	 
	 	 	 	 
	Purchase Price
	 	 	2.05	 
	 
	 	 	 	 
	Purchased Assets
	 	 	2.01	 
	 
	 	 	 	 
	Restricted Period
	 	 	6.03	 
	 
	 	 	 	 
	Retained Assets
	 	 	2.02	 
	 
	 	 	 	 
	Seller
	 	Preamble
	 
	 	 	 	 
	Seller Indemnified Parties
	 	 	7.02	(b)
	 
	 	 	 	 
	Seller Permits
	 	 	4.16	(b)
	 
	 	 	 	 
	Survival Period
	 	 	7.01	 
	 
	 	 	 	 
	Target Working Capital
	 	 	2.07	 
	 
	 	 	 	 
	Third Party Claim
	 	 	7.04	 
	 
	 	 	 	 
	Trademark Assignment Agreement
	 	3.03(a)(iv)
	 
	 	 	 	 
	Transferred Business Employees
	 	 	6.04	 
	 
	 	 	 	 
	Transition Services Agreement
	 	3.03(a)(vii)
	 
	 	 	 	 
	Unresolved Claims
	 	 	7.03	(b)
	 
	 	 	 	 

Section 1.02 Interpretation. Unless the context otherwise requires, as used in this
Agreement: (i) an accounting term not otherwise defined herein has the meaning ascribed to it in
accordance with GAAP; (ii) ”or” is not exclusive; (iii) ”including” and its variants mean
“including, without limitation” and its variants; (iv) the terms “Dollars” and “$” mean United
States Dollars; (v) words defined in the singular have the parallel meaning in the plural and vice
versa; (vi) words of one gender shall be construed to apply to each gender; (vii) the words
“hereof”, “herein”, “hereby”, “hereto,” and derivative or similar words refer to this entire
Agreement, including the Schedules and Exhibits hereto; (viii) the terms “Article”, “Section”,
“Exhibit”, “Preamble”, “Recital” and “Schedule” refer to the specified Article, Section, Exhibit,
Preamble, Recital or Schedule of or to this Agreement; (ix) the phrases “delivered” or “made
available” means that the information referred to has been physically or electronically delivered
to the relevant parties; (x) unless specifically denominated as Business Days, references to “day”
or “days” are to calendar days; and (xi) any references to time shall be references to New York
time.

ARTICLE II

PURCHASE AND SALE

Section 2.01 Purchase and Sale of Assets. Subject to the terms and conditions set forth
herein, and on the basis of the representations, warranties and agreements contained herein, at the
Closing (as defined herein), Seller shall sell, assign, transfer, convey and deliver to Buyer, and
Buyer shall purchase from Seller, all of Seller’s right, title and interest in and to the assets
used in, held for use, or other otherwise constituting, the Business, as operated in the Ordinary
Course of Business, of every kind and description, wherever located, whether tangible or intangible
(including, without limitation, goodwill), real, personal or mixed, but excluding the Retained
Assets (the “Purchased Assets”), free and clear of any mortgage, pledge, lien, charge,
security interest, claim or other encumbrance (“Liens”). The Purchased Assets include,
without limitation, all of the right, title and interest of Seller in and to the following assets
of the Business:

(a) all of the Intellectual Property of Seller associated with the Business, including,
without limitation, the Intellectual Property identified in Schedule 2.01(a);

(b) the names Headsprout, Headsprout Early Reading, Headsprout Reading Comprehension,
MimioSprout, MimioReading, and any other names used by Seller, but excluding for all purposes any
names related to Newell, Newell Rubbermaid, Dymo, Mimio or MimioTeach;

(c) all rights in, to and under any Assumed Contract, including without limitation, all rights
to receive goods and services purchased pursuant to such Assumed Contracts and to assert claims and
take other actions in respect of breaches or other violations thereof;

(d) all equipment (including computer and office equipment), business machines, furniture,
fixtures, supplies and all other tangible personal property listed on Schedule 2.01(d);

(e) all rights and claims of Seller associated with the Business, whether mature, contingent
or otherwise, against third parties whether in tort, contract or otherwise, including, without
limitation, causes of action, unliquidated rights and claims under or pursuant to all warranties,
representations and guarantees made by manufacturers, suppliers or vendors, claims for refunds,
rights of off-set and credits of all kinds and all other general intangibles;

(f) all Permits and exemptions of, and filings or registrations with, any Governmental
Authority, to the extent transferable by Seller, including, without limitation, those Permits
listed on Schedule 2.01(f);

(g) all prepaid deposit, advances and other prepaid expenses associated with the Business and
all other Current Assets as of the Closing Date solely to the extent taken into account in
calculating the Closing Working Capital hereunder;

(h) the assets set forth on Schedule 2.01(h);

(i) all inventory, finished goods, packaging, supplies and other inventories
(“Inventory”); and

(j) all books, records, files and papers relating to the conduct of the Business, as
maintained in the Ordinary Course of Business, including, without limitation, drawings, computer
programs, manuals and data, sales, marketing and promotional materials, correspondence, research
and development records, prototypes and models, lists of present and former customers, customer
credit information, customers’ pricing information, business plans, studies and analyses, whether
prepared by Seller or a third party, relating to the Business, books of account, accounting records
and personnel, employment and other records relating to the Business, but excluding Tax Returns and
related notes, worksheets, files and documents relating thereto (the “Business Records”).

Section 2.02 Retained Assets. Notwithstanding anything to the contrary in this Agreement, the
Purchased Assets shall not include any of the assets, properties, rights, contracts and claims,
wherever located, whether tangible or intangible, real or personal, of Seller not included in
Section 2.01 above, the Real Property Lease, or any of the assets listed on
Schedule 2.02 which are related to the operation of the Business outside of the Ordinary
Course of Business (collectively, the “Retained Assets”).

Section 2.03 Assumed Liabilities. Upon the terms and subject to the conditions of this
Agreement and on the basis of and subject to the representations, warranties and agreements
contained herein, at the Closing, Buyer shall assume and become responsible for all debts, claims,
obligations, damages, fines, penalties, costs or expenses (whether known or unknown, vested or
unvested, asserted or unasserted, absolute or contingent, accrued or unaccrued, assessed or
unassessed, liquidated or unliquidated, actual or potential, and due or to become due) (each, a
“Liability”), of or relating to the Business incurred prior to the Closing Date solely to
the extent that such Liabilities have been incurred in the customary, day-to-day operation of the
Business, as operated in the Ordinary Course of Business, including but not limited to, the
following, but, in each case, expressly excluding the Excluded Liabilities (the “Assumed
Liabilities”):

(a) the Liabilities under the Assumed Contracts solely to the extent that such Liabilities are
required to be performed, and were incurred or have arisen, in the Ordinary Course of Business;

(b) all accounts payable related to the Business incurred by Seller in the Ordinary Course of
Business and outstanding as of the Closing Date and reflected in the Closing Statement
(collectively, the “Accounts Payable”);

(c) all Liabilities related to the Transferred Business Employees solely to the extent arising
from performance of services for Buyer after the Closing, other than Liabilities for which Seller
is responsible under the HRS Agreement; and

(d) those Liabilities set forth on Schedule 2.03(d).

Section 2.04 Excluded Liabilities. Notwithstanding anything in Section 2.03 above and
notwithstanding anything to the contrary contained in this Agreement, Buyer shall not assume any
Liabilities of Seller other than Assumed Liabilities (“Excluded Liabilities”). Excluded
Liabilities shall include, without limitation, the following:

(a) all Liabilities, whether absolute, accrued, contingent or otherwise, for Taxes
(i) relating to Seller or, for any taxable period (or any portion thereof) ending on or prior to
the Closing Date, any aspect of the Business or operations or (ii) resulting from the transactions
contemplated by this Agreement;

(b) all Liabilities of any kind existing as of the Closing Date of a nature properly
characterized under the Accounting Principles as an inter-company liability or otherwise owed or
owing by the Business to Seller or any of its respective Affiliates;

(c) all Liabilities relating to current or former employees, managers, directors, agents,
consultants or other independent contractors of Seller or ERISA Affiliates, whether or not such
Persons are or are otherwise employed by or perform other services for Buyer or its respective
Affiliates after the Closing, relating to services performed, benefits accrued or claims accrued or
incurred on, prior to or after the Closing, including, without limitation all severance, bonus,
damages for wrongful dismissal, paid-time-off, accrued vacation, and other post-termination
payments, but excluding Liabilities relating to Transferred Business Employees for services
performed for Buyer after the Closing (other than Liabilities for which Seller is responsible under
the HRS Agreement);

(d) except for Current Liabilities taken into account in calculating the Closing Working
Capital hereunder, all Liabilities relating to or arising under each Benefit Arrangement at any
time before, on or after the Closing Date, including, but not limited to, any liability or
obligation (i) under or for any employment agreement, offer letter or similar arrangement,
compensation, bonus, retention, change of control, commission or fee sharing arrangement, stock
option, incentive, deferred compensation, accrued payroll, accrued vacation pay, sick leave,
severance, worker’s compensation, unemployment compensation, employee welfare or retirement
benefits, and (ii) for the provision of healthcare continuation coverage under COBRA or any other
Law to current or former employees of Seller or ERISA Affiliates (or beneficiary thereof);

(e) all Liabilities directly or indirectly based upon, arising out of, resulting from or
relating to any act, omission, event, condition or circumstance occurring or existing, in
connection with any aspect of the Business or the Purchased Assets or otherwise, as of or prior to
the consummation of the Closing and that (i) were not incurred in the Ordinary Course of Business
or (ii) relate to, or are the subject of, any inaccuracy in any representation or breach of any
warranty made by Seller in this Agreement or any Seller Document;

(f) all Liabilities arising out of any Legal Proceeding, inquiry, claim, Order or
investigation by or before any Governmental Authority arising out of events, transactions, facts,
circumstances, acts or omissions which, to Seller’s knowledge, occurred or existed or was commenced
prior to or on the Closing Date;

(g) all Liabilities arising out of (i) any Contract with Seller, other than an Assumed
Contract or (ii) any Assumed Contract to the extent that such Liabilities are based upon, arise out
of, result from or relate to, Seller’s breach of, or non-compliance with, any provision of an
Assumed Contract;

(h) all Liabilities that Seller may have with respect to the negotiation, preparation and
execution of this Agreement and the consummation of the transactions contemplated hereby;

(i) all Liabilities relating to the infringement, violation or an unauthorized use or
misappropriation of any Intellectual Property of any third party arising out of events occurring
prior to the Closing Date; and

(j) all Liabilities arising out of the Retained Assets.

Section 2.05 Consideration. In consideration for the sale by Seller to Buyer of the Purchased
Assets and the assumption by Buyer of the Assumed Liabilities, and subject to adjustment as
provided in Section 2.07, the aggregate purchase price for the Purchased Assets (the
“Purchase Price”) shall be Four Million Dollars ($4,000,000) in cash; provided that Four
Hundred Thousand Dollars ($400,000) of the Purchase Price shall be retained by Buyer pursuant to
Article III and Article VII hereof (the “Holdback Amount”). An amount
equal to Three Million Six Hundred Thousand Dollars ($3,600,000) shall be paid to Seller by wire
transfer of immediately available funds on the Closing Date in accordance with the wire transfer
instructions delivered in writing by Seller to Buyer at least one (1) business day prior to the
Closing. The “Cash Consideration” shall be the Purchase Price less the Holdback Amount.

Section 2.06 Withholding Tax. Buyer shall be entitled to deduct and withhold from the
Purchase Price all taxes that Buyer may be required to deduct and withhold under any applicable Tax
Law. All such withheld amounts shall be treated as delivered to Seller hereunder.

Section 2.07 Purchase Price Adjustment.

(a) Not later than two (2) calendar days prior to the Closing Date, Seller shall have provided
Buyer with a schedule prepared in good faith and based on the Balance Sheet, in the form attached
hereto as Schedule 2.07(a), as of the open of business on the Closing Date (the
“Preliminary Closing Statement”) and a statement of the estimated Working Capital, derived
from the Preliminary Closing Statement (“Preliminary Closing Working Capital”). The
Preliminary Closing Statement and Preliminary Closing Working Capital shall be prepared by Seller
in accordance with the Accounting Principles.

(b) If the Preliminary Closing Working Capital is (1) less than $237,456 (the “Target
Working Capital”), then the Purchase Price payable by Buyer to Seller at Closing will be
decreased by an amount equal to the excess of the Target Working Capital over the Preliminary
Closing Working Capital; or (2) more than the Target Working Capital, then the Purchase Price
payable by Buyer to Seller at Closing will be increased by an amount equal to the excess of the
Preliminary Closing Working Capital over the Target Working Capital . The Purchase Price shall be
subject to further adjustment following the Closing as provided herein to reflect the difference,
if any, between the Final Closing Working Capital (as defined below) determined pursuant to this
Section 2.7 and the Preliminary Closing Working Capital.

(c) Preparation of the Closing Statement.

(i) Within sixty (60) days after the Closing Date, Buyer will prepare and deliver to Seller a
schedule prepared in good faith and based on the Balance Sheet, in the form attached hereto as
Schedule 2.07(a), as of the open of business on the Closing Date (the “Closing
Statement”) and a statement of the Working Capital, derived from the Closing Statement
(“Closing Working Capital”). The Closing Statement and the Closing Working Capital shall
be prepared in accordance with the Accounting Principles. The Closing Statement as finally
modified pursuant to Sections 2.07(d) through 2.07(f) is referred to herein as the
“Final Statement” and the Closing Working Capital, as derived from the Final Statement, is
referred to herein as the “Final Closing Working Capital.” All disputes with respect to
the Closing Statement and the Closing Working Capital will be resolved in accordance with
Sections 2.07(d) through 2.07(f).

(ii) From the Closing Date until the finalization of the Final Statement, Seller will assist,
in good faith, Buyer and its Representatives in the preparation of the Closing Statement. During
such period, Seller will provide Buyer reasonable access during normal business hours to Seller’s
personnel, books and records (and the work papers prepared by Seller’s independent accountants
(subject to compliance with Seller’s independent accountants’ customary procedures for release))
not included in the Purchased Assets and related to the Business for such purpose.

(d) Review of Closing Statement.

(i) Seller shall have thirty (30) days following Buyer’s delivery of the Closing Statement to
Seller to review and respond to the Closing Statement, during which period Buyer will grant Seller
reasonable access during normal business hours to Buyer’s personnel, the Business Records and the
work papers prepared by Buyer’s independent accountants (subject to compliance with Buyer’s
independent accountants’ customary procedures for release) with respect to the Closing Statement.

(ii) Unless Seller has delivered to Buyer a written letter of its disagreement with the
Closing Statement (the “Notice of Disagreement”) on or prior to the thirtieth
(30th) day following Buyer’s delivery of the Closing Statement to Seller, the Closing
Statement will become the Final Statement on the thirty-first (31st) day following
Buyer’s delivery of the Closing Statement to Seller. The Notice of Disagreement will set forth in
reasonable detail any proposed adjustment to the Preliminary Closing Statement and the basis for
such adjustment.

(e) If the Notice of Disagreement is delivered in accordance with Section 2.07(d)(ii)
then:

(i) any amount set forth in the Closing Statement as to which Seller has not objected in the
Notice of Disagreement in accordance with Section 2.07(d)(ii) will be deemed to be accepted
and will become part of the Final Statement, and

(ii) the Closing Statement, as modified to reflect the adjustments (x) accepted pursuant to
this Section 2.07(e), (y) agreed to in writing pursuant to Section 2.07(f) and
(z) determined by the Arbitrator pursuant to Section 2.07(g) will become the Final
Statement on the earlier of (1) the date that Seller and Buyer resolve in writing all remaining
disputed matters specified in the Notice of Disagreement or (2) the date that the Arbitrator
delivers to Seller and Buyer a copy of the Final Statement and the Final Closing Working Capital
pursuant to Section 2.07(g).

(f) Meeting to Resolve Proposed Adjustments. As soon as reasonably practicable, but
in no event later than thirty (30) days, after Sellers’ delivery of the Notice of Disagreement,
Buyer and Seller will meet and endeavor to resolve the unaccepted adjustments in the Notice of
Disagreement. If Buyer and Seller reach agreement in writing on such adjustments, the Final
Statement will be the Closing Statement modified to reflect the adjustments agreed to in writing by
the parties pursuant to this Section 2.07(f).

(g) Resolution by Arbitration.

(i) If Buyer and Seller do not resolve to their mutual satisfaction all disputed adjustments
in the Notice of Disagreement within twenty-five (25) days following the meeting provided for in
Section 2.07(f), any remaining disputed adjustments that were included in the Notice of
Disagreement will be settled by an independent accounting firm of national reputation mutually
acceptable to Buyer and Seller (such accounting firm being the “Arbitrator”) in accordance
with the following provisions of this Section 2.07(g).

(ii) On or prior to the thirtieth (30th) day following the meeting provided for in
Section 2.07(f), Seller will furnish the Arbitrator with a copy of this Agreement, the
Financial Statements, the Closing Statement, the Notice of Disagreement and any other relevant
correspondence between the parties. Buyer and Seller will also give the Arbitrator:

(A) position papers outlining such Party’s respective arguments and supporting
documentation for such Party’s position; provided, however, that
Buyer’s positions, arguments and computations must match those set forth in the
Closing Statement or agreed to with Seller pursuant to Section 2.07(f) above
(and the Arbitrator will not consider any that do not so match), and Seller’s
positions, arguments and computations must match those set forth in the Notice of
Disagreement or agreed to with Buyer pursuant to Section 2.07(f) above (and
the Arbitrator will not consider any that do not so match); and

(B) access to the books and records of the Business, including any work papers
or other schedules prepared by such Party’s accountants (subject to compliance with
such Party’s accountants’ customary procedures for release) relating to the
preparation of the Closing Statement and the Notice of Disagreement.

(iii) The Arbitrator’s engagement will be limited to (A) reviewing the Closing Statement and
the amounts placed in dispute by the Notice of Disagreement pursuant to
Section 2.07(d)(ii); (B) determining (1) whether Buyer’s proposed amount for each
individual item in the Closing Statement or Seller’s proposed adjustment thereto in the Notice of
Disagreement is calculated more nearly in accordance with Section 2.07(c) and (2) whether
there were mathematical errors in the Closing Statement; (C) preparing the Final Statement, which
will include those amounts in the Closing Statement agreed to in writing by Buyer and Seller
pursuant to Section 2.07(f), and those amounts determined by the Arbitrator to be
calculated more nearly in accordance with Section 2.07(c); and (D) calculating the Final
Working Capital. The fees and expenses of the Arbitrator will be borne by Seller and Buyer in
inverse proportion as they may prevail on matters resolved by the Arbitrator, which proportionate
allocations will also be determined by the Arbitrator at the time the determination of the
Arbitrator is rendered on the Final Statement and the Final Working Capital.

(iv) The parties will instruct the Arbitrator to (A) complete its preparation of the Final
Statement and the Final Working Capital within twenty-five (25) days from the date of submission of
the disputed adjustments to the Arbitrator pursuant to Section 2.07(g)(ii) and (B) deliver
promptly thereafter a copy of the Final Statement and the Final Working Capital to Seller and
Buyer, together with a report setting forth each disputed adjustment and the Arbitrator’s
determination with respect thereto. The Arbitrator’s determination will be conclusive and binding
upon the parties and may be entered and enforced in any court of competent jurisdiction.

(h) Payment of Purchase Price Adjustment. Upon final determination of the Final
Closing Working Capital as provided in this Section 2.07, if the Final Closing Working
Capital is (1) less than the Preliminary Closing Working Capital, the Purchase Price shall, subject
to Section 2.07(i) be decreased by the excess of the Preliminary Closing Working Capital
over the Final Closing Working Capital, or (2) more than the Preliminary Closing Working Capital,
the Purchase Price shall, subject to Section 2.07(i) be increased by the excess of the
Final Closing Working Capital over the Preliminary Closing Working Capital (the “Purchase Price
Adjustment”). Subject to Section 2.07(i), if the Purchase Price Adjustment results in
an increase in the Purchase Price, then such increase shall be paid by the Buyer to the Seller on a
dollar for dollar basis and, if the Purchase Price Adjustment results in a decrease in the Purchase
Price, then such decrease shall be paid by Seller to Buyer on a dollar for dollar basis. The
Purchase Price Adjustment, if any, will be paid by Seller or Buyer, as the case may be, within ten
(10) Business Days following the date on which the Closing Statement becomes the Final Statement
(as determined in accordance with Section 2.07(c)(i)), which payment shall be made in
immediately available funds by wire transfer pursuant to instructions provided in writing by Buyer.

(i) No Purchase Price Adjustment Payment. Notwithstanding the foregoing provisions of
this Section 2.07, no Purchase Price Adjustment payment will be required or made pursuant
to Section 2.07(h) unless the Purchase Price Adjustment exceeds Twenty-Five Thousand
Dollars ($25,000) (the “Collar Amount”), and if the amount of the Purchase Price Adjustment
exceeds the Collar Amount, then the entire amount of the Purchase Price Adjustment shall be made.

Section 2.08 Allocation of Purchase Price. Seller and Buyer agree that the Purchase Price and
the relevant Assumed Liabilities shall be allocated among the Purchased Assets in accordance with
Section 1060 of Code. Seller and Buyer shall provide the other promptly with any other information
required to complete the Allocation Schedule (as defined below). Buyer and Seller also shall
allocate and report any adjustments to the Purchase Price in accordance with Treasury Regulations
Section 1.1060-1(e), and any allocations made as a result of such adjustments shall become part of
the Allocation Schedule. The Purchase Price (which for these purposes shall include the amount of
the relevant Assumed Liabilities) shall be allocated among the Purchased Assets in accordance with
a schedule that Buyer shall provide to Seller within thirty (30) days after the Closing.
Thereafter, Seller shall have thirty (30) days either to (a) agree with and accept such schedule or
(b) in good faith suggest changes to such schedule and attempt to agree with the Buyer, with each
party using its commercially reasonable efforts to resolve such dispute within thirty (30) days, as
to the contents of the schedule (with the resulting agreed-upon schedule in both instances called
the “Allocation Schedule”). If Seller and Buyer are unable to resolve such dispute within
such thirty (30) day period, the resolution of such dispute shall be determined by the Accounting
Firm whose cost shall be borne equally by Seller and Buyer. The parties shall instruct the
Accounting Firm to resolve such dispute within fifteen (15) days after submission of such disputed
item to the Accounting Firm for its consideration. The Accounting Firm’s resolution of the dispute
shall be final and binding on the parties and shall be deemed to amend the Allocation Schedule.
Once Seller and Buyer agree on the Allocation Schedule (or once the Accounting Firm determines the
Allocation Schedule), Seller and Buyer shall file Internal Revenue Service Form 8594 and any
required attachments thereto (“Form 8594”), together with all federal, state and local Tax
Returns, in a manner consistent with and in accordance with such Allocation Schedule.

Section 2.09 Consent of Third Parties. Nothing in this Agreement nor the consummation of the
transactions contemplated hereby shall be construed as an attempt or agreement to assign any
Purchased Asset, including any Contract, Permit, Intellectual Property, certificate, approval,
authorization or other right, which by its terms or by Law is nonassignable without the consent of
a third party or a Governmental Authority or is cancelable by a third party in the event of an
assignment (“Nonassignable Assets”) unless and until such consent shall have been obtained.
Seller shall, and shall cause its Affiliates to, use its commercially reasonable best efforts to
cooperate with Buyer at its request in endeavoring to obtain such consents promptly. To the extent
permitted by applicable Law, in the event consents to the assignment thereof cannot be obtained,
such Nonassignable Assets shall be held, as of and from the Closing Date, by Seller or the
applicable Affiliate of Seller in trust for Buyer and the covenants and obligations thereunder
shall be performed by Buyer in Seller’s or such Affiliate’s name and all benefits and obligations
existing thereunder shall be for Buyer’s account. Seller shall take or cause to be taken at
Seller’s expense such actions in its name or otherwise as Buyer may reasonably request so as to
provide Buyer with the benefits of the Nonassignable Assets and to effect collection of money or
other consideration that becomes due and payable under the Nonassignable Assets, and Seller or the
applicable Affiliate of Seller shall promptly pay over to Buyer all money or other consideration
received by it in respect of all Nonassignable Assets. As of and from the Closing Date, Seller on
behalf of itself and its Affiliates authorizes Buyer, to the extent permitted by applicable Law and
the terms of the Nonassignable Assets, at Buyer’s expense, to perform all the obligations and
receive all the benefits of Seller or its Affiliates under the Nonassignable Assets and appoints
Buyer its attorney-in-fact to act in its name on its behalf or in the name of the applicable
Affiliate of Seller and on such Affiliate’s behalf with respect thereto.

ARTICLE III

CLOSING

Section 3.01 Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place simultaneously with the execution of this Agreement on the date
hereof (the “Closing Date”) via electronic exchange of documents the Closing Date. The
consummation of the transactions contemplated by this Agreement shall be deemed to occur at 12:01
a.m. U.S. Eastern Time on the Closing Date.

Section 3.02 Holdback. At the Closing, Buyer shall withhold the Holdback Amount from the
Purchase Price as security for the indemnity obligations of Seller under this Agreement. The
Holdback Amount shall be held, administered and distributed by Buyer in accordance with the terms
of Article VII. Subject to the terms of Article VII, Buyer shall release the
Holdback Amount on the date that is eighteen (18) months after the Closing Date (the “Holdback
Release Date”), less any amount necessary to cover any past or pending claims for
indemnification pursuant to this Agreement (the “Holdback Release Amount”).

Section 3.03 Closing Deliverables.

(a) At the Closing, Seller shall deliver or cause the delivery of each of the following to
Buyer:

(i) physical possession and control of the Purchased Assets, including, without limitation,
all Business Records;

(ii) a counterpart of the assignment and assumption agreement in the form annexed hereto as
Exhibit A (the “Assignment and Assumption Agreement”) and a bill of sale in the
form annexed hereto as Exhibit B, each duly executed by Seller;

(iii) [intentionally omitted];

(iv) a counterpart of the trademark assignment agreement in the form annexed hereto as
Exhibit D (the “Trademark Assignment Agreement”), duly executed by Seller;

(v) a counterpart of the copyright assignment agreement in the form annexed hereto as
Exhibit E (the “Patent Assignment Agreement”), duly executed by Seller;

(vi) a counterpart of the domain name assignment agreement in the form annexed hereto as
Exhibit F (the “Domain Name Assignment Agreement”), duly executed by Seller;

(vii) a counterpart of the transition services agreement in the form annexed hereto as
Exhibit G (the “Transition Services Agreement”), duly executed by Seller;

(viii) a counterpart of the human resources services agreement in the form annexed hereto as
Exhibit H (the “HRS Agreement”), duly executed by Seller;

(ix) a certificate of the Secretary (or equivalent officer) of Seller, in form and substance
satisfactory to Buyer, certifying as to (A) a certified copy of Seller’s certificate of formation;
(B) the operating agreement of Seller, including any amendments thereto, as in effect on the date
hereof; (C) the resolutions of the manager of Seller, duly adopted and in effect, which authorize
the execution, delivery and performance of this Agreement and the other Seller Documents and the
transactions contemplated hereby and thereby, and (D) the names and signatures of the officers of
Seller authorized to sign this Agreement and the other Seller Documents;

(x) an affidavit of non-foreign status of Seller that complies with section 1445 of the Code
and satisfies the requirements of Treasury Regulation Section 1.1445-2(b); and

(xi) such other documents and instruments, including customary instruments of transfer,
assumption, filings or documents, in form and substance reasonably satisfactory to Buyer, as Buyer
or its counsel may reasonably request.

(b) At the Closing (or, solely with respect to delivery of the Cash Consideration, on January
3, 2014), Buyer shall deliver or cause the delivery of each of the following to Seller:

(i) the Cash Consideration;

(ii) a counterpart of the Assignment and Assumption Agreement, duly executed by Buyer;

(iii) [intentionally omitted];

(iv) a counterpart of the Trademark Assignment Agreement, duly executed by Buyer;

(v) a counterpart of the Patent Assignment Agreement, duly executed by Buyer;

(vi) a counterpart of the Domain Name Assignment Agreement, duly executed by Buyer;

(vii) a counterpart of the Transition Services Agreement, duly executed by Buyer;

(viii) a counterpart of the HRS Agreement, duly executed by Buyer; and

(ix) a certificate executed by the corporate secretaries or assistant secretaries of Buyer and
Parent, respectively, certifying as of the Closing Date (A) a true and complete copy of the
certificate of incorporation of Buyer, (B) a true and complete copy of the bylaws of Buyer,
(C) that the boards of directors of each of Buyer and Parent have duly authorized the execution,
delivery and performance by Buyer and Parent of this Agreement and the consummation of the
transactions contemplated by this Agreement, and (D) the names and signatures of the officers of
each of Buyer authorized to sign this Agreement and the other Buyer Documents.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller represents and warrants to Buyer that the statements contained in this Article
IV are true and correct as of the date hereof, knowing and intending that Buyer is relying
hereon in entering into this Agreement. For purposes of this Article IV, “Seller’s
knowledge,” “knowledge of Seller” and any similar phrases shall mean the actual or constructive
knowledge of any manager, director or officer of Seller, after due inquiry.

Section 4.01 Organization, Good Standing and Authority of Seller; Enforceability of Seller.

(a) Seller is a limited liability company duly organized, validly existing and in good
standing under the laws of the state of Delaware. Seller has full limited liability company power
and authority to enter into this Agreement and the other Seller Documents, to carry out its
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and
thereby. Seller is duly qualified to do business as a foreign entity and is in good standing in
each jurisdiction where the failure to be so qualified would have a Material Adverse Effect.
Schedule 4.01 lists each jurisdiction in which Seller is so qualified in respect of its
operation of the Business.

(b) The execution, delivery and performance by Seller of this Agreement and the other Seller
Documents and the consummation of the transactions contemplated hereby and thereby have been duly
authorized by all requisite corporate action on the part of Seller. This Agreement and the other
Seller Documents have been duly executed and delivered by Seller, and (assuming due authorization,
execution and delivery by Buyer) this Agreement and the other Seller Documents constitute legal,
valid and binding obligations of Seller, enforceable against Seller in accordance with their
respective terms.

Section 4.02 No Conflicts; Consents. The execution, delivery and performance by Seller of
this Agreement and the other Seller Documents, and the consummation of the transactions
contemplated hereby and thereby, do not and will not: (a) violate or conflict with the certificate
of formation, operating agreement or other organizational documents of Seller; (b) violate or
conflict with any Order or Law applicable to Seller or the Purchased Assets; (c) conflict with, or
result in (with or without notice or lapse of time or both) any violation of, or default under, or
give rise to a right of termination, acceleration or modification of any obligation or loss of any
benefit under any contract or other instrument to which Seller is a party or to which any of the
Purchased Assets are subject; or (d) result in the creation or imposition of any Lien on the
Purchased Assets. No consent, approval, waiver or authorization is required to be obtained by
Seller from any Person in connection with the execution, delivery and performance by Seller of this
Agreement and the consummation of the transactions contemplated hereby. No consent, approval,
waiver or authorization is required to be obtained by Seller from any Government Authority in
connection with the execution, delivery and performance by Seller of this Agreement or the other
Seller Documents and the consummation of the transactions contemplated hereby or thereby.

Section 4.03 Title to Purchased Assets. Seller owns and has good and marketable title to the
Purchased Assets, free and clear of all Liens and, at Closing, Buyer will be vested with good,
marketable and exclusive title to the Purchased Assets, free and clear of all Liens. No third
party (including any Affiliate or equity holder of Seller) owns or has any interest by lease,
license or otherwise in any of the Purchased Assets. Except for the Real Property Lease and the
assets listed on Schedule 2.02, the Purchased Assets constitute all of the rights,
properties, services and assets (personal, tangible or intangible) which are utilized in the
conduct of the Business as it is currently operated and are sufficient for Buyer to conduct the
Business as it is currently operated from and after the Closing Date in all material respects. The
Purchased Assets are in all material respects fit for operation in the Ordinary Course of Business
(subject to normal wear and tear) and, to the knowledge of Seller, there are no defects, facts or
conditions affecting the Purchased Assets which could, individually or in the aggregate, interfere
in any material respect with the use or operation thereof as currently used or operated. All
tangible personal property owned or leased by Seller has been maintained in accordance with
generally accepted industry standards.

Section 4.04 Personal Property. Seller has good and marketable title to (or valid leasehold
or contractual interests in) all personal property comprising the Purchased Assets, free and clear
of all Liens. Schedule 2.01(d) sets forth all personal property used or held for use by
Seller in connection with the Business. Schedule 4.04 sets forth all leases of personal
property (“Personal Property Leases”) relating to personal property used in the Business or
to which Seller is a party. Each of the Personal Property Leases is in full force and effect and
Seller has not received or given any notice of any default or event that with notice or lapse of
time, or both, would constitute a default by Seller under any of the Personal Property Leases and,
to the knowledge of Seller, no other party is in default thereof. To Seller’s knowledge, all
equipment, furniture, fixtures and other material items of personal property used in the Business
are in good operating condition and fit for operation in the Ordinary Course of Business (subject
to normal wear and tear) with no defects that could reasonably be expected to interfere with the
conduct of the normal operation of such equipment, furniture, fixtures and other personal property.

Section 4.05 Real Property. Other than the Real Property Lease, there is no real estate or
interests in real estate owned or leased by Seller and used in the conduct of the Business.

Section 4.06 Absence of Questionable Payments. Neither Seller nor any of its Affiliates,
directors, officers, managers, members, partners, employees, agents, representatives or other
Persons acting on behalf of Seller has: (i) used any funds for unlawful contributions, payments,
gifts or entertainment, or made any unlawful expenditures relating to political activities of
government officials or others, or (ii) accepted or received any unlawful contributions, payments,
gifts or expenditures.

Section 4.07 Financial Statements; Books and Records.

(a) Seller has previously furnished to Buyer a schedule of balance sheet items of the
Business, prepared in good faith as of the November 30, 2013 and a good faith estimate of the
related unaudited statement of income from July 12, 2013 (such statements are referred to herein as
the “Financial Statements”). Except as set forth in the notes thereto, each of the
Financial Statements has been prepared in accordance with the Accounting Principles.

(b) All books, records and accounts of Seller related to the Business are accurate and
complete (except for such immaterial omissions that may exist as a result of Seller’s operation of
the Business as part of a combined enterprise including other lines of business and not as a
stand-alone entity) and are maintained in all material respects in accordance with good business
practice, all applicable Laws and the Accounting Principles. All transactions of Seller related to
the Business are properly and timely recorded and reflected in the books, records and accounts of
the Business.

Section 4.08 No Undisclosed Liabilities. Except as disclosed on Schedule 4.08(a),
Seller does not have any Indebtedness, Damages or other adverse claim, liability or obligation
(whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent,
accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether in contract,
tort, strict liability or otherwise) which is not accurately reflected or provided for in the
schedule of balance sheet items dated as of the Balance Sheet Date included within the Financial
Statements, other than those incurred in the Ordinary Course of Business since the Balance Sheet
Date which are not material. Schedule 4.08(b) contains a complete list of all Seller
Guarantees.

Section 4.09 Absence of Certain Developments. Except as expressly contemplated by this
Agreement or as set forth on Schedule 4.09, since the Balance Sheet Date (i) Seller has
conducted the Business only in the Ordinary Course of Business and (ii) there has not been any
event, change, occurrence or circumstance that has had or could reasonably be expected to have a
Material Adverse Effect.

Section 4.10 Intellectual Property.

(a) Schedule 4.10(a) contains a true, correct and complete list of: (i) all Registered
Intellectual Property owned by Seller that is used in, or held for use in, the conduct of, the
Business as currently conducted and (ii) all Intellectual Property (other than Registered
Intellectual Property) that is owned by Seller and is material to the conduct of the Business as
currently conducted ((i) and (ii), collectively, the “Material Owned Intellectual
Property”).

(b) Schedule 4.10(b) contains a true, correct and complete list of: (i) all licenses
for Intellectual Property licensed to Seller and used in, or held for use in, the conduct of, the
Business as currently conducted and which Intellectual Property is used by Seller in connection
with the Business (the “Business Inbound Intellectual Property Licenses”) and (iii) all
licenses for Intellectual Property licensed by Seller to any third party that relates to any of the
Purchased Assets or the Business (the “Business Outbound Intellectual Property Licenses”
and, collectively with the Business Inbound Intellectual Property Licenses, the “Business
Intellectual Property Licenses”)). Seller has performed all obligations required to be
performed by it under the Business Intellectual Property Licenses and, to the knowledge of Seller,
no other party to any Business Intellectual Property License is in default thereunder.

(c) Except as set forth on Schedule 4.10(c), all rights to Material Owned Intellectual
Property and any other Intellectual Property relating to the Business that Seller purports to own
(collectively, the “Business Owned Intellectual Property”), and all Business Intellectual
Property Licenses (collectively, with the Business Owned Intellectual Property, the “Business
Intellectual Property”), are fully transferable, alienable or licensable to Buyer by Seller
without restriction and without payment of any kind to any third party.

(d) Except as set forth on Schedule 4.10(d), (i) Seller is the sole and exclusive
owner of all right, title and interest to each item of Business Owned Intellectual Property, (ii)
Seller’s right, title and interest to each item of Business Intellectual Property is free and clear
of Liens; and (iii) Seller has not received written notice of any claim against Seller by any
Person or any Litigation pending or, to the knowledge of Seller, threatened against Seller that
challenges the validity or enforceability thereof or the rights of Seller in the Business Owned
Intellectual Property. There is no pending, or to the knowledge of Seller, threatened, opposition,
interference, or cancellation proceeding before any Governmental Authority against any item of
Business Owned Intellectual Property. Except as set forth on Schedule 4.10(d), to the
knowledge of Seller, none of the Business Owned Intellectual Property is being infringed.

(e) Except as set forth on Schedule 4.10(e), Seller has not received, at any time
prior to the date hereof, and, to the knowledge of Seller, is not aware of any facts that indicate
a likelihood of receiving, written notice from any Person directing Seller to review or consider
the applicability of such Person’s Intellectual Property to the Business and/or the Business
Intellectual Property or claiming that the operation of the Business or any act, product,
technology or service of Seller infringes, misappropriates, dilutes or otherwise violates any
Intellectual Property or other rights of any Person (including, without limitation, any demand or
request that Seller license any rights from a third party). None of the Business Intellectual
Property or other Purchased Assets, nor the use thereof in the manner used by Seller or its
licensees prior to the date hereof, nor Seller’s operation of the Business, infringes,
misappropriates, dilutes or otherwise violates (or has infringed, misappropriated, diluted or
otherwise violated) the Intellectual Property or other rights of any Person.

(f) Seller has taken commercially reasonable precautions to protect the secrecy,
confidentiality and value of all Confidential Information included in the Business Owned
Intellectual Property. All employees and consultants of Seller who in the normal course of his or
her duties is involved in the creation of Business Owned Intellectual Property have entered into
one or more Contracts with Seller, or otherwise has a legal duty, sufficient to vest title in
Seller of all Intellectual Property, created by such employee or consultant in the scope of his or
her employment or consultancy, as the case may be, with Seller.

(g) With respect to the Software that is included in the Purchased Assets (the “Business
Software”): (i) Seller has not experienced any material defects in the Business Software,
including any material error or omission in the processing of any transactions other than defects
which have been corrected, and (ii) no Business Software (x) contains any device or feature
designed to disrupt, disable, or otherwise impair the functioning of any Business Software or (y)
is subject to the terms of any “open source” or other similar license that provides for the source
code of the Business Software to be publicly distributed or dedicated to the public.

Section 4.11 Inventory. All Inventory, whether or not reflected in the Closing Balance Sheet,
consists of a quality and quantity usable and salable in the Ordinary Course of Business consistent
with past practice, except for obsolete, damaged, defective or slow-moving items that have been
written off or written down to fair market value or for which adequate reserves have been
established. All Inventory is owned by Seller free and clear of all Liens, and no Inventory is held
on a consignment basis. The quantities of each item of Inventory (whether raw materials,
work-in-process or finished goods) are not excessive, but are reasonable in the present
circumstances of Seller.

Section 4.12 Material Contracts.

(a) Schedule 4.12(a) sets forth, by reference to the applicable subsection of
Section 4.12(a), all of the Contracts relating in any material respect to the Business or
the Purchased Assets to which Seller is a party (collectively, the “Material Contracts”),
including, without limitation, the following:

(i) lease, rental or occupancy agreements, installment and conditional sale agreements, and
other Contracts affecting the ownership of, leasing of, or title to, or other interest in, any
tangible personal property or real property involving either individual payments or aggregate
payments in excess of $50,000 per year;

(ii) Contracts involving a sharing of profits, losses, costs or liabilities of the Business
with any Person;

(iii) Contracts between Seller and an Affiliate of Seller;

(iv) Contracts containing covenants presently limiting the ability of the Business to compete
with any Person in any line of business or in any area or territory;

(v) Contracts for the employment of any individual that is dedicated, or provides material
services, to the Business on a full-time, part-time or consulting or other basis or providing for
severance, retention, change in control or other similar payments;

(vi) Contracts for the sale of the products of the Business or for the furnishing of services
by the Business (A) which call for performance over a period of more than six (6) months or (B)
which involve aggregate payments in an amount reasonably likely to exceed $50,000 per year;

(vii) Contracts pursuant to which Seller grants to any Person the right to market, distribute
or resell any products of the Business, to represent Seller with respect to any of the products of
the Business, or to act as agent for Seller in the marketing, distribution or sale of any of the
products of the Business or similar Contracts providing for payments to any Person based on sales,
purchases or profits, other than direct payment of goods;

(viii) material Contracts providing warranties or guarantees with respect to products of the
Business in excess of normal; and

(ix) any other Contracts that are material to the operation of the Business.

(b) Each of the Material Contracts is in full force and effect and is the legal, valid and
binding obligation of Seller as party thereto, enforceable against it in accordance with its terms.
Seller is not in default under any Material Contract, nor, to the knowledge of Seller, is any other
party to any Material Contract in default thereunder. No events, circumstances or facts exist or
have occurred which would constitute a breach or event of default, or (with or without the lapse of
time, the giving of notice or both) would be a breach or event of default under any Material
Contract. No party to any of the Material Contracts has exercised or, to the knowledge of Seller,
plans to exercise, any termination rights with respect thereto, and there are no disputes with
respect to any Material Contract between or among the parties thereto. Neither the execution or
delivery by Seller of this Agreement or the other Seller Documents referred to herein, nor the
consummation of the transactions contemplated hereby and thereby, nor the performance by Seller of
its respective obligations hereunder and thereunder, will violate or result in a breach (with or
without the lapse of time, the giving of notice or both) of or constitute a default under any
Material Contract, or give rise to termination or modification thereunder. Seller has delivered to
Buyer true, correct and complete copies of all Material Contracts.

(c) Schedule 4.12(c) contains a list of the Contracts which Buyer shall assume as of
the consummation of the Closing (the “Assumed Contracts”), provided that it is understood
that Buyer shall only assume those Liabilities under the Assumed Contracts to the extent such
Liabilities constitute Assumed Liabilities. The parties hereto acknowledge and agree that Buyer
will not assume any obligations under any Contract that is not an Assumed Contract. The parties
hereto further acknowledge and agree that Buyer will not assume any obligations under any Contract
arising out of events occurring prior to the Closing other than obligations arising from
performance due in the Ordinary Course of Business pursuant to the Assumed Contracts listed in
Schedule 4.12(c) (which, for the avoidance of doubt, shall exclude all Liabilities arising
from or relating to Seller’s breach of, or non-compliance with, any provision of any such Assumed
Contract).

Section 4.13 Benefit Arrangements.

(a) Schedule 4.13(a) contains a true, correct and complete list of each Benefit
Arrangement that covers any Transferred Business Employee. With respect to each such Benefit
Arrangement, Seller has delivered to Buyer true, correct and complete copies (where applicable) of:
(i) the plan document for each Benefit Arrangement (or, if not written, a summary of the material
terms thereof) and any amendment thereto, (ii) the most recent form 5500 (including schedules)
filed with respect thereto, (iii) the most recent summary plan description (including any summaries
of material modification), annual report and IRS determination, opinion, notification or advisory
letter and material communications with respect thereto, and (iv) all insurance contracts, trust
instruments and other funding arrangements maintained in connection therewith.

(b) No Benefit Arrangement that covers any Transferred Business Employee provides or has ever
provided post-retirement medical or health benefits or severance benefits, except to the extent
required by Part 6 of Title I of ERISA, and no such Benefit Arrangement is or has ever been a
“welfare benefit fund,” as defined in Section 419(e) of the Code, or an organization described in
Sections 501(c)(9) or 501(c)(20) of the Code. Each Benefit Arrangement that covers any Transferred
Business Employee is in compliance with ERISA, the Code and other applicable Law and has been
maintained and administered in all material respects in accordance with its terms and ERISA, the
Code and such applicable Law. There are no pending, or to the knowledge of Seller, threatened
claims (other than routine claims for benefits) or Legal Proceedings made or brought by any
Transferred Business Employee (or beneficiary thereof) against or relating to any such Benefit
Arrangement. Each Benefit Arrangement covering any Transferred Business Employee that is intended
to be qualified under Section 401(a) of the Code has received a favorable determination, opinion or
notification letter from the IRS as to its qualification, and nothing has occurred that could
reasonably be expected to affect such qualification or which requires or could reasonably be
expected to require action under the compliance resolution programs of the IRS to preserve such
qualification. Seller has performed all obligations (including the provision of notices and
reports) required to be performed by it under, are not in violation or default under, and there is
no default or violation by any other party to, any Benefit Arrangement. All contributions and
premium payments required to be made under any Benefit Arrangement have been timely made or have
been reflected in the Financial Statements. No amounts payable pursuant to any Benefit Arrangement
to any Transferred Business Employee is subject to Section 409A of the Code.

(c) Neither Seller nor any ERISA Affiliate has or has ever had any liability with respect to
any plan that is subject to Title IV of ERISA or Section 412 of the Code, including a
“multiemployer plan”, as defined in Section 3(37) or Section 4001(a)(3) of ERISA, or a “single
employer plan” within the meaning of Section 4001(a)(15) of ERISA.

(d) Neither the execution of this Agreement nor the consummation of any of the transactions
contemplated hereby will, either alone or in conjunction with any other event, (i) result in any
obligation or liability to any present or former employee, manager, director, officer, contractor
or consultant of Seller or any ERISA Affiliate, (ii) be a trigger event under any Benefit
Arrangement that will result in any payment (whether of severance pay or otherwise) becoming due to
any such present or former employee, officer, director, member, contractor, or consultant,
(iii) accelerate the time of payment or vesting, or increase the amount, of any compensation
theretofore or thereafter due or granted to any employee, officer, manager, director, member,
contractor, or consultant of Seller or any ERISA Affiliate, or (iv) give rise to the payment of any
amount which would constitute an “excess parachute payment” (as defined in Section 280G of the
Code).

Section 4.14 Labor.

(a) Schedule 4.14(a) lists (i) the names, titles and hire dates of, and current annual
compensation, 2013 base salary and annual bonuses and any bonuses paid or payable for services
rendered during 2013 for, the vacation and/or paid time off accrual amounts of, and commission and
bonus accrual of, each Transferred Business Employee as of the Closing Date and whether the
Transferred Business Employee is on an active or inactive status (including, leave of absence of
any nature, paid or unpaid, authorized or unauthorized, including disability, family, maternity,
parental or other leave, sick leave) and (ii) the name of each Person who currently provides, or
who has since July 12, 2013 provided, material Business-related services to Seller as an
independent contractor (the “Business Service Providers”). Seller has delivered to Buyer a
true, correct and complete copy of each employment, consulting or independent contractor agreement,
confidentiality/assignment of inventions agreement and/or non-competition agreement entered into
with a Transferred Business Employee or Business Service Provider and all current employee manuals
and handbooks, employment policy statements, material employment customs and practices, and
internal regulations. Except as set forth on Schedule 4.14(a), the employment of each of
the current Transferred Business Employees is terminable by Seller at will, and Seller has no
obligation to provide any particular form or period of notice prior to terminating the employment
of any of its current Transferred Business Employees. To the knowledge of Seller, no Transferred
Business Employee or Business Service Provider has any plans to terminate employment or service
with Seller.

(b) Except as set forth on Schedule 4.14(b), with respect to Transferred Business
Employees and Business Service Providers:

(i) Seller is and has been in compliance in all material respects with all applicable Laws
respecting employment and employment practices, terms and conditions of employment and wages and
hours, including any Laws respecting minimum wage and overtime payments, employment discrimination,
human rights, pay equity, workers’ compensation, family and medical leave, immigration, and
occupational safety and health requirements, and has not and is not engaged in any unfair labor
practice;

(ii) each Business Service Provider classified by Seller as an independent contractor
satisfies and has satisfied the requirements of any applicable Law to be so classified, and Seller
has fully and accurately reported such independent contractors’ compensation on IRS Forms 1099 (and
the foreign equivalent thereof) when required to do so;

(iii) Seller is not delinquent to, or has not failed to pay when due, any Transferred Business
Employee or Business Service Provider for any wages (including overtime, meal breaks or waiting
time penalties), salaries, commissions, accrued and unused vacation, on-call payments or equal pay,
or collective bargaining payments to which they would be entitled under applicable Law, if any,
bonuses, benefits, advantage in kind, profit sharing, stock options or other compensation for any
services performed by them or amounts required to be reimbursed or damages or interest paid to such
individuals (other than accrued salary, bonuses, commissions, vacation, or other paid time off in
accordance with Seller’s policies); and

(iv) Seller has no liability for any payment to any trust or other fund governed by or
maintained by or on behalf of any Governmental Authority with respect to unemployment compensation
benefits, social security or other benefits or obligations for Business Service Providers (other
than routine payments to be made in the normal course of business and consistent with past
practice).

(c) Seller is not a party to, nor bound by, any labor agreement, collective bargaining
agreement, work rules or practices, or any other labor-related agreements or arrangements with any
labor union, labor organization, employee organization, or works council that pertain any
Transferred Business Employees; there are no labor agreements, collective bargaining agreements,
work rules or practices, or any other material labor-related agreements or arrangements to which
Seller is bound that pertain any Transferred Business Employees; and no Transferred Business
Employees are represented by any labor union, labor organization, employee association or works
council with respect to their employment with Seller.

(d) No labor union, labor organization, or group of Business Employees has made a pending
demand for recognition or certification, and there are no representation or certification
proceedings or petitions seeking a representation proceeding presently pending or, to the knowledge
of Seller, threatened to be brought or filed with the National Labor Relations Board or any other
labor relations tribunal or authority in each case, that pertain to any Transferred Business
Employees. To the knowledge of Seller, there are no labor unions organizing activities with
respect to any Transferred Business Employees and no such activity has occurred in the last two (2)
years. There is no labor strike, lock out, material grievance, material arbitration, labor
dispute, slowdown or stoppage against or affecting Seller, and no labor dispute is, to the
knowledge of Seller, threatened.

(e) There are no demands, orders or claims pending or, to the knowledge of Seller, threatened,
before any Governmental Authority by any Transferred Business Employees for compensation,
occupational health and safety, pending severance benefits, vacation time, unpaid meal or rest
breaks, vacation pay, maternity benefits, any statutory benefits, or any other claim threatened or
pending before any Governmental Authority (or any state “referral agency”) from any Transferred
Business Employee or any other Person arising out of Seller’s status as employer, or common or
joint employer, whether in the form of claims for employment discrimination, harassment,
retaliation, unfair labor practices, grievances, wrongful discharge or variation of contract, wage
and hour violations, breach of contract, unfair business practice, tort, unfair competition or
otherwise. In addition, there are no pending or threatened claims or actions against Seller related
to the Business under any workers compensation policy or long-term disability policy, nor to the
knowledge of Seller is there any reasonable basis therefore. Seller has complied with and is in
compliance with all applicable workers compensation Laws in respect of the Transferred Business
Employees.

Section 4.15 Taxes.

(a) All Tax Returns required to be filed by or on behalf of Seller have been duly and timely
filed with the appropriate Taxing Authority in all jurisdictions in which such Tax Returns are
required to be filed (after giving effect to any valid extensions of time in which to make such
filings), and all such Tax Returns are true, complete and correct in all material respects. All
Taxes payable by or on behalf of Seller (whether or not shown on any Tax Return) have been fully
and timely paid. Seller has complied in all respects with all applicable Laws relating to the
payment and withholding of Taxes in connection with amounts, paid or owing to any employee,
independent contractor, creditor, equity owner or other third party and has duly and timely
withheld and paid over to the appropriate Taxing Authority all amounts required to be so withheld
and paid under all applicable Laws. All Forms W-2 and 1099 (and the foreign equivalents thereof)
required with respect to any payment or withholding by Seller have been properly completed and
timely filed. Seller has complied in all material respects with all applicable requirements of any
Taxing Authority to collect from the receipts of customers (or other Persons paying amounts to
Seller, as the case may be) the amount of all Taxes required to be collected and with all
applicable requirements of any Taxing Authority to pay and remit such Taxes when due, in the form
required under applicable Law or to make adequate provision for the payment of such amounts to the
proper Taxing Authorities.

(b) There is no dispute or claim concerning any liability for Taxes of Seller either
(i) claimed or raised by any Governmental Authority in writing or (ii) as to which any of the
equity holders, managers and officers (and employees responsible for Tax matters) of Seller have
knowledge based upon personal contact with any agent of such authority. There are no audits or
investigations of Seller by any Taxing Authority in progress, nor has Seller received any notice
from any Taxing Authority that the conduct of such an audit or investigation is anticipated. No
claim has been made by a Taxing Authority in a jurisdiction where Seller does not file Tax Returns
to the effect that Seller is or may be subject to taxation by that jurisdiction. There are no
Liens on any of the assets of Seller arising as a result of any failure (or alleged failure) to pay
any Tax. Seller has disclosed on its income Tax Returns all positions taken therein that could
give rise to substantial understatement of federal income Tax within the meaning of Section 6662 of
the Code, and Seller has not participated in a “reportable transaction” within the meaning of
Treasury Regulations Section 1.6011-4(b). All Tax deficiencies asserted or Tax assessments made by
a Governmental Authority have been paid in full.

(c) Seller has not (i) agreed to nor is it required to make any adjustments pursuant to
Section 481(a) of the Code or any corresponding provision of any other Tax Law, (ii) executed or
entered into a closing agreement pursuant to Section 7121 of the Code or any similar provision of
Law, (iii) requested any extension of time within which to file any Tax Return, which Tax Return
has since not been filed, (iv) waived any statute of limitations in respect of Taxes or agreed to
any extension of time with respect the assessment or collection of Taxes, which Taxes have not
since been paid, or (v) granted to any Person any power of attorney that is currently in force with
respect to any Tax matter. Seller has not distributed stock of another Person, or has had its
stock distributed by another Person, in a transaction that was purported or intended to be governed
in whole or in part by Sections 355 or 361 of the Code.

Section 4.16 Compliance With Laws; Orders; Permits.

(a) Seller is in compliance in all material respects with all Laws of each Governmental
Authority applicable to its business, operations or assets, including without limitation all
escheat laws and the Federal Trade Commission Guides Concerning the Use of Endorsements and
Testimonials in Advertising. Since July 12, 2013, Seller has not received any notice of or been
charged with the violation of any Law and, to the knowledge of Seller, since July 12, 2013, no
predecessor of the Business has been charged with any material violation of any Law. To the
knowledge of Seller, Seller is not under investigation with respect to the violation of any Law and
there are no facts or circumstances which could reasonably form the basis for any such violation
other than violations which would have an immaterial effect upon the Business.

(b) Schedule 4.16(b) contains a list of all Permits which, to Seller’s best
information and belief, are required for the operation of the Business as presently conducted and
as presently intended to be conducted (“Seller Permits”). Seller currently holds all
Seller Permits and is not in default or violation, and no event has occurred which, with notice or
the lapse of time or both, would constitute a default or violation, in any material respect of any
term, condition or provision of any Seller Permit, and to the knowledge of Seller, there are no
facts or circumstances which form the basis for any such default or violation. To the knowledge of
Seller, the Seller Permits and none of the Seller Permits will be impaired or in any way affected
by the consummation of the transactions contemplated by this Agreement.

Section 4.17 Legal Proceedings. There is no claim, action, suit, proceeding or governmental
investigation (“Action”) of any nature pending or, to Seller’s knowledge, threatened
against or by Seller: (a) relating to or affecting the Purchased Assets, the Assumed Liabilities or
the Business; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the
transactions contemplated by this Agreement or the other Seller Documents. To the knowledge of
Seller, no event has occurred or circumstances exist that may give rise to, or serve as a basis
for, any such Action.

Section 4.18 Insurance. Seller has insurance policies in full force and effect providing
insurance coverage for any nature of the Business in such amounts as are sufficient for all
requirements of Law and all Contracts relating to the Business to which Seller is a party or by
which Seller is bound. The nature and extent of Seller’s insurance coverage is reasonable, given
the nature of the risks inherent in the Business, and is customary for businesses such as the
Business. All insurance premiums have been paid on such insurance policies to the extent due and
payable in accordance with their terms. Except as set forth on Schedule 4.18, no event
relating to Seller has occurred which could reasonably be expected to result in a retroactive
upward adjustment in premiums under any such insurance policies or which could reasonably be
expected to result in a prospective upward adjustment in such premiums. Excluding insurance
policies that have expired and been replaced in the Ordinary Course of Business, no insurance
policy relating to the Business has been canceled since July 12, 2013 and, to the knowledge of
Seller, no threat has been made to cancel any insurance policy of Seller related to the Business
during such period. No event has occurred, including, without limitation, the failure by Seller to
give any notice or information or Seller giving any inaccurate or erroneous notice or information,
which limits or impairs the rights of Seller under any such insurance policies.

Section 4.19 Brokers. No broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions contemplated by this
Agreement or the other Seller Documents based upon arrangements made by or on behalf of Seller.

Section 4.20 Disclosure. No representation or warranty made by Seller in this Agreement, any
Schedule, any Exhibit or any certificate delivered, or to be delivered, by or on behalf of Seller
pursuant hereto contains or will contain any untrue statement of a material fact or omits or will
omit to state a material fact necessary to make the statements contained herein or therein not
misleading.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to Seller that the statements contained in this Article
V are true and correct as of the date hereof, knowing and intending that Seller is relying
hereon in entering into this Agreement. For purposes of this Article V, “Buyer’s
knowledge,” “knowledge of Buyer” and any similar phrases shall mean the actual or constructive
knowledge of any director or officer of Buyer, after due inquiry.

Section 5.01 Organization and Authority of Buyer; Enforceability of Buyer.

(a) Buyer is a corporation duly organized, validly existing and in good standing under the
laws of the state of Delaware. Buyer has full corporate power and authority to enter into this
Agreement and the other Buyer Documents, to carry out its obligations hereunder and thereunder and
to consummate the transactions contemplated hereby and thereby.

(b) The execution, delivery and performance by Buyer of this Agreement and the other Buyer
Documents and the consummation of the transactions contemplated hereby and thereby have been duly
authorized by all requisite corporate action on the part of Buyer. This Agreement and the other
Buyer Documents have been duly executed and delivered by Buyer, and (assuming due authorization,
execution and delivery by Seller) this Agreement and the documents to be delivered by Buyer
hereunder constitute legal, valid and binding obligations of Buyer, enforceable against Buyer in
accordance with their respective terms.

Section 5.02 No Conflicts; Consents. The execution, delivery and performance by Buyer of this
Agreement and the other Buyer Documents, and the consummation of the transactions contemplated
hereby and thereby, do not and will not: (a) violate or conflict with the certificate of
incorporation, by-laws or other organizational documents of Buyer; or (b) violate or conflict with
any Order or Law applicable to Buyer. No consent, approval, waiver or authorization is required to
be obtained by Buyer from any Person in connection with the execution, delivery and performance by
Buyer of this Agreement or the other Buyer Documents and the consummation of the transactions
contemplated hereby or thereby.

Section 5.03 Legal Proceedings. There is no Action of any nature pending or, to Buyer’s
knowledge, threatened against or by Buyer that challenges or seeks to prevent, enjoin or otherwise
delay the transactions contemplated by this Agreement.

Section 5.04 Brokers. No broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions contemplated by this
Agreement or the other Buyer Documents based upon arrangements made by or on behalf of Buyer.

ARTICLE VI

COVENANTS

Section 6.01 Public Announcements. Except as may be required by Law, the parties hereto shall
not issue any press release or otherwise make any public disclosures regarding this Agreement or
the transactions contemplated hereby or any dealings between or among the parties in connection
with the subject matter hereof without the prior written approval of the other party. In the event
that any such press release or other public disclosure shall be required by Law, the party seeking
to make such disclosure shall consult in good faith with the other party with respect to the form
and substance of such release or other disclosure prior to the public dissemination thereof if time
permits and if such consultation is permitted by Law.

Section 6.02 Transfer Taxes. All transfer, documentary, sales, use, stamp, registration,
value added and other such taxes and fees (including any penalties and interest) incurred in
connection with this Agreement and the other Transaction Documents shall be borne and paid by
Seller when due. Seller shall, at its own expense, timely file any Tax Return or other document
with respect to such taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

Section 6.03 Non-Competition and Confidentiality Agreement.

(a) During the period of time beginning on the Closing Date and ending on the third
(3rd) anniversary thereof (as may be extended below, the “Restricted Period”),
Seller shall not, and shall cause its Affiliates not to, directly or indirectly: (x) anywhere in
the United States, engage in any manner (including, without limitation, by owning any interest in,
managing, controlling, participating in (whether as an officer, director, employee, partner, agent,
representative, consultant or otherwise), rendering services to, organizing, planning to organize,
providing funding) in a business or activity that is competitive in any respect with any aspect of
the Business; (y) employ, engage, contract for or solicit the services in any capacity of any
Person who is as of, or was during the twelve (12) months preceding, the Closing Date, employed by
or providing services as an employee, agent, independent contractor or consultant to, Seller, in
each case, whether or not Seller’s relationship with such Person predated Seller’s ownership of the
Purchased Assets; or (z) for its own account or on behalf of any other Person, solicit, divert,
take away or attempt to take away any of the customers, suppliers or other business partners the
Business or in any way interfere with, disrupt or attempt to disrupt any then existing
relationships between the Business and Buyer, on the one hand, and any of Seller’s customers or
suppliers or other Persons with whom any of them deals, on the other, or contact or enter into any
business transaction with any such customers or suppliers or other Persons for any purpose, in each
case, whether or not Seller’s relationship with such Person predated Seller’s ownership of the
Purchased Assets.

(b) Each of the Restricted Parties acknowledges that the restrictions contained in this
Section 6.03 are reasonable and necessary to protect the legitimate interests of Buyer and that
any breach by Seller or its Affiliates of any provision hereof will result in irreparable injury to
Buyer. Any breach or alleged breach of this Agreement by Buyer shall not be a defense to the
enforcement of this Section 6.03. Seller acknowledges that, in addition to all remedies
available at Law, Buyer shall be entitled to equitable relief, including injunctive relief, and an
equitable accounting of all earnings, profits or other benefits arising from such breach and shall
be entitled to receive such other damages, direct or consequential, as may be appropriate. Buyer
shall not be required to post any bond or other security or to prove actual damages therefrom, in
connection with any proceeding to enforce the provisions of this Section 6.03. Each of the
covenants contained in this Section 6.03 shall be deemed a series of separate covenants in
each jurisdiction in which the enforcement thereof is sought, and should a court of competent
jurisdiction determine any of the restrictive covenants is not enforceable in such jurisdiction,
such determination shall not affect the enforceability of these restrictive covenants in any other
jurisdiction. If Seller breaches any of the restrictions contained in this Section 6.03,
the Restricted Period shall automatically, without further action or deed, be shall be extended for
a number of days equal to the number of days on which such breach occurred.

(c) Without limiting the generality of Section 8.04, the provisions of this
Section 6.03 shall inure to the benefit of any subsequent transferee of the Business or any
substantial portion thereof, or any successor to Buyer, whether or not this Agreement is assigned
to such transferee.

(d) Nothing in Sections 6.03(a) through 6.03(c) shall preclude Seller from (i) owning
not more than five percent (5%) of the equity interests of another Person that is engaged in any
business competitive to the Business, and (ii) acquiring (whether by means of acquisition, asset
purchase, merger, consolidation, similar business combination or otherwise) a Person engaged in a
business competitive to the Business together with other lines of business if the percentage of
such competitive business represents no more than ten percent (10%) of the acquired Person’s assets
(measured by the most recent current financial statements published by the acquired Person in the
ordinary course of business).

(e) Seller acknowledges that it is in possession of Confidential Information concerning the
Business. Seller, shall, and shall cause its Affiliates and representatives to, at all times after
the Closing Date and for so long as it has any Confidential Information, (i) treat confidentially
and not disclose all or any portion of such Confidential Information, or (ii) not use such
Confidential Information for the benefit of themselves or any other Person, except as may be
reasonably required by Seller in relation to the defense of any claim arising under this Agreement.
Seller acknowledges and agrees that such Confidential Information is proprietary and confidential
in nature and part of the Purchased Assets. If Seller, or any of its Affiliates or representatives
is requested or required to disclose (after Seller has used its commercially reasonable efforts to
avoid such disclosure and after promptly advising and consulting with Buyer about Seller’s
intention to make, and the proposed contents of, such disclosure) any of the Confidential
Information (whether by deposition, interrogatory, request for documents, subpoena, civil
investigative demand or similar process by a Governmental Authority), Seller, shall, or shall cause
its Affiliates or representatives to, provide Buyer with prompt written notice of such request so
that Buyer may seek an appropriate protective order or other appropriate remedy. At any time that
such protective order or remedy has not been obtained, Seller or its Affiliate or representative
may disclose only that portion of the Confidential Information which such Person is legally
required to disclose or of which disclosure is required to avoid sanction for contempt or any
similar sanction, and Seller shall exercise their commercially reasonable efforts to obtain
assurance that confidential treatment will be accorded to such Confidential Information so
disclosed. Seller further agrees that, from and after the Closing Date, Seller and its Affiliates
and representatives, upon the reasonable request of Buyer, promptly will deliver to Buyer all
documents, or other tangible embodiments, constituting Confidential Information or other
information with respect to the Business. The parties recognize that the performance of the
obligations under this Section 6.03 by Seller is special, unique and extraordinary in
character, and that in the event of the breach by Seller of the terms and conditions of this
Section 6.03 to be performed by Seller, Buyer shall be entitled, if it so elects, to obtain
damages for any breach of this Section 6.03, or to enforce the specific performance thereof
by Seller, without having to post a bond or prove actual damages. This Section 6.03 shall
survive Closing indefinitely.

Section 6.04 Employment Matters. Buyer may make employment offers, effective as of the
consummation of the transactions contemplated by this Agreement, to those employees engaged by
Seller as of the date hereof and as may be selected by Buyer, and on terms acceptable to Buyer, in
its sole discretion (such employees, “Offer Employees”). Those Offer Employees who accept
Buyer’s offer of employment and report to work for active duty with Buyer are collectively referred
to herein as the “Transferred Business Employees.” Seller shall terminate the employment
of all Transferred Business Employees immediately prior to or on the Closing Date or such
subsequent date as Buyer and the Transferred Business Employee may determine pursuant to the HRS
Agreement. Seller shall, effective as of the Closing, release all Transferred Business Employees
from and, if requested by Buyer, assign to Buyer its rights under any non-competition,
non-solicitation, confidentiality and similar restrictive covenants or agreements previously
entered into between Seller and such Transferred Business Employees to the extent reasonably
necessary to allow such Transferred Business Employees to serve Buyer or any of its Affiliates.
Seller shall deliver to Buyer upon written request, within five (5) Business Days after receipt of
such request, written evidence, in form and substance satisfactory to Buyer, of the release and
assignment described in the immediately preceding sentence. Nothing herein, express or implied,
shall (i) confer upon any Transferred Business Employees any right to be employed by Buyer for any
specified period of time following the Closing or any rights as a third-party beneficiary hereof,
or (ii) in any way limit Buyer’s right to terminate the employment of any Transferred Business
Employee at any time following the Closing for any reason (or no reason).

Section 6.05 Commercially Reasonable Efforts; Further Assurances. Subject to the terms and
conditions herein provided, each of the parties hereto shall execute and deliver such additional
documents, instruments, conveyances and assurances and to take, or cause to be taken, all actions,
and to do, or cause to be done, all things reasonably necessary, proper or advisable under
applicable Laws to carry out the provisions hereof and give effect to the transactions contemplated
by this Agreement and the other Transaction Documents, including without limitation, vesting title
to the Purchased Assets, free and clear of all Liens, in Buyer effective as of Closing. Without
limiting the generality of the foregoing, the parties will, as promptly as practicable, use their
commercially reasonable efforts to effect all necessary registrations and filings required to be
filed by such party and furnish to each other such information and assistance with respect to the
terms of any registration, filing, application or undertaking as reasonably may be requested in
connection with the foregoing.

Section 6.06 Business Communications. From and after the Closing Date, Seller shall forward,
or cause to be forwarded, to Buyer all mail, electronic mail, faxes, telephone messages and other
communications that Seller or its representatives receives relating to or concerning the Business
or any Purchased Asset. Seller shall so forward all such communications promptly following receipt
thereof.

Section 6.07 Release of Guarantees. Prior to the Closing Date, Seller shall use its
reasonable best efforts to release, terminate or cancel any Seller Guaranty. In the event that any
Seller Guaranty cannot be released and cancelled as of the Closing Date, Buyer shall cause itself
or one of its Affiliates to be substituted for the guarantor directly affected thereby in respect
of such Seller Guaranty (or if not possible, added as the primary obligor with respect thereto).
If Buyer is not able to either release and cancel such Seller Guaranty or cause itself or one of
its Affiliates to be so substituted in all respects in respect of such Seller Guaranty, then Buyer
shall indemnify, defend and hold harmless Seller and its Affiliates with respect to all liabilities
or expenses that might arise or be incurred by Seller or its Affiliates with respect to any such
Seller Guaranty to the extent of any liability of the Business for which Seller has no
indemnification obligations to Buyer hereunder.

Section 6.08 Receivables. From and after the Closing: (a) Seller shall provide assistance to
Buyer, at Buyer’s reasonable request, in the collection of accounts receivable; (b) if Seller or
any of its Affiliates receives or collects any funds in respect of accounts receivable or any other
assets that are included in the Purchased Assets, then Seller or its Affiliate shall promptly, but
in no event later than five (5) Business Days after its receipt thereof, remit such funds to Buyer;
and (c) if Buyer or any of its Affiliates receives or collects any funds in respect of accounts
receivable or any other assets that are Retained Assets, then Buyer or its Affiliate shall
promptly, but in no event later than five (5) Business Days after its receipt thereof, remit such
funds to Seller.

ARTICLE VII

INDEMNIFICATION

Section 7.01 Survival.

(a) Except as set forth in the immediately succeeding sentences of this
Section 7.01(a), the representations and warranties provided for in this Agreement shall
survive the Closing for eighteen (18) months after the Closing Date. The Fundamental
Representations (other than the Extended Representations) shall survive the Closing and remain in
full force and effect indefinitely. The Extended Representations shall survive the Closing and
continue until ninety (90) days after the expiration of the applicable statute of limitations. The
survival period of each representation or warranty as provided in this Section 7.01 is
hereinafter referred to as the “Survival Period.”

(b) The covenants contained in this Agreement shall survive the Closing until they are
otherwise terminated by their respective terms.

(c) Any representation, warranty, covenant or other agreement in respect of which indemnity
may be sought under this Article VII, and the indemnity with respect thereto, shall survive
the time at which it would otherwise terminate pursuant to this Section 7.01 if written
notice of the claim giving rise to such right or potential right of indemnity shall have been given
to the party against whom such indemnity may be sought prior to such time and, in any such case,
notwithstanding anything herein to the contrary, such representation, warranty, covenant or other
agreement shall survive until any claim for indemnity related to such inaccuracy or breach or
potential inaccuracy or breach is settled or resolved.

(d) The representations, warranties and covenants contained in this Agreement or in any
certificate or other writing delivered in connection with this Agreement shall survive for the
periods set forth in this Section 7.01 and shall in no event be affected by any
investigation, inquiry or examination made for or on behalf of any party, or the knowledge of any
party’s representatives

Section 7.02 Indemnification.

(a) Seller shall, subject to Section 7.02(d), indemnify and hold harmless Buyer, its
Affiliates, and their officers, directors, employees, agents and representatives (the “Buyer
Indemnified Parties”), against and in respect of any and all claims, costs, expenses, damages,
liabilities, losses or deficiencies (including, without limitation, counsel’s fees and other costs
and expenses incurred in defending any suit, action or Legal Proceeding) (the “Damages”)
arising out of, resulting from or incurred in connection with (i) any inaccuracy in any
representation or the breach of any warranty made by Seller in this Agreement or in any Seller
Document, (ii) the breach by Seller of any covenant or agreement to be performed by it hereunder or
in any Seller Document, (iii) any Taxes relating to Seller or, for any taxable period (or any
portion thereof) ending on or prior to the Closing Date, any aspect of the Business or operations,
and (iv) any Excluded Liability. Notwithstanding the foregoing, in the event any indemnification
obligation is required to be satisfied in cash pursuant to Section 7.02(f) hereof, Seller
shall indemnify and hold harmless the Buyer Indemnified Parties for such Damages and shall satisfy
such indemnification obligations in cash in accordance with Section 7.02(f). The Buyer
Indemnified Parties shall not be entitled to recover Damages from Seller for any claim for
indemnification pursuant to Section 7.02(a)(i) first made after the expiration of the
applicable Survival Period. The indemnification obligations of Seller set forth in
Section 7.02(a)(ii), Section 7.02(a)(iii), and Section 7.02(a)(iv) shall
continue in full force and effect forever.

(b) Buyer, subject to Section 7.02(d), shall indemnify and hold harmless Seller, its
Affiliates and their officers, directors, partners, members, managers, employees, agents and
representatives (the “Seller Indemnified Parties”), against and in respect of any and all
Damages arising out of, resulting from or incurred in connection with (i) any inaccuracy in any
representation or the breach of any warranty made by Buyer in this Agreement or in any Buyer
Document, (ii) the breach by Buyer of any covenant or agreement to be performed by Buyer hereunder
or in any Buyer Document, and (iii) any Assumed Liability. The Seller Indemnified Parties shall
not be entitled to recover Damages from Buyer for any claim for indemnification pursuant to
Section 7.02(b)(i) first made after the expiration of the applicable Survival Period.
Buyer’s indemnification obligations set forth in Section 7.02(b)(ii) and Section
7.02(b)(iii) and shall continue in full force and effect forever.

(c) With respect to a matter for which indemnification is sought under this
Section 7.02, the Person providing such indemnification in respect of such matter pursuant
to this Section 7.02 is hereinafter referred to as an “Indemnifying Party” and the
Person entitled to be indemnified in respect of such matter pursuant to the provisions of this
Section 7.02 is hereinafter referred to as an “Indemnified Party.”

(d) The indemnification obligations of Seller set forth in Section 7.02(a)(i), other
than the indemnification obligations for breaches or claims arising out of the Excluded
Liabilities, Fundamental Representations of Seller, Extended Representations, or the covenants set
forth in Article V shall be subject to a maximum aggregate lifetime liability equal to
$2,000,000 (the “Cap Amount”). The indemnification obligations of Seller set forth in
Section 7.02(a)(i) with respect to breaches of the Fundamental Representations or Extended
Representations, Section 7.02(a)(ii), Section 7.02(a)(iii), and
Section 7.02(a)(iv) shall not be subject to the Cap Amount limitations set forth in this
Section 7.02(d). All claims made during the relevant Survival Period shall be counted in
determining whether the threshold specified above has been achieved.

(e) The indemnification obligations of Buyer set forth in Section 7.02(b)(i), other
than the indemnification obligations of Buyer for breaches of the Fundamental Representations of
Buyer, and obligations relating to payment of Cash Consideration, shall be subject to a maximum
aggregate lifetime liability equal to the Cap Amount. The indemnification obligations of Buyer set
forth in Section 7.02(b)(i) with respect to breaches of the Fundamental Representations of
Buyer shall not be subject to the Cap Amount limitations set forth in this Section 7.02(e).
All claims made during the relevant Survival Period shall be counted in determining whether the
threshold specified above has been achieved.

(f) Notwithstanding any provision herein to the contrary, no limitation on a party’s liability
provided for herein shall apply in the event of the fraudulent conduct, willful breach or
intentional misrepresentation of such party.

(g) If and to the extent any provision of Section 7.02(a) is unenforceable for any
reason, Seller hereby agrees to make the maximum contribution to the payment and satisfaction of
any Damages for which indemnification is provided for in Section 7.02(a) which is
permissible under applicable Laws, such amount not to exceed the amount otherwise available under
this Agreement if such provision were enforceable. If and to the extent any provision of
Section 7.02(b) is unenforceable for any reason, Buyer hereby agrees to make the maximum
contribution to the payment and satisfaction of any Damages for which indemnification is provided
for in Section 7.02(b) which is permissible under applicable Laws, such amount not to
exceed the amount otherwise available under this Agreement if such provision were enforceable.

(h) For purposes of calculating the amount of any Damages related to a breach of any
representation or warranty, the representations and warranties set forth in this Agreement shall be
considered without regard to any “knowledge,” “material,” “Material Adverse Effect” or similar
qualifications set forth therein.

(i) The representations, covenants and obligations of Seller, and the rights and remedies that
may be exercised by the Buyer Indemnified Parties based on such representations, covenants and
obligations, will not be limited or affected by any investigation conducted with respect to, or any
knowledge acquired (or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing, with respect to, the accuracy or
inaccuracy of or compliance with any such representation, warranty, covenant or obligation.

(j) For all federal, state, local and foreign income tax purposes, all indemnification,
purchase price adjustments and other payments made pursuant to this Agreement will be treated as an
adjustment to the Purchase Price, unless otherwise required by Law.

(k) Subject to Section 7.02(l), the parties agree that the sole and exclusive remedy
for money damages for any matter arising under this Agreement shall be the rights to
indemnification set forth in this Agreement and the rights set forth in Article VII. The
indemnification rights of the Buyer Indemnified Parties or Seller Indemnified Parties under this
Article VII are independent of and in addition to such rights and remedies as the parties
may have at Law or in equity or otherwise for any misrepresentation, breach of warranty or failure
to fulfill any agreement or covenant hereunder on the part of any party hereto, including the right
to seek specific performance, rescission or restitution, none of which rights or remedies shall be
affected or diminished hereby.

(l) Notwithstanding anything to the contrary in this Agreement, the limitations and thresholds
and other provisions set forth in this Article VII shall not apply with respect to
(i) fraud or intentional misrepresentation or (ii) any equitable remedy, including a preliminary or
permanent injunction or specific performance.

Section 7.03 Indemnity Holdback.

(a) For any claims subject to payment from the Holdback Amount pursuant to
Section 7.02(d), the Holdback Amount, or any portion thereof, shall be released to Buyer
within five (5) Business Days after the date of notice of any sums due and owing is given to Seller
by Buyer.

(b) On the Holdback Release Date, Buyer shall release to Seller the Holdback Release Amount
(to the extent not utilized to pay Buyer for any indemnification claim), except that Buyer shall
retain an amount (up to the total amount then held by Buyer) equal to the amount of claims for
indemnification under this Article VII asserted prior to such date but not yet resolved
(“Unresolved Claims”). The amount of the Holdback Release Amount retained for Unresolved
Claims shall be released by Buyer (to the extent not utilized to pay Buyer for any such claims
resolved in favor of Buyer) upon the earlier of the resolution of any Unresolved Claims in
accordance with this Article VII.

Section 7.04 Procedures for Third Party Claims. In the case of any claim for indemnification
arising from a claim of a third party (a “Third Party Claim”), an Indemnified Party shall
give prompt written notice, following such Indemnified Party’s receipt of such claim or demand, to
the Indemnifying Party of any claim or demand of which such Indemnified Party has knowledge and as
to which it may request indemnification hereunder; provided, however, that failure to give such
notice will not affect such Indemnified Party’s rights furnished hereunder unless, and then solely
to the extent that, the rights of the parties from whom indemnity is sought are materially
prejudiced as a result of such failure. The Indemnifying Party shall have the right (and if they
elect to exercise such right, to do so within ten (10) days after receiving such notice from the
Indemnified Party) to defend and to direct the defense against any such claim or demand, in its
name or in the name of the Indemnified Party, as the case may be, at the expense of the
Indemnifying Party, and with counsel selected by the Indemnifying Party; provided, that the
Indemnifying Party shall only be entitled to assume control of the defense of such action only to
the extent the Indemnifying Party acknowledges in writing its indemnity obligations and assumes and
holds the Indemnified Party harmless from and against the full amount of any Loss resulting
therefrom; and provided further that the Indemnifying Party shall not be entitled to assume control
of such defense if (i) the Indemnifying Party shall not have taken any action to defend such third
party claim within such ten (10) day period; (ii) such claim or demand seeks an Order, injunction
or other equitable relief against the Indemnified Party, (iii) the Indemnified Party shall have
reasonably concluded that (x) there is a conflict of interest between the Indemnified Party and the
Indemnifying Party in the conduct of the defense of such claim or demand or (y) the Indemnified
Party has one or more defenses not available to the Indemnifying Party or (iv) such claim relates
to or arises in connection with any criminal proceeding, action, indictment, allegation or
investigation, the appropriate court rules that the Indemnifying Party failed or is failing to
vigorously prosecute or defend such third party claim. Notwithstanding anything in this Agreement
to the contrary, the Indemnified Party shall, at the expense of the Indemnifying Party, cooperate
with the Indemnifying Party, and keep the Indemnifying Party fully informed, in the defense of such
claim or demand. The Indemnified Party shall have the right to participate in the defense of any
claim or demand with counsel employed at its own expense; provided, however, that, in the case of
any claim or demand described in clause (i) or (ii) of the second preceding sentence or as to which
the Indemnifying Party shall not in fact have employed counsel to assume the defense of such claim
or demand, the reasonable fees and disbursements of such counsel shall be at the expense of the
Indemnifying Party. The Indemnifying Party shall have no indemnification obligations with respect
to any such claim or demand which shall be settled by the Indemnified Party without the prior
written consent of the Indemnifying Party, which consent shall not be unreasonably withheld or
delayed. The Indemnifying Party shall not settle any such claim without the prior written consent
of the Indemnified Party, unless such claim solely involves a claim for monetary Damages and such
settlement is accompanied by a document releasing the Indemnified Party from all liability with
respect to the matter in controversy.

Section 7.05 Procedures for Inter-Party Claims. In the event that an Indemnified Party
determines that it has a claim for Damages against an Indemnifying Party hereunder (other than as a
result of a Third Party Claim), the Indemnified Party shall give prompt written notice thereof to
the Indemnifying Party, specifying, to the extent then known, the amount of such claim and any
relevant facts and circumstances relating thereto. The Indemnified Party and the Indemnifying
Party shall negotiate in good faith for a thirty (30) day period regarding the resolution of any
disputed claims for Damages. If no resolution is reached with regard to such disputed claim
between the Indemnifying Party and the Indemnified Party within such thirty (30) day period, the
Indemnified Party shall be entitled to seek appropriate remedies in accordance with the terms
hereof. Promptly following the final determination of the amount of any Damages claimed by the
Indemnified Party, the Indemnifying Party shall pay such Damages to the Indemnified Party by wire
transfer or check made payable to the order of the Indemnified Party, without interest. In the
event that the Indemnified Party is required to institute Legal Proceedings in order to recover
Damages hereunder, the cost of such Legal Proceedings (including costs of investigation and
reasonable attorneys’ fees and disbursements) shall be added to the amount of Damages payable to
the Indemnified Party if the Indemnified Party recovers Damages in such Legal Proceedings. In the
event that a party hereto claiming to be an Indemnified Party institutes Legal Proceedings in order
to recover Damages hereunder and the applicable court refuses to award any Damages to such party,
such party shall reimburse the defending party for the cost of such Legal Proceedings (including
costs of investigation and reasonable attorneys’ fees and disbursements).

Section 7.06 Cumulative Remedies. The rights and remedies provided in this
Article VII are cumulative and are in addition to and not in substitution for any other
rights and remedies available at law or in equity or otherwise.

ARTICLE VIII

MISCELLANEOUS

Section 8.01 Notices. All notices, requests, consents, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been given: (a) when
delivered by hand (with written confirmation of receipt); (b) when received by the addressee if
sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by
e-mail of a .pdf document (with confirmation of transmission) if sent during normal business hours
of the recipient, and on the next business day if sent after normal business hours of the
recipient; or (d) on the third business day after the date mailed, by certified or registered mail,
return receipt requested, postage prepaid. Such communications must be sent to the respective
parties at the following addresses (or at such other address for a party as shall be specified in a
notice given in accordance with this Section 8.01):

	 	 	 
	If to Seller:
	 	Mimio LLC

c/o Skyview Capital LLC

8th Floor

2000 Avenue of the Stars

Los Angeles, CA 90067

E-mail: asoltani@skyviewcapital.com

Attention:Chairman

	With a copy to:
	 	James F. Hall, Esq.

Skyview Capital LLC

8th Floor

2000 Avenue of the Stars

Los Angeles, CA 90067

E-mail: jhall@skyviewcapital.com

Attention:Vice President and International General

Counsel

	If to Buyer:
	 	LAZEL, Inc.

17855 N. Dallas Parkway, Suite 400

Dallas, Texas 75287

E-mail: todd.buchardt@cambiumlearning.com

Attention: General Counsel and Secretary

	With a copy to:
	 	Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, New York 10020

E-mail: ssiesser@lowenstein.com

Attention: Steven E. Siesser, Esq.

Section 8.02 Expenses. All costs and expenses incurred in connection with this Agreement and
the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

Section 8.03 Governing Law; Consent to Jurisdiction.

(a) This Agreement will be governed in all respects, including but not limited to, as to
validity, interpretation and effect, by the internal laws of the State of New York, without giving
effect to its principles or rules of conflict of laws (to the extent such principles or rules are
not mandatorily applicable by statute and would require or permit the application of the laws of
another jurisdiction).

(b) Notwithstanding anything to the contrary set forth herein or elsewhere, the parties agree
that irreparable damage would occur in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties will be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
in any court of the United States of America sitting in New York City, this being in addition to
any other remedy to which they are entitled at law or in equity, and neither party shall be
required to provide any bond or other security in connection with any such injunction or in
connection with any related Action. Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York
state court or federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any Action arising out of or relating to this Agreement or the
transactions contemplated hereby or for recognition or enforcement of any judgment relating
thereto, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such Action may be heard and determined in such New York state court or,
to the extent permitted by Law, in such federal court. Each of the parties hereto agrees that a
final judgment in any such Action will be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by Law.

(c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 8.01. Nothing in this Agreement will affect the right of
any party to this Agreement to serve process in any other manner permitted by Law.

Section 8.04 Assignment; Successors and Assigns; No Third Party Rights. Except as otherwise
provided herein, this Agreement may not be assigned, and any attempted assignment shall be null and
void. Buyer may assign all of its rights under this Agreement to any Affiliate of Buyer. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors, assigns and legal representatives. This Agreement shall be for the sole benefit of the
parties to this Agreement and their respective successors, assigns and legal representatives and is
not intended, nor shall be construed, to give any Person, other than the parties hereto and their
respective successors, assigns and legal representatives, any legal or equitable right, remedy or
claim hereunder; provided, however, that Article VI shall also be for the benefit of Buyer
Indemnified Parties and Seller Indemnified Parties.

Section 8.05 Counterparts; Facsimile. This Agreement may be executed in one or more
counterparts, by facsimile, electronic transfer, .pdf or otherwise. Each such counterpart shall be
deemed an original agreement, but all of which together shall constitute one and the same
instrument.

Section 8.06 Headings. The headings in this Agreement are for reference purposes only, and
shall not in any way affect the meaning or interpretation of this Agreement.

Section 8.07 Entire Agreement. This Agreement, including the schedules attached thereto,
constitutes the entire agreement among the parties with respect to the matters covered hereby and
supersedes all previous written, oral or implied understandings among them with respect to such
matters.

Section 8.08 Amendment and Modification. This Agreement may only be amended or modified in a
writing signed by the party against whom enforcement of such amendment or modification is sought.

Section 8.09 Waiver. Any of the terms or conditions of this Agreement may be waived at any
time by the party or parties entitled to the benefit thereof, but only by a writing signed by the
party or parties waiving such terms or conditions.

Section 8.10 Severability. The invalidity of any portion hereof shall not affect the validity,
force or effect of the remaining portions hereof. If it is ever held that any restriction
hereunder is too broad to permit enforcement of such restriction to its fullest extent, such
restriction shall be enforced to the maximum extent permitted by Law.

Section 8.11 Joint Negotiation and Drafting. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement and the agreements ancillary hereto and, in the
event that an ambiguity or question of intent or interpretation arises, this Agreement and the
agreements ancillary hereto shall be construed as jointly drafted by the parties hereto or thereto
and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any provision of this Agreement or of any of the agreements ancillary hereto.

Section 8.12 Waiver of Trial by Jury. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY
THAT MAY ARISE UNDER THIS AGREEMENT OR ANY AGREEMENT EXECUTED PURSUANT TO THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT EXECUTED
PURSUANT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES
AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) IT UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF SUCH WAIVER, (iii) IT MAKES SUCH WAIVER VOLUNTARILY, AND (iv) IT
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 8.12.

Section 8.13 Attorneys’ Fees. If any Action relating to this Agreement or any document to be
delivered hereunder or the enforcement of any provision of any of this Agreement or any document to
be delivered hereunder is brought against any party to this Agreement, the prevailing party shall
be entitled to recover reasonable attorneys’ fees, costs and disbursements, in addition to any
other relief to which the prevailing party may be entitled.

Section 8.14 Parent Guarantee. Parent hereby unconditionally and absolutely guarantees, as
primary obligor and not as surety, the due and punctual payment and performance by Buyer of all of
its obligations to Seller pursuant to the terms of this Agreement and the Transition Services
Agreement and agrees that Seller shall not pursue any remedy against Buyer, or against any
security, for breach of this Agreement or the Transition Services Agreement prior to proceeding
directly against Parent. This guarantee shall be a guarantee of payment and not of collection.

[SIGNATURE PAGE FOLLOWS]

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

SELLER:

MIMIO, LLC

By: /s/ Ali Reza Soltani

Name: Ali Reza (Alex) Soltani

Title: Manager

BUYER:

LAZEL, INC.

By: /s/ John Campbell

Name: John Campbell

Title: President and Chief Executive Officer

Solely for purposes of Section 8.14:

PARENT:

CAMBIUM LEARNING GROUP, INC.

By: /s/ Barbara Benson

Name: Barbara Benson

Title: Vice President and Chief Financial

OfficerANV-2013.12.30 Exhibit 10.1

Exhibit 10.1

ALLIED NEVADA GOLD CORP. 
as Borrower
and
THE BANK OF NOVA SCOTIA 
as Lead Arranger, Bookrunner and Administrative Agent
and
THE SEVERAL LENDERS 
FROM TIME TO TIME PARTIES HERETO

	
	
	SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

Dated as of December 27, 2013

Fasken Martineau DuMoulin LLP 
Toronto, Ontario

Second Amended and Restated Credit Agreement

TABLE OF CONTENTS
	
			
	Article 1 INTERPRETATION
	1

	1.1
	Defined Terms
	1

	1.2
	Other Usages
	27

	1.3
	Plural and Singular 
	27

	1.4
	Headings
	28

	1.5
	Currency
	28

	1.6
	Applicable Law
	28

	1.7
	Time of the Essence
	28

	1.8
	Non-Banking Days
	28

	1.9
	Consents and Approvals
	28

	1.10
	Amount of Credit
	28

	1.11
	Schedules
	29

	1.12
	Extension of Credit
	29

	1.13
	Accounting Terms – GAAP
	29

	1.14
	Rule of Construction
	29

	1.15
	Successors and Permitted Assigns of Parties
	29

	1.16
	Meaning of Include
	29

	 
	 
	 

	Article 2 CREDIT FACILITY
	29

	2.1
	Establishment of Credit Facility
	29

	2.2
	Lenders’ Commitments
	30

	2.3
	Reduction of Credit Facility
	30

	2.4
	Termination of Credit Facility
	30

	2.5
	Extension of Maturity Date
	31

	2.6
	Accordion Feature
	31

	 
	 
	 

	Article 3 GENERAL PROVISIONS RELATING TO CREDITS
	32

	3.1
	Types of Credit Availments
	32

	3.2
	Funding of Loans
	33

	3.3
	Failure of Lender to Fund Loan
	34

	3.4
	Timing of Credit Availments
	34

	3.5
	Inability to Fund LIBOR Loan in the United States
	35

	3.6
	Time and Place of Payments
	35

	3.7
	Remittance of Payments
	36

	3.8
	Evidence of Indebtedness
	36

	3.9
	General Provisions Relating to All Letters
	36

	3.10
	Notice Periods
	39

	3.11
	Administrative Agent’s Discretion to Allocate
	39

	3.12
	Cost of Funds
	40

	 
	 
	 

	Article 4 DRAWDOWNS
	40

	4.1
	Drawdown Notice
	40

	
			
	 
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	Second Amended and Restated Credit Agreement

	
			
	Article 5 ROLLOVERS
	41

	5.1
	LIBOR Loans
	41

	5.2
	Rollover Notice
	41

	5.3
	Rollover by Lenders
	42

	 
	 
	 

	Article 6 CONVERSIONS
	42

	6.1
	Converting Loan to Other Type of Loan
	42

	6.2
	Conversion Notice
	42

	6.3
	Absence of Notice
	42

	6.4
	Conversion by Lenders
	43

	 
	 
	 

	Article 7 INTEREST AND FEES
	43

	7.1
	Interest Rates
	43

	7.2
	Calculation and Payment of Interest
	43

	7.3
	General Interest Rules
	44

	7.4
	Selection of Interest Periods
	44

	7.5
	Standby Fees
	45

	7.6
	Letter Fees
	45

	 
	 
	 

	Article 8 RESERVE, CAPITAL, INDEMNITY AND TAX PROVISIONS
	45

	8.1
	Conditions of Credit
	45

	8.2
	Change of Circumstances
	45

	8.3
	Failure to Fund as a Result of Change of Circumstances
	47

	8.4
	Indemnity Relating to Credits
	48

	8.5
	Indemnity for Transactional and Environmental Liability
	49

	8.6
	Gross-Up for Taxes
	50

	 
	 
	 

	Article 9 REPAYMENTS AND PREPAYMENTS
	53

	9.1
	Repayment of Credit Facility
	53

	9.2
	Voluntary Prepayments under Credit Facility
	53

	9.3
	Prepayment Notice
	54

	9.4
	Reimbursement or Conversion on Presentation of Letters
	54

	9.5
	Letters Subject to an Order
	55

	9.6
	Currency of Repayment
	56

	9.7
	Repayment of Credit Excess
	56

	 
	 
	 

	Article 10 REPRESENTATIONS AND WARRANTIES
	56

	10.1
	Representations and Warranties
	56

	10.2
	Survival of Representations and Warranties
	63

	 
	 
	 

	Article 11 COVENANTS
	63

	11.1
	Affirmative Covenants
	63

	11.2
	Restrictive Covenants
	70

	11.3
	Performance of Covenants by Administrative Agent
	73

	
			
	 
	ii
	Second Amended and Restated Credit Agreement

	
			
	Article 12 CONDITIONS PRECEDENT TO OBTAINING CREDIT
	73

	12.1
	Conditions Precedent to All Credit
	73

	12.2
	Conditions Precedent to Effectiveness of Agreement
	73

	12.3
	Confirmation of Satisfaction of Conditions Precedent
	76

	12.4
	Waiver
	76

	 
	 
	 

	Article 13 DEFAULT AND REMEDIES
	76

	13.1
	Events of Default
	76

	13.2
	Refund of Overpayments
	80

	13.3
	Remedies Cumulative
	80

	13.4
	Set-Off
	81

	 
	 
	 

	Article 14 THE ADMINISTRATIVE AGENT
	81

	14.1
	Appointment and Authorization of Administrative Agent
	81

	14.2
	Interest Holders
	81

	14.3
	Consultation with Counsel
	81

	14.4
	Documents
	81

	14.5
	Administrative Agent as Finance Party
	82

	14.6
	Responsibility of Administrative Agent
	82

	14.7
	Action by Administrative Agent
	82

	14.8
	Notice of Events of Default
	83

	14.9
	Responsibility Disclaimed
	83

	14.10
	Indemnification
	83

	14.11
	Credit Decision
	84

	14.12
	Successor Administrative Agent
	84

	14.13
	Delegation by Administrative Agent
	84

	14.14
	Waivers and Amendments
	85

	14.15
	Determination by Administrative Agent Conclusive and Binding
	87

	14.16
	Adjustments among Lenders after Acceleration
	87

	14.17
	Redistribution of Payment
	88

	14.18
	Distribution of Notices
	88

	14.19
	Other Security Not Permitted
	88

	14.20
	Discharge of Security
	89

	14.21
	Determination of Exposures
	89

	14.22
	Decision to Enforce Security
	90

	14.23
	Enforcement
	90

	14.24
	Application of Cash Proceeds of Realization
	90

	14.25
	Survival
	91

	
			
	 
	iii
	Second Amended and Restated Credit Agreement

	
			
	Article 15 MISCELLANEOUS
	91

	15.1
	Notices
	91

	15.2
	Severability
	92

	15.3
	Counterparts
	92

	15.4
	Successors and Assigns
	92

	15.5
	Assignment
	92

	15.6
	Entire Agreement
	94

	15.7
	Further Assurances
	94

	15.8
	Judgment Currency
	94

	15.9
	Waivers of Jury Trial
	95

	15.10
	Consultant
	95

	15.11
	USA Patriot Act
	95

	 
	 
	 

	Schedule A  LENDERS AND INDIVIDUAL COMMITMENTS 
	1

	Schedule B  COMPLIANCE CERTIFICATE
	1

	Schedule C  FORM OF ASSIGNMENT
	1

	Schedule D FORM OF DRAWDOWN NOTICE
	1

	Schedule E FORM OF ROLLOVER NOTICE
	1

	Schedule F FORM OF CONVERSION NOTICE
	1

	Schedule G CORPORATE STRUCTURE
	1

	Schedule H SECURITY DOCUMENTS
	1

	Schedule I  QUALIFIED AFFILIATE INSTRUMENT OF ADHESION
	1

	Schedule J  BORROWING BASE CERTIFICATE
	1

	Schedule K EXCLUDED SUBSIDIARIES
	1

	Schedule L REIMBURSEMENT INSTRUMENT
	1

	Schedule M FORM OF ACCORDION AGREEMENT
	1

	
			
	 
	iv
	Second Amended and Restated Credit Agreement

SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of December 27, 2013 between Allied Nevada Gold Corp., a corporation incorporated under the laws of the State of Delaware (the “Borrower”), the lending institutions from time to time parties hereto as Lenders (each, a “Lender” and, collectively, the “Lenders”) and The Bank of Nova Scotia, as Administrative Agent.
WHEREAS the Borrower, the Administrative Agent and certain lenders entered into an amended and restated credit agreement dated as of October 31, 2012 (as amended to the date hereof, the “Existing Credit Agreement”);
AND WHEREAS the parties hereto wish to amend and restate the Existing Credit Agreement upon the term set forth herein;
NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto covenant and agree as follows:
ARTICLE 1
INTERPRETATION
1.1    Defined Terms
The following defined terms shall for all purposes of this agreement, or any amendment, substitution, supplement, replacement, restatement or addition hereto, have the following respective meanings unless the context otherwise specifies or requires or unless otherwise defined herein:
“Accordion Agreement” means an agreement in the form of Schedule M (or in such other form to substantially similar effect as the Administrative Agent may accept) duly completed, executed and delivered by the Borrower, an Accordion Lender and the Administrative Agent pursuant to Section 2.6(d).  
“Accordion Lender” means an existing Lender or a proposed new Lender that has agreed to accept an Individual Commitment with respect to the Credit Facility designated in an Accordion Notice delivered to the Administrative Agent pursuant to and in accordance with Section 2.6(a).
“Accordion Notice” shall have the meaning ascribed thereto in Section 2.6(a). 
“Acquisition” means:
		
	(a)
	if the acquisition is a share purchase, the Borrower shall Control the entity being acquired immediately following the completion of such acquisition but not before; or

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

	
			
	 
	1
	Second Amended and Restated Credit Agreement

“Additional Guarantor” means any direct or indirect wholly-owned Subsidiary of the Borrower (other than an Excluded Subsidiary) which has become a Guarantor pursuant to Section 11.1(x).
“Adjusted EBITDA” means, at any particular time, the Borrower’s consolidated EBITDA minus any EBITDA for such period attributable to (i) each Excluded Subsidiary and (ii) any Person not constituting a Subsidiary of the Borrower but who is consolidated in the Borrower’s financial statements in accordance with generally accepted accounting principles.
“Adjusted Total Assets” means, at any particular time, the Borrower’s consolidated Total Assets minus any Total Assets for such period attributable to (i) each Excluded Subsidiary and (ii) any Person not constituting a Subsidiary of the Borrower but who is consolidated in the Borrower’s financial statements in accordance with generally accepted accounting principles.
“Administrative Agent” means The Bank of Nova Scotia, in its capacity as administrative agent of the Lenders, and any successor thereto pursuant to Section 14.12.
“Administrative Agent’s Branch of Account” means 720 King Street W., Second Floor, Toronto, Ontario M5V 2T3
“Affiliate” means an affiliated body corporate and, for the purposes of this agreement, (i) one body corporate is affiliated with another body corporate if one such body corporate is the Subsidiary of the other or both are Subsidiaries of the same body corporate or each of them is Controlled by the same Person and (ii) if two bodies corporate are affiliated with the same body corporate at the same time, they are deemed to be affiliated with each other; for greater certainty for the purposes of this definition, “body corporate” shall include a chartered bank.
“Allied VGH” means Allied VGH Inc., a corporation incorporated under the laws of Nevada.
“Alternate Base Rate Canada” means, at any particular time, the variable rate of interest per annum, calculated on the basis of a year of 365 or 366 days, as the case may be, which is equal to the greater of (a) the Base Rate Canada at such time, (b) the aggregate of (i) the Federal Funds Effective Rate at such time and (ii) 1⁄2 of 1% per annum and (c) LIBOR plus 1.00%.
“Applicable Law” means (a) any domestic or foreign statute, law (including common and civil law), treaty, code, ordinance, rule, regulation, restriction or by-law (zoning or otherwise); (b) any judgement, order, writ, injunction, decision, ruling, decree or award; (c) any regulatory policy, practice, request, guideline or directive; or (d) any franchise, licence, qualification, authorization, consent, exemption, waiver, right, permit or other approval of any Official Body; in each case having the force of law and binding on or 

	
			
	 
	2
	Second Amended and Restated Credit Agreement

affecting the Person referred to in the context in which the term is used or binding on or affecting the property of such Person.
“Available Credit” means, at any particular time and with respect to the Credit Facility, the amount, if any, by which the Credit Limit at such time exceeds the amount of credit outstanding under the Credit Facility at such time.
“Banking Day” means (x) any day, other than Saturday and Sunday, on which banks generally are open for business in Reno, Nevada, Toronto, Ontario and New York, New York and London, England and (y) when used in respect of LIBOR Loans, means any such day which is also a day on which banks generally are open for business in London, England and on which transactions can be carried on in the London interbank market.
“Base Rate Canada” means the variable rate of interest per annum determined by the Administrative Agent from time to time as its base rate for United States dollar loans made by the Administrative Agent in Canada from time to time, being a variable per annum reference rate of interest adjusted automatically upon change by the Administrative Agent, calculated on the basis of a year of 365 or 366 days, as the case may be.
“Base Rate Loan” means monies lent by the Lenders to the Borrower hereunder and upon which interest accrues at a rate referable to the Alternate Base Rate Canada.
“Borrowing Base” means, at any particular time, the amount as reported on line (T) of Exhibit 1 to the last Borrowing Base Certificate delivered pursuant to Section 11.1(b)(vi).
“Borrowing Base Certificate” means a certificate of a senior financial officer of the Borrower in the form of Schedule J hereto certifying the Borrowing Base as of the last day of each month, attaching the calculation thereof.
“Branch of Account” means the main branch of the Administrative Agent located at Scotia Plaza, 44 King Street West, Toronto, Ontario, or such other branch of the Administrative Agent located in Canada or the United States as the Borrower and the Administrative Agent may agree upon.
“Calculation Date” means each March 31, June 30, September 30 and December 31 falling after the date of this agreement whereby the Borrower calculates the Reserve Tail, Tangible Net Worth and the Current Ratio as of such relevant date.
“Capital Expenditures” means, for any particular period, those expenditures of the Borrower on a consolidated basis which would, in accordance with generally accepted accounting principles, be considered capital expenditures of the Borrower for such period.  

	
			
	 
	3
	Second Amended and Restated Credit Agreement

“Capital Lease”, as applied to any Person, shall mean any lease of any property (whether real, personal or mixed and including, without limitation, equipment) by that Person as lessee that, in conformity with generally accepted accounting principles, is, or is required to be, accounted for as a finance lease obligation on the balance sheet of that Person.
“Capital Reorganization” means any change in the issued and outstanding Shares of a Company.
“Cash” means, at any particular time, cash and Cash Equivalents of the Borrower determined on a consolidated basis at such time.
“Cash Equivalents” means (i) securities issued or directly and fully guaranteed or insured by the governments of Australia, the United States or Canada or any agency or instrumentality thereof with maturities of 12 months or less from the date of acquisition, (ii) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank incorporated in Australia, the United States or Canada having capital and surplus in excess of $500,000,000 or any other commercial bank having a rating of at least A3 (Moody’s) or A- (S&P), (iii) repurchase obligations for underlying securities of the types described in clauses (i) and (ii) entered into with any financial institution meeting the qualifications specified in clause (ii) above, (iv) investment funds investing at least 95% of their assets in securities of the types described in clauses (i) to (iii) above and (v) readily marketable direct obligations issued by Australia, the United States or Canada or any political subdivision thereof having one of the two highest rating categories obtainable from either Moody’s, or S&P with maturities of 24 months or less from the date of acquisition.
“Cash Proceeds of Realization” means the aggregate of (i) all Proceeds of Realization in the form of cash and (ii) all cash proceeds of the sale or disposition of non-cash Proceeds of Realization, in each case expressed in United States dollars.
“CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 of the United States, as amended by the Superfund Amendments and Reauthorization Act and as further amended from time to time, and any successor statute and including all regulations issued under all such statutes.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any Applicable Law, (b) any change in any Applicable Law or in the administration, interpretation or application thereof by any Official Body or (c) the making or issuance of any Applicable Law by any Official Body.

	
			
	 
	4
	Second Amended and Restated Credit Agreement

“Change of Control” means and shall be deemed to have occurred if any Person or group of Persons “acting jointly or in concert” (as contemplated by the Securities Act (Ontario)), shall at any time have acquired (i) direct or indirect beneficial ownership of Shares of the Borrower having attributed to it a majority of the outstanding votes attached to all of the issued and outstanding Voting Shares of the Borrower or (ii) the right or the ability by voting power, contract or otherwise to elect or designate for election a majority of the directors of the Borrower.
“Code” means the Internal Revenue Code of 1986 of the United States, as amended from time to time, and any successor statute and including all regulations issued under all such statutes.
“Companies” means, collectively, the Borrower and each Subsidiary of the Borrower and “Company” means any one of the Companies.
“Consultant” means any independent engineer, technical consultant, auditor and/or advisor from time to time retained by the Administrative Agent  for the purpose of, inter alia, verifying the Borrowing Base and/or technical performance and functioning of the Hycroft Mine.
“Control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through ownership of voting equity, by contract or otherwise and “Controlled” shall have a similar meaning.
“Conversion Notice” shall have the meaning ascribed thereto in Section 6.2.
“Corporate Reorganization” means any change in the legal existence of any Company (other than a Capital Reorganization) including by way of amalgamation, merger, winding up, continuance or plan of arrangement.
“Credit Documents” means this Agreement, the Guarantees, the Fee Letter, the Security Documents, each Postponement and Subordination Undertaking, the Perfection Certificates and all instruments and agreements executed and delivered by the Obligors in favour of any one or more of the Finance Parties from time to time in connection with this agreement or any other Credit Document and any confirmation of obligations under any such Credit Documents executed and delivered by any such Company, but specifically excluding the Qualified Risk Management Agreements and any other Risk Management Agreements.
“Credit Excess” means, as at a particular date, the amount, if any, by which the amount of credit outstanding under the Credit Facility as at the close of business on such date exceeds the lesser of (i) the Credit Limit as at the close of business on such date or (ii) the Borrowing Base on such date.

	
			
	 
	5
	Second Amended and Restated Credit Agreement

“Credit Facility” means the revolving term credit facility established by the Lenders in favour of the Borrower pursuant to Section 2.1.
“Credit Facility Repayment Date” means the date on which all Secured Obligations owing by the Obligors to the Finance Parties or any of them, or remaining unpaid to the Finance Parties or any of them, under the Credit Agreement have been satisfied in full and the Credit Facility has terminated pursuant to Section 2.4.
“Credit Limit” means $40,000,000 (as such amount may be reduced pursuant to Section 2.3 or increased pursuant to Section 2.6).
“Current Assets” means, at any particular time, the current assets of the Borrower determined on a consolidated basis in accordance with GAAP.
“Current Liabilities” means, at any particular time, the current liabilities of the Borrower determined on a consolidated basis in accordance with GAAP, excluding the Indebtedness of the Borrower under the Credit Facility.
“Current Ratio” means, at any particular time, the ratio of the Current Assets at such time to Current Liabilities at such time.
“Default” means any event which is or which, with the passage of time, the giving of notice or both, would be an Event of Default.
“Deposit Accounts” means the Borrower’s bank accounts maintained by The Bank of Nova Scotia.
“Derivative Exposure” in relation to any Person (the “relevant party”) and any counterparty of the relevant party at any time means the amount which would be payable by the relevant party to that counterparty, or by that counterparty to the relevant party, as the case may be, pursuant to all Risk Management Agreements entered into between them and in effect at that time if the transactions governed thereby were to be terminated as the result of the early termination thereof.  If the Derivative Exposure would be payable by the relevant party to the counterparty of the relevant party at the relevant time of determination, it is referred to herein as “Out-of-the-Money Derivative Exposure”.
“Designated Account” means, with respect to transactions in a particular currency for the Borrower, the account of the Borrower maintained by the Administrative Agent at the Branch of Account for the purposes of transactions in such currency under this Agreement.
“Direct Obligors” means the Persons owing the Direct Secured Obligations to the Finance Parties.
“Direct Secured Obligations” means the Secured Obligations of an Obligor, under this Agreement, the Fee Letter and any Qualified Risk Management Agreements.

	
			
	 
	6
	Second Amended and Restated Credit Agreement

“Distribution” means:
		
	(a)
	the declaration, payment or setting aside for payment of any dividend or other distribution on or in respect of any shares in the capital of the Borrower, other than a dividend declared, paid or set aside for payment by the Borrower which is payable in shares of the Borrower;

		
	(b)
	the redemption, retraction, purchase, retirement or other acquisition, in whole or in part, of any shares in the capital of the Borrower or any securities, instruments or contractual rights capable of being converted into, exchanged or exercised for shares in the capital of the Borrower, including, without limitation, options, warrants, conversion or exchange privileges and similar rights; and

		
	(c)
	the payment or prepayment of interest or the repayment or prepayment of principal with respect to the High Yield Indebtedness and any consolidated Indebtedness of the Borrower which is subordinated to the Secured Obligations.

“$” denotes U.S. dollars.
“Draft” means any draft, bill of exchange, receipt, acceptance, demand or other request for payment drawn or issued under or in respect of a Letter.
“Drawdown Notice” shall have the meaning ascribed thereto in Section 4.1.
“EBITDA” means, for any particular Fiscal Quarter, Net Income of a Person for such Fiscal Quarter:
		
	(a)
	plus such Person’s income and mining tax expenses for such Fiscal Quarter;

		
	(b)
	plus such Person’s Interest Expenses for such Fiscal Quarter;

		
	(c)
	minus such Person’s Interest Income for such Fiscal Quarter;

		
	(d)
	minus (to the extent otherwise included) any of such Person’s extraordinary or unusual gains and unrealized gains for such Fiscal Quarter;

		
	(e)
	plus (to the extent otherwise deducted) any of such Person’s extraordinary or unusual losses and unrealized losses for such Fiscal Quarter;

		
	(f)
	minus (to the extent otherwise included) any gain over book value arising in favour of such Person on any disposal of any business or asset (not being a disposal made in the ordinary course of business) during such Fiscal Quarter;

		
	(g)
	plus (to the extent otherwise deducted) any loss against book value incurred by such Person on the disposal of any business or asset (not being a disposal made in the ordinary course of business) during such Fiscal Quarter;

	
			
	 
	7
	Second Amended and Restated Credit Agreement

		
	(h)
	plus (to the extent otherwise deducted) such Person’s depreciation of fixed assets and amortization of goodwill or intangible assets during such Fiscal Quarter;

		
	(i)
	plus (to the extent otherwise deducted) the amount of such Person’s capital expenditures and other expenditures in respect of exploration activities during such Fiscal Quarter;

		
	(j)
	plus (to the extent otherwise deducted) such Person’s other non-cash expenses deducted in calculating its’ Net Income, including non-cash stock expenses relating to stock-based compensation, and non-cash unrealized losses incurred in connection with Risk Management Agreements during such Fiscal Quarter;

		
	(k)
	minus (to the extent otherwise included) any of such Person’s non-cash unrealized gains incurred in connection with Risk Management Agreements during such Fiscal Quarter;

		
	(l)
	minus (to the extent otherwise included) any of such Person’s non-cash gains from operations held for sale and any foreign exchange gains during such Fiscal Quarter; and

		
	(m)
	plus (to the extent otherwise deducted) any of such Person’s non-cash losses from operations held for sale and any foreign exchange losses during such Fiscal Quarter.

The calculation of EBITDA shall be adjusted for non-cash revenues and expenses of the relevant Person including, without limitation, deferred revenue and the difference between accrued and cash reclamation costs.
“Enforcement Date” means:
		
	(a)
	the date on which the Administrative Agent notifies the Borrower, pursuant to Section 13.1, that all Secured Obligations of the Borrower to the Lenders hereunder have become immediately due and payable or on which such Secured Obligations automatically become due and payable pursuant to Section 13.1, whichever occurs first; or

		
	(b)
	if all Secured Obligations of the Borrower to the Lenders hereunder have been repaid in full and all Individual Commitments of the Lenders hereunder have terminated, the date on which a Qualified Risk Management Lender notifies an Obligor that all Indebtedness of the Borrower to such Qualified Risk Management Lender under the relevant Qualified Risk Management Agreement has become immediately due and payable or on which such Indebtedness automatically becomes due and payable, whichever occurs first.

	
			
	 
	8
	Second Amended and Restated Credit Agreement

“Environment” means soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life and any other environmental medium or natural resource.
“Environmental Law” means any Legal Requirement that addresses, is related to or is otherwise concerned with environmental, health or safety issues, including any Legal Requirement relating to any emissions, discharges, releases or threatened releases of Hazardous Materials into the Environment, including ambient air, surface water, ground water or land, or otherwise relating to the manufacture, processing, distribution, use, existence, treatment, storage, disposal, transport, handling, clean-up or control of Hazardous Materials, including CERCLA, each as amended from time to time.
“Equity” means, at any particular time, the amount which would, in accordance with generally accepted accounting principles, be classified on the consolidated balance sheet of the Borrower at such time as shareholders’ equity of the Borrower.
“ERISA” means the Employee Retirement Income Security Act of 1974 of the United States, as amended from time to time, and any successor statute and including all regulations issued under all such statutes.
“ERISA Affiliate” shall mean Person that is a member of a group of which the Borrower is a member and which group is treated as a single employer under Section 414(b), (c) or (m) of the Code, Section 4001 of ERISA or as a result of the Borrower or a Subsidiary of the Borrower being or having been a general partner of such Person.
“ERISA Companies” means the Borrower and the ERISA Affiliates and “ERISA Company” means any of the ERISA Companies.
“Event of Default” means any one of the events set forth in Section 13.1.
“Exchange Equivalent” means as of any particular date, with reference to any amount (the “original amount”) expressed in a particular currency (the “original currency”), the amount expressed in another currency which would be required to buy the original amount of the original currency using the quoted spot rates at which the principal office in New York of the Administrative Agent offers to provide such other currency in exchange for such original currency at 12:00 noon (New York time) on such date.
“Excluded Subsidiaries” means, at any particular time, those Subsidiaries of the Borrower set forth in Schedule K hereto designated from time to time as an Excluded Subsidiary by the Borrower (as such Schedule K may be updated from time to time pursuant to Section 11.1(b)(iii)) provided at the time of any such designation no Default or Event of Default has occurred and is continuing nor would any Default or Event of Default arise immediately thereafter as a result of such designation or any releases or discharges undertaken in connection therewith.

	
			
	 
	9
	Second Amended and Restated Credit Agreement

“Excluded Taxes” means, with respect to any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its net income, and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes or any similar tax imposed by any jurisdiction in which the relevant Lender is located, (c) for any period with respect to which a Lender has failed to provide the Borrower with the forms, certificates or other documents required by Section 8.6, any Indemnified Taxes imposed solely by reason of such failure, and (d) any Indemnified Taxes imposed solely by reason of a Lender voluntarily effecting a change in its jurisdiction of principal operations after the date that it became a Lender (unless such Taxes are imposed after such change in jurisdiction by reason of any Change in Law occurring after and not by reason of the change in jurisdiction).
“Exposure” means, with respect to a particular Finance Party at a particular time, the amount of the Secured Obligations owing to such Finance Party at such time, determined by such Finance Party in good faith in accordance with Section 14.21.
“Federal Funds Effective Rate” means, for any particular day, the variable rate of interest per annum, calculated on the basis of a year of 365 days (or 366 days in the case of a leap year) and for the actual number of days elapsed, equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers as published for such day (or, if such day is not a Banking Day, for the next preceding Banking Day) by the Federal Reserve Bank of New York or, for any Banking Day on which such rate is not so published by the Federal Reserve Bank of New York, the average of the quotations for such day for such transactions received by the Administrative Agent from three Federal Funds brokers of recognized standing selected by the Administrative Agent.
“Fee Letter” means the amended and restated fee letter dated December 27, 2013 entered into between The Bank of Nova Scotia and the Borrower.
“Finance Documents” means the Credit Documents and the Qualified Risk Management Agreements.
“Finance Parties” means the Administrative Agent, the Lenders, the Issuing Lender and the Qualified Risk Management Lenders.
“Financial Covenants” means those covenants set forth in Sections 11.1(n), (o) and (p).

	
			
	 
	10
	Second Amended and Restated Credit Agreement

“Financial Letter” means a standby letter of credit or guarantee in a form satisfactory to the Issuing Lender and issued by the Issuing Lender at the request of the Borrower in favour of a third party to secure the payment of an obligation that is a “direct credit substitute” within the meaning of the Guideline A-1 – Capital Adequacy Requirement of the Office of the Superintendent of Financial Institutions Canada, as determined by the Issuing Lender (“direct credit substitutes” include standby letters of credit serving as financial guarantees).
“Fiscal Quarter” means any of the three‐month periods ending on the last day of March, June, September and December in each Fiscal Year.
“Fiscal Year” means the twelve‐month period ending on the last day of December in each year.
“F.R.S. Board” means the Board of Governors of the Federal Reserve System of the United States or any successor thereto.
“Future Operating Mine” means any mine or project wholly owned by an Obligor in respect of which (i) such mine or project produces minerals and/or base or precious metals and/or metals in concentrate; or (ii) any such mine or project that it is proceeding with commercial development.
“generally accepted accounting principles” or “GAAP” means generally accepted accounting principles in effect in the United States from time to time consistently applied, as recommended by the American Institute of Certified Public Accountants or, after notice thereof has been provided by the Borrower to the Administrative Agent, such other United States generally accepted accounting principles as may be adopted by the Borrower in replacement thereof.
“Gold Equivalent” means, at any particular time, gold ounces plus the gold equivalent of silver ounces, with silver ounces converted to gold ounces based upon the spot gold and silver prices at the time of such conversion.
“Guarantees” means the one or more guarantees to be entered into by the Guarantors in favour of the Administrative Agent for the benefit of the Finance Parties, each in form and substance satisfactory to the Administrative Agent as the same may be amended, modified, supplemented or replaced from time to time, and pursuant to which each Obligor shall guarantee on a full recourse basis the Direct Secured Obligations of each other Obligor under this Agreement, each Fee Letter and any Qualified Risk Management Agreements.

	
			
	 
	11
	Second Amended and Restated Credit Agreement

“Guarantors” means Allied Nevada Gold Holdings LLC, Allied VGH Inc., Allied VNC Inc., Hycroft Resources & Development, Inc., Victory Exploration Inc., Victory Gold Inc., ANG Central LLC, ANG Cortez LLC, ANG Eureka LLC, ANG North LLC, ANG Northeast LLC, ANG Pony LLC and Hasbrouck Production Company LLC, each Additional Guarantor and all  other direct and indirect wholly-owned Subsidiaries of the Borrower other than Excluded Subsidiaries.
“Hazardous Materials” means any waste, chemical or other substance that is hazardous, radioactive, toxic, a pollutant or a contaminant, or that is regulated, listed, defined, designated, or classified, or otherwise determined to be, as such under or pursuant to any Environmental Law, including any mixture or solution thereof, and specifically including petroleum and all derivatives thereof or synthetic substitutes thereof, asbestos or asbestos-containing materials, urea formaldehyde foam insulation, transformers or other equipment that contain polychlorinated biphenyls, and radon gas.
“High Yield Indebtedness” means unsecured senior Indebtedness of the Borrower issued pursuant to the High Yield Indenture and which at all times satisfies the following criteria:
		
	(a)
	such Indebtedness matures at least one year after the Maturity Date and there are no scheduled principal repayments thereof until such time;

		
	(b)
	the maximum principal amount of such Indebtedness does not exceed $400,000,000 or CDN$400,000,000 or the Exchange Equivalent of either thereof; and

		
	(c)
	such Indebtedness does not enjoy the benefit of any guarantees or other support from any Subsidiary of the Borrower unless such Subsidiary is a Guarantor and has otherwise complied with Section 11.1(x) of the Credit Agreement and any such guarantee or other support in respect of the High Yield Indebtedness is on an unsecured basis.

“High Yield Indenture” means the note indenture dated as of May 25, 2012 entered into between the Borrower, as issuer, and Computershare Trust Company of Canada, as trustee pursuant to which the High Yield Indebtedness was issued.
“Hycroft Mine” means Hycroft Resources’ gold and silver mine located 54 miles west of Winnemucca, Nevada along the border of Humboldt and Pershing Counties, all as more fully described in the Borrower’s Form 10-K filed with the United States Securities and Exchange Commission for the Fiscal Year ended December 31, 2012.
“Hycroft Resources” means Hycroft Resources & Development, Inc., a corporation incorporated under the laws of Nevada.

	
			
	 
	12
	Second Amended and Restated Credit Agreement

“Indebtedness” of any Person means, without duplication, (i) indebtedness of such Person for borrowed money or for the deferred purchase price of property and services, other than trade payables incurred in the ordinary course of business and payable in accordance with customary practices, (ii) other indebtedness of such Person which is evidenced by a note, bond, debenture or similar instrument, (iii) obligations of such Person under any Capital Lease (iv) contingent obligations of such Person in respect of any letter of credit, bank guarantee or surety bond, (v) to the extent accelerated, the Out-of-the-Money Derivative Exposure of such Person, and (vi) the contingent obligations of such Person under any guarantee or other agreement assuring payment of any obligations of any Person of the type described in the foregoing clauses (i) to (v) (for greater certainty, the contingent obligations assuring payment of any Out-of-the-Money Derivative Exposure will only be treated as Indebtedness if such Out-of-the-Money Derivative Exposure has in fact been accelerated).  Indebtedness for purposes of calculating the Financial Covenants shall not include any Indebtedness under clause (iv) above (other than any Secured Obligations) that is cash collateralized.
“Indemnified Taxes” means Taxes other than Excluded Taxes.
“Individual Commitment” means, with respect to a particular Lender, the amount set forth in Schedule A attached hereto, as reduced, increased or amended from time to time pursuant to, as applicable, Sections 2.2, 2.3, 8.3 and 15.5 as the individual commitment of such Lender with respect to the Credit Facility, provided that, upon the termination of the Credit Facility pursuant to Section 2.4, the Individual Commitment of each Lender with respect to the Credit Facility shall thereafter be equal to the Individual Commitment of such Lender under the Credit Facility immediately prior to the termination of the Credit Facility.
“Intellectual Property” shall mean all issued patents and patent applications, industrial design registrations, trade-marks, registrations and applications therefor, trade-names and styles, logos, copyright registrations and applications therefor, all of the foregoing owned by or licensed to any Obligor and used in or necessary to the operation of its business.
“Interest Expenses” means, for any particular period, the amount which would, in accordance with generally accepted accounting principles, be classified on the income statement of a Person for such period as gross interest expenses (including, for greater certainty, issuance fees with respect to Letters).
“Interest Income” means, for any particular period, the amount which would, in accordance with generally accepted accounting principles, be classified on the income statement of a Person for such period as interest accrued due to such Person during such period whether or not paid.
“Interest Period” means, in the case of any LIBOR Loan, the applicable period for which interest on such LIBOR Loan shall be calculated pursuant to Article 7.

	
			
	 
	13
	Second Amended and Restated Credit Agreement

“Inventory” shall mean all gold and silver which has been mined by the Obligors in the ordinary course of the Obligors' business, regardless of whether it is unrefined, in the process of refinement or is refined and held for sale or lease and all documents of title at any time evidencing or representing any part of the foregoing.
“Investment” shall mean any advance, loan, extension of credit or capital contribution to, purchase of Shares, bonds, notes, debentures or other securities of, or any other investment made in, any Person but shall exclude any Acquisition, any acquisition of tangible personal property and any capital or exploration expenditures (including, for greater certainty, the acquisition of permanent and/or temporary housing for any independent contractors, employees of an Obligor or any individuals otherwise engaged by an Obligor with respect to the development of the Hycroft Mine).  The amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity, or distributions or dividends paid, thereon and shall, if made by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair value of such property at the time of such Investment, as determined in good faith by the Borrower.
“Investment Accounts” means the investment accounts maintained by the Borrower with each Lender.
“Issuing Lender” means The Bank of Nova Scotia or any other Lender selected by the Administrative Agent and acceptable to the Borrower who assumes in writing the obligation of issuing Letters under the Credit Facility on behalf of the Lenders.
“Legal Requirement” means any requirement under federal, state, local, municipal, foreign, international, multinational or other administrative order, constitution, ordinance, regulation, statute or treaty having the force of law.
“Lenders” means the individual financial institutions set out and described in Schedule A, as amended from time to time and “Lender” means any of the Lenders.  After the Credit Facility Repayment Date, “Lender” shall mean each Person that was a Lender immediately prior to the Credit Facility Repayment Date but only for so long as such Person is a Qualified Risk Management Lender.
“Letters” means Financial Letters or Non-Financial Letters issued by the Issuing Lender at the request, and on the credit, of the Borrower, each being denominated in United States dollars and being issued to a named beneficiary acceptable to the Issuing Lender and in each case having a term of not more than one year and being renewable in the sole discretion of the Issuing Lender and otherwise all such Letters being otherwise in a form satisfactory to the Issuing Lender.

	
			
	 
	14
	Second Amended and Restated Credit Agreement

“LIBOR” means, with respect to any Interest Period applicable to a LIBOR Loan, the per annum rate of interest determined by the Administrative Agent, based on a three hundred sixty (360) day year as the rate for deposits in United States dollars appearing on the display referred to as the “LIBOR 01 Page” (or any display substituted therefor) of Reuter Monitor Money Rates Service for a period equal to the number of days in the applicable Interest Period, at or about 11:00 a.m. (London, England time) on the second Banking Day prior to the first day of such Interest Period.  If such “LIBOR 01 Page” is not available, then “LIBOR” shall mean, with respect to any such Interest Period, the per annum rate of interest, based on a three hundred sixty (360) day year (rounded upwards, if necessary, to the nearest 1/100th of one percent) determined by the Administrative Agent at approximately 11:00 a.m. (London, England time) (or so soon thereafter as practicable) on the second Banking Day prior to the first day of such Interest Period offered to the Administrative Agent by leading banks in the London interbank market for the placing of United States dollar deposits with the Administrative Agent having a term comparable to such Interest Period and in an amount comparable to the principal amount of the Pro Rata Share of the Administrative Agent in respect of the applicable LIBOR Loan.
“LIBOR Loans” means monies lent by the Lenders to the Borrower in United States dollars and upon which interest accrues at a rate referable to LIBOR and “LIBOR Loan” means any one of the LIBOR Loans.
“Lien” means any deed of trust, mortgage, charge, hypothec, assignment, pledge, lien, vendor’s privilege, vendor’s right of reclamation or other security interest or encumbrance of whatever kind or nature, regardless of form and whether consensual or arising by law (statutory or otherwise), that secures the payment of any indebtedness or liability or the observance or performance of any obligation.
“Loans” means Base Rate Loans and LIBOR Loans.
“Majority Lenders” (i) means, with respect to a matter relating to the Credit Facility, such group of Lenders (and, if there is more than one Lender, at least two Lenders) whose Individual Commitments with respect to the Credit Facility aggregate at least 66.66% of the Total Commitment Amount and (ii) means, at any time during the continuance of an Event of Default, such group of Finance Parties which have aggregate Exposure in an amount at least 66.66% of the aggregate Exposure of all of the Finance Parties at such time.
“Material Adverse Change” and “Material Adverse Effect” each mean any material adverse change in or material adverse effect on (i) the business, operations, affairs, assets or properties or financial condition of the Companies, taken as a whole, (ii) the ability of the Obligors, taken as a whole, to observe, perform and or comply with their obligations under any of the Credit Documents; or (iii) the rights and remedies of, as applicable, the Administrative Agent or any Lender under any of the Credit Documents.

	
			
	 
	15
	Second Amended and Restated Credit Agreement

“Material Agreements” means any agreement which if terminated could reasonably be expected to have a Material Adverse Effect.
“Maturity Date” means April 30, 2016, as such date may be extended annually pursuant to Section 2.5.
“Measurement Period” means the period of three calendar months commencing on each January 1, April 1, July 1 and October 1 of each calendar year.
“Mineral Title Opinion” means the mineral status report of Erwin & Thompson LLP dated June 3, 2010.
“Mining Claims” means the unpatented mining claims relating to the Hycroft Mine.
“Moody’s” means Moody’s Investors Service, Inc. or any successor by merger or consolidation to its business.
“Multiemployer Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA, any “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, or any “multiple employer plan” within the meaning of Section 210 of ERISA or IRC Section 413(c), or any “multiple employer welfare arrangement,” as defined in ERISA Section 3(40) to which any ERISA Company is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions.
“Net Income” means, for any particular period, the amount which would, in accordance with generally accepted accounting principles, be classified on the income statement of a Person for such period as the net income of such Person excluding any extraordinary items.
“Non-Financial Letter” means a standby letter of credit or guarantee in a form satisfactory to the Issuing Lender and issued by the Issuing Lender at the request of the Borrower in favour of a third party that is a “transaction-related contingency” within the meaning of the Guideline A-1 – Capital Adequacy Requirement of the Office of the Superintendent of Financial Institutions Canada, as determined by the Issuing Lender (“transaction-related contingencies” include performance bonds and standby and documentary letters of credit that support particular performance of non-financial or commercial contracts or undertakings rather than supporting general financial obligations).
“NPI” means the unsecured net profits interest in the Hycroft Mine of 4% per annum payable to Daniel M. Crowfoot and Blackrock Properties, Inc.
“Obligors” means, collectively, the Borrower and the Guarantors and “Obligor” means any of the Obligors.

	
			
	 
	16
	Second Amended and Restated Credit Agreement

“Official Body” means any national, state, provincial or municipal government or government of any political subdivision thereof, or any agency, authority, board, central bank, monetary authority, commission, department or instrumentality thereof, or any court, tribunal, grand jury, mediator, arbitrator or referee, whether foreign or domestic having jurisdiction and the ability to make decisions having the force of law.
“Operating Mine” means the Hycroft Mine and each Future Operating Mine.
“Order” means an order, judgment, injunction or other determination restricting payment by the Issuing Lender under or in accordance with a Letter or extending the Issuing Lender’s liability beyond the expiration date stated therein.
“Other Taxes” means all present and future stamp or documentary Taxes or any other excise tax or property Taxes, charges or similar levies arising from the execution, delivery, registration or enforcement of this Agreement or any other Finance Document, in each case, including any additions to Tax, interest or penalties applicable thereto.
“Out-of-the-Money Derivative Exposure” has the meaning given to it in the definition of “Derivative Exposure”.
“Participant” shall have the meaning ascribed thereto pursuant to Section 15.5.
“PBGC” means Pension Benefit Guaranty Corporation or any governmental body succeeding to its functions.
“Perfection Certificate” means, in respect of each Obligor, the certificate of a senior officer of such Obligor, addressed to the Administrative Agent, in form and substance satisfactory to the Administrative Agent and pursuant to which certain factual matters relating to such Obligor and the Secured Assets of such Obligor are certified true and correct, together with all schedules and exhibits attached thereto or referred to therein, as the same may be updated from time to time pursuant to Section 11.1(b).
“Permitted Acquisition” means any Acquisition with respect to which:
		
	(a)
	the business of the entity being acquired is, (in the case of a share Acquisition) or the assets being acquired are used in or relate to, (in the case of an asset Acquisition) a business of the nature referred to in Section 11.2(d);

		
	(b)
	no Default or Event of Default exists at the time of such proposed Acquisition and no Default or Event of Default would exist immediately after the implementation of any such proposed Acquisition;

		
	(c)
	the Financial Covenants would be met, on a pro forma basis, immediately after giving effect to the implementation of any such Acquisition;

		
	(d)
	in the case of any one or more Acquisitions, no more than an aggregate $5,000,000 of cash is used for such Acquisitions; and.

	
			
	 
	17
	Second Amended and Restated Credit Agreement

		
	(e)
	in the case of any Acquisition of assets, the assets are located in a Permitted Jurisdiction or in the case of any Acquisition of Shares, the subject target and each of its Subsidiaries is incorporated or otherwise formed under the laws of a Permitted Jurisdiction.

“Permitted Acquisition Indebtedness” means any Indebtedness resulting from a Permitted Acquisition which existed prior to, and not in contemplation of, the Permitted Acquisition and any Indebtedness incurred upon and following the Permitted Acquisition pursuant to any commitment (an “Existing Commitment”) which existed prior to, and not in contemplation of, the Permitted Acquisition, provided (x) no Default exists at the time of the Permitted Acquisition, (y) no Default would exist immediately thereafter and (z) the Financial Covenants would be met, on a pro forma basis, immediately after the Permitted Acquisition.
“Permitted Acquisition Risk Management Agreements” means any Risk Management Agreements relating to a Permitted Acquisition which existed prior to, and not in contemplation of, the Permitted Acquisition and all transactions entered into prior to the date of the Permitted Acquisition with respect to such Risk Management Agreement.
“Permitted Capital Reorganization” means (a) any change in the issued and outstanding Shares of the Borrower (other than a change in connection with an Acquisition that is not a Permitted Acquisition or a change that would result in an Event of Default) and (b) any Capital Reorganization (i) that does not result in any change in the combined direct and indirect percentage ownership interest of the Borrower in any Guarantor; (ii) notice of which (and reasonable details thereof) has been provided by the Borrower to the Administrative Agent in writing ten Banking Days before its proposed completion date (where the Capital Reorganization only involves the change in the capital structure of a Company, the notice referred to in this clause (ii) shall be reduced to three Banking Days), (iii) where at the time of the delivery of the aforesaid notice by the Borrower to the Administrative Agent, the Borrower delivers to the Administrative Agent a certificate (A) certifying that the completion of the Capital Reorganization will not have a Material Adverse Effect and (B) in which the Borrower shall covenant to deliver or cause to be delivered to the Administrative Agent, contemporaneously with the completion of such Capital Reorganization, any Guarantees and Security Documents and/or amendments thereto, or Postponement and Subordination Undertaking, certificates, opinions and other things as the Administrative Agent may request to ensure the completion of such Capital Reorganization shall not adversely affect any rights of any Finance Party under any Guarantee or Security Document and (iv) where no Default or Event of Default has occurred and is outstanding at the time of the completion of the Capital Reorganization or would arise immediately thereafter.

	
			
	 
	18
	Second Amended and Restated Credit Agreement

“Permitted Corporate Reorganization” means any Corporate Reorganization (i) notice of which (and reasonable details thereof) has been provided by the Borrower to the Administrative Agent in writing ten Banking Days before its proposed completion date, (ii) where at the time of the delivery of the aforesaid notice by the Borrower to the Administrative Agent, the Borrower delivers to the Administrative Agent a certificate (A) certifying that the completion of the Corporate Reorganization will not have a Material Adverse Effect and (B) in which the Borrower shall covenant to deliver or cause to be delivered to the Administrative Agent, contemporaneously with the completion of such Corporate Reorganization, any Guarantees and Security Documents and/or amendments thereto, Postponement and Subordination Undertaking, certificates, opinions and other things as the Administrative Agent may request to ensure the completion of such Capital Reorganization shall not adversely affect any rights of any Finance Party under any Guarantee, Security Document or Postponement and Subordination Undertaking and (iii) where no Default or Event of Default has occurred and is outstanding at the time of the completion of the Corporate Reorganization or would arise immediately thereafter.
“Permitted Indebtedness” means any one or more of the following:
		
	(a)
	the Secured Obligations;

		
	(b)
	Indebtedness of the Borrower on a consolidated basis arising under Capital Leases and Purchase Money Indebtedness provided that the aggregate principal amount of all such Indebtedness incurred and outstanding at any time shall not exceed $300,000,000, including, for certainty, any structured facility utilizing the crusher plant at the Hycroft Mine;

		
	(c)
	any Permitted Acquisition Indebtedness or any Indebtedness under Permitted Acquisition Risk Management Agreements;

		
	(d)
	Indebtedness in respect of bonds, letters of credit or bank guarantees in favour of a public utility or any other Official Body when required by such utility or other Official Body in connection with the operations of any Company (including for the reclamation or remediation of mining properties), all in the ordinary course of business;

		
	(e)
	Indebtedness owing by any Obligor to any Subsidiary of the Borrower that is subordinated and postponed pursuant to the Postponement and Subordination Undertaking;

		
	(f)
	any Indebtedness relating to employee benefit plans or compensation;

		
	(g)
	any guarantee by any Obligor of any Indebtedness permitted under paragraphs (b), (d), (e), (f) or (i);

	
			
	 
	19
	Second Amended and Restated Credit Agreement

		
	(h)
	Indebtedness of the Borrower on a consolidated basis, not otherwise permitted under paragraphs (a) – (g), in an aggregate amount at any particular time of not more than $25,000,000; and

		
	(i)
	High Yield Indebtedness and any Indebtedness of the Borrower under any currency swap entered into in connection therewith pursuant to a Risk Management Agreement.

“Permitted Jurisdiction” means the United States of America, Canada, Mexico, Greenland, Bermuda, all countries of South America (excluding Venezuela, Paraguay and Bolivia), the European Union, Norway, Switzerland, Turkey, Croatia, Macedonia, Albania, Andorra, Bosnia & Herzegovina, Montenegro, Serbia, New Zealand, Australia, Papua New Guinea, British Virgin Islands, Barbados, the Cayman Islands, Curacao, Antilles, Channel Islands, Belize, Honduras, Costa Rica, Panama, Tanzania, Namibia, South Africa, Botswana and Ghana.
“Permitted Liens” means any one or more of the following with respect to the property and assets of the Companies:
		
	(a)
	Liens for taxes, assessments or governmental charges or levies not at the time due or delinquent or the validity or amount of which are being contested in good faith by appropriate proceedings and as to which reserves are being maintained in accordance with generally accepted accounting principles so long as forfeiture of any part of such property or assets will not result from the failure to pay such taxes, assessments or governmental charges or levies during the period of such contest;

		
	(b)
	the Lien of any judgment rendered or the Lien of any claim filed which is being contested in good faith by appropriate proceedings and as to which reserves are being maintained in accordance with generally accepted accounting principles so long as forfeiture of any part of such property or assets will not result from the failure to satisfy such judgment or claim during the period of such contest;

		
	(c)
	Liens and charges incidental to construction or current operations which have not at such time been filed pursuant to law or which relate to obligations not due or delinquent or the validity or amount of which are being contested in good faith by appropriate proceedings and as to which reserves are being maintained in accordance with generally accepted accounting principles so long as forfeiture of any part of such property or assets will not result from the failure to pay such obligations during the period of such contest;

	
			
	 
	20
	Second Amended and Restated Credit Agreement

		
	(d)
	restrictions, easements, rights of way, servitudes or other similar rights in land granted to or reserved by other Persons which in the aggregate do not materially impair the usefulness, in the operation of the business of any Company, of the property subject to such restrictions, easements, rights of way, servitudes or other similar rights in land granted to or reserved by other Persons;

		
	(e)
	the right reserved to or vested in any Official Body by the terms of any lease, licence, franchise, grant or permit acquired by any Company or by any statutory provision, to terminate any such lease, licence, franchise, grant or permit, or to require annual or other payments as a condition to the continuance thereof;

		
	(f)
	Liens resulting from the deposit of cash or securities (i) in connection with contracts, tenders or expropriation proceedings, or (ii) to secure workers’ compensation, surety or appeal bonds, costs of litigation when required by law and public and statutory obligations, or (iii) in connection with the discharge of Liens or claims incidental to construction and mechanics’, warehouseman’s, carriers’ and other similar liens;

		
	(g)
	security given to a public utility or any other Official Body when required by such utility or other Official Body in connection with the operations of any Company, all in the ordinary course of business (whether such security is given directly or indirectly (i.e. as security for a letter of credit or bank guarantee that is given as security to the public utility or other Official Body));

		
	(h)
	the reservations, limitations, provisos and conditions, if any, expressed in any original grants from the United States of America or any other Official Body;

		
	(i)
	title defects or irregularities which are of a minor nature and in the aggregate will not materially impair the use of the property for the purpose for which it is held;

		
	(j)
	applicable municipal and other Official Body restrictions affecting the use of land or the nature of any structures which may be erected thereon, provided such restrictions have been complied with and will not materially impair the use of the property for the purpose for which it is held;

		
	(k)
	Liens on concentrates or minerals or the proceeds of sale of such concentrates or minerals arising or granted pursuant to a processing arrangement entered into in the ordinary course and upon usual market terms, securing the payment of a Company’s portion of the fees, costs and expenses attributable to the processing of such concentrates or minerals under any such processing arrangement, but only insofar as such Liens relate to obligations which are at such time not past due or the validity of which are being contested in good faith by appropriate proceedings and as to which reserves are being maintained in accordance with generally accepted accounting principles;

	
			
	 
	21
	Second Amended and Restated Credit Agreement

		
	(l)
	the Security;

		
	(m)
	royalties on the production or profits from mining and other Liens arising under Third Party Mining Arrangements provided such royalties (x) are in existence as at the date hereof (including, for certainty, the NPI) or (y) do not relate to a property in production at the time the royalty was granted;

		
	(n)
	customary Liens in respect of service charges and other obligations, other than Indebtedness, in respect of bank, custodian, investment, customs and other accounts opened in the ordinary course of business;

		
	(o)
	Liens securing Indebtedness to be incurred and outstanding pursuant to paragraph (b) of the definition of “Permitted Indebtedness”; provided, however, that any such Lien shall attach only to the asset in respect of which such Indebtedness is incurred and any proceeds thereof;

		
	(p)
	Liens securing Indebtedness referenced in paragraphs (c) or (d) of the definition of “Permitted Indebtedness”;

		
	(q)
	[Intentionally Deleted];

		
	(r)
	any exceptions or limitations set forth in the Mineral Title Opinion; and

		
	(s)
	Liens securing up to $20,000,000 of margin security constituted of cash and/or Financial Letters for Risk Management Agreement obligations with Persons who are not Finance Parties to the extent not prohibited by Section 11.2(f).

“Permitted Reorganizations” means Permitted Corporate Reorganizations and Permitted Capital Reorganizations.
“Person” means any natural person, corporation, firm, partnership, joint venture, joint stock company, incorporated or unincorporated association, government, governmental agency or any other entity, whether acting in an individual, fiduciary or other capacity.
“Plan” means each “employee benefit plan”, as defined in Section 3(3) of ERISA (including any Multiemployer Plan), and each other employment, consulting, bonus or other incentive compensation, salary continuation during any absence from active employment for disability or other reasons, supplemental retirement, cafeteria benefit (Section 125 of the IRC) or dependent care (Section 129 of the IRC), sick pay, tuition assistance, club membership, employee discount, employee loan, vacation pay, severance, deferred compensation, incentive, fringe benefit, perquisite, change in control, retention, stock option, stock purchase, restricted stock or other compensatory plan, policy, agreement or arrangement (including any collective bargaining agreement) (i) that is currently, or has been at any time in the six prior calendar years, maintained, administered, contributed to or required to be contributed to by the Borrower, or (ii) to which the Borrower is a party or has any liability, or (iii) that covers any current or former officer, director, employee or independent contractor, (or any of their dependents)of the Borrower or any ERISA Affiliate.

	
			
	 
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	Second Amended and Restated Credit Agreement

“Postponement and Subordination Undertaking” means the postponement and subordination undertaking to be entered into by the non-Obligor Subsidiaries of the Borrower in favour of the Administrative Agent pursuant to Section 11.1(t), in form and substance satisfactory to the Administrative Agent as the same may be amended, modified, supplemented or replaced from time to time.
“Pro Rata Share” means at any particular time with respect to a particular Lender, the ratio of the Individual Commitment of such Lender with respect to the Credit Facility at such time to the aggregate of the Individual Commitments of all of the Lenders with respect to the Credit Facility at such time.
“Proceeds of Realization” means all cash and non-cash proceeds derived from any sale, disposition or other realization of the Secured Assets or received from the Borrower pursuant to this agreement (i) on or after the Enforcement Date, (ii) upon any dissolution, liquidation, winding-up, reorganization, bankruptcy, insolvency or receivership of any Obligor (or any other arrangement or marshalling of the Secured Assets that is similar thereto) or (iii) upon the enforcement of, or any action taken with respect to enforcement of, any of the Credit Documents.
“Prohibited Transaction” means a transaction that is prohibited under Section 4975 of the Code or Section 406 of ERISA and is not eligible for an exemption under those sections.
“Proven and Probable Reserves” shall mean the proven and probable reserves of Gold Equivalent ounces set forth in the then current mineral reserve and resource statement in respect of the Hycroft Mine’s heap leach operation, prepared by or on behalf of the Borrower and/or Hycroft Resources in compliance with National Instrument 43-101 (as amended or superseded) of the Canadian Securities Administrators.
“Purchase Money Indebtedness” means Indebtedness assumed by an Obligor as part of, or issued or incurred by an Obligor to pay or provide funds to pay, all or a part of the purchase price of any equipment hereafter or previously acquired by an Obligor.
“Qualified Affiliate” means an Affiliate of a Lender who has executed and delivered to the Administrative Agent an instrument of adhesion in the form set forth in Schedule I.
“Qualified Risk Management Agreements” means any Risk Management Agreement entered into between an Obligor on the one hand and a Qualified Risk Management Lender on the other hand.
“Qualified Risk Management Lender” means (x) any Person that enters into a Risk Management Agreement at a time when such Person is a Lender or (y) any Qualified Affiliate that enters into a Risk Management Agreement at a time when the Lender with which such Qualified Affiliate is affiliated is a Lender.

	
			
	 
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	Second Amended and Restated Credit Agreement

“Receiver” means a receiver, receiver and manager or other Person having similar powers or authority appointed by the Administrative Agent or by a court at the instance of the Administrative Agent in respect of the Secured Assets or any part thereof.
“Release” means any spilling, leaking, emitting, discharging, depositing, disposing, escaping, emptying, leaching, seeping, dumping, placing or other releasing into, upon or under any land, water or air or otherwise entering into the Environment, whether intentional or unintentional.
“Reserve Tail” means, as of any particular date, the Proven and Probable Reserves attributable to the heap leach operations of the Hycroft Mine that are forecasted to be recoverable subsequent to the Maturity Date based on the most recently prepared mineral reserve and resource statement for the Hycroft Mine’s heap leach operation.
“Risk Management Agreements” means present or future agreement which evidences any gold, silver or other commodity hedging transaction, spot or forward foreign exchange transaction, interest rate swap transaction, currency swap transaction, forward rate transaction, rate cap transaction, rate floor transaction, rate collar transaction, and any other exchange or rate protection transaction, any combination of such transactions or any option with respect to any such transaction entered into by an Obligor.
“Rolling Permitted Acquisition EBITDA” means, for any Fiscal Quarter as concerns any Permitted Acquisition with respect to which four Fiscal Quarter ends or less have occurred since the date of the completion of such Permitted Acquisition, pro forma EBITDA attributable to such Permitted Acquisition during such Fiscal Quarter and the three immediately preceding Fiscal Quarters as if such Permitted Acquisition had occurred on the first day of such four Fiscal Quarter period.
“Rolling Permitted Acquisition Interest Expenses” means, for any Fiscal Quarter as concerns any Permitted Acquisition with respect to which four Fiscal Quarter ends or less have occurred since the date of the completion of such Permitted Acquisition, pro forma Interest Expenses attributable to such Permitted Acquisition during such Fiscal Quarter and the three immediately preceding Fiscal Quarters as if such Permitted Acquisition had occurred on the first day of such four Fiscal Quarter period.
“Rollover Notice” shall have the meaning ascribed thereto in Section 5.2.
“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw Hill Companies Inc. and its successors.
“Sale Leaseback” shall mean any transaction or series of related transactions pursuant to which the Borrower or any of its Subsidiaries (a) sells, transfers or otherwise disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents or leases such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred or disposed.

	
			
	 
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	Second Amended and Restated Credit Agreement

“Secured Assets” means all present and after-acquired personal property of the Obligors and each Operating Mine and all patented and unpatented mining claims, licenses and permits required for the extraction of minerals or metals from any such Operating Mine; provided that “Secured Assets” shall not include any permanent or temporary housing owned by an Obligor.
“Secured Obligations” shall mean all indebtedness, obligations and liabilities, present or future, absolute or contingent, matured or not, at any time owing by any of the Obligors to any of the Finance Parties, or remaining unpaid to any of the Finance Parties, under or in connection with any of the Finance Documents and Secured Obligations of a particular Obligor shall mean all indebtedness, obligations and liabilities, present or future, absolute or contingent, matured or not, at any time owing by such Obligor to any of the Finance Parties, or remaining unpaid to any of the Finance Parties, under or in connection with any of the Finance Documents to which such Obligor is a party.  For certainty, “Secured Obligations” shall include interest accruing subsequent to the filing of, or which would have accrued but for the filing of, a petition for bankruptcy, in accordance with and at the rate (including any rate applicable upon any Default or Event of Default to the extent lawful) specified herein, whether or not such interest is an allowable claim in such bankruptcy proceeding.
“Secured Obligations Termination Date” means the date on which all Secured Obligations of the Obligors (other than those provisions which by their terms survive the termination of the Finance Documents) have been paid in full and no Finance Party has any commitment to provide credit under any Finance Document.
“Security” means the collateral security constituted by the Security Documents.
“Security Documents” means the security documents which, in the reasonable opinion of the Administrative Agent, are required to be entered into from time to time by each Obligor in favour of the Administrative Agent in order to grant to the Administrative Agent a Lien on the Secured Assets as continuing collateral security for the payment and performance of the Secured Obligations of such Obligor, such security documents to be in form and substance satisfactory to the Administrative Agent and to include the security documents described in Schedule H hereto.
“Shares”, as applied to the shares of any corporation or other entity, means the shares or other ownership interests of every class whether now or hereafter authorized, regardless of whether such shares or other ownership interests shall be limited to a fixed sum or percentage with respect to the rights of the holders thereof to participate in dividends and in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding-up of such corporation or other entity.

	
			
	 
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	Second Amended and Restated Credit Agreement

“Subsidiary” means, with respect to any Person, any corporation, company or other similar business entity (including, for greater certainty, a chartered bank) of which more than fifty per cent (50%) of the outstanding Shares or other equity interests (in the case of Persons other than corporations) having ordinary voting power to elect a majority of the board of directors or the equivalent thereof of such corporation, company or similar business entity (irrespective of whether at the time Shares of any other class or classes of the Shares of such corporation, company or similar business entity shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person.
“Tangible Net Worth” means, at any particular time, the amount of Equity at such time less the aggregate of the amounts, at such time, which would, in accordance with generally accepted accounting principles, be classified upon the consolidated balance sheet of the Borrower as goodwill (without taking into account any future income tax assets that may be classified as goodwill), intangible assets and accumulated other comprehensive income.
“Tax Act” means the Income Tax Act (Canada), as amended from time to time, and regulations promulgated thereunder.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Official Body, including any interest, additions to tax, penalties or similar liabilities applicable thereto.
“Termination Event” means (i) any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder; (ii) the Borrower’s, or any ERISA Affiliate’s, withdrawal from a Multiemployer Plan during a year in which it was a “substantial employer”, as this term is defined in Section 4001(a)(2) of ERISA, (iii) the incurrence of liability by the Borrower or any ERISA Affiliate under Section 4064 of ERISA upon the termination of a Multiemployer Plan; (iv) providing notice of intent to terminate a Plan under 4041(a)(2) of ERISA or the treatment of a Multiemployer Plan amended as a termination under 4041 of ERISA; (v) the PBGC instituting proceeding to terminate a Plan under Section 4041 of ERISA; (vi) any other event or condition that might constitute grounds under Section 4042 of ERISA to terminate or appoint a trustee to administer a Multiemployer Plan; (vii) the occurrence of an event described in Section 302(f), 4069, 4070, or 4212(c) of ERISA; (viii) any complete or partial withdrawal from a Multiemployer Plan, any termination of a Multiemployer Plan, or any Multiemployer Plan being insolvent or in reorganization status; or (ix) any occurrence similar to any of those referenced in clauses (i) – (viii) above under the applicable law of a foreign country.

	
			
	 
	26
	Second Amended and Restated Credit Agreement

“Third Party Mining Arrangements” means any arrangement with another Person or Persons of a nature that is, or shall have become customary in, the mining business for the purposes of sharing the risks or costs of exploring, acquiring, developing or producing minerals from property owned by a Company, including, operating, processing, farm-in, farm-out, development, area of mutual interest, unitization, pooling, joint bidding, joint venture, service, partnership, subscription and stock purchase agreement and other similar agreements.
“Total Assets” means, at any particular time, the amount which would, in accordance with generally accepted accounting principles, be classified on the balance sheet of a Person at such time as the assets of such Person.
“Total Commitment Amount” means, at any particular time, the aggregate of the Individual Commitments of all of the Lenders at such time.
“Total Debt” means, at any particular time, the aggregate Indebtedness of the Borrower on a consolidated basis at such time, including, for certainty, the High Yield Indebtedness at such time.
“UCC” means the Uniform Commercial Code of any applicable state of the United States of America as in effect from time to time.
“U.S.” and “United States” means the United States of America.
“U.S. Dollar Equivalent” means the relevant Exchange Equivalent in United States dollars of any amount of Canadian dollars.
“Voting Shares” means Shares of a Person which carries voting rights or the right to Control such Person under any circumstances.
“Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
1.2    Other Usages
References to “this agreement”, “the agreement”, “hereof”, “herein”, “hereto” and like references refer to this agreement and not to any particular Article, Section or other subdivision of this agreement.  Any references herein to any agreements or documents shall mean such agreements or documents as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof and thereof.
1.3    Plural and Singular
Where the context so requires, words importing the singular number shall include the plural and vice versa.

	
			
	 
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	Second Amended and Restated Credit Agreement

1.4    Headings
The division of this agreement into Articles and Sections and the insertion of headings in this agreement are for convenience of reference only and shall not affect the construction or interpretation of this agreement.
1.5    Currency
Unless otherwise specified herein, all statements of or references to dollar amounts in this agreement shall mean lawful money of the United States.
1.6    Applicable Law
This agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.  Any legal action or proceeding with respect to this agreement may be brought in the courts of the Province of Ontario and, by execution and delivery of this agreement, the parties hereby accept for themselves and in respect of their property, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts.  Nothing herein shall limit the right of any party to serve process in any manner permitted by law or to commence legal proceedings or otherwise proceed against any other party in any other jurisdiction.
1.7    Time of the Essence
Time shall in all respects be of the essence of this agreement.
1.8    Non-Banking Days
Subject to Section 7.4(c), whenever any payment to be made hereunder shall be stated to be due or any action to be taken hereunder shall be stated to be required to be taken on a day other than a Banking Day, such payment shall be made or such action shall be taken on the next succeeding Banking Day and, in the case of the payment of any amount, the extension of time shall be included for the purposes of computation of interest, if any, thereon.
1.9    Consents and Approvals
Whenever the consent or approval of a party hereto is required in a particular circumstance, unless otherwise expressly provided for therein, such consent or approval shall not be unreasonably withheld or delayed by such party.
1.10    Amount of Credit
Any reference herein to the amount of credit outstanding shall mean, at any particular time:
		
	(a)
	in the case of a LIBOR Loan or Base Rate Loan, the principal amount thereof; and

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(b)
	in the case of a Letter denominated in U.S. dollars, the contingent liability of the Issuing Lender thereunder.

1.11    Schedules
Each and every one of the schedules which is referred to in this agreement and attached to this agreement shall form a part of this agreement.
1.12    Extension of Credit
For the purposes hereof, each drawdown, rollover and conversion shall be deemed to be an extension of credit to the Borrower hereunder.
1.13    Accounting Terms – GAAP
All accounting terms not specifically defined in this agreement shall be interpreted in accordance with GAAP.
1.14    Rule of Construction
The Finance Documents have been negotiated by each party with the benefit of legal representation, and any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not apply to the construction or interpretation of the Finance Documents.
1.15    Successors and Permitted Assigns of Parties
Any reference in this agreement to a party to this agreement shall include the successors and permitted assigns of such party.
1.16    Meaning of Include
The words “include”, “includes” and “including”, when used in this agreement, shall be deemed to be followed by the phrase “without limitation”.
ARTICLE 2 
CREDIT FACILITY
2.1    Establishment of Credit Facility
Subject to the terms and conditions hereof, the Lenders hereby establish in favour of the Borrower a revolving term credit facility (the “Credit Facility”) in an amount equal to the Credit Limit.

	
			
	 
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	Second Amended and Restated Credit Agreement

2.2    Lenders’ Commitments
Subject to the terms and conditions hereof, the Lenders agree to extend credit to the Borrower under the Credit Facility from time to time provided that the aggregate amount of credit extended by each Lender under the Credit Facility shall not at any time exceed the Individual Commitment of such Lender under the Credit Facility and further provided that the aggregate amount of credit outstanding under the Credit Facility shall not at any time exceed the amount of the Credit Facility.  All credit requested under the Credit Facility shall be made available to the Borrower contemporaneously by all of the Lenders.  Each Lender shall provide to the Borrower its Pro Rata Share of each credit, whether such credit is extended by way of drawdown, rollover or conversion.  No Lender shall be responsible for any default by any other Lender in its obligation to provide its Pro Rata Share of any credit under the Credit Facility nor shall the Individual Commitment of any Lender be increased as a result of any such default of another Lender in extending credit under the Credit Facility.  The failure of any Lender to make available to the Borrower its Pro Rata Share of any credit under the Credit Facility shall not relieve any other Lender of its obligation hereunder to make available to the Borrower its Pro Rata Share of such credit under the Credit Facility.
2.3    Reduction of Credit Facility
The Borrower may, from time to time and at any time, by notice in writing to the Administrative Agent, permanently reduce the amount of the Credit Facility in whole or in part to the extent it is not being utilized at the time such notice is given, provided that such reduction shall not become effective until five Banking Days after such notice has been given.  The amount of the Credit Facility will be permanently reduced with respect to the amount of the repayment made in accordance with Section 9.1.  If the Credit Facility has been increased pursuant to Section 2.6, the Credit Limit shall thereafter be permanently reduced by 25% of such increase(s) to the Credit Facility (for certainty, such increased amount being the aggregate of all such increases in the Credit Facility pursuant to Section 2.6) on December 31 of each Fiscal Year beginning December 31, 2014 provided such annual reductions shall be deemed to be extended for a period of one year each time, if any, the Maturity Date is extended by one year pursuant to Section 2.5.
Any repayment or prepayment of credit outstanding under the Credit Facility (other than as set forth above) shall not cause a reduction in the amount of the Credit Facility.  Any repayment of outstanding credit which forms part of any conversion from one type of credit to another type of credit under Article 3 or Article 6 or of any rollover under Article 5 shall not cause any reduction in the amount of the Credit Facility.  Upon any reduction of the amount of the Credit Facility, the Individual Commitment of each Lender with respect to the Credit Facility shall thereupon be reduced by an amount equal to such Lender’s Pro Rata Share of such reduction of the amount of the Credit Facility.
2.4    Termination of Credit Facility
		
	(a)
	The Credit Facility shall terminate upon the earliest to occur of:

		
	(i)
	the termination of such Credit Facility in accordance with Section 13.1;

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(ii)
	the date on which the amount of such Credit Facility has been permanently reduced to zero pursuant to Section 2.3; and

		
	(iii)
	the Maturity Date.

		
	(b)
	Upon the termination of the Credit Facility, the right of the Borrower to obtain any credit thereunder and all of the obligations of the Lenders to extend credit thereunder shall automatically terminate.

2.5    Extension of Maturity Date
The Borrower may, on January 31, 2014 and annually thereafter on such date or up to 90 days prior to such date, request in writing to the Administrative Agent that the Maturity Date be extended for an additional period of one year.  The Lenders, in their sole and absolute discretion, shall accept or deny the Borrower’s afore-mentioned written request and advise the Borrower in writing of their decision within 15 Banking Days of the receipt of the Borrower’s request.
2.6    Accordion Feature
		
	(a)
	Subject to Section 2.6(b), the Borrower may, by notice to the Administrative Agent (an “Accordion Notice”), from time to time request that the amount of the Individual Commitments with respect to the Credit Facility be increased by an aggregate amount of up to $35,000,000 (in the aggregate for all Accordion Notices) specifying the Lenders and/or proposed new Lenders that have agreed to accept Individual Commitments with respect to the Credit Facility in the aggregate amount of such requested increase.  For certainty, the aggregate Individual Commitments under the Credit Facility shall not exceed at any particular time $75,000,000.

		
	(b)
	Each Accordion Notice shall specify (i) the relevant Accordion Lender(s) that has agreed to increase its respective Individual Commitments or accept initial Individual Commitments, as the case may be, in respect of the Credit Facility, (ii) such Accordion Lender’s proposed additional Individual Commitment, in the case of an Accordion Lender that is already a Lender or Individual Commitment, in the case of an Accordion Lender that is not yet a Lender (each, an “Individual Accordion Commitment”), and (iii) the requested amount of the proposed Accordion Increase (which amount shall be in compliance with Section 2.6(a)).  

		
	(c)
	Each Accordion Lender that is an existing Lender shall send a confirming letter to the Administrative Agent confirming that it has agreed to an Individual Commitment with respect to the Credit Facility and setting out the amount of that commitment.  The establishment of that Accordion Lender’s Individual Commitment with respect to the Credit Facility shall, subject to Section 2.6(f), take place with effect from the second Banking Day following the date of the delivery of such notice to the Administrative Agent.  Upon the establishment of that Accordion Lender’s Individual Commitment with respect to the Credit Facility, Schedule A hereto shall be deemed to be amended to evidence the Individual Commitment with respect to the Credit Facility of that Accordion Lender by the amount of such increase.  

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(d)
	Any Accordion Lender that is not an existing Lender must be acceptable to the Administrative Agent acting in its sole discretion exercised reasonably.  Upon delivery to the Administrative Agent of an Accordion Agreement executed by the Borrower and an Accordion Lender that is so acceptable to the Administrative Agent, the Administrative Agent shall promptly execute and deliver such Accordion Agreement whereupon this Agreement and each other Finance Document shall, subject to Section 2.6(f), henceforth be read and construed as if such Accordion Lender were party to this Agreement as a Lender having all of the rights and obligations of a Lender expressed herein with respect to the Individual Commitment with respect to the Credit Facility that the Accordion Lender has agreed to accept and all references to any Lenders in any Finance Document shall (to the extent the context so admits) be construed accordingly.  Subsequent thereto, Schedule A hereto shall be deemed to be amended to add the Individual Commitment of such Accordion Lender.  Each Lender irrevocably appoints, authorizes and directs the Administrative Agent, as its attorney and agent, with full power of substitution and delegation, to complete and execute on its behalf each Accordion Agreement relating to each Accordion Lender.  Each Lender agrees that it will be bound by the terms of each such Accordion Agreement so completed and executed by the Administrative Agent.

		
	(e)
	The Administrative Agent shall promptly notify the Borrower and the Lenders of the increased Individual Commitments with respect to the Credit Facility arising pursuant to Section 2.6(c) and (d).

		
	(f)
	No increase in or establishment of, any Individual Commitment with respect to the Credit Facility shall be permitted at any time that a Default or Event of Default has occurred and is outstanding.

ARTICLE 3
GENERAL PROVISIONS RELATING TO CREDITS
3.1    Types of Credit Availments
Subject to the terms and conditions hereof the Borrower may obtain credit from the Lenders through the Branch of Account by way of one or more Base Rate Loans, LIBOR Loans and Letters.
Any extension of credit hereunder by way of drawdowns of Base Rate Loans or LIBOR Loans shall be in a minimum amount of $1,000,000 and in multiples thereof.  At no time shall the aggregate amount of Letters outstanding hereunder exceed $40,000,000.

	
			
	 
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	Second Amended and Restated Credit Agreement

3.2    Funding of Loans
Subject to the following sentence, each Lender shall make available to the Administrative Agent, at the Administrative Agent’s Branch of Account, its Pro Rata Share of the principal amount of each Loan under the Credit Facility prior to 11:00 a.m. (Reno, Nevada time) on the date of the extension of credit.  In each instance that the Borrower has requested a drawdown pursuant to Section 3.10(b), each Lender shall make available to the Administrative Agent its Pro Rata Share of the principal amount of each Loan under the Credit Facility prior to 2:00 p.m. (Reno, Nevada time) on the date of the relevant extension of credit.  The Administrative Agent shall, upon fulfilment by the Borrower of the terms and conditions set forth in Article 12 and unless otherwise irrevocably authorized and directed in the Drawdown Notice make such funds available to the Borrower on the date of the extension of credit by crediting the Designated Account (or causing such account to be credited).  Unless the Administrative Agent has been notified by a Lender at least one Banking Day prior to the date of the extension of credit that such Lender will not make available to the Administrative Agent its Pro Rata Share of such Loan, the Administrative Agent may assume that such Lender has made such portion of the Loan available to the Administrative Agent on the date of the extension of credit in accordance with the provisions hereof and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If the Administrative Agent has made such assumption, to the extent such Lender shall not have so made its Pro Rata Share of the Loan available to the Administrative Agent, such Lender agrees to pay to the Administrative Agent, forthwith on demand, such Lender’s Pro Rata Share of the Loan and all reasonable costs and expenses incurred by the Administrative Agent in connection therewith together with interest thereon at the then prevailing interbank rate for each day from the date such amount is made available to the Borrower until the date such amount is paid or repaid to the Administrative Agent; provided, however, that notwithstanding such obligation, if such Lender fails so to pay, the Borrower shall, without prejudice to any rights that the Borrower might have against such Lender, repay such amount to the Administrative Agent forthwith after demand therefor by the Administrative Agent.  The amount payable by each Lender to the Administrative Agent pursuant hereto shall be set forth in a certificate delivered by the Administrative Agent to such Lender and the Borrower (which certificate shall contain reasonable details of how the amount payable is calculated) and shall constitute prima facie evidence of such amount payable.  If such Lender makes the payment to the Administrative Agent required herein, the amount so paid shall constitute such Lender’s Pro Rata Share of the Loan for purposes of this agreement and shall entitle the Lender to all rights and remedies against the Borrower in respect of such Loan.

	
			
	 
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	Second Amended and Restated Credit Agreement

3.3    Failure of Lender to Fund Loan
If any Lender (a “Defaulting Lender”) fails to make available to the Administrative Agent its Pro Rata Share of any Loan under the Credit Facility as required and the Administrative Agent has not funded pursuant to Section 3.2, the Administrative Agent shall forthwith give notice of such failure by such Defaulting Lender to the Borrower and the other Lenders and such notice shall state that any Lender may make available to the Administrative Agent all or any portion of the Defaulting Lender’s Pro Rata Share of such Loan (but in no way shall any other Lender or the Administrative Agent be obliged to do so) in the place and stead of the Defaulting Lender.  If more than one Lender gives notice that it is prepared to make funds available in the place and stead of a Defaulting Lender in such circumstances and the aggregate of the funds which such Lenders (herein collectively called the “Contributing Lenders” and individually called the “Contributing Lender”) are prepared to make available exceeds the amount of the advance which the Defaulting Lender failed to make, then each Contributing Lender shall be deemed to have given notice that it is prepared to make available its pro rata share of such advance based on the Contributing Lenders’ relative commitments to advance in such circumstances.  If any Contributing Lender makes funds available in the place and stead of a Defaulting Lender in such circumstances, then the Defaulting Lender shall pay to any Contributing Lender making the funds available in its place and stead, forthwith on demand, any amount advanced on its behalf together with interest thereon at the then prevailing interbank rate for each day from the date of advance to the date of payment, against payment by the Contributing Lender making the funds available of all interest received in respect of the Loan from the Borrower.  In addition to interest as aforesaid, the Borrower shall pay all amounts owing by the Borrower to the Defaulting Lender hereunder (with respect to the amounts advanced by the Contributing Lenders on behalf of the Defaulting Lender) to the Contributing Lenders until such time as the Defaulting Lender pays to the Administrative Agent for the Contributing Lenders all amounts advanced by the Contributing Lenders on behalf of the Defaulting Lender.
3.4    Timing of Credit Availments
No LIBOR Loan under the Credit Facility may have a maturity date later than the Maturity Date.

	
			
	 
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	Second Amended and Restated Credit Agreement

3.5    Inability to Fund LIBOR Loan in the United States
If a Lender determines in good faith, which determination shall be final, conclusive and binding on the Borrower, and the Administrative Agent notifies the Borrower that (i) adequate and fair means do not exist for ascertaining the interest rate on the basis provided in the definition of LIBOR, (ii) the making or continuation of LIBOR Loans in the United States has been made impracticable by the occurrence of a contingency (other than a mere increase in rates payable by such Lender to fund the advance) which materially and adversely affects the funding of the advances at any interest rate computed on the basis of LIBOR, or by reason of a change since the date hereof in any applicable law or government regulation, guideline or order (whether or not having the force of law but, if not having the force of law, one with which a responsible U.S. commercial bank would comply) or in the interpretation thereof by any Official Body affecting such Lender or any relevant financial market, which results in LIBOR no longer representing the effective cost to such Lender of deposits in such market for a relevant Interest Period, or (iii) any change to present law or any future law, regulation, order, treaty or official directive (whether or not having the force of law but, if not having the force of law, one with which a responsible U.S. or Canadian commercial bank would comply) or any change therein or any interpretation or application thereof by any Official Body has made it unlawful for such Lender to make or maintain or give effect to its obligations in respect of LIBOR Loans in the United States as contemplated herein, then
		
	(g)
	the right of the Borrower to obtain any credit in United States dollars by way of LIBOR Loans, shall be suspended until such Lender determines, acting reasonably, that the circumstances causing such suspension no longer exist and such Lender so notifies the Borrower;

		
	(h)
	if any credit in United States dollars by way of LIBOR Loans is not yet outstanding, any applicable Drawdown Notice shall be cancelled and the advance requested therein shall not be made; and

		
	(i)
	if any LIBOR Loan is already outstanding at any time when the right of the Borrower to obtain credit by way of a LIBOR Loan is suspended, it shall, subject to the Borrower having the right to obtain credit by way of a Base Rate Loan at such time, be converted to a Base Rate Loan on the last day of the Interest Period applicable thereto (or on such earlier date as may be required to comply with any applicable law).

3.6    Time and Place of Payments
Unless otherwise expressly provided herein, the Borrower shall make all payments pursuant to this agreement or pursuant to any document, instrument or agreement delivered pursuant hereto by deposit to the Designated Account before 10 a.m. (Reno, Nevada time) on the day specified for payment and the Administrative Agent shall be entitled to withdraw the amount of any payment due to the Administrative Agent or the Lenders hereunder from such account on the day specified for payment.

	
			
	 
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	Second Amended and Restated Credit Agreement

3.7    Remittance of Payments
Forthwith after the withdrawal from the Designated Account by the Administrative Agent of any payment of principal, interest, fees or other amounts for the benefit of the Lenders pursuant to Section 3.6, the Administrative Agent shall, subject to Sections 3.3 and 8.3 remit to each Lender, in immediately available funds, such Lender’s Pro Rata Share of such payment (except to the extent such payment results from a Loan with respect to which a Lender had failed, pursuant to Section 3.2, to make available to the Administrative Agent its Pro Rata Share and, where any other Lender has made funds available in the place and stead of a Defaulting Lender); provided that if the Administrative Agent, on the assumption that it will receive, on any particular date, a payment of principal (including, without limitation, a prepayment), interest, fees or other amount under the Credit Facility, remits to each Lender its Pro Rata Share of such payment and the Borrower fails to make such payment, each Lender agrees to repay to the Administrative Agent, forthwith on demand, to the extent that such amount is not recovered from the Borrower on demand and after reasonable efforts by the Administrative Agent to collect such amount (without in any way obligating the Administrative Agent to take any legal action with respect to such collection), such Lender’s Pro Rata Share of the payment made to it pursuant hereto together with interest thereon at the then prevailing interbank rate for each day from the date such amount is remitted to the Lenders until the date such amount is paid or repaid to the Administrative Agent, the exact amount of the repayment required to be made by the Lenders pursuant hereto to be as set forth in a certificate delivered by the Administrative Agent to each Lender, which certificate shall constitute prima facie evidence of such amount of repayment.
3.8    Evidence of Indebtedness
The Administrative Agent shall maintain accounts wherein the Administrative Agent shall record the amount of credit outstanding, each payment of principal and interest on account of each Loan, each Letter issued and drawn upon and all other amounts becoming due to and being paid to the Lenders or the Administrative Agent hereunder, including Letter fees and standby fees.  The Administrative Agent’s accounts constitute, in the absence of manifest error, prima facie evidence of the indebtedness of the Borrower pursuant to this agreement.
3.9    General Provisions Relating to All Letters
		
	(a)
	Each request by the Borrower for the issuance or amendment of a Letter shall be deemed to be a representation by the Borrower that the extension of credit so requested complies with the conditions set forth in Section 12.1.  The Borrower hereby acknowledges and confirms to the Issuing Lender that the Issuing Lender shall not be obliged to make any inquiry or investigation as to the right of any beneficiary to make any claim or Draft under a Letter and payment by the Issuing Lender pursuant to a Letter shall not be withheld by the Issuing Lender by reason of any matters in dispute between the beneficiary thereof and the Borrower.  The sole obligation of the Issuing Lender with respect to Letters issued by it is to cause to be paid a Draft drawn or purporting to be drawn in accordance with the terms of the applicable Letter and for such purpose the Issuing Lender is only obliged to determine that the Draft purports to comply with the terms and conditions of the relevant Letter.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(b)
	The Issuing Lender shall not have any responsibility or liability for or any duty to inquire into the form, sufficiency (other than to the extent provided in the preceding paragraph), authorization, execution, signature, endorsement, correctness (other than to the extent provided in the preceding paragraph), genuineness or legal effect of any Draft, certificate or other document presented to it pursuant to a Letter issued by the Issuing Lender and the Borrower unconditionally assumes all risks with respect to the same.  The Borrower agrees that it assumes all risks of the acts or omissions of the beneficiary of any Letter with respect to the use by such beneficiary of the relevant Letter.  The Borrower shall promptly examine a copy of each Letter and each amendment thereto that is delivered to it and, in the event of any claim of non-compliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the Issuing Lender.  The Borrower shall be conclusively deemed to have waived any such claim against the Issuing Lender and its correspondents unless such notice is given as aforesaid.

		
	(c)
	The obligations of the Borrower hereunder with respect to Letters shall be absolute, unconditional and irrevocable and shall not be reduced by any event or occurrence including, without limitation:

		
	(i)
	any lack of validity or enforceability of this agreement or any such Letter;

		
	(ii)
	any amendment or waiver of or any consent to departure from this agreement;

		
	(iii)
	the existence of any claim, set-off, defense or other rights which the Borrower may have at any time against any beneficiary or any transferee of any such Letter (or any person or entities for whom any such beneficiary or any such transferee may be acting), any Lender, the Issuing Lender or any other person or entity;

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

		
	(v)
	any non-application or misapplication by the beneficiary of such Letter of the proceeds of any drawing under such Letter;

		
	(vi)
	the surrender or impairment of any Security;

		
	(vii)
	any reduction or withdrawal of the Issuing Lender’s credit rating by any rating agency; or

		
	(viii)
	any other circumstance or happening whatsoever, similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower.

	
			
	 
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	Second Amended and Restated Credit Agreement

The obligations of the Borrower hereunder with respect to Letters shall remain in full force and effect and shall apply to any amendment to or extension of the expiration date of any such Letter, approved in writing by the Borrower.  The Issuing Lender shall not be under any obligation to amend any Letter if (A) the Issuing Lender would have no obligation at such time to issue such Letter in its amended form under the terms hereof, or (B) the beneficiary of such Letter does not accept the proposed amendment to such Letter.
		
	(d)
	Any action, inaction or omission taken or suffered by the Issuing Lender or any of its correspondents under or in connection with a Letter or any Draft made thereunder, if in good faith and in conformity with foreign or domestic laws, regulations or customs applicable thereto, shall be binding upon the Borrower and shall not place the Issuing Lender or any of its correspondents under any resulting liability to the Borrower.  Without limiting the generality of the foregoing, the Issuing Lender and its correspondents may receive, accept or pay as complying with the terms of a Letter, any Draft thereunder, otherwise in order which may be signed by, or issued to, the administrator or any executor of, or the trustee in bankruptcy of, or the receiver for any property of, or other person or entity acting as the representative or in the place of, such beneficiary or its successors and assigns.  The Borrower covenants that it will not take any steps, issue any instructions to the Issuing Lender or any of its correspondents or institute any proceedings intended to derogate from the right or ability of the Issuing Lender or its correspondents to honour and pay any Draft or Drafts.

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

		
	(f)
	Save to the extent expressly provided otherwise in this Section 3.9, the rights and obligations between the Issuing Lender and the Borrower with respect to each Letter shall be determined in accordance with the applicable provisions of the (i) Uniform Customs and Practice for Documentary Credits, ICC Publications 600 or (ii) the International Standby Practices - ISP98, ICC Publication No. 590, as applicable.

		
	(g)
	The Issuing Lender shall act on behalf of the Lenders with respect to any Letters issued by it and the documents associated therewith, and the Issuing Lender shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article 14 with respect to any acts taken or omissions suffered by the Issuing Lender in connection with Letters issued by it or proposed to be issued by it and any documentation pertaining to such Letters as fully as if the term “Administrative Agent” as used in Article 14 included the Issuing Lender with respect to such acts or omissions, and (B) as additionally provided herein with respect to the Issuing Lender.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(h)
	Immediately upon the issuance of each Letter, each Lender under the Credit Facility shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Lender a risk participation in such Letter in an amount equal to the product of such Lender’s Pro Rate Share times the amount of such Letter.

		
	(i)
	None of the Issuing Lender, the Administrative Agent nor any correspondent, participant or assignee of the Issuing Lender shall be liable to any Lender for (i) any action of any of the Issuing Lender, the Administrative Agent or any correspondent, participant or assignee of the Issuing Lender taken or omitted in connection herewith at the request or with the approval of the Lenders or the Majority Lenders, as applicable, (ii) any action of any of the Issuing Lender, the Administrative Agent or any correspondent, participant or assignee of the Issuing Lender taken or omitted in the absence of such party’s gross negligence or wilful misconduct; or (iii) any deficiency in the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter.

3.10    Notice Periods
A) Each Drawdown Notice, Rollover Notice, Conversion Notice and Prepayment Notice shall be given to the Administrative Agent:
		
	(a)
	prior to 12:00 p.m. (Reno, Nevada time) on the second Banking Day prior to the date of any voluntary prepayment or the date of a drawdown of, rollover of, conversion into or conversion of a LIBOR Loan or the issuance of a Letter; and

		
	(b)
	prior to 12:00 p.m. (Reno, Nevada time) on the Banking Day prior to the date of any other drawdown, rollover or conversion.

B) Notwithstanding Section 3.10(A)(b), the Borrower may, by providing a Drawdown Notice to the Administrative Agent prior to 11:00 a.m. (Reno, Nevada time) on the Banking Day of the intended date of drawdown, drawdown an amount of up to $20,000,000 by way of a Base Rate Loan on such date.
3.11    Administrative Agent’s Discretion to Allocate
Notwithstanding the provisions of Sections 3.2 and 9.4(b) with respect to the funding of Loans and reimbursing with respect to Letters in accordance with each Lender’s Pro Rata Share, the Administrative Agent shall be entitled to reallocate the funding or reimbursement obligations among the Lenders in order to ensure, to the greatest extent practicable, that after such funding the aggregate amount of credit extended hereunder by each Lender coincides with such Lender’s Pro Rata Share of the aggregate amount of credit extended under a particular Credit Facility by all of the Lenders, provided that no such allocation shall result in the aggregate amount of credit extended hereunder by any Lender exceeding such Lender’s Individual Commitment under such Credit Facility.

	
			
	 
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	Second Amended and Restated Credit Agreement

3.12    Cost of Funds
If the Majority Lenders notify the Administrative Agent at least one Banking Day before the date of any proposed drawdown, conversion or rollover of a LIBOR Loan that LIBOR, for any interest period for such LIBOR Loans will not adequately reflect the cost to such Majority Lenders of making, funding or maintaining their respective LIBOR Loans for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Lenders, whereupon (i) each LIBOR Loan will automatically, on the last day of the then existing interest period therefor, convert into a Base Rate Canada Loan and (ii) the obligation of the Lenders to make or to convert into, LIBOR Loans shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.
ARTICLE 4 
DRAWDOWNS
4.1    Drawdown Notice
Subject to Sections 3.1 and 3.5 and provided that all of the applicable conditions precedent set forth in Article 12 have been fulfilled by the Borrower or waived by the Lenders as provided in Section 14.14, the Borrower may, from time to time, obtain credit hereunder by giving to the Administrative Agent an irrevocable notice in substantially the form of Schedule D hereto (“Drawdown Notice”) in accordance with Section 3.10 and specifying, as applicable:
		
	(a)
	the date the credit is to be obtained;

		
	(b)
	whether the credit is to be obtained by way of Base Rate Loan, LIBOR Loan or Letter;

		
	(c)
	in the case of any credit to be obtained by way of a Loan, the principal amount of the Loan;

		
	(d)
	if the credit is to be obtained by way of LIBOR Loan, the applicable Interest Period;

		
	(e)
	if the credit is to be obtained by way of Letter, the named beneficiary of the Letter and address of such beneficiary, the documents to be presented by such beneficiary in case of any drawing thereunder, the maturity date and amount of the Letter and all other terms of the Letter (including, without limitation, the proposed form of the Letter and such other matters as the Issuing Lender may require);

		
	(f)
	the details of any irrevocable authorization and direction pursuant to Section 3.2; and

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(g)
	if credit is to be obtained by way of Letter and if such Letter is to be issued on behalf of a Subsidiary of the Borrower as well as on behalf of the Borrower, the Borrower shall ensure that accompanying such Drawdown Notice is an instrument, substantially in the form of Schedule L hereto, and pursuant to which such Subsidiary shall agree, without qualification, to reimburse the Issuing Lender on demand for the full amount of each and any Draft presented to and paid by the relevant Issuing Lender in accordance with such Letter.  Additionally, the Borrower shall furnish to the relevant Issuing Lender and the Agent such other documents and information pertaining to such requested Letter issuance or any amendment, including any documentation related thereto, as the relevant Issuing Lender or the Administrative Agent may require (including, without limitation, an application and reimbursement agreement).  Unless the Issuing Lender has received written notice from any Lender, the Administrative Agent or any Obligor, at least one Banking Day prior to the requested date of issuance or amendment of the applicable Letter, that one or more applicable conditions contained in Article 12 shall not then be satisfied, then, subject to the terms and conditions hereof, the Issuing Lender shall, on the requested date, issue a Letter for the account of the Borrower or enter into the applicable amendment, as the case may be, in each case in accordance with the Issuing Lender’s usual and customary business practices.

ARTICLE 5  
ROLLOVERS
5.1    LIBOR Loans
Subject to Section 3.5 and provided that the Borrower has, by giving notice to the Administrative Agent in accordance with Section 5.2, requested the Lenders to continue to extend credit by way of a LIBOR Loan to replace all or a portion of an outstanding LIBOR Loan as it matures, each Lender shall, on the maturity of such LIBOR Loan, continue to extend credit to the Borrower by way of a LIBOR Loan (without a further advance of funds to the Borrower) in the principal amount equal to such Lender’s Pro Rata Share of the principal amount of the matured LIBOR Loan or the portion thereof to be replaced.
5.2    Rollover Notice
The notice to be given to the Administrative Agent pursuant to Section 5.1 (“Rollover Notice”) shall be irrevocable, shall be given in accordance with Section 3.10, shall be in substantially the form of Schedule E hereto and shall specify:
		
	(a)
	the maturity date of the maturing LIBOR Loan;

		
	(b)
	the principal amount of the maturing LIBOR Loan and the portion thereof to be replaced; and

		
	(c)
	the Interest Period or Interest Periods of the replacement LIBOR Loans.

	
			
	 
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	Second Amended and Restated Credit Agreement

5.3    Rollover by Lenders
Upon written notice to such effect to the Borrower at such time as a Default has occurred and is continuing, the Administrative Agent may, as applicable, on the maturity date of a LIBOR Loan, rollover such LIBOR Loan into a LIBOR Loan having an Interest Period of one month or such other period as the Lenders may determine, as though a notice to such effect had been given in accordance with Section 5.2.
ARTICLE 6 
CONVERSIONS
6.1    Converting Loan to Other Type of Loan
Subject to Sections 3.1 and 3.5 and provided that the Borrower has, by giving notice to the Administrative Agent in accordance with Section 6.2, requested the Lenders to convert all or a portion of an outstanding Loan into another type of Loan, each Lender shall, on the date of conversion (which, in the case of the conversion of all or a portion of an outstanding LIBOR Loan, shall be the date on which such Loan matures), continue to extend credit to the Borrower by way of the type of Loan into which the outstanding Loan or a portion thereof is converted (with a repayment and a subsequent advance of funds to the Borrower) in the aggregate principal amount equal to such Lender’s Pro Rata Share of the principal amount of the outstanding Loan or the portion thereof which is being converted.
6.2    Conversion Notice
The notice to be given to the Administrative Agent pursuant to Section 6.1 (“Conversion Notice”) shall be irrevocable, shall be given in accordance with Section 3.10, shall be in substantially the form of Schedule F hereto and shall specify:
		
	(a)
	the type of Loan to be converted;

		
	(b)
	the date on which the conversion is to take place;

		
	(c)
	the principal amount of the Loan or the portion thereof which is to be converted;

		
	(d)
	the type and amount of the Loan into which the outstanding Loan is to be converted; and

		
	(e)
	if an outstanding Loan is to be converted into a LIBOR Loan, the applicable Interest Period.

6.3    Absence of Notice
Subject to Section 3.5 in the absence of a Rollover Notice or Conversion Notice within the appropriate time periods referred to herein, a maturing LIBOR Loan in favour of the Borrower shall be automatically converted to a Base Rate Loan as though a notice to such effect had been given in accordance with Section 6.2.

	
			
	 
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	Second Amended and Restated Credit Agreement

6.4    Conversion by Lenders
Upon written notice to such effect to the Borrower at such time as a Default has occurred and is continuing, the Administrative Agent may, on the maturity date of a LIBOR Loan, convert such LIBOR Loan into a Base Rate Loan, as though a notice to such effect had been given in accordance with Section 6.2.
ARTICLE 7 
INTEREST AND FEES
7.1    Interest Rates
The Borrower shall pay to the Lenders, in accordance with Section 3.6, interest on the outstanding principal amount from time to time of each Loan and on overdue interest thereon, at the rate per annum equal to:
		
	(a)
	in the case of each Base Rate Loan, the Alternate Base Rate Canada plus 3.50%; and

		
	(b)
	in the case of each LIBOR Loan, LIBOR plus 4.50%.

7.2    Calculation and Payment of Interest
		
	(a)
	Interest on the outstanding principal amount from time to time of each LIBOR Loan shall accrue from day to day from and including the date on which credit is obtained by way of such Loan to but excluding the date on which such Loan is repaid in full (both before and after maturity and as well after as before judgment) and shall be calculated on the basis of the actual number of days elapsed divided by 360.

		
	(b)
	Accrued interest shall be paid,

		
	(i)
	in the case of Base Rate Loans, in arrears monthly on the 22nd day of each calendar month; and

		
	(ii)
	in the case of interest on LIBOR Loans, on the last day of the applicable Interest Period; provided that, in the case of Interest Periods of a duration longer than three months, accrued interest shall be paid no less frequently than every three months from the first day of such Interest Period during the term of such Interest Period and on the date on which such LIBOR Loans are otherwise required to be repaid.

	
			
	 
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	Second Amended and Restated Credit Agreement

7.3    General Interest Rules
		
	(a)
	For the purposes hereof, whenever interest is calculated on the basis of a year of 360 or 365 days, each rate of interest determined pursuant to such calculation expressed as an annual rate for the purposes of the Interest Act (Canada) is equivalent to such rate as so determined multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by 360 or 365 days, respectively.

		
	(b)
	Interest on each Loan and on overdue interest thereon shall be payable in the currency in which such Loan is denominated during the relevant period.

		
	(c)
	If the Borrower fails to pay any fee or other amount of any nature payable by it to the Administrative Agent or the Lenders hereunder or under any document, instrument or agreement delivered pursuant hereto on the due date therefor, the Borrower shall pay to the Administrative Agent or the Lenders, as the case may be, interest on such overdue amount in the same currency as such overdue amount is payable from and including such due date to but excluding the date of actual payment (as well after as before judgment) at the rate per annum, calculated and compounded monthly, which is equal to the Alternate Base Rate Canada plus 6.50% in the case of overdue amounts denominated in U.S. dollars.

Such interest on overdue amounts shall become due and be paid on demand made by the Administrative Agent.
7.4    Selection of Interest Periods
With respect to each LIBOR Loan, the Borrower shall specify in the Drawdown Notice, Rollover Notice or Conversion Notice, the duration of the Interest Period provided that:
		
	(a)
	Interest Periods shall have a duration from one, two, three or six months (subject to availability and to the aggregate number of Interest Periods with different dates outstanding under the Credit Facility at any time being less than five);

		
	(b)
	the first Interest Period for a LIBOR Loan shall commence on and include the day on which credit is obtained by way of such Loan and each subsequent Interest Period applicable thereto shall commence on and include the date of the expiry of the immediately preceding Interest Period applicable thereto; and

		
	(c)
	if any Interest Period would end on a day which is not a Banking Day, such Interest Period shall be extended to the next succeeding Banking Day unless such next succeeding Banking Day falls in the next calendar month, in which case such Interest Period shall be shortened to end on the immediately preceding Banking Day.

	
			
	 
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	Second Amended and Restated Credit Agreement

7.5    Standby Fees
Upon the first Banking Day following the completion of each Fiscal Quarter and on the termination of the Credit Facility, the Borrower shall pay, in accordance with Section 3.6, to the Lenders, in arrears, a standby fee calculated at the rate per annum, on the basis of a year of 365 days, equal to 1.20% on the Available Credit, such fee to accrue daily from the date of the execution and delivery of this agreement to and including the termination of the Credit Facility pursuant to Section 2.4.
7.6    Letter Fees
The Borrower shall pay to the Lenders in respect of each Letter, in accordance with Section 3.6, an issuance fee quarterly in arrears on the first Banking Day of each Fiscal Quarter, calculated at a rate per annum equal to 4.50% on the amount of each Financial Letter and 2.70% on the amount of each Non-Financial Letter, in each case on the basis of a year of 365 days for a period of time equal to the number of days in the preceding Fiscal Quarter on which the relevant Letter was outstanding.  In addition, with respect to all Letters, the Borrower shall from time to time pay to the Issuing Lender its usual and customary fees (at the then prevailing rates) for the amendment, delivery and administration of letters of credit such as the Letters.  Each such payment is non-refundable and fully earned when due.
ARTICLE 8 
RESERVE, CAPITAL, INDEMNITY AND TAX PROVISIONS
8.1    Conditions of Credit
The obtaining or maintaining of credit hereunder shall be subject to the terms and conditions contained in this Article 8.
8.2    Change of Circumstances
		
	(a)
	Increased Costs Generally.  If from time to time any Change in Law shall:

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

		
	(ii)
	subject any Lender to any Tax of any kind whatsoever with respect to this Agreement, any Letter, any participation in a Letter, or any Loan made by it or Bankers’ Acceptance accepted by it, or change the basis of taxation of payments to such Lender in respect thereof, except for Indemnified Taxes or Other Taxes covered by Section 8.6 and the imposition, or any change in the rate, of any Excluded Tax payable by such Lender; or

		
	(iii)
	impose on any Lender or any applicable interbank market any other condition, cost or expense affecting this Agreement or Loans made by such Lender or any Letter or participation therein;

	
			
	 
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	Second Amended and Restated Credit Agreement

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the Issuing Lender of participating in, issuing or maintaining any Letter (or of maintaining its obligation to participate in or to issue any Letter), or to reduce the amount of any sum received or receivable by such Lender or the Issuing Lender hereunder (whether of principal, interest or any other amount), then upon request of such Lender from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered, such amount or amounts to be determined in the sole and absolute discretion of the relevant Lender.
		
	(b)
	Capital and Liquidity Requirements.  If any Lender determines in its sole and absolute discretion that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Individual Commitment of such Lender or the Loans made by, or the Letters issued or participated in by such Lender, to a level below that which such Lender or its holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of its holding company with respect to, as applicable, capital adequacy or liquidity requirements), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or its holding company for any such reduction suffered.

		
	(c)
	Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section, including reasonable detail of the basis of calculation of the amount or amounts, and delivered to the Borrower from time to time shall be prima facie evidence of such amounts absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

		
	(d)
	Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to this Section 8.2 shall not constitute a waiver of such Lender’s right to demand such compensation, except that the Borrower shall not be required to compensate a Lender pursuant to this Section 8.2 for any increased costs incurred or reductions suffered more than four months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefore, unless the Change in Law giving rise to such increased costs or reductions is retroactive, in which case the four-month period referred to above shall be extended to include the period of retroactive effect thereof.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(e)
	Alternate Booking Points.  Each Lender agrees that, as promptly as practicable after it becomes aware of the occurrence of an event or the existence of a condition that would cause it to seek additional amounts from the Borrower pursuant to Section 8.2, it will use reasonable efforts to make, fund or maintain the affected credit of such Lender through another lending office or take such other actions as it deems appropriate if as a result thereof the additional moneys which would otherwise be required to be paid in respect of such credit pursuant to Section 8.2, would be reduced and if, as determined by such Lender in its sole discretion, the making, funding or maintaining of such affected credit through such other lending office or the taking of such other actions would not otherwise adversely affect such credit or such Lender and would not, in such Lender’s sole discretion, be commercially unreasonable.

8.3    Failure to Fund as a Result of Change of Circumstances
If any Lender but not all of the Lenders who have Individual Commitments seeks additional compensation pursuant to Section 8.2 (the “Affected Lender”), then the Borrower may indicate to the Administrative Agent in writing that it desires to replace the Affected Lender with one or more of the other Lenders, and the Administrative Agent shall then forthwith give notice to the other Lenders that any such Lender or Lenders may, in the aggregate, advance all (but not part) of the Affected Lender’s Pro Rata Share of the affected credit and, in the aggregate, assume all (but not part) of the Affected Lender’s Individual Commitments and obligations under a Credit Facility and acquire all (but not part) of the rights of the Affected Lender and assume all (but not part) of the obligations of the Affected Lender under each of the other Credit Documents to the extent they relate to the Credit Facility (but in no event shall any other Lender or the Administrative Agent be obliged to do so).  If one or more Lenders shall so agree in writing (herein collectively called the “Assenting Lenders” and individually called an “Assenting Lender”) with respect to such advance, acquisition and assumption, the Pro Rata Share of such credit of each Assenting Lender and the Individual Commitments and the obligations of such Assenting Lender under a particular Credit Facility and the rights and obligations of such Assenting Lender under each of the other Credit Documents to the extent they relate to the Credit Facility shall be increased by its respective pro rata share (based on the relative Individual Commitments of the Assenting Lenders) of the Affected Lender’s Pro Rata Share of such credit and Individual Commitments and obligations under the Credit Facility and rights and obligations under each of the other Credit Documents to the extent they relate to the Credit Facility on a date mutually acceptable to the Assenting Lenders and the Borrower.  On such date, the Assenting Lenders shall extend to the Borrower the Affected Lender’s Pro Rata Share of such credit and shall prepay to the Affected Lender the advances of the Affected Lender then outstanding, together with all interest accrued thereon and all other amounts owing to the Affected Lender hereunder, and, upon such advance and prepayment by the Assenting Lenders, the Affected Lender shall cease to be a “Lender” for purposes of this agreement and shall no longer have any obligations hereunder.  Upon the assumption of the Affected Lender’s Individual Commitments as aforesaid by an Assenting Lender, Schedule A hereto shall be deemed to be amended to increase the Individual Commitment of such Assenting Lender by the respective amounts of such assumption.

	
			
	 
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	Second Amended and Restated Credit Agreement

8.4    Indemnity Relating to Credits
Upon notice from the Administrative Agent to the Borrower (which notice shall be accompanied by a detailed calculation of the amount to be paid by the Borrower), the Borrower shall pay to the Administrative Agent such amount or amounts as will compensate the Administrative Agent or the Lenders (including, for certainty, the Issuing Lender) for any loss, cost or expense incurred by them:
		
	(a)
	in the liquidation or redeposit of any funds acquired by the Lenders to fund or maintain any portion of a LIBOR Loan as a result of:

		
	(i)
	the failure of the Borrower to borrow or make repayments on the dates specified under this agreement or in any notice from the Borrower to the Administrative Agent (provided that if any notice specifies the repayment of a LIBOR Loan at any time other than its maturity date, then the Borrower shall be responsible for any loss, costs or expenses referred to above); or

		
	(ii)
	the repayment or prepayment of any amounts on a day other than the payment dates prescribed herein or in any notice from the Borrower to the Administrative Agent (provided that if any notice specifies the repayment of a LIBOR Loan at any time other than its maturity date, then the Borrower shall be responsible for any loss, costs or expenses referred to above); or

		
	(b)
	with respect to any Letter, arising from claims or legal proceedings, and including reasonable and documented legal fees and disbursements, respecting the collection of amounts owed by the Borrower hereunder in respect of such Letter or the enforcement of the Administrative Agent or the Lenders’ rights hereunder in respect of such Letter including, without limitation, legal proceedings attempting to restrain the Administrative Agent or the Lenders from paying any amount under such Letter.

Notwithstanding the foregoing, the Borrower shall not be required to indemnify a Lender for any such cost or expense if such cost or expense is incurred while such Lender is a Defaulting Lender.

	
			
	 
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	Second Amended and Restated Credit Agreement

8.5    Indemnity for Transactional and Environmental Liability
		
	(a)
	The Borrower hereby agrees to indemnify and hold the Administrative Agent, each Lender, the Issuing Lender and each of their respective Affiliates, shareholders, officers, directors, employees, and agents (collectively, the “Indemnified Parties”) free and harmless from and against any and all claims, demands, actions, causes of action, suits, losses, costs, charges, liabilities and damages, and expenses in connection therewith (irrespective of whether such Indemnified Party is a party to the action for which indemnification hereunder is sought), and including, without limitation, reasonable legal fees and out of pocket disbursements and amounts paid in settlement which are approved by the Borrower (collectively in this Section 8.5(a), the “Indemnified Liabilities”), incurred or suffered by, or asserted against, the Indemnified Parties or any of them as a result of, or arising out of, or relating to (i) the extension of credit contemplated herein, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any credit extended hereunder, (iii) any actual or threatened investigation, litigation or other proceeding relating to any credit extended or proposed to be extended as contemplated herein or (iv) the execution, delivery, performance or enforcement of the Credit Documents and any instrument, document or agreement executed pursuant hereto, except for any such Indemnified Liabilities that a court of competent jurisdiction determined arose on account of the relevant Indemnified Party’s gross negligence or willful misconduct.

		
	(b)
	Without limiting the generality of the indemnity set out in the preceding clause (a), the Borrower hereby further agrees to indemnify and hold the Indemnified Parties free and harmless from and against any and all claims, demand, actions, causes of action, suits, losses, costs, charges, liabilities and damages, and expenses in connection therewith, including, without limitation, reasonable and documented legal fees and out of pocket disbursements and amounts paid in settlement which are approved by the Borrower, of any and every kind whatsoever paid (collectively in this Section 8.5(b), the “Indemnified Liabilities”), incurred or suffered by, or asserted against, the Indemnified Parties or any of them for, with respect to, or as a direct or indirect result of, (i) the presence on or under, or the Release from on or under, any real property legally or beneficially owned (or any estate or interest which is owned), leased, used or operated by any Obligor of any Hazardous Materials, and (ii) any other violation of or liability pursuant to an Environmental Law with respect to any Obligor, and regardless of whether caused by, or within the control of, such Obligor, except for any such Indemnified Liabilities that a court of competent jurisdiction determined arose on account of the relevant Indemnified Party’s gross negligence or willful misconduct.

		
	(c)
	All obligations provided for in this Section 8.5 shall survive indefinitely the permanent repayment of the outstanding credit hereunder and the termination of the Credit Agreement.  The obligations provided for in this Section 8.5 shall not be reduced or impaired by any investigation made by or on behalf of the Administrative Agent or any of the Lenders.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(d)
	The Borrower hereby agrees that, for the purposes of effectively allocating the risk of loss placed on the Borrower by this Section 8.5, the Administrative Agent and each Lender shall be deemed to be acting as the agent or trustee on behalf of and for the benefit of their respective shareholders, officers, directors, employees and agents.

		
	(e)
	If, for any reason, the obligations of the Borrower pursuant to this Section 8.5 shall be unenforceable, the Borrower agrees to make the maximum contribution to the payment and satisfaction of each obligation that is permissible under applicable law.

		
	(f)
	The indemnity under this Section 8.5 shall not apply to any matters specifically dealt with in Sections 8.2, 8.4, 8.6 or 11.1(f).

8.6    Gross-Up for Taxes
		
	(a)
	Any and all payments made by or on behalf of the Borrower under this agreement or under any other Credit Document (any such payment being hereinafter referred to as a “Payment”) to or for the benefit of a Lender shall be made without set-off or counterclaim, and free and clear of, and without deduction or withholding for, or on account of, any and all present or future Taxes except to the extent that such deduction or withholding is required by law or the administrative practice of any Official Body.  If any such Taxes are so required to be deducted or withheld from or in respect of any Payment made to or for the benefit of a Lender, the Borrower shall:

		
	(i)
	promptly notify the Administrative Agent of such requirement;

		
	(ii)
	if the Taxes are Indemnified Taxes, pay to such Lender in addition to the Payment to which such Lender is otherwise entitled, such additional amount as is necessary to ensure that the net amount actually received by such Lender (free and clear of, and net of, any such Taxes, including the full amount of any Taxes required to be deducted or withheld from any additional amount paid by the Borrower under this Section 8.6(a), whether assessable against the Borrower, the Administrative Agent or such Lender) equals the full amount the Lender, would have received had no such deduction or withholding been required;

		
	(iii)
	make such deduction or withholding;

		
	(iv)
	pay to the relevant Official Body in accordance with applicable law the full amount of Taxes required to be deducted or withheld (including the full amount of Taxes required to be deducted or withheld from any additional amount paid by the Borrower to the Lender under this Section 8.6(a), within the time period required by applicable law; and

		
	(v)
	as promptly as possible thereafter, forward to the relevant Lender an original official receipt (or a certified copy), or other documentation reasonably acceptable to the Administrative Agent and such Lender, evidencing such payment to such Official Body.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(b)
	If the Administrative Agent or any Lender is subject to Indemnified Taxes in respect of any Payment made by the Borrower but such Taxes are not levied by way of deduction or withholding (all such Taxes being “Non-Withheld Taxes”), the Borrower shall pay to the Administrative Agent or such Lender, as the case may be, at the time the Borrower makes such Payment and in addition to such Payment, such additional amount as is necessary to ensure that the total amount received by the Administrative Agent or such Lender, as the case may be, is equal to the Payment plus the amount of Non-Withheld Taxes exigible in respect of the aggregate of the Payment and the additional amount payable under this Section 8.6(b).

		
	(c)
	In addition, the Borrower agrees to pay any and all Other Taxes.

		
	(d)
	The Borrower hereby indemnifies and holds harmless each Lender, on an after-Taxes basis, for the full amount of Indemnified Taxes including Other Taxes and Non-Withheld Taxes, interest, penalties and other liabilities, levied, imposed or assessed in connection therewith against (and whether or not paid directly by) the Administrative Agent or such Lender, as applicable, and for all expenses, resulting from or relating to the Borrower’s failure to:

		
	(i)
	remit to the Administrative Agent or such Finance Party the documentation referred to in Section 8.6(a)(v);

		
	(ii)
	pay any Taxes or Other Taxes when due to the relevant Official Body (including, without limitation, any Taxes imposed by any Official Body on amounts payable under this Section 8.6; or

		
	(iii)
	pay to the Administrative Agent or applicable Lender any Non-Withheld Taxes in accordance with Section 8.6,

		
	(e)
	whether or not such Taxes were correctly or legally assessed, the Administrative Agent or any Lender who pays any Taxes or Other Taxes (other than Non-Withheld Taxes), and the Administrative Agent or any Lender who pays any Non-Withheld Taxes in excess of the amount (if any) paid by the Borrower on account thereof under Section 8.6(b), shall promptly notify the Borrower of such payment, provided, however, that failure to provide such notice shall not detract from, or compromise, the obligations of the Borrower under this Section 8.6.  Payment pursuant to this indemnification shall be made within 30 days from the date the Administrative Agent or the relevant Lender, as the case may be, makes written demand therefor accompanied by a certificate as to the amount of such Taxes or Other Taxes and the calculation thereof, which calculation shall be prima facie evidence of such amount.

		
	(f)
	If the Borrower determines in good faith that a reasonable basis exists for contesting any Taxes for which a payment has been made under this Section 8.6, the relevant Lender or the Administrative Agent, as applicable, shall, if so requested by the Borrower, cooperate with the Borrower in challenging such Taxes at the Borrower’s expense.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(g)
	If any Lender or the Administrative Agent, as applicable, receives a refund of, or credit for, Taxes for which a payment has been made by the Borrower under this Section 8.6, which refund or credit in the good faith judgment of such Lender or the Administrative Agent, as the case may be, is attributable to the Taxes giving rise to such payment made by the Borrower, then the Lender or the Administrative Agent, as the case may be, shall reimburse the Borrower for such amount (if any, but not exceeding the amount of any payment made under this Section 8.6 that gives rise to such refund or credit), net of out-of-pocket expenses of such Lender or the Administrative Agent, as the case may be, which the Administrative Agent or such Lender, as the case may be, determines in its absolute discretion will leave it, after such reimbursement, in no better or worse position than it would have been in if such Taxes had not been exigible.  The Borrower, upon the request of the Administrative Agent or any Lender, agrees to repay the Administrative Agent or such Lender, as the case may be, any portion of any such refund or credit paid over to the Borrower that the Administrative Agent or such Lender, as the case may be, is required to pay to the relevant Official Body and agrees to pay any interest, penalties or other charges paid by such Lender or the Administrative Agent, as the case may be, as a result of or related to such payment to such Official Body.  Neither the Administrative Agent nor any Lender shall be under any obligation to arrange its tax affairs in any particular manner so as to claim any refund or credit.  None of the Lenders nor the Administrative Agent shall be obliged to disclose any information regarding its tax affairs or computations to the Borrower or any other Person in connection with this Section 8.6(f) or any other provision of this Section 8.6.

		
	(h)
	The Borrower also hereby indemnifies and holds harmless the Administrative Agent and each Lender, on an after-Taxes basis, for any additional Taxes on net income that the Administrative Agent or such Lender may be obliged to pay as a result of the receipt of amounts under this Section 8.6.

		
	(i)
	Each Lender shall, on or prior to the date that it becomes a Lender, provide each of the Administrative Agent and the Borrower with two original copies of such forms, certificates and other documents (collectively, “Exemption Forms”) as may be required by the Internal Revenue Service in order for the Borrower to be able to make Payments without having to deduct or withhold any Indemnified Taxes or having any Non-Withheld Taxes exigible against the Administrative Agent or the Lender.  In addition, each Lender agrees to update such Exemption Forms upon the reasonable written request of the Borrower or the Administrative Agent where required to maintain the exempt status of the Payments pursuant to Applicable Law.  Notwithstanding the foregoing, the updating of such Exemption Forms shall not be required if the Lender is unable to do so due to a Change in Law occurring after the date on which the Lender became a Lender, however, it shall, in such case if it is able to do so, provide each of the Administrative Agent and the Borrower with two original copies of such other forms, certificates and other documents (collectively, the “Rate Reduction Forms”) as may be required by the Internal Revenue Service in order for the Borrower to be able to make Payments or withholdings at a reduced rate of Indemnified Taxes or having Non-Withheld Taxes 

	
			
	 
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	Second Amended and Restated Credit Agreement

exigible against the Administrative Agent or the Lender at a reduced rate.  In addition, each Lender agrees to update such Rate Reduction Forms upon the reasonable written request of the Borrower or the Administrative Agent where required to maintain or obtain the most advantageous tax status for the Payments pursuant to Applicable Law.  Notwithstanding the foregoing, if the updating of any Exemption Forms or the provision or updating of any Rate Reduction Forms would, in the Lender’s judgment subject such Lender to any material unreimbursed cost or expense or would prejudice the legal or commercial position of the Lender, it will not be required to update such Exemption Forms or to provide or update such Rate Reduction Forms.
		
	(j)
	Additional amounts payable under Section 8.6(a) and Non-Withheld Taxes payable under Section 8.6(b) have the same character as the Payments to which they relate.  For greater certainty, for example, additional amounts payable under Section 8.6(a) or Non-Withheld Taxes payable under Section 8.6(b), in respect of interest payable under a Credit Document, shall be payments of interest under such Credit Document.  All payments made under this Section 8.6 shall be subject to the provisions of this Section 8.6.

		
	(k)
	The Borrower’s obligations under this Section 8.6 shall survive without limitation the termination of the Credit Facility and this agreement and all other Credit Documents and the permanent repayment of the outstanding credit and all other amounts payable hereunder.

ARTICLE 9 
REPAYMENTS AND PREPAYMENTS
9.1    Repayment of Credit Facility
The Borrower shall repay to the Administrative Agent, for the account of the Lenders, in full the outstanding credit under the Credit Facility on the Maturity Date together with all accrued and unpaid interest thereon and all accrued and unpaid fees with respect thereto.  As concerns any Letter which, on the Maturity Date, has an expiry date later than the Maturity Date, the Borrower shall pay to the Issuing Lender, on the Maturity Date, the then contingent liability of the Issuing Lender thereunder (to be held solely for the purpose of satisfying any draw under such Letter and to be held subject to Section 13.2).  Following such payment by the Borrower to the Issuing Lender, the Borrower shall have no further liability to the Lenders with respect to any such Letter.
9.2    Voluntary Prepayments under Credit Facility
Subject to Section 9.3, the Borrower shall be entitled to prepay all or any portion of the outstanding Loans under the Credit Facility at any time, without penalty, provided that Section 8.4(a) shall be complied with in connection with any such prepayment.  Other than any payments required pursuant to Section 8.4(a), there are no premiums, penalties or other additional payments associated with any voluntary prepayments under this Section 9.2.  Amounts which are prepaid as aforesaid in respect of the Credit Facility may be reborrowed.

	
			
	 
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	Second Amended and Restated Credit Agreement

9.3    Prepayment Notice
The Borrower shall give written notice to the Administrative Agent of each voluntary prepayment pursuant to Section 9.2.  Such notice (a “Prepayment Notice”) shall be irrevocable, shall be given in accordance with Section 3.10 and shall specify:
		
	(a)
	the date on which the prepayment is to take place; and

		
	(b)
	the type and principal amount of the Loan or the portion thereof which is to be prepaid.

9.4    Reimbursement or Conversion on Presentation of Letters
		
	(a)
	On presentation of a Letter and payment thereunder by the Issuing Lender, the Borrower shall forthwith pay and in any event no later than 10:00 a.m. (Reno, Nevada time) on the date of any payment by the Issuing Lender under a Letter to the Administrative Agent for the account of the Issuing Lender, and thereby reimburse Issuing Lender for, all amounts paid by Issuing Lender pursuant to such Letter.  Failing such payment, the Borrower shall be deemed to have effected, notwithstanding any other provision hereof, a conversion of such Letter into a Base Rate Loan to the extent of the payment of the Issuing Lender thereunder.

		
	(b)
	If the Issuing Lender makes payment under any Letter and the Borrower does not fully reimburse the Issuing Lender on or before the date of payment, then Section 9.4(a) shall apply to deem a Loan to be outstanding to the Borrower under the Credit Facility in the manner therein set out regardless of whether the conditions set forth in Section 12.1 are satisfied.  Each Lender under the Credit Facility shall, on request by the Issuing Lender, immediately pay to the Issuing Lender an amount equal to such Lender’s Pro Rata Share of the amount paid by the Issuing Lender such that each Lender under the Credit Facility is participating in the deemed Loan in accordance with its Pro Rata Share.  The obligation of each Lender under the Credit Facility to pay the Issuing Lender its Pro Rata Share of each such deemed Loan shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defence or other right which such Lender may have against the Issuing Lender, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing.

		
	(c)
	Each Lender shall immediately on demand indemnify the Issuing Lender to the extent of such Lender’s Pro Rata Share of any amount paid or liability incurred by the Issuing Lender under each Letter issued by it to the extent that the Borrower does not fully reimburse the Issuing Lender therefor.

		
	(d)
	Until each Lender funds its Loan pursuant to this Section 9.3 to reimburse the Issuing Lender for any amount drawn under any Letter, interest in respect of such Lender’s Pro Rate Share of such amount shall be solely for the account of the Issuing Lender.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(e)
	If any Lender fails to immediately make available to the Administrative Agent for the account of the Issuing Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 9.4, the Issuing Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Issuing Lender at a rate per annum equal to Alternate Base Rate Canada plus 4.50% on the amount of each Financial Letter and 2.70% on the amount of each Non-Financial Letter, plus any administrative, processing or similar fees customarily charged by the Issuing Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Pro Rate Share of the relevant Loan.  A certificate of the Issuing Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this Section 9.4(e) shall be conclusive absent manifest error.

9.5    Letters Subject to an Order
		
	(a)
	Subject to Section 13.2, the Borrower shall pay to the Issuing Lender an amount equal to the maximum amount available to be drawn under any unexpired Letter which becomes the subject of any Order.  Payment in respect of each such Letter shall be due forthwith upon demand.

		
	(b)
	Notwithstanding anything in this agreement to the contrary, the Issuing Lender shall not be under any obligation to issue any Letter if:

		
	(i)
	the issuance of such Letter would violate one or more policies of the Issuing Lender applicable to Letters generally;

		
	(ii)
	except as otherwise agreed by the Administrative Agent and the Issuing Lender, such Letter is to be denominated in a currency other than U.S. dollars;

		
	(iii)
	any order, judgment or decree of any Official Body or arbitrator shall by its terms purport to enjoin or restrain the Issuing Lender from issuing such Letter, or any law applicable to the Issuing Lender or any request or directive (whether or not having the force of law) from any Official Body with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance of letters of credit generally or such Letter in particular or shall impose upon the Issuing Lender with respect to such Letter any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise compensated hereunder) not in effect on the date hereof, or shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not applicable on the date hereof and which the Issuing Lender in good faith deems material to it; or

		
	(iv)
	such Letter contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder;

	
			
	 
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	Second Amended and Restated Credit Agreement

9.6    Currency of Repayment
All payments and repayments of outstanding credit hereunder shall be made in the currency of such outstanding credit.
9.7    Repayment of Credit Excess
The Borrower shall repay to the Administrative Agent for the account of the Lenders the amount of any Credit Excess existing from time to time on account of a reduction of the Credit Limit, any such repayment to be made no later than the date of the scheduled reduction of the amount of the Credit Limit pursuant to Section 2.3.  Each such repayment shall first be applied to repay outstanding Base Rate Loans outstanding under the Credit Facility and, to the extent that the amount of such repayment exceeds the aggregate amount of credit outstanding by way of Base Rate Loans which have been repaid, shall then be deposited by the Administrative Agent in a segregated account and held in trust for the Lenders to be applied to repay outstanding LIBOR Loans under the Credit Facility or to satisfy reimbursement obligations with respect to outstanding Letters under the Credit Facility as such LIBOR Loans mature or as such Letters are drawn upon, as the case may be.
ARTICLE 10 
REPRESENTATIONS AND WARRANTIES
10.1    Representations and Warranties
To induce the Lenders and the Administrative Agent to enter into this agreement and to induce the Lenders to extend credit hereunder, the Borrower hereby represents and warrants to the Lenders and the Administrative Agent, as of the date of this agreement, as of the date of each extension of credit hereunder and as of the last day of each Fiscal Quarter, as follows and acknowledges and confirms that the Lenders and the Administrative Agent are relying upon such representations and warranties in entering into this agreement and in extending credit hereunder:
		
	(a)
	Status and Power of Obligors.  Each Obligor is a corporation or limited liability company duly created and organized and validly subsisting in good standing under the laws of its governing jurisdiction, as set forth in its Perfection Certificate.  Each Obligor is duly qualified, registered or licensed in all jurisdictions where the nature of its business makes such qualification, registration or licensing necessary except where the lack of such qualification, registration or licensing could reasonably be expected to have a Material Adverse Effect.  Each Obligor has all requisite corporate capacity, power and authority to own, hold under licence or lease its properties, to carry on its business as now conducted except where the failure to have such capacity, power and authority could not reasonably be expected to have a Material Adverse Effect.  Each Obligor has all necessary corporate capacity to enter into, and carry out the transactions contemplated by, the Finance Documents to which is a party.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(b)
	Authorization and Enforcement.  All necessary action, corporate or otherwise, has been taken to authorize the execution, delivery and performance by each Obligor of the Finance Documents to which it is a party.  Each Obligor has duly executed and delivered the Finance Documents to which it is a party.  The Finance Documents to which each Obligor is a party are legal, valid and binding obligations of such Obligor, enforceable against such Obligor in accordance with its terms, except to the extent that the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, moratorium, reorganization and other laws of general application limiting the enforcement of creditors’ rights generally, (ii) the fact that the courts may deny the granting or enforcement of equitable remedies and (iii) the fact that, pursuant to the Currency Act (Canada), no court in Canada may make an order expressed in any currency other than lawful money of Canada.

		
	(c)
	Compliance with Other Instruments.  The execution, delivery and performance by each Obligor of the Finance Documents to which it is a party, and the consummation of the transactions contemplated herein and therein, do not and will not conflict with, result in any breach or violation of, or constitute a default under, the terms, conditions or provisions of, the charter or constating documents or by‐laws of, or any shareholder agreement or declaration relating to, such Obligor.  The execution, delivery and performance by each Obligor of the Finance Documents to which it is a party, and the consummation of the transactions contemplated herein and therein, do not and will not conflict with, result in any material breach or violation of, or constitute a material default under, the terms, conditions or provisions of, any law, regulation, judgment, decree or order binding on or applicable to such Obligor or to which its property is subject or of any Material Agreement or any material, lease, licence, permit or other instrument to which such Obligor is a party or is otherwise bound or by which such Obligor benefits or to which its property is subject and do not require the consent or approval of any Official Body or any other party.

		
	(d)
	Financial Statements.  The financial statements of the Borrower for the most recently completed Fiscal Quarter or Fiscal Year, as the case may be, were prepared in accordance with generally accepted accounting principles and no Material Adverse Change has occurred in the condition, financial or otherwise, of the Borrower since the date of such financial statements.  The balance sheet of the aforesaid financial statement presents a fair statement of the financial condition and assets and liability of the Borrower as at the date thereof and the statements of operations, retained earnings and cashflows contained in the aforesaid financial statements fairly presents the results of the operations of the Borrower throughout the period covered thereby.  Except to the extent reflected or reserved against in the aforesaid balance sheet (including the notes thereto) and except as incurred in the ordinary and usual course of the business of the Borrower, the Borrower does not have any outstanding indebtedness or any liability or obligations (whether accrued, absolute, contingent or otherwise) of a material nature customarily reflected or reserved against in a balance sheet (including the notes thereto) prepared in accordance with generally accepted accounting principles.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(e)
	Litigation.  There are no actions, suits, inquiries, claims or proceedings (whether or not purportedly on behalf of any Company) pending or threatened in writing against or affecting any Company before any Official Body which in any case or in the aggregate could reasonably be expected to have a Material Adverse Effect.

		
	(f)
	Title to Assets.  Each Obligor has good and marketable title to its property, assets and undertaking, free from any Lien other than Permitted Liens.

		
	(g)
	Conduct of Business.  No Company is in violation of any agreement, mortgage, franchise, licence, judgment, decree, order, statute, statutory trust, rule or regulation relating in any way to itself or to the operation of its business or to its property or assets (other than Environmental Laws) and which could reasonably be expected to have a Material Adverse Effect.  No Company is in violation of any Environmental Law which violation could reasonably be expected to have a Material Adverse Effect.  Each Company holds all licenses, certificates of approval, approvals, registrations, permits and consents which are required to operate its businesses where they are currently being operated except where the failure to have such licenses, certificates of approval, approvals, registrations, permits and consents could not reasonably be expected to have a Material Adverse Effect.

		
	(h)
	Outstanding Defaults.  No Default or Event of Default exists or would result from the incurring of any Secured Obligations by any Obligor.  No event has occurred which constitutes or which, with the giving of notice, lapse of time or both, would constitute a default under or in respect of any material agreement, undertaking or instrument to which any Company is a party or to which its respective property or assets may be subject, and which could reasonably be expected to have a Material Adverse Effect.

		
	(i)
	Solvency Proceedings.  No Obligor has:

		
	(i)
	admitted its inability to pay its debts generally as they become due or failed to pay its debts generally as they become due;

		
	(ii)
	in respect of itself, filed an assignment or petition in bankruptcy or a petition to take advantage of any insolvency statute;

		
	(iii)
	made an assignment for the benefit of its creditors;

		
	(iv)
	consented to the appointment of a receiver of the whole or any substantial part of its assets;

		
	(v)
	filed a petition or answer seeking a reorganization, arrangement, adjustment or composition in respect of itself under applicable bankruptcy laws or any other applicable law or statute of Canada, the United States or other applicable jurisdiction or any subdivision thereof; or

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(vi)
	been adjudged by a court having jurisdiction a bankrupt or insolvent, nor has a decree or order of a court having jurisdiction been entered for the appointment of a receiver, liquidator, trustee or assignee in bankruptcy of any Company with such decree or order having remained in force and undischarged or unstayed for a period of 30 days.

		
	(j)
	Tax Returns and Taxes.  Each Obligor has filed all material Tax returns and Tax reports required by law to have been filed by it and has paid all Taxes thereby shown to be owing, except any such Taxes which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with generally accepted accounting principles shall have been set aside on its books.

		
	(k)
	Expropriation or Condemnation.  There is no present or threatened (in writing) expropriation or condemnation of the property or assets of any Company, which expropriation could reasonably be expected to have a Material Adverse Effect.

		
	(l)
	Environmental Compliance.

		
	(i)
	All facilities and property (including underlying groundwater) owned, leased, used or operated by any Company have been, and continue to be, owned or leased in compliance with all Environmental Laws, except where such non-compliance could not reasonably be expected have a Material Adverse Effect;

		
	(ii)
	There are no pending or threatened (in writing)

		
	(A)
	claims, complaints, notices or requests for information received by any Company with respect to any alleged violation of any Environmental Law which alleged violation could reasonably be expected to have a Material Adverse Effect;

		
	(B)
	complaints, notices or inquiries to any Company regarding potential material liability under any Environmental Law which could reasonably be expected to have a Material Adverse Effect;

		
	(iii)
	There have been no Releases of any Hazardous Materials, at, on, under or from any property now or previously owned, operated, used or leased by any Company that, singly or in the aggregate have, or could reasonably be expected to have, a Material Adverse Effect;

		
	(iv)
	Each Company has been issued and is in compliance with all permits, certificates, approvals, licenses and other authorizations under any Environmental Laws to carry on its business except where any such non-issuance or non-compliance could not reasonably be expected to have a Material Adverse Effect; and

		
	(v)
	No conditions exist at, on or under any property now or previously owned, operated, used or leased by any Company which, with the passage of time, or 

	
			
	 
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	Second Amended and Restated Credit Agreement

the giving of notice or both, would give rise to liability under any Environmental Law; which liability could reasonably be expected to have a Material Adverse Effect.
		
	(m)
	Investment Company.  No Obligor is subject to regulation under the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to enter into any Finance Document to which it is a party or otherwise render any such Finance Document unenforceable.

		
	(n)
	Subsidiaries and Partnerships.  No Company is, directly or indirectly, a member of, or a partner or participant in, any partnership, joint venture or syndicate that could reasonably be expected to have a Material Adverse Effect.

		
	(o)
	Corporate Structure.  As at the date hereof, and hereafter, except as such information may change as a result of a transaction permitted hereby and reported to the Administrative Agent in accordance with Section 11.1(b)(iv), the chart attached hereto as Schedule G accurately sets out the corporate structure of the Borrower and all of its Subsidiaries and evidences (i) intercorporate share ownership and (ii) ownership of mines.

		
	(p)
	Solvency after Drawdown.  On an unconsolidated basis,

		
	(i)
	the assets of the Borrower shall exceed its liabilities, including contingent liabilities at a fair valuation;

		
	(ii)
	the capital of the Borrower shall not be reasonably small to conduct its business; and

		
	(iii)
	the Borrower shall not have intended to incur debts, nor shall have believed that it would incur debts, beyond its ability to pay such debts as they mature.

		
	(q)
	Employee Benefit Plans.  Each of the ERISA Companies is in compliance with ERISA and all Applicable Law, except where such non-compliance is not reasonably expected to have a Material Adverse Effect.  There have been no Prohibited Transactions or breaches of fiduciary duty with respect to any Plan that could be reasonably expect to have Material Adverse Effect.  No Termination Event has occurred or is expected to occur with respect to any Plan or Multiemployer Plan that could be reasonably expected to have a Material Adverse Effect.

		
	(r)
	Regulation U or X.  The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock, and no proceeds of any credit obtained hereunder shall 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 U or X or any regulations substituted therefor, as from time to time in effect, are used in this Section with such meanings.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(s)
	Assets Insured.  The property and assets of the Obligors are insured with insurers, in amounts, for risks and otherwise which are reasonable in relation to such property and assets (subject to the amount of such deductibles as are reasonable and normal in the circumstances) against loss or damage, and there has been no default or failure by the party or parties insured under the provisions of such policies of insurance maintained which would prevent the recovery by the relevant Obligor insured thereunder of the full amount of any material insured loss.

		
	(t)
	Foreign Assets Control Regulations.  Neither the execution and delivery of this agreement nor the Borrower’s use of the proceeds of the Credit Facility will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any other enabling legislation or executive order relating thereto.  Without limiting the foregoing, no Obligor nor any of its Subsidiaries (a) is or will become a Person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001) or (b) engages or will engage in any dealings or transactions, or be otherwise associated, with any such Person.  Each Obligor and its Subsidiaries are in compliance, in all material respects, with the Title III of Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001).  No part of the proceeds from either Credit Facility will be used, directly or indirectly, for any payment to any governmental official or employee, political party, official of a political party, candidate for political office or anyone else acting in an official party capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

		
	(u)
	Intellectual Property.  Each Company owns or is licensed or otherwise has the right to use all Intellectual Property that is used in the operation of its businesses without conflict with the rights of any other Person (other than any Intellectual Property the absence of which or any such conflict with respect to which would not have a Material Adverse Effect).  No Company has not received any notice of any claim of infringement or similar claim or proceeding relating to any of the Intellectual Property which if determined against such Company could reasonably be expected to have a Material Adverse Effect.  No present or former employee of any Company and no other Person owns or claims to own or has or claims to have any interest, direct or indirect, in whole or in part, in any of the Intellectual Property of the Borrower that could reasonably be expected to have a Material Adverse Effect.

		
	(v)
	Employment and Labour Agreements.  Each Company is in compliance with the terms and conditions of all collective bargaining agreements and other labour agreements except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(w)
	Liens.  The Liens granted to the Administrative Agent pursuant to the Security Documents are fully perfected first priority Liens in and to the Secured Assets, subject only to Permitted Liens and will, upon the acquisition of additional Secured Assets by each Obligor, constitute first charges or security interests upon all such Secured Assets of such Obligor free and clear of all Liens except for the Permitted Liens.

		
	(x)
	Consents, Approvals, etc.  No consents, approvals, acknowledgements, undertakings, non-disturbance agreements, directions or other documents or instruments which have not already been provided to the Administrative Agent are required to be entered into by any Person (i) to make effective the Security created or intended to be created by the Obligors in favour of the Administrative Agent pursuant to the Security Documents in the issued and outstanding Shares of the Obligors or the Investment Accounts, (ii) to ensure the perfection and the intended priority of such Security other than the consents and approvals referred to in the last sentence of Section 10.1(c) and (iii) to implement the transactions contemplated hereby.

		
	(y)
	Share Capital of Guarantors.  As of the date hereof and hereafter, except as such information may change as a result of transactions permitted hereby (which shall be reported to the Administrative Agent pursuant to Section 11.1(b)(iii)(C), the Perfection Certificates set out (X) the issued capital of each Guarantor, all of which issued Shares have been issued and are outstanding; (Y) the owner of record of all such issued Shares; and (Z) the outstanding warrants, options or other agreements which require or may require the issuance of any Shares of any Guarantor or the issuance of any debt or securities convertible into Shares of any Guarantor.

		
	(z)
	Perfection Certificates.  All information in each Perfection Certificate is hereby certified to be true and correct.

		
	(aa)
	Information Required for Perfection of Security Interests in Secured Assets.  Except as reported or to be reported to the Administrative Agent in accordance with Section 11.1(i), the location of the chief executive office and places of business and the jurisdiction of organization, of each Obligor (for the purposes of perfecting security interests in personal property of the Obligors under the UCC or the Personal Property Security Act (Ontario) and the branch and location of each bank account and each securities account owned by each Obligor are as set forth in its Perfection Certificate.

		
	(bb)
	Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada).  The Borrower’s most recent audited balance sheet states that the Borrower has net assets of at least CDN$75,000,000.  The Borrower’s shares are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Tax Act.  The Borrower operates in a country that is a member of the Financial Action Task Force.

		
	(cc)
	No Omissions.  None of the representations and statements of fact set forth in this Section 10.1 omits to state any material fact necessary to make any such representation or statement of fact not misleading in any material respect.

	
			
	 
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	Second Amended and Restated Credit Agreement

10.2    Survival of Representations and Warranties
All of the representations and warranties of the Borrower contained in Section 10.1 shall survive the execution and delivery of this agreement until the Secured Obligations Termination Date, notwithstanding any investigation made at any time by or on behalf of the Administrative Agent or any of the Lenders.
ARTICLE 11 
COVENANTS
11.1    Affirmative Covenants
The Borrower hereby covenants and agrees with the Administrative Agent and the Lenders that, until the Secured Obligations Termination Date, and unless waived in writing in accordance with Section 14.14:
		
	(a)
	Prompt Payment.  The Borrower shall, and shall cause each other Obligor to, duly and punctually pay, or cause to be duly and punctually paid to the Finance Parties, all amounts payable by each Obligor under the Credit Documents at the times and places and in the currency and manner mentioned therein.

		
	(b)
	Financial Reporting.  The Borrower shall furnish the Administrative Agent with the following statements and reports (with sufficient copies for all of the Lenders (the filing of any of the following documents on SEDAR or EDGAR shall satisfy the delivery obligation in relation to the documents so filed when the Borrower has provided written notice of such filing to the Administrative Agent)) :

		
	(i)
	within 90 days after the end of each Fiscal Year, copies of the audited consolidated financial statements of the Borrower for such Fiscal Year together with the auditors’ report on such audited consolidated financial statements in accordance with generally accepted accounting principles, as well as a chart setting out the corporate structure of the Borrower and all of its Subsidiaries, whether direct or indirect, and evidencing (i) intercorporate share ownership and (ii) mine ownership;

		
	(ii)
	within 45 days after the end of each of the first three Fiscal Quarters in each Fiscal Year, the unaudited consolidated financial statements of the Borrower, in accordance with generally accepted accounting principles, together with a summary report detailing the Borrower’s consolidated risk management activities for the most recently completed Fiscal Quarter;

		
	(iii)
	within 45 days after the end of each of the first three Fiscal Quarters and within 90 days after the end of the fourth Fiscal Quarter:

		
	(A)
	written updates, if any, to the annual budget referenced in Section 11.1(b)(v); and 

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(B)
	written updates detailing any change in information in any Perfection Certificate or to the designation of Excluded Subsidiaries in Schedule K hereto;

		
	(iv)
	concurrent with the deliveries of financial statements pursuant to any of clauses (i) and (ii) above, a duly executed and completed compliance certificate, in the form attached as Schedule B hereto and signed by a senior financial officer of the Borrower;

		
	(v)
	within 90 days after the end of each Fiscal Year, (A) an updated life of mine plan and financial model for the Hycroft Mine to the extent changed from the previous such plan and model delivered to the Administrative Agent and (B) the Borrower’s annual consolidated budget as approved by its board of directors; 

		
	(vi)
	within 20 days of the end of each calendar month, (x) a comprehensive monthly operations report of the Borrower, in form and substance satisfactory to the Lenders, with respect to the Hycroft Mine, such report to be in form and substance satisfactory to the Lenders to include actual results together with variance to budget, and (y) a Borrowing Base Certificate setting out the Borrowing Base as at the last day of the preceding month; and

		
	(vii)
	such other statements, reports and information as the Administrative Agent on the instructions of the Majority Lenders may reasonably request from time to time.

		
	(c)
	Business Activities.  The Borrower shall not, nor shall it suffer or permit any other Company to, engage in any business activity other than activities relating to the business of mining in a Permitted Jurisdiction and any activity incidental thereto (including acting as a holding company of any Company).

		
	(d)
	Insurance.  The Borrower shall, and shall cause each other Obligors to, insure and keep insured, with insurers, for risks, in amounts in a manner consistent with industry practice and otherwise upon terms satisfactory to the Administrative Agent acting reasonably, all of the Obligors assets, property and undertaking.  The Borrower shall cause the Administrative Agent to be named as additional insured and loss payee, as applicable, in respect of each of its policies of insurance.

		
	(e)
	Access to Senior Financial Officers.  Upon the request of the Administrative Agent at reasonable intervals, the Borrower shall, and shall cause each other Obligor to, make available its senior financial officers to answer questions concerning such Obligor’s business and affairs.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(f)
	Reimbursement of Expenses.  The Borrower shall (i) reimburse the Administrative Agent, on demand, for all reasonable out-of-pocket costs, charges and expenses incurred by or on behalf of the Administrative Agent (including, without limitation, the reasonable and documented fees, disbursements and other charges of one primary counsel, any local or special counsel to the Administrative Agent and any Consultant as well the costs of any engineering reports, cash flow models, technical advice concerning the Hycroft Mine and environmental audits and studies as required by the Administrative Agent and approved by the Borrower, acting reasonably) in connection with the negotiation, preparation, execution, delivery, syndication, participation, administration and interpretation of the Credit Documents and the closing documentation ancillary to the completion of the transactions contemplated hereby and thereby and any amendments and waivers hereto and thereto (whether or not consummated or entered into), the charges of Intralinks and any lien search fees and lien registration fees, (ii) reimburse each Finance Party’s agents or officers, on demand, for all reasonable out-of-pocket expenses of such agents or officers in connection with any visit of the nature referred to in Section 11.1(r), and (iii) reimburse the Administrative Agent and the Lenders, on demand, for all reasonable out-of-pocket costs, charges and expense incurred by or on behalf of any of them (including the fees, disbursements and other charges of counsel and any third party retained by the Lenders in its review of the Hycroft Mine) in connection with the enforcement of the Credit Documents.

		
	(g)
	Notice of Expropriation or Condemnation, Litigation and Default/Event of Default.  The Borrower shall promptly notify the Administrative Agent in writing of:

		
	(i)
	the commencement or the written threat of any expropriation or condemnation of any material assets, property or undertaking of any Obligor or of the institution of any proceedings related thereto;

		
	(ii)
	any actions, suits, inquiries, disputes, claims or proceedings (whether or not purportedly on behalf of a Company) commenced or threatened in writing against or affecting a Company before any Official Body which in any case or in the aggregate could reasonably be expected to have a Material Adverse Effect; and

		
	(iii)
	upon the occurrence of either a Default or an Event of Default of which the Borrower is aware, the nature and date of occurrence of such Default or Event of Default, the Borrower’s assessment of the duration and effect thereof and the action which such Borrower (or the relevant Obligor, as applicable) proposes to take with respect thereto.

		
	(h)
	Inspection of Assets and Operations.  The Borrower shall, and shall cause each other Obligor to, permit representatives of the Administrative Agent and/or its Consultant from time to time and representatives of the Lenders to inspect the assets, property or undertaking of each Obligor and for that purpose to enter on any property which is owned and controlled by an Obligor and where any of the assets, property or undertaking of any Obligor may be situated during reasonable business hours and, unless a Default has occurred and is continuing, upon reasonable notice.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(i)
	Change of Name, Office or Other Information.  The Borrower shall notify the Administrative Agent in writing (i) promptly of any change in (A) the corporate name of any Obligor; (B) the location of any Obligor for purposes of the UCC or the Personal Property Security Act (Ontario), (C) the jurisdiction of incorporation of any Obligor and (D) the locations of each bank account and each securities account owned by each Obligor; and (ii) not less than 10 Banking Days prior to the closing thereof, and shall, on the closing thereof, deliver an updated Perfection Certificate in respect of the relevant Obligor.

		
	(j)
	Corporate Existence.  Except as may otherwise be contemplated by a Permitted Reorganization, the Borrower shall, and shall cause each of the other Obligors to, maintain its corporate existence in good standing and qualify and remain duly qualified to carry on business and own property in each jurisdiction where the nature of its business makes such qualification necessary.

		
	(k)
	Conduct of Business.  The Borrower shall, and shall cause each other Company to, conduct its business in such a manner so as to comply with all laws and regulations (including, without limitation, Environmental Laws), so as to observe and perform all its obligations under leases, licences and agreements necessary for the proper conduct of its business and so as to preserve and protect its property and assets and the earnings, income and profits therefrom where such non-compliance, non-observance or non-performance could reasonably be expected to have a Material Adverse Effect.  The Borrower shall, and shall cause each other Company to, obtain and maintain all licenses, permits, government approvals, franchises, authorizations and other rights necessary for the operation of its business where failure to do so could reasonably be expected to have a Material Adverse Effect.

		
	(l)
	Taxes.  The Borrower shall pay, and shall cause each of the other Obligors to pay, all material Taxes levied, assessed or imposed upon it and upon its property or assets or any part thereof, as and when the same become due and payable, save and except when and so long as the validity or amount of any such Taxes is being contested in good faith by appropriate proceedings and reserves are being maintained in accordance with generally accepted accounting principles.

		
	(m)
	Environmental Matters.  The Borrower shall, and shall cause each other Company to, promptly notify the Administrative Agent and provide copies upon receipt of all written claims, complaints, notices or inquiries relating to the condition of its facilities and properties or material compliance with Environmental Laws and shall proceed diligently to resolve any such claims, complaints, notices or inquiries relating to material compliance with Environmental Laws which claims, complaints, notices or inquiries relate to matters which could reasonably be expected to have a Material Adverse Effect and provide such information and certifications which the Administrative Agent may reasonably request from time to time to evidence compliance with this Section 11.1(m).

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(n)
	Tangible Net Worth.  The Borrower shall at all times maintain its Tangible Net Worth to be greater than or equal to the sum of (x) $437,000,000 and (y) 25% of the positive Net Income, if any, for each Fiscal Quarter after the Fiscal Quarter ended September 30, 2013 and shall calculate such ratio as at each Calculation Date.

		
	(o)
	Reserve Tail.  The Borrower shall at all times maintain a minimum Reserve Tail of at least 600,000 ounces of Gold Equivalent and shall calculate such amount as at each Calculation Date.

		
	(p)
	Current Ratio.  The Borrower shall at all times maintain the Current Ratio to be not less than 1.25:1 and shall calculate such ratio as at each Calculation Date.

		
	(q)
	ERISA.  The Borrower shall, and shall cause each ERISA Affiliate to, furnish to the Administrative Agent:

		
	(i)
	promptly after receipt thereof (but in no event later than 30 days after such receipt), a copy of any notice any ERISA Company receives after the date of this agreement from the PBGC relating to the intention of the PBGC to terminate any Plan or Plans or to appoint a trustee to administer any Plan or Plans, if such termination or appointment would result in a Material Adverse Effect;

		
	(ii)
	within 10 days after the due date for filing with the PBGC pursuant to Section 412(n) of the Code of a notice of failure to make a required instalment or other payment with respect to a Plan, a statement of a financial officer setting forth details as to such failure and the action proposed to be taken with respect thereto, together with a copy of such notice given to the PBGC, but only if such failure to make a required instalment would result in a Material Adverse Effect; and

		
	(iii)
	promptly and in any event within 30 days after receipt thereof by any ERISA Company from the sponsor of a Multiemployer Plan, a copy of each notice received by any ERISA Company concerning (A) the imposition of any Withdrawal Liability or (B) a determination that a Multiemployer Plan is, or is expected to be, terminated or in reorganization, in each case within the meaning of Title IV of ERISA, but only if the imposition of such withdrawal liability, in the case of clause (A), or such termination or reorganization, in the case of clause (B), would result in a Material Adverse Effect.

		
	(r)
	Books and Records.  The Borrower shall, and shall cause each other Company to, keep proper books of account and records covering all its business and affairs on a current basis, make full, true and correct entries of its transactions in such books, set aside on its books from their earnings all such proper reserves as required by generally accepted accounting principles and permit representatives of the Administrative Agent to inspect such books of account, records and documents and to make copies therefrom during reasonable business hours and upon reasonable notice and to discuss the affairs, finances and accounts of such Company with its auditors during reasonable business hours and upon reasonable notice.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(s)
	Copies of Public Filings.  The Borrower shall, upon request, furnish the Administrative Agent with copies of all documents which are publicly filed by the Borrower with the Ontario Securities Commission, the United States Securities and Exchange Commission or with any similar Official Body in any other jurisdiction in compliance with applicable securities legislation which are not available on SEDAR or EDGAR.

		
	(t)
	Intercompany Indebtedness.  The Borrower shall cause all Indebtedness owing by any Obligor to any Subsidiary of the Borrower which is not an Obligor to be subordinated and postponed, pursuant to the Postponement and Subordination Undertaking, to the Secured Obligations of such Obligor for so long as a Default has occurred and is continuing.  The Borrower shall cause any Subsidiary of the Borrower which is not an Obligor, prior to the incurrence of any such Indebtedness, to execute and deliver to the Administrative Agent the Postponement and Subordination Undertaking or an instrument of adhesion thereto.

		
	(u)
	Maintenance of Secured Assets.  The Borrower shall, and shall cause each other Obligor to, maintain, preserve, protect and keep:

		
	(i)
	all of its ownership, lease, use, licence and other interests in the Secured Assets as are necessary or advisable to be able to operate the Hycroft Mine substantially in accordance with sound mining and business practice; and

		
	(ii)
	all of the Secured Assets owned by each in good repair, working order, and condition, and make necessary and proper repairs, renewals, and replacements so that the business carried on in connection therewith may be properly conducted at all times.

		
	(v)
	Ownership and Maintenance of Hycroft Mine.  The Borrower shall cause Hycroft Resources to (i) maintain ownership of 100% of the Hycroft Mine and all Mining Claims as are necessary or advisable to be able to operate the Hycroft Mine substantially in accordance with sound mining and business practice; and (ii) to maintain and operate the Hycroft Mine in accordance with sound mining and business practice.

		
	(w)
	Value of Guarantors.  The Borrower shall at all times maintain Adjusted EBITDA and Adjusted Total Assets in an amount equal to or greater than 95% of its consolidated EBITDA and its consolidated Total Assets, respectively.

		
	(x)
	Additional Guarantors and Security.  Subject to the last sentence of this Section 11.1(x), on or before the 15th Banking Day following (i) the direct or indirect formation or acquisition by the Borrower of a wholly-owned Subsidiary (other than an Excluded Subsidiary), (ii) a Subsidiary of the Borrower ceasing to be an Excluded Subsidiary or (iii) any non-Guarantor Subsidiary or the Borrower guaranteeing the High Yield Indebtedness (each, an “Additional Security Trigger”):

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(i)
	the Borrower shall cause each such Subsidiary to duly execute and deliver to the Administrative Agent the Guarantee and the Security Document to which it is a party for the purpose of charging all of such Subsidiary’s present and after-acquired property;

		
	(ii)
	the Borrower shall deliver, or cause to be delivered to, the Administrative Agent, in form and substance satisfactory to the Administrative Agent:

		
	(A)
	a duly certified copy of the articles of incorporation and by-laws or comparable constitutional documents of such Subsidiary;

		
	(B)
	a certificate of status or good standing for such Subsidiary issued by the appropriate governmental body or agency of the jurisdiction in which such Subsidiary is incorporated or otherwise formed (other than with respect to any Subsidiary whose jurisdiction of incorporation or formation does not customarily offer such certificates);

		
	(C)
	a duly certified copy of the resolution of the board of directors of such Subsidiary or other comparable authorization authorizing it to execute, deliver and perform its obligations under each Finance Document to which such Subsidiary is a signatory;

		
	(D)
	a certificate of an officer of such Subsidiary, in such capacity, setting forth specimen signatures of the individuals authorized to sign the Finance Documents to which such Subsidiary is a signatory;

		
	(E)
	a Perfection Certificate signed by an Officer of such Subsidiary;

		
	(F)
	an opinion of such Subsidiary’s counsel addressed to the Lenders, the Administrative Agent and its counsel, relating to the status and capacity of such Subsidiary, the due authorization, execution and delivery and the validity and enforceability of the Finance Documents to which such Subsidiary is a party in and such other matters as the Administrative Agent may reasonably request; and

		
	(G)
	an opinion of the Lenders’ counsel with respect to such matters as may be reasonably required by the Administrative Agent in connection with such Subsidiary (including, without limitation, the legality, validity and binding nature of the obligations of such Subsidiary under, and the enforceability against such Subsidiary of, the Finance Documents which are governed by the laws of the Province of Ontario);

		
	(iii)
	the Administrative Agent and its counsel shall be satisfied, acting reasonably, that all necessary approvals, acknowledgements, directions and consents have been given and that all relevant laws have been complied with in respect of all agreements and transactions referred to herein; and

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(iv)
	all documents and instruments shall have been properly registered, recorded and filed in all places which, searches shall have been conducted in all jurisdictions which, and deliveries of all consents, approvals, acknowledgements, undertakings, directions, negotiable documents of title and other documents and instruments to the Administrative Agent shall have been made which, in the opinion of the Administrative Agent’s counsel, acting reasonably, are desirable or required to make effective the Security created or intended to be created pursuant to Section 11.1(v) and to ensure the perfection and the intended first-ranking priority of such Security;

whereupon the Subsidiary shall become an Additional Guarantor.  The Borrower shall cause all deliverables set forth in this Section 11.1(x) which pertain solely and exclusively to the grant of security over real property interests to  be completed on or before the 75th day following any applicable Additional Security Trigger.
		
	(y)
	Use of Proceeds.  The Borrower shall apply all proceeds of the Credit Facility towards its general corporate purposes and, for certainty, such general corporate purposes shall not include any liquidity backstop facility with respect to commercial paper.

11.2    Restrictive Covenants
The Borrower hereby covenants and agrees with the Administrative Agent and the Lenders that, until the Secured Obligations Termination Date, and unless waived in writing in accordance with Section 14.14:
		
	(a)
	Liens.  The Borrower shall not, and shall not permit or suffer any other Obligor to, enter into or grant, create, assume or suffer to exist any Lien affecting any of their respective properties, assets or undertaking, whether now owned or hereafter acquired, save and except only for the Permitted Liens.

		
	(b)
	Corporate Existence.  Except for Permitted Reorganizations, the Borrower shall not, and shall not permit or suffer any other Company to, take part in any amalgamation, merger, dissolution, winding up, corporate reorganization, capital reorganization or similar proceeding or arrangement or discontinue any businesses.

		
	(c)
	Disposition of Assets.  The Borrower shall not, and shall not suffer or permit any other Obligor to, sell, transfer or otherwise dispose (by way of Sale Leaseback or otherwise, unless not prohibited by Section 11.2(m)) of any of their respective assets other than sales, transfers or other dispositions of (i) inventory or product disposed of in the ordinary course of business, (ii) worn out, unserviceable or obsolete equipment, (iii) any permanent or temporary housing owned by an Obligor, (iv) sales or dispositions pursuant to Third Party Mining Arrangements that are Permitted Liens, (v) other assets of the Companies the aggregate fair market value of which shall not exceed $10,000,000 in any Fiscal Year, and (vi) the crusher plant located at the Hycroft Mine to an arm’s length third party for fair market value.  For certainty, the Borrower shall not, nor shall it suffer or permit, the sale, transfer or disposition of the Shares of any Guarantor unless pursuant to a Permitted Reorganization.  

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(d)
	Change in Business.  The Borrower shall not, and shall not suffer or permit any other Obligor to, engage in any business other than the business of mining and activities related or incidental thereto.

		
	(e)
	Regulation U or X.  The Borrower shall not, and shall not suffer or permit any other Obligor to, engage in the business of extending credit for the purpose of purchasing or carrying margin stock.  The Borrower shall not use any of the proceeds of any credit extended hereunder to “purchase” or “carry” any “margin stock” as defined in Regulation U and X of the F.R.S. Board.

		
	(f)
	Risk Management Agreements.  The Borrower shall not, and shall not suffer or permit any other Obligor to, (i) enter into any Risk Management Agreement for speculative purposes (ii) enter into any one or more Risk Management Agreements on a margined basis other than margined transactions of up to a maximum aggregate $20,000,000 constituted of cash and/or Financial Letters at any given time with any one or more Persons who are not a Finance Party or (iii) enter into any Risk Management Agreement if, as a result thereof, or in conjunction with other Risk Management Agreements, an amount in excess of 75% of the Borrower’s consolidated Proven and Probable Reserves of Gold Equivalent or 75% of its planned extraction of Gold Equivalent, in either case in any Fiscal Quarter, has been or would be hedged.  For certainty, the Borrower shall not, nor shall it suffer or permit any other Obligor to, grant security to any counterparty other than a Qualified Risk Management Lender as collateral security for its obligations under any Risk Management Agreement, save and except for Permitted Liens.

		
	(g)
	Amendments to Constating Documents.  The Borrower shall not, and shall not suffer or permit any other Obligor to, amend their constating documents, other than pursuant to a Permitted Reorganization.

		
	(h)
	Distributions.  The Borrower shall not make any Distributions other than Distributions constituting regularly scheduled interest payments under the High Yield Indebtedness; provided such Distributions may only be made at any time that no Default or Event of Default has occurred and is continuing and no Default or Event of Default would arise upon making any such Distribution.

		
	(i)
	Indebtedness.  The Borrower shall not, and shall not suffer or permit any other Obligor to, create, incur, assume or suffer to exist any Indebtedness other than Permitted Indebtedness.

		
	(j)
	Investments.  The Borrower shall not, and shall not permit any other Obligor to, make any Investments other than (i) Investments in the Obligors, (ii) Investments in Cash Equivalents, and (iii) other Investments (exclusive of the foregoing) in the maximum aggregate amount of $5,000,000 in any calendar year.  Notwithstanding the foregoing, the Borrower shall not, and shall not suffer or permit any other Obligor to, save and except for Investments in an Obligor, make any Investment at any time that an Event of Default has occurred and is continuing.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(k)
	Acquisitions.  The Borrower shall not, and shall not suffer or permit any other Company to, make any Acquisitions other than Permitted Acquisitions.

		
	(l)
	Transactions with Affiliates.  The Borrower shall not, and shall not permit any other Company to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates other than at prices and on terms and conditions not less favourable to such Company than could be obtained on an arm’s length basis from unrelated third parties unless undertaken pursuant to a Permitted Reorganization.  The Borrower shall not, and shall not suffer or permit any other Company to, enter into any transaction or series of transactions with Affiliates of any Company, which involve an outflow of money or other property from such Company to an Affiliate of any of the Companies, including payment of management fees, affiliation fees, administration fees, compensation, salaries, asset purchase payments or any other type of fees or payments similar in nature, other than on terms and conditions substantially as favourable to such Company as would be obtainable by such Company in a reasonably comparable arm’s length transaction with a Person other than an Affiliate of such Company.

		
	(m)
	Sale Leasebacks.  The Borrower shall not, and shall not suffer or permit any other Obligor to, enter into any Sale Leasebacks with any Person that is not an Obligor other than (i) a Sale Leaseback of the crushing plant located at the Hycroft Mine and (ii) Sale Leasebacks of equipment acquired by the Obligor for use in the ordinary course of its business where (x) prior to the completion, construction, installation and/or delivery of such equipment the Obligor was required to make progress payments and/or security deposits (for application against the purchase price of the equipment) and (y) the Sale Leaseback of such equipment is completed within 30 days of the completion, acceptance, installation and/or delivery of the equipment to the Obligor.  For certainty, any such Sale Leaseback transaction shall subsequently constitute a Capital Lease and/or Purchase Money Indebtedness for the purpose of paragraph (b) of the definition of “Permitted Indebtedness” and, with respect to any transaction described in (ii) above, the term Sale Leaseback shall include transactions where the Obligor retains title to the equipment and finances such equipment with Purchase Money Indebtedness.

		
	(n)
	Borrowing Base Restriction.  The aggregate amount of credit outstanding under the Credit Facility shall not at any time exceed the lesser of the Credit Limit as at such time and the Borrowing Base as at the last day of the most recently completed calendar month.

		
	(o)
	Capital Expenditures.  The Borrower shall not, nor shall it suffer or permit, new Capital Expenditures in excess of $5,000,000 to be incurred in respect any actual or contemplated expansion of the Hycroft Mine sulphide operations other than as may be approved in writing by the Lenders; provided, for certainty, that the Borrower may honour its existing contracts and commitments, and make any required payments thereunder, related to the contemplated expansion of the Hycroft Mine sulphide operations that are in existence as of the date hereof (in addition to the aforementioned $5,000,000 limitation).

	
			
	 
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11.3    Performance of Covenants by Administrative Agent
The Administrative Agent may, on the instructions of the Majority Lenders and upon notice by the Administrative Agent to the Borrower, perform any covenant of the Borrower under this agreement which the Borrower fails to perform or cause to be performed and which the Administrative Agent is capable of performing, including any covenants the performance of which requires the payment of money, provided that the Administrative Agent shall not be obligated to perform any such covenant on behalf of the Borrower and no such performance by the Administrative Agent shall require the Administrative Agent to further perform the Borrower’s covenants or shall operate as a derogation of the rights and remedies of the Administrative Agent and the Lenders under this agreement or as a waiver of such covenant by the Administrative Agent.  Any amounts paid by the Administrative Agent as aforesaid shall be reimbursed by the Lenders in their Pro Rata Shares and shall be repaid by the Borrower to the Administrative Agent on behalf of the Lenders on demand.
ARTICLE 12 
CONDITIONS PRECEDENT TO OBTAINING CREDIT
12.1    Conditions Precedent to All Credit
The obligation of the Lenders to extend credit hereunder is subject to fulfilment of the following conditions precedent on the date such credit is extended:
		
	(a)
	the Borrower shall have complied with the requirements of Article 4, Article 5 or Article 6, as the case may be, in respect of the relevant credit;

		
	(b)
	no Default has occurred and is continuing or would arise immediately after giving effect to or as a result of such extension of credit;

		
	(c)
	the representations and warranties of the Borrower contained in Section 10.1 shall be true and correct in all respects on the date such credit is extended as if such representations and warranties were made on such date; and

		
	(d)
	the Credit Facility has not terminated pursuant to Section 2.4.

12.2    Conditions Precedent to Effectiveness of Agreement
This agreement shall become effective upon completion of the following:
		
	(a)
	the Obligors shall have duly executed and delivered to the Administrative Agent the Credit Documents to which each is a party (or, in the case of such Guarantees and Security Documents delivered pursuant to the Existing Credit Agreement, amendments thereto or confirmations thereof which in the opinion of counsel to the Administrative Agent are necessary or desirable, each in form and substance satisfactory to the Administrative Agent) and each Company which is not an Obligor and to whom any Obligor owes any Indebtedness shall have executed and delivered to the Administrative Agent a Postponement and Subordination Undertaking, in each case form and substance satisfactory to the Administrative Agent;

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(b)
	the Administrative Agent has received, in form and substance satisfactory to the Administrative Agent:

		
	(i)
	a duly certified copy of the articles of incorporation, articles of amalgamation or similar documents and by-laws of each Obligor or a certificate of an officer of an Obligor certifying that there have been no changes to such documents since the equivalent was certified and delivered to the Administrative Agent in connection with the Existing Credit Agreement;

		
	(ii)
	a certificate of status or good standing (or other like document) for each Obligor (where available) issued by the appropriate governmental body or agency of the jurisdiction which governs the legal existence of such Obligor;

		
	(iii)
	a duly certified copy of the resolution of the board of directors of each Company authorizing it to execute, deliver and perform its obligations under each Credit Document to which such Company is a signatory;

		
	(iv)
	a certificate of an officer of each Obligor, in such capacity, setting forth specimen signatures of the individuals authorized to sign the Credit Documents to which such Obligor is a signatory;

		
	(v)
	a certificate of a senior officer of the Borrower, in such capacity, certifying that, to the best of his knowledge after due inquiry, no Default has occurred and is continuing or would arise immediately upon the initial extension of credit under the Credit Facility;

		
	(vi)
	except as previously delivered in connection with the Existing Credit Agreement, certificates representing all of the issued and outstanding Shares of each Guarantor (other than, for certainty, any Guarantor which is a limited liability company and has not issued certificates representing its Shares), duly endorsed in blank or accompanied by an executed stock transfer power of attorney;

		
	(vii)
	a Perfection Certificate of each Obligor in form and substance satisfactory to the Administrative Agent or a certificate of an officer of each such Obligor certifying that there have been no changes to its Perfection Certificate since the equivalent was certified and delivered to the Administrative Agent in connection with the Existing Credit Agreement;

		
	(viii)
	an opinion of counsel to each Obligor addressed to the Finance Parties and their counsel, relating to the status and capacity of such Obligor, the due authorization, execution and delivery and the validity and enforceability of this Agreement and the Confirmations (referenced at paragraphs 11 and 12 of Schedule H) to which such Obligor is a party in the Province of Ontario, in the jurisdiction where the Secured Assets are located and/or the jurisdiction governing the existence of the relevant Obligor and such other matters as the Administrative Agent may reasonably request; and

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(ix)
	an opinion of the Administrative Agent’s counsel with respect to such matters as may be reasonably required by the Administrative Agent in connection with the transactions hereunder (including, without limitation, the legality, validity and binding nature obligations of the Borrower under, and the enforceability against the Obligors of, this Agreement which are governed by the laws of the Province of Ontario); 

		
	(c)
	there has not occurred a Material Adverse Change since September 30, 2013;

		
	(d)
	there shall exist no pending or threatened (in writing) litigation, proceedings or investigations which (x) contest the consummation of the Credit Facility or any part thereof or (y) could reasonably be expected to have a Material Adverse Effect;

		
	(e)
	the Administrative Agent and its counsel shall be satisfied, acting reasonably, that all necessary approvals, acknowledgements, directions and consents have been given and that all relevant laws have been complied with in respect of all agreements and transactions referred to herein;

		
	(f)
	all documents and instruments shall have been properly registered, recorded and filed in all places which, searches shall have been conducted in all jurisdictions which, and deliveries of all consents, approvals, directions, acknowledgements, undertakings and non-disturbance agreements contemplated herein, negotiable documents of title, ownership certificates and other documents and instruments to the Administrative Agent shall have been made which, in the opinion of the Administrative Agent’s counsel, are desirable or required to make effective the Security created or intended to be created by the Obligors in favour of the Administrative Agent pursuant to the Security Documents and to ensure the perfection and the intended priority of the Security.  

		
	(g)
	National Bank of Canada, Commonwealth Bank of Australia and Société Générale (Canada Branch) (each, an “Exiting Lender”) shall each have entered into an assignment and assumption agreement with The Bank of Nova Scotia whereby each Exiting Lender has assigned 100% of its Individual Commitment (for the purpose of this Section 12.2(g), only, as defined in the Existing Credit Agreement) to The Bank of Nova Scotia; 

		
	(h)
	the Administrative Agent shall have received satisfactory evidence to it that the obligations of the Obligors owing to each of National Bank of Canada and Société Générale (Canada Branch) (or their respective Qualified Affiliates) (the “Exiting Hedge Banks”) pursuant to Qualified Risk Management Agreements shall immediately cease to constitute Secured Obligations upon the delivery by the Borrower to each Exiting Hedge Bank of a Financial Letter in an amount sufficient to collateralize the mark-to-market exposure of each such Exiting Hedge Bank as of the relevant date of determination; and

		
	(i)
	the Borrower shall have paid to The Bank of Nova Scotia, in its capacity as Lead Arranger, the Lenders, the Administrative Agent, the Qualified Risk Management Lenders and counsel and consultants to the Lenders all fees and expenses required to be paid pursuant to the Finance Documents.

	
			
	 
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	Second Amended and Restated Credit Agreement

12.3    Confirmation of Satisfaction of Conditions Precedent
On the written request of the Borrower, the Administrative Agent shall confirm to the Borrower in writing as to whether the requirements for the effectiveness of this agreement set out in Section 12.2 have been satisfied and/or waived and, where such requirements have been satisfied and/or waived, the Borrower may rely on such confirmation, in the absence of any other subsequent written advice from the Administrative Agent to the contrary, when requesting any advance pursuant hereto.
12.4    Waiver
The terms and conditions of Sections 12.1 and 12.2 are inserted for the sole benefit of the Administrative Agent and the Lenders, and the Lenders may waive them in accordance with Section 14.14, in whole or in part, with or without terms or conditions, in respect of any extension of credit, without prejudicing their right to assert the terms and conditions of Sections 12.1 and 12.2 in whole or in part in respect of any other extension of credit.
ARTICLE 13 
DEFAULT AND REMEDIES
13.1    Events of Default
Upon the occurrence of any one or more of the following events, unless expressly waived in writing in accordance with Section 14.14:
		
	(a)
	the breach by the Borrower of the provisions of Section 9.1 or 9.6;

		
	(b)
	the failure of any Obligor to pay any amount due under the Credit Documents (other than amounts due pursuant to Section 9.1 or 9.6) within two Banking Days after the payment is due;

		
	(c)
	the commencement by any Obligor or by any other Person of proceedings for the dissolution, liquidation or winding up of any Obligor or for the suspension of operations of any Obligor (other than (i) such proceedings commenced by another Person which are diligently defended and are discharged, vacated or stayed within thirty days after commencement or (ii) proceedings that are part of a Permitted Corporate Reorganization);

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(d)
	if an Obligor ceases or threatens to cease to carry on its business or is adjudged or declared bankrupt or insolvent or admits its inability to pay its debts generally as they become due or fails to pay its debts generally as they become due or makes an assignment for the benefit of creditors, petitions or applies to any tribunal for the appointment of a receiver or trustee for it or for any part of its property (or such a receiver or trustee is appointed for it or any part of its property), or commences (or any other Person commences) any proceedings relating to it under any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction whether now or hereafter in effect (other than such proceedings commenced by another Person which are diligently defended and are discharged, vacated or stayed within thirty days after commencement or that are part of a Permitted Corporate Reorganization), or by any act indicates its consent to, approval of, or acquiescence in, any such proceeding for it or for any part of its property, or suffers the appointment of any receiver or trustee, sequestrator or other custodian;

		
	(e)
	if any representation or warranty made by any Obligor in this agreement or in any other document, agreement or instrument delivered pursuant hereto or referred to herein or any material information furnished in writing to the Administrative Agent by any Obligor proves to have been incorrect in any respect when made or furnished which, if capable of being cured, has not been remedied within 30 Banking Days after written notice to do so has been given by the Administrative Agent to the Borrower;

		
	(f)
	if a writ, execution, attachment or similar process is issued or levied against all or any portion of the property of any Obligor in connection with any judgment against it in an amount of at least $5,000,000, and such writ, execution, attachment or similar process is not released, bonded, satisfied, discharged, vacated or stayed within thirty days after its entry, commencement or levy;

		
	(g)
	any breach of any Financial Covenant or any provision of Section 11.2;

		
	(h)
	the breach or failure of due observance or performance by any Obligor of any covenant or provision of any Finance Document (other than those previously referred to in this Section 13.1) and such breach or failure continues for 15 Banking Days after the earlier of (x) the Borrower becoming aware of such breach or failure or (y) the Administrative Agent giving the Borrower notice of such breach or failure;

		
	(i)
	if one or more encumbrancers, liens or landlords take possession of any part of the property of any Obligor or attempt to enforce their security or other remedies against such property and their claims remain unsatisfied for such period as would permit such property to be sold thereunder and such property which has been repossessed or is capable of being sold has an aggregate fair market value of at least $5,000,000;

		
	(j)
	if any Indebtedness of any Obligor (other than Indebtedness owing to another Company) in an amount of at least $5,000,000, is not paid when due and payable (whether on demand, maturity, acceleration or otherwise);

	
			
	 
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	(k)
	the occurrence of a Change of Control;

		
	(l)
	(i) any Termination Event occurs (not otherwise described in this Section 13.1(l) that, when taken together with all other Termination Events that have occurred, could be expected, in the reasonable opinion of Lender, to result in a liability of the Borrower, when added to any liability of any other ERISA Company, in excess of $5,000,000; (ii) failure to make full payment (including all required instalments) when due of all amounts that, under the provisions of any Plan or Applicable Law, the Borrower or any ERISA Affiliate is required to pay as contributions thereto, which, together with all such other failures, would result in a liability to the Borrower, when added to any liability of a Guarantor, in excess of $5,000,000; (iii) failure of the Borrower or any ERISA Company to timely pay an amount or amounts aggregating in excess of $5,000,000 for which it is liable under Section 4062, 4063 or 4064 of ERISA and for which the Borrower or any ERISA Company does not reasonably dispute the amount or validity thereof; (iv) notice of intent to terminate a Plan shall be filed under Title IV of ERISA by any ERISA Company, any plan administrator, or both if such termination would be reasonably expected to result in a Material Adverse Effect; (v) the PBGC institutes proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer any Plan, if such action by the PBGC would result in a Material Adverse Effect; or (vi) there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or more ERISA Companies to incur a current annual payment obligation in excess of $5,000,000;

		
	(m)
	the occurrence of an event of default under any Material Agreement or the termination or amendment of any Material Agreement if such termination or amendment could reasonably be expected to have a Material Adverse Effect;

		
	(n)
	the expropriation, condemnation or abandonment of the Hycroft Mine or any part thereof unless such part is not material to the Hycroft Mine  taken as a whole and would not reasonably be expected to have a Material Adverse Effect or the Borrower ceases to own, directly or indirectly, 100% of the Hycroft Mine or the Borrower fails to maintain the Mining Claims necessary or advisable to be able to operate the Hycroft Mine substantially in accordance with sound mining and business practice;

		
	(o)
	any Credit Document shall terminate (other than in accordance with its terms) or cease in whole or in any material part to be a legal, valid and binding obligation of any Obligor which is a party thereto, enforceable by the Administrative Agent, the Lenders or any of them against such Obligor and such Credit Document has not been replaced by a legal, valid, binding and enforceable document which is equivalent in effect to such Credit Document, assuming such Credit Document had originally been legal, valid, binding and enforceable, in form and substance acceptable to the Administrative Agent, within 20 days of such determination, provided, however, that such grace period shall only be provided if such Obligor actively co‐operates with the Administrative Agent to so replace such Credit Document;

	
			
	 
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	(p)
	the validity, enforceability or priority of any of the Credit Documents is contested in any manner by any Obligor;

		
	(q)
	the Postponement and Subordination Undertaking shall terminate (other than in accordance with its terms) or ceases in whole or in any material part to be the legal, valid, binding and enforceable obligations of any party thereto and the Postponement and Subordination Undertaking has not been replaced by a legal, valid, binding and enforceable document which is equivalent in effect to the Postponement and Subordination Undertaking, assuming the Postponement and Subordination Undertaking had originally been legal, valid, binding and enforceable, in form and substance acceptable to the Administrative Agent, within 21 days of the Administrative Agent giving written notice to the Borrower, or a senior officer of the Borrower obtaining actual knowledge, of such termination or cessation, provided, however, that such grace period shall only be provided if the Companies actively cooperate with the Administrative Agent to so replace the Postponement and Subordination Undertaking;

		
	(r)
	any Security Document does not constitute first ranking, priority Lien on any Investment Account or on 100% of the issued and outstanding Shares of the Guarantors, subject only to Permitted Liens arising by operation of law and customary Liens in respect of service charges and other obligations, other than Indebtedness, in respect of an Investment Account; or

		
	(s)
	a Material Adverse Change occurs;

the Administrative Agent (with the approval and instructions of the Majority Lenders) may, by notice to the Borrower, terminate the Credit Facility (provided, however, that the Credit Facility shall automatically terminate, without notice of any kind, upon the occurrence of an event described in clause (c) or (d) above) and the Administrative Agent (with the approval and instructions of the Majority Lenders) may, by the same or further notice to the Borrower, declare all Indebtedness of the Borrower to the Lenders pursuant to this agreement (including the then contingent liability of the Issuing Lender under all Letters) to be immediately due and payable whereupon all such indebtedness shall immediately become and be due and payable without further demand or other notice of any kind, all of which are expressly waived by the Borrower (provided, however, that all such Indebtedness of the Borrower to the Lenders shall automatically become due and payable, without notice of any kind, upon the occurrence of an event described in clause (c) or (d) above).  Upon the payment by the Borrower to the Issuing Lender of the then aggregate contingent liability under all outstanding Letters issued by the Issuing Lender, the Borrower shall have no further liability to the Issuing Lender with respect to such Letters.

	
			
	 
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13.2    Refund of Overpayments
With respect to each Letter for which the Issuing Lender has been paid all of its contingent liability pursuant to Sections 9.1, 9.4 or 13.1 and provided that all amounts due by the Borrower to the Issuing Lender under Sections 9.1, 9.4 and 13.1 have been paid, the Issuing Lender agrees to pay to the Borrower, upon the later of:
		
	(a)
	if the Letter is subject to an Order, the date on which any final and non-appealable order, judgment or other determination has been rendered or issued either permanently enjoining the Issuing Lender from paying under such Letter or terminating any outstanding Order; and

		
	(b)
	the earlier of:

		
	(i)
	the date on which either the original counterpart of such Letter is returned to the Issuing Lender for cancellation or the Issuing Lender is released by the beneficiary thereof from any further obligations in respect of such Letter;

		
	(ii)
	the expiry of such Letter; and

		
	(iii)
	 (where the contingent liability under such Letter is less than the face amount thereof), all amounts possibly payable under such Letter have been paid;

an amount equal to any excess of the amount received by the Issuing Lender hereunder in respect of its contingent liability under such Letter over the total of amounts applied to reimburse the Issuing Lender for amounts paid by it under or in connection with such Letter (the Issuing Lender having the right to so appropriate such funds).
13.3    Remedies Cumulative
The Borrower expressly agrees that the rights and remedies of the Administrative Agent and the Lenders under this agreement are cumulative and in addition to and not in substitution for any rights or remedies provided by law.  Any single or partial exercise by the Administrative Agent or any Lender of any right or remedy for a default or breach of any term, covenant or condition in this agreement does not waive, alter, affect or prejudice any other right or remedy to which the Administrative Agent or such Lender may be lawfully entitled for the same default or breach.  Any waiver by the Administrative Agent with the approval of the Majority Lenders or all of the Lenders in accordance with Section 14.14 of the strict observance, performance or compliance with any term, covenant or condition of this agreement is not a waiver of any subsequent default and any indulgence by the Lenders with respect to any failure to strictly observe, perform or comply with any term, covenant or condition of this agreement is not a waiver of the entire term, covenant or condition or any subsequent default.  No failure or delay by the Administrative Agent or any Lender in exercising any right shall operate as a waiver of such right nor shall any single or partial exercise of any power or right preclude its further exercise or the exercise of any other power or right.

	
			
	 
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	Second Amended and Restated Credit Agreement

13.4    Set-Off
In addition to any rights now or hereafter granted under applicable law, and not by way of limitation of any such rights, each Finance Party is authorized, on and after the Enforcement Date without notice to the Borrower or to any other Person, any such notice being expressly waived by the Borrower, to set‐off, appropriate and apply any and all deposits, matured or unmatured, general or special, and any other indebtedness at any time held by or owing by a Finance Party to or for the credit of or the account of the Borrower against and on account of the obligations and liabilities of the Borrower which are due and payable to such Finance Party under the Finance Documents.
ARTICLE 14 
THE ADMINISTRATIVE AGENT
14.1    Appointment and Authorization of Administrative Agent
Each Finance Party hereby appoints and authorizes, and hereby agrees that it will require any assignee of any of its interests in the Credit Documents (other than the holder of a participation in its interests herein or therein) to appoint and authorize the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under the Credit Documents as are delegated to the Administrative Agent by such Finance Party by the terms hereof, together with such powers as are reasonably incidental thereto.  Neither the Administrative Agent nor any of its directors, officers, employees or agents shall be liable to any of the Finance Parties for any action taken or omitted to be taken by it or them hereunder or thereunder or in connection herewith or therewith, except for its own gross negligence or wilful misconduct and each Finance Party hereby acknowledges that the Administrative Agent is entering into the provisions of this Section 14.1 on its own behalf and as agent and trustee for its directors, officers, employees and agents.
14.2    Interest Holders
The Administrative Agent may treat each Lender set forth in Schedule A hereto or the person designated in the last notice delivered to it under Section 15.5 as the holder of all of the interests of such Lender under the Credit Documents.
14.3    Consultation with Counsel
The Administrative Agent may consult with legal counsel selected by it as counsel for the Administrative Agent and the Lenders and shall not be liable for any action taken or not taken or suffered by it in good faith and in accordance with the advice and opinion of such counsel.
14.4    Documents
The Administrative Agent shall not be under any duty to the Finance Parties to examine, enquire into or pass upon the validity, effectiveness or genuineness of the Credit Documents or any instrument, document or communication furnished pursuant to or in connection with the Credit Documents and the Administrative Agent shall, as regards the Finance Parties, be entitled to assume that the same are valid, effective and genuine, have been signed or sent by the proper parties and are what they purport to be.

	
			
	 
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14.5    Administrative Agent as Finance Party
With respect to those portions of a particular Credit Facility made available by it, the Administrative Agent shall have the same rights and powers under the Credit Documents as any other Finance Party and may exercise the same as though it were not the Administrative Agent.  The Administrative Agent and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower and its Affiliates and persons doing business with the Borrower and/or any of its Affiliates as if it were not the Administrative Agent and without any obligation to account to the Finance Parties therefor.
14.6    Responsibility of Administrative Agent
The duties and obligations of the Administrative Agent to the Finance Parties under the Credit Documents are only those expressly set forth herein.  The Administrative Agent shall not have any duty to the Finance Parties to investigate whether a Default or an Event of Default has occurred.  The Administrative Agent shall, as regards the Lenders, be entitled to assume that no Default or Event of Default has occurred and is continuing unless the Administrative Agent has actual knowledge or has been notified by the Borrower of such fact or has been notified by a Finance Party that such Finance Party considers that a Default or Event of Default has occurred and is continuing, such notification to specify in detail the nature thereof.
14.7    Action by Administrative Agent
The Administrative Agent shall be entitled to use its discretion with respect to exercising or refraining from exercising any rights which may be vested in it on behalf of the Finance Parties by and under this agreement; provided, however, that the Administrative Agent shall not exercise any rights under Section 13.1 or under the Guarantee or the Security Documents or expressed to be on behalf of or with the approval of the Majority Lenders without the request, consent or instructions of the Majority Lenders.  Furthermore, any rights of the Administrative Agent expressed to be on behalf of or with the approval of the Majority Lenders shall be exercised by the Administrative Agent upon the request or instructions of the Majority Lenders.  The Administrative Agent shall incur no liability to the Finance Parties under or in respect of any of the Credit Documents with respect to anything which it may do or refrain from doing in the reasonable exercise of its judgment or which may seem to it to be necessary or desirable in the circumstances, except for its gross negligence or wilful misconduct.  The Administrative Agent shall in all cases be fully protected in acting or refraining from acting under any of the Credit Documents in accordance with the instructions of the Majority Lenders and any action taken or failure to act pursuant to such instructions shall be binding on all Finance Parties.  In respect of any notice by or action taken by the Administrative Agent hereunder, the Borrower shall at no time be obliged to enquire as to the right or authority of the Administrative Agent to so notify or act.

	
			
	 
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14.8    Notice of Events of Default
In the event that the Administrative Agent shall acquire actual knowledge or shall have been notified of any Default or Event of Default, the Administrative Agent shall promptly notify the Lenders and shall take such action and assert such rights under Section 13.1 of this agreement and under the other Credit Documents as the Majority Lenders shall request in writing and the Administrative Agent shall not be subject to any liability by reason of its acting pursuant to any such request.  If the Majority Lenders shall fail for five Banking Days after receipt of the notice of any Default or Event of Default to request the Administrative Agent to take such action or to assert such rights under any of the Credit Documents in respect of such Default or Event of Default, the Administrative Agent may, but shall not be required to, and subject to subsequent specific instructions from the Majority Lenders, take such action or assert such rights (other than rights under Section 13.1 of this agreement or under the other Credit Documents and other than giving an express waiver of any Default or any Event of Default) as it deems in its discretion to be advisable for the protection of the Lenders except that, if the Majority Lenders have instructed the Administrative Agent not to take such action or assert such rights, in no event shall the Administrative Agent act contrary to such instructions unless required by law to do so.
14.9    Responsibility Disclaimed
The Administrative Agent shall be under no liability or responsibility whatsoever as agent hereunder:
		
	(a)
	to the Borrower or any other Person as a consequence of any failure or delay in the performance by, or any breach by, any Finance Party or Finance Parties of any of its or their obligations under any of the Credit Documents;

		
	(b)
	to any Finance Party or Finance Parties as a consequence of any failure or delay in performance by, or any breach by, any Obligor of any of its obligations under any of the Credit Documents; or

		
	(c)
	to any Finance Party or Finance Parties for any statements, representations or warranties in any of the Credit Documents or in any other documents contemplated hereby or thereby or in any other information provided pursuant to any of the Credit Documents or any other documents contemplated thereby or for the validity, effectiveness, enforceability or sufficiency of any of the Credit Documents or any other document contemplated hereby or thereby.

14.10    Indemnification
The Finance Parties agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower) in their respective Pro Rata Shares from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of any of the Credit Documents or any other document contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under any of the Credit Documents or any document contemplated hereby or thereby, except that no Finance Party shall be liable to the Administrative Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the gross negligence or wilful misconduct of the Administrative Agent.

	
			
	 
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14.11    Credit Decision
Each Lender represents and warrants to the Administrative Agent that:
		
	(a)
	in making its decision to enter into this agreement and to make its Pro Rata Share of a Credit Facility available to the Borrower, it is independently taking whatever steps it considers necessary to evaluate the financial condition and affairs of the Obligors and that it has made an independent credit judgment without reliance upon any information furnished by the Administrative Agent; and

		
	(b)
	so long as any portion of a Credit Facility is being utilized by the Borrower, it will continue to make its own independent evaluation of the financial condition and affairs of the Obligors.

14.12    Successor Administrative Agent
Subject to the appointment and acceptance of a successor Administrative Agent as provided below, the Administrative Agent may, with the prior written consent of the Borrower (which consent shall not be required for so long as a Default has occurred and is continuing), resign at any time by giving 30 days written notice thereof to the Borrower and the Lenders.  Upon any such resignation, the Majority Lenders, with the prior written consent of the Borrower (which consent shall not be required (x) if the successor Administrative Agent is an Affiliate or Subsidiary of the Administrative Agent on the date hereof or (y) for so long as a Default has occurred and is continuing), shall have the right to appoint a successor Administrative Agent who shall be one of the Lenders unless none of the Lenders wishes to accept such appointment.  If no successor Administrative Agent shall have been so appointed and shall have accepted such appointment by the time of such resignation, then the retiring Administrative Agent may, on behalf of the Finance Parties and with the prior written consent of the Borrower (which consent shall not be required for so long as an Event of Default has occurred and is continuing), appoint a successor Administrative Agent which shall be a bank which has combined capital and reserves in excess of CDN$250,000,000.  Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges, duties and obligations of the retiring Administrative Agent (in its capacity as Administrative Agent but not in its capacity as a Finance Party) and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder (in its capacity as Administrative Agent but not in its capacity as a Finance Party).  After any retiring Administrative Agent’s resignation hereunder as the Administrative Agent, provisions of this Article 14 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent.
14.13    Delegation by Administrative Agent
With the prior approval of the Majority Lenders, the Administrative Agent shall have the right to delegate any of its duties or obligations hereunder as Administrative Agent to any Affiliate of the Administrative Agent so long as the Administrative Agent shall not thereby be relieved of such duties or obligations.

	
			
	 
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14.14    Waivers and Amendments
		
	(a)
	Subject to Section 14.14(b) and (c), any term, covenant or condition of any of the Credit Documents may only be amended with the prior consent of the Borrower and the Majority Lenders or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively) by the Majority Lenders and in any such event the failure to observe, perform or discharge any such covenant, condition or obligation, so amended or waived (whether such amendment is executed or such consent or waiver is given before or after such failure), shall not be construed as a breach of such covenant, condition or obligation or as a Default or Event of Default.  Notwithstanding anything else contained herein, to be entitled to vote as a Majority Lender, pursuant to this Section 14.14(a), (i) a Lender must have an Individual Commitment with respect to the Credit Facility in an amount greater than or equal to the lesser of (x) $10,000,000 and (y) 8% of the Total Commitment Amount at such time and (ii) a Qualified Risk Management Lender must be an Affiliate of such a Lender.

		
	(b)
	Notwithstanding Section 14.14(a), without the prior written consent of each Lender, no such amendment or waiver shall directly:

		
	(i)
	increase the amount of the Credit Facility or the amount of the Individual Commitment of any Lender with respect to the Credit Facility;

		
	(ii)
	extend the Maturity Date;

		
	(iii)
	extend the time for the payment of interest on Loans, forgive any portion of principal thereof, reduce the stated rate of interest thereon or amend the requirement of pro rata application of all amounts received by the Administrative Agent in respect of the Credit Facility;

		
	(iv)
	reduce the stated amount or postpone the date for payment of any fees or other amount to be paid pursuant to Article 7 or Article 8 of this agreement;

		
	(v)
	permit any subordination of any of the Secured Obligations;

		
	(vi)
	except as otherwise permitted pursuant to Section 14.20, release or discharge any Guarantee or any Security Documents, in whole or in part.

		
	(vii)
	change the percentage of the Lenders’ requirement to constitute the Majority Lenders or otherwise amend the definition of Majority Lenders;

		
	(viii)
	amend or alter the terms of Section 13.4, Section 14.14 Section 14.16, Section 14.21 or Section 14.24;

		
	(ix)
	amend the definitions of “Qualified Risk Management Agreements”, “Enforcement Date”, “Exposure”, “Finance Document”, “Finance Party”, “Qualified Affiliate”, “Qualified Risk Management Lender”, “Risk Management Agreement” or “Secured Obligations”.

	
			
	 
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Notwithstanding anything else contained herein, to be entitled to a vote as a Lender pursuant to this Section 14.14(b), such Lender must have an Individual Commitment with respect to the Credit Facility in an amount greater than or equal to the lesser of (x) $10,000,000 and (y) 8% of the Total Commitment Amount at such time.
		
	(c)
	Notwithstanding Section 14.14(a), but subject to Section 14.14(f), without the prior written consent of each Qualified Risk Management Lender, no such amendment or waiver shall directly:

		
	(i)
	permit any subordination of any of the Secured Obligations;

		
	(ii)
	except as otherwise permitted pursuant to Section 14.20, release or discharge any Guarantee or the Security Documents, in whole or in part;

		
	(iii)
	amend or alter the terms of Section 14.14, Section 14.16, Section 14.21 or Section 14.24; or

		
	(iv)
	amend the definitions of “Enforcement Date”, “Exposure”, “Finance Document”, “Finance Party”, “Qualified Affiliate”, “Qualified Risk Management Agreements”, “Qualified Risk Management Lender”, “Risk Management Agreement” or “Secured Obligations” or any constituent definitions therein.

		
	(d)
	No amendment to or waiver of any provision hereof to the extent it affects the rights or obligations of the Administrative Agent shall be effective without the prior written consent of the Administrative Agent.

		
	(e)
	Without the prior written consent of the Issuing Lender, no amendment to or waiver of Article 14 or any other provision hereof to the extent it affects the rights or obligations of the Issuing Lender shall be effective.

		
	(f)
	A Qualified Risk Management Lender that is no longer a Lender or an Affiliate of a Lender shall not be entitled to vote on, consent to, waive or veto any of the matters set forth in Section 14.14(c) unless specifically set forth  in this Section 14.14(f) or unless  such former Lender ceased to be a Lender on account of a request of the Borrower pursuant to Section 8.3.  Notwithstanding any other provisions of this agreement, the Secured Obligations of  each Qualified Risk Management Lender (including, for certainty, each Qualified Risk Management Lender that is no longer a Lender or an Affiliate of a Lender) shall at all times rank pari passu with the Secured Obligations of each other Finance Party and the Secured Obligations of the Finance Parties (including, for certainty, any Qualified Risk Management Lender that is no longer a Lender or an Affiliate of a Lender) shall be paid pro rata in accordance with their relative Exposures that are then due and payable, in each case regardless of any amendments made to this agreement after the date hereof. Notwithstanding any other provisions of this agreement, no amendment shall be made to this Section 14.14(f) without the written consent of each Qualified Risk Management Lender that is no longer a Lender or an Affiliate of a Lender and each other Finance Party.

	
			
	 
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14.15    Determination by Administrative Agent Conclusive and Binding
Any determination to be made by the Administrative Agent on behalf of or with the approval of the Lenders or the Majority Lenders under this agreement shall be made by the Administrative Agent in good faith and, if so made, shall be binding on all parties, absent manifest error.  The Obligors are entitled to assume that any action taken by the Administrative Agent under or in connection with any Credit Document has been appropriately authorized by the Lenders or the Majority Lenders, as the case may be, pursuant to the terms hereof.
14.16    Adjustments among Lenders after Acceleration
		
	(a)
	The Lenders agree that, at any time after all Indebtedness of the Borrower to the Lenders pursuant hereto has become immediately due and payable pursuant to Section 13.1 or after the cancellation or termination of the Credit Facility, they will at any time or from time to time upon the request of any Lender through the Administrative Agent purchase portions of the availments made available by the other Lenders which remain outstanding, and make any other adjustments which may be necessary or appropriate, in order that the amounts of the availments made available by the respective Lenders which remain outstanding, as adjusted pursuant to this Section 14.16, will be in the same proportions as their respective Pro Rata Shares thereof with respect to the Credit Facility immediately prior to such acceleration, cancellation or termination.

		
	(b)
	The Finance Parties agree that, at any time after all Indebtedness of the Borrower to the Lenders pursuant hereto has become immediately due and payable pursuant to Section 13.1 or after the cancellation or termination of the Credit Facility, the amount of any repayment made by the Borrower under this agreement, and the amount of any proceeds of the exercise of any rights or remedies of the Finance Parties under the Finance Documents, which are to be applied against amounts owing hereunder or thereunder as principal and/or other indebtedness then due and payable under any Finance Document, will be so applied in a manner such that to the extent possible, (i) the Exposure of each of the Finance Parties, after giving effect to such application, will be pro rata in accordance with the Finance Parties’ relative Exposures that are then due and payable and (ii) the amount of credit outstanding under the Credit Facility which is owing to each Lender, after giving effect to such application, will be pro rata in accordance with the Lenders’ Pro Rata Shares immediately prior to such acceleration, cancellation or termination.

		
	(c)
	For greater certainty, each Finance Party acknowledges and agrees that without limiting the generality of Section 14.16(b), such provision will have application if and whenever any Finance Party shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, compensation, or otherwise), other than the excess portion of the proportionately greater payment referred to in Section 14.17.

	
			
	 
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	(d)
	The Borrower agrees to be bound by and to do all things necessary or appropriate to give effect to any and all purchases and other adjustments made by and between the Finance Parties pursuant to this Section 14.16.

14.17    Redistribution of Payment
If a Finance Party shall receive payment, at any time after all Indebtedness of the Borrower to the Lenders pursuant hereto has become immediately due and payable pursuant to Section 13.1 or after the cancellation or termination of the Credit Facility, of a portion of the aggregate amount of Secured Obligations then due and payable by an Obligor to the Finance Party (whether by set-off, repayment, the proceeds of the exercise of any rights or remedies of the Finance Parties under the Finance Documents or otherwise) which is greater than the proportion received by any other Finance Party in respect of the aggregate amount of Secured Obligations then due and payable to it (having regard to the respective Exposures of the Finance Parties that are then due and payable), the Finance Party receiving such proportionately greater payment shall purchase a participation (which shall be deemed to have been done simultaneously with receipt of such payment) in that portion of the aggregate outstanding Secured Obligations due and payable to the other Finance Party or Finance Parties so that the respective receipts shall be pro rata to their respective participation in the Secured Obligations that are then due and payable; provided, however, that if all or part of such proportionately greater payment received by such purchasing Finance Party shall be recovered from the Borrower, such purchase shall be rescinded and the purchase price paid for such participation shall be returned by such selling Finance Party or Finance Parties to the extent of such recovery, but without interest.
14.18    Distribution of Notices
Except as otherwise expressly provided herein, promptly after receipt by the Administrative Agent of any notice or other document which is delivered to the Administrative Agent hereunder on behalf of the Lenders, the Administrative Agent shall provide a copy of such notice or other document to each of the Lenders; provided, however, that a copy of any such notice delivered at any time during the continuance of an Event of Default shall be delivered by the Administrative Agent to each of the Finance Parties.
14.19    Other Security Not Permitted
None of the Finance Parties shall be entitled to enjoy any Lien with respect to any of the Secured Assets other than the Security.

	
			
	 
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14.20    Discharge of Security
To the extent a sale or other disposition of the Secured Assets is permitted pursuant to the provisions hereof, the Lenders hereby authorize the Administrative Agent, at the cost and expense of the Borrower, to execute such discharges and other instruments which are necessary for the purposes of releasing and discharging the Security therein or for the purposes of recording the provisions or effect thereof in any office where the Security Documents may be registered or recorded or for the purpose of more fully and effectively carrying out the provisions of this Section 14.20.
14.21    Determination of Exposures
Concurrent with any request for any approval or instructions of the Majority Lenders and prior to any distribution of Cash Proceeds of Realization to the Finance Parties, the Administrative Agent shall request each Finance Party to provide to the Administrative Agent a written calculation of such Finance Party’s Exposure, each such calculation to be certified true and correct by the Finance Party providing same.  Each Finance Party shall so provide such calculation within two Banking Days following the request of the Administrative Agent.  Any such calculation provided by a particular Finance Party shall, absent manifest error, constitute prima facie evidence of such Finance Party’s Exposure at such time.  With respect to each determination of the Exposure of the Finance Parties, the Administrative Agent shall promptly notify the Finance Parties.  For the purposes of determining a particular Finance Party’s Exposure:
		
	(a)
	the Exposure of a Finance Party under any Credit Documents shall be the aggregate amount (expressed in United States dollars) owing to such Finance Party thereunder on such date;

		
	(b)
	the Exposure of a Qualified Risk Management Lender in respect of Qualified Risk Management Agreements shall be measured as the net exposure of such Qualified Risk Management Lender under all Qualified Risk Management Agreements less the aggregate exposure of the Borrower thereunder; the exposure of party to a Qualified Risk Management Agreement shall be, in the case of a Qualified Risk Management Agreement which has not been terminated as of such date, the total amount which would be owing to such party by the other party under such Qualified Risk Management Agreement in the event of the early termination as of such date of such Qualified Risk Management Agreement as a result of the occurrence of a default, event of default or termination event (however specified or designated) with respect to such party thereunder or, in the case of a Qualified Risk Management Agreement which has been terminated as of such date, the total amount which is owing to such party by the other party under such Qualified Risk Management Agreement, in each case expressed in United States dollars; and

		
	(c)
	any amount of Secured Obligations of any Obligor denominated in Canadian dollars shall be expressed as the U.S. Dollar Equivalent thereof.

	
			
	 
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14.22    Decision to Enforce Security
Upon the Security becoming enforceable in accordance with its terms, the Administrative Agent shall promptly so notify each of the Finance Parties.  The Administrative Agent or any Qualified Risk Management Lender may thereafter provide the Administrative Agent with a written request to enforce the Security.  Forthwith after the receipt of such a request, the Administrative Agent shall seek the instructions of the Majority Lenders as to whether the Security should be enforced and the manner in which the Security should be enforced.  In seeking such instructions, the Administrative Agent shall submit a specific proposal to the Finance Parties.  From time to time, the Administrative Agent or any Qualified Risk Management Lender may submit a proposal to the Administrative Agent as to the manner in which the Security should be enforced and the Administrative Agent shall submit any such proposal to the Finance Parties for approval of the Majority Lenders.  The Administrative Agent shall promptly notify the Finance Parties of all instructions and approvals of the Majority Lenders.  If the Majority Lenders instruct the Administrative Agent to enforce the Security, each of the Finance Parties agree to accelerate the Secured Obligations owed to it to the extent permitted under the relevant Credit Document and in accordance with the relevant Credit Document.
14.23    Enforcement
The Administrative Agent reserves the sole right to enforce, or otherwise deal with, the Security and to deal with the Obligors in connection therewith; provided, however, that the Administrative Agent shall so enforce, or otherwise deal with, the Security as the Majority Lenders shall instruct.
14.24    Application of Cash Proceeds of Realization
		
	(a)
	All Proceeds of Realization not in the form of cash shall be forthwith delivered to the Administrative Agent and disposed of, or realized upon, by the Administrative Agent in such manner as the Majority Lenders may approve so as to produce Cash Proceeds of Realization.

		
	(b)
	Subject to the claims, if any, of secured creditors of the Obligors whose security ranks in priority to the Security, all Cash Proceeds of Realization shall be applied and distributed, and the claims of the Finance Parties shall be deemed to have the relative priorities which would result in the Cash Proceeds of Realization being applied and distributed, as follows:

		
	(i)
	firstly, to the payment of all reasonable costs and expenses incurred by the Administrative Agent (including, without limitation, all legal fees and disbursements) in the exercise of all or any of the powers granted to it hereunder or under the Security Documents and Guarantees and in payment of all of the remuneration of any Receiver and all costs and expenses properly incurred by such Receiver (including, without limitation, all legal fees and disbursements) in the exercise of all or any powers granted to it under the Security Documents;

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(ii)
	secondly, in payment of all amounts of money borrowed or advanced by the Administrative Agent or such Receiver pursuant to the Security Documents and any interest thereon;

		
	(iii)
	thirdly, to the payment of the Secured Obligations of the Obligors (including holding as cash collateral to be applied against Secured Obligations of the Borrower which have not then matured) to the Finance Parties pro rata in accordance with their relative Exposures; and

		
	(iv)
	the balance, if any, in accordance with Applicable Law.

14.25    Survival
The provisions of Article 8, Article 10, Article 11, Article 13 and Article 14 (and all other provisions of this agreement which are necessary to give effect to each of the provisions of such Articles), the Guarantee and the Security Documents shall survive repayment in full of all credit outstanding under the Credit Facility and the termination of the Individual Commitments of the Lenders hereunder for the benefit of the Finance Parties until the Secured Obligations Termination Date.  All references in the Articles set out above (and all other provisions of this agreement which are necessary to give effect to each of the provisions of such Articles), the Guarantee and the Security Documents to “Lenders” and “Lender”, as the case may be, shall, after the repayment in full of all credit outstanding under the Credit Facility and the termination of the Individual Commitments of the Lenders hereunder, be references to the “Finance Parties” and “Finance Party”, as the case may be, mutatis mutandis.
ARTICLE 15 
MISCELLANEOUS
15.1    Notices
All notices and other communications provided for herein shall be in writing and shall be personally delivered to an officer or other responsible employee of the addressee or sent by telefacsimile, charges prepaid, at or to the applicable addresses or telefacsimile numbers, as the case may be, set out opposite the parties’ name on the signature page hereof or at or to such other address or addresses, telefacsimile number or numbers as any party hereto may from time to time designate to the other parties in such manner.  Any communication which is personally delivered as aforesaid shall be deemed to have been validly and effectively given on the date of such delivery if such date is a Banking Day and such delivery received before 12:00 p.m. (Reno, Nevada time); otherwise, it shall be deemed to have been validly and effectively given on the Banking Day next following such date of delivery.  Any communication which is transmitted by telefacsimile as aforesaid shall be deemed to have been validly and effectively given on the date of transmission if such date is a Banking Day and such transmission was received before 12:00 p.m. (Reno, Nevada time); otherwise, it shall be deemed to have been validly and effectively given on the Banking Day next following such date of transmission.

	
			
	 
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15.2    Severability
Any provision hereof which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
15.3    Counterparts
This agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument.
15.4    Successors and Assigns
This agreement shall enure to the benefit of and shall be binding upon the parties hereto and their respective successors and permitted assigns.
15.5    Assignment
		
	(a)
	Neither the Credit Documents nor the benefit thereof may be assigned by any Obligor.

		
	(b)
	A Lender may at any time sell to one or more other persons (“Participants”) participating interests in any credit outstanding hereunder, any commitment of such Lender hereunder or any other interest of the Lender hereunder.  In the event of any such sale by a Lender of a participating interest to a Participant, such Lender’s obligations under this agreement to the Borrower shall remain unchanged, such Lender shall remain solely responsible for the performance thereof and the Borrower shall continue to be obligated to such Lender in connection with such Lender’s rights under this agreement.  The Borrower agrees that if amounts outstanding under this agreement are due and unpaid, or shall have been declared to be or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of setoff in respect of its participating interest in amounts owing under this agreement to the same extent as if the amount of its participating interest were owing directly to it as the relevant Lender under this agreement.  The Borrower also agrees that each Participant shall be entitled to the benefits of Article 8 with respect to its participation hereunder and for the purposes of Article 8 such Participant shall be deemed to be a Lender to the extent of such participation, provided, that such Participant shall have complied with obligations of a Lender provided in Article 8 and that no Participant shall be entitled to receive any greater amount pursuant to such Article than the relevant Lender would have been entitled to receive in respect of the amount of the participation transferred by the relevant Lender to such Participant had no such transfer occurred.

	
			
	 
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	Second Amended and Restated Credit Agreement

		
	(c)
	With the prior written consent of, (x) the Issuing Lender, (y) the Administrative Agent and (z) at any time that no Default has occurred and is continuing, the Borrower, a Lender may at any time sell all or any part of its rights and obligations under the Credit Documents to one or more Persons (“Purchasing Lenders”); provided that no such sale shall be permitted (i) unless the selling Lender is selling its Individual Commitment in full, or (ii) where, on completion of the sale, either the selling Lender or any Purchasing Lender has an Individual Commitment that is less than, immediately after such sale, the lesser of (x) $10,000,000 and (y) 8% of the Total Commitment Amount at such time.  For certainty, no consent shall be required for (x) any sale by a Lender to another Lender or by a Lender to any of its affiliates or (y) any pledge by a Lender to the central bank of any nation with a credit rating of at least A3 (Moody’s) or A- (S&P) or a commercial bank having a credit rating of at least A3 (Moody’s) or A- (S&P) of such Lender’s interest hereunder.  Upon such sale, the relevant Lender shall, to the extent of such sale, be released from its obligations under the Credit Documents and each of the Purchasing Lenders shall become a party to the Credit Documents to the extent of the interest so purchased.  Any such assignment by a Lender shall not be effective unless and until such Lender has paid to the Administrative Agent an assignment fee  in  the  amount  of  $3,500  for  each  Purchasing Lender, unless and until the Purchasing Lender has executed an instrument substantially in the form of Schedule C hereto whereby the Purchasing Lender has agreed to be bound by the terms of the Credit Documents as a Lender and has agreed to specific Individual Commitments with respect to the Credit  Facility (in an amount equal to or greater than the lesser of, at any particular time, (x) $10,000,000 and (y) 8% of the Total Commitment Amount at such time) and a specific address and telefacsimile number for the purpose of notices as provided in Section 15.1 and unless and until the requisite consents to such assignment have been obtained, unless and until a copy of a fully executed copy of such instrument has been delivered to each of the Administrative Agent and the Borrower.  Upon any such assignment becoming effective, Schedule A hereto shall be deemed to be amended to include the Purchasing Lender as a Lender with the specific Individual Commitment, address and telefacsimile number as aforesaid and the Individual Commitment of the Lender making such assignment shall be deemed to be reduced by  the  amount  of the Individual Commitment of the Purchasing Lender with respect to the Credit Facility.

		
	(d)
	The Borrower authorizes the Administrative Agent and the Lenders to disclose to any Participant or Purchasing Lender (each, a “Transferee”) and any prospective Transferee or any professional advisor of any Transferee or prospective Transferee and authorizes each of the Lenders to disclose to any other Lender any and all financial information in their possession concerning the Borrower which has been delivered to them by or on behalf of the Borrower pursuant to this agreement or which has been delivered to them by or on behalf of the Borrower in connection with their credit evaluation of the Obligors prior to becoming a party to this agreement, so long as any such Transferee agrees not to disclose any confidential, non-public information to any person other than its non‐brokerage affiliates, employees, accountants or legal counsel, unless required by law and authorizes each of the Lenders to disclose to any other Lender and to any Person where disclosure is required by law, regulation, legal process or regulatory authority (for certainty under any circumstance and not solely in connection with assignment of rights).  Each Lender shall advise the Borrower, upon request, of the identity of the Participants to whom it has sold participating interests and the nature and extent of the interests sold unless prohibited by Applicable Law.

	
			
	 
	93
	Second Amended and Restated Credit Agreement

15.6    Entire Agreement
This agreement and the agreements referred to herein and delivered pursuant hereto (including, without limitation, the Fee Letter) constitute the entire agreement between the parties hereto and supersede any prior agreements, undertakings, declarations, representations and understandings, both written and verbal, in respect of the subject matter hereof.
15.7    Further Assurances
The Borrower shall, and shall cause each other Obligor to, from time to time and at all times hereafter, upon every reasonable request of the Administrative Agent, make, do, execute, and deliver or cause to be made, done, executed and delivered all such further acts, deeds, assurances and things as may be necessary in the opinion of the Administrative Agent for more effectually implementing and carrying out the true intent and meaning of the Credit Documents or any agreement delivered pursuant hereto or thereto and such additional security, legal opinions, consents, approvals, acknowledgements, undertakings, non-disturbance agreements, directions and negotiable documents of title in connection with the property and assets of the Obligors, in form and substance satisfactory to the Administrative Agent, as the Administrative Agent may from time to time reasonably request, to ensure (i) that all Secured Assets are subject to a Lien in favour of the Administrative Agent and (ii) the intended first ranking priority of such Liens.
15.8    Judgment Currency
		
	(a)
	If, for the purpose of obtaining or enforcing judgment against the Borrower in any court in any jurisdiction, it becomes necessary to convert into a particular currency (such currency being hereinafter in this Section 15.8 referred to as the “Judgment Currency”) an amount due in another currency (such other currency being hereinafter in this Section 15.8 referred to as the “Indebtedness Currency”) under this agreement, the conversion shall be made at the rate of exchange prevailing on the Banking Day immediately preceding:

		
	(i)
	the date of actual payment of the amount due, in the case of any proceeding in the courts of the Province of Ontario or in the courts of any other jurisdiction that will give effect to such conversion being made on such date; or

		
	(ii)
	the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 15.8(a)(ii) being hereinafter in this Section 15.8 referred to as the “Judgment Conversion Date”).

		
	(b)
	If, in the case of any proceeding in the court of any jurisdiction referred to in Section 15.8(a)(ii), there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the Borrower shall pay to the appropriate judgment creditor or creditors such additional amount (if any, but in any event not a lesser amount) as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Indebtedness Currency which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date.

	
			
	 
	94
	Second Amended and Restated Credit Agreement

		
	(c)
	Any amount due from the Borrower under the provisions of Section 15.8(b) shall be due to the appropriate judgment creditor or creditors as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this agreement.

		
	(d)
	The term “rate of exchange” in this Section 15.8 means the noon spot rate of exchange for Canadian interbank transactions applied in converting the Indebtedness Currency into the Judgment Currency published by the Bank of Canada for the day in question.

15.9    Waivers of Jury Trial
THE BORROWER, THE LENDERS AND THE ADMINISTRATIVE AGENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT TO WHICH IT IS A PARTY AND FOR ANY COUNTERCLAIM THEREIN.
15.10    Consultant
The Borrower hereby acknowledges and agrees that the Administrative Agent shall have the unfettered right to appoint a Consultant to analyze the operational status of the Hycroft Mine at any time that the Borrower’s EBITDA is less than $10,000,000 in any Fiscal Quarter.
15.11    USA Patriot Act
Each Lender subject to the Act (as hereinafter defined) hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Obligors which information includes the name and address of each Obligor and other information that will allow such Lender to identify such Obligor in accordance with the Act.
[The remainder of this page is intentionally left blank.]

	
			
	 
	95
	Second Amended and Restated Credit Agreement

IN WITNESS WHEREOF the parties hereto have executed and delivered this agreement on the date first written above.

	
			
	Allied Nevada Gold Corp. 
9790 Gateway Drive, Suite 200
Reno, Nevada
89521 

	ALLIED NEVADA GOLD CORP.

	 
	By:
	/s/ Stephen M. Jones

	Attention:   Chief Financial Officer
Telefax:   (775) 358-4458
	By:
	/s/ Randy Buffington

	 
	 

Second Amended and Restated Credit Agreement

	
			
	The Bank of Nova Scotia
Corporate Banking – Loan Syndications
Agency Services
40 King Street West
	THE BANK OF NOVA SCOTIA, as Administrative Agent

	Scotia Plaza, 62nd Floor
	By:
	/s/ Michael Eddy

	Toronto, Ontario  M5W 2X6
	 
	Name: Michael Eddy

	 
	 
	Title: Managing Director

	Attention:   Director, Head Agency Services
Telefax:   (416) 866-3329
	

	 
	By:
	/s/ Bhiravi Ravichandran

	 
	 
	Name: Bhiravi Ravichandran

	

	 
	Title: Associate 

	
			
	The Bank of Nova Scotia
Corporate Banking – Global Mining
40 King Street West
	THE BANK OF NOVA SCOTIA, as Lender

	Scotia Plaza, 62nd Floor
	By:
	/s/ Michael Eddy

	Toronto, Ontario  M5W 2X6
	 
	Name:  Michael Eddy

	 
	 
	Title:  Managing Director

	Attention:   Managing Director
Telefax:   (416) 866-2009
	

	 
	By:
	/s/ Bhiravi Ravichandran

	 
	 
	Name: Bhiravi Ravichandran

	

	 
	Title: Associate 

Second Amended and Restated Credit Agreement

Schedule A 
LENDERS AND INDIVIDUAL COMMITMENTS

	
		
	Lenders
	Individual Commitments

	The Bank of Nova Scotia
	$40,000,000

Second Amended and Restated Credit Agreement

Schedule B     
COMPLIANCE CERTIFICATE

	
		
	TO:
	THE BANK OF NOVA SCOTIA

I, ____________________, the [senior financial officer] of Allied Nevada Gold Corp. (the “Borrower”), hereby certify that:
		
	1.
	I am the duly appointed [senior financial officer] the Borrower named in the second amended and restated credit agreement made as of December 27, 2013, as amended (the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp., the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders and as such I am providing this Certificate for and on behalf of Allied Nevada Gold Corp. pursuant to the Credit Agreement.

		
	2.
	I am familiar with and have examined the provisions of the Credit Agreement including, without limitation, those of Article 10, Article 11 and Article 13 therein.

		
	3.
	To the best of my knowledge, information and belief and after due inquiry, no Default has occurred and is continuing.

		
	4.
	As at or for the relevant period ending _______________________, the amounts and financial ratios as contained in Sections 11.1(n), (o), (p) and 11.1(w) of the Credit Agreement are as follows and detailed calculations thereof are attached hereto:

	
				
	 
	Actual Amount or Percentage
	Required Amount or Percentage

	(a)   Tangible Net Worth
	$______
	$<*>

	(b)   Reserve Tail
	_______
	≥ 600,000 Gold Equivalent ounces

	(c)   Current Ratio
	_______
	> 1.25:1

	(d)   Value of Guarantors
	_______
	(i)

(ii)
	≥ 95% of Adjusted Total Assets
≥ 95% of Adjusted EBITDA

As at or for the relevant period ending ____________, the Borrower’s consolidated EBITDA was ________________ and the Borrower’s consolidated Total Assets was 

Second Amended and Restated Credit Agreement

_______________________ .  The attached calculation worksheet as at the relevant period ending ________ accurately sets out the information referenced in this paragraph 4.
		
	5.
	As at the last date of the most recently completed Fiscal Quarter, the Excluded Subsidiaries were _____________________.

		
	6.
	As at the last date of the most recently completed Fiscal Quarter, EBITDA for such Fiscal Quarter was $_____________

		
	7.
	Attached hereto is a revised and updated Schedule G (Corporate Chart) of the Credit Agreement.

		
	8.
	Unless the context otherwise requires, capitalized terms in the Credit Agreement which appear herein without definitions shall have the meanings ascribed thereto in the Credit Agreement.

DATED this _______ day of _____________, 20____.

	
		
	 
	

	 
	(Signature)

	 
	 

	 
	(Name - please print)

	 
	 

	 
	(Title of Senior Financial Officer)

	
			
	 
	2
	Second Amended and Restated Credit Agreement

CALCULATION WORKSHEET
Tangible Net Worth
Actual:

	
			
	 
	Equity as of financial statements dated [  ]
	$<*>

	 
	Less:
	 

	 
	Goodwill, Other Intangible Assets and Accumulated Other Comprehensive Income
	$(<*>)

	 
	Tangible Net Worth
	$<*>

Minimum Required:

	
			
	 
	 
	$<@>

	 
	Plus:
	 

	 
	25% of positive Net Income for each Fiscal Quarter after the Fiscal Quarter ended June 30, 2012
	$<*>

	 
	Minimum Level
	$<*>

Compliance    [Yes]/[No]
Reserve Tail

	
			
	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

Current Ratio

	
			
	 
	Current Assets
	$____________ (A)

	 
	Current Liabilities
	$____________ (B)

	 
	Current Ratio (Actual)
	____________ (A:B)

	
			
	 
	3
	Second Amended and Restated Credit Agreement

Minimum Requirement    1.25:1
Compliance    [Yes]/[No]

Value of Guarantors

	
			
	A)
	Adjusted Total Assets:
	$____________ (A)

	B)
	Consolidated Value of Borrower’s Total Assets:
	$____________ (B)

	C)
	Minimum requirement:
	95% (A ÷ B = C)

	
			
	A)
	Adjusted EBITDA:
	$____________ (A)

	B)
	Consolidated Value of Borrower’s EBITDA:
	$____________ (B)

	C)
	Minimum requirement:
	95% (A ÷ B = C)

	
			
	 
	4
	Second Amended and Restated Credit Agreement

Schedule C     
FORM OF ASSIGNMENT
Dated __________, 20___
Reference is made to the Second Amended and Restated Credit Agreement made as of December 27, 2013, as amended (as amended to the date hereof, the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp., as borrower, the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders (in that capacity, the “Administrative Agent”).  Terms defined in the Credit Agreement are used herein as therein defined.
_________________ (the “Assignor”) and _________________ (the “Assignee”) agree as follows:
		
	(a)
	The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, a ______% interest in and to all of the Assignor’s rights and obligations under the Credit Agreement as of the Effective Date (as defined below) (including, without limitation, such percentage interest in the Assignor’s Individual Commitment with respect to each the Credit Facility as in effect on the Effective Date, the credit extended by the Assignor under each the Credit Facility and outstanding on the Effective Date and the corresponding rights and obligations of the Assignor under all of the Credit Documents as it relates to each the Credit Facility).

		
	(b)
	The Assignor (i) represents and warrants that as of the date hereof its Individual Commitment with respect to the Credit Facility is $___________ (without giving effect to assignments thereof which have not yet become effective, including, but not limited to, the assignment contemplated hereby), and the aggregate outstanding amount of credit extended by it under the Credit Facility is $___________ (without giving effect to assignments thereof which have not yet become effective, including, but not limited to, the assignment contemplated hereby); (ii) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim; (iii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Documents or any other instrument or document furnished pursuant thereto; (iv) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Obligor or the performance or observance by the Obligors of any of their obligations under the 

Second Amended and Restated Credit Agreement

Credit Documents or any other instrument or document furnished pursuant thereto; and (v) gives notice to the Administrative Agent and the Borrower of the assignment to the Assignee hereunder.
		
	(c)
	The effective date of this Assignment (the “Effective Date”) shall be the later of ___________ and the date on which a copy of a fully executed copy of this Assignment has been delivered to the Borrower and the Administrative Agent in accordance with Section 15.5(c) of the Credit Agreement.

		
	(d)
	The Assignee hereby agrees to the specific Individual Commitments of $___________ and to the address and telefacsimile number set out after its name on the signature page hereof for the purpose of notices as provided in Section 15.1 of the Credit Agreement.

		
	(e)
	As of the Effective Date (i) the Assignee shall, in addition to any rights and obligations under the Credit Documents held by it immediately prior to the Effective Date, have the rights and obligations under the Credit Documents that have been assigned to it pursuant to this Assignment and (ii) the Assignor shall, to the extent provided in this Assignment, relinquish its rights and be released from its obligations under the Credit Documents.

		
	(f)
	The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Documents for periods prior to the Effective Date directly between themselves.

This Assignment shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein.

	
			
	

	[ASSIGNOR]

	 
	By:
	 

	 
	 
	Title:

	
			
	

	[ASSIGNEE]

	 
	By:
	 

	 
	 
	Title:

	
			
	 
	2
	Second Amended and Restated Credit Agreement

	
			
	

	Address

	 
	

	 
	

	 
	 

	 
	Attention:
	 

	 
	Telefax:
	 

Acknowledged and agreed to as of this ___________ day of ___________ , 20______.

	
		
	THE BANK OF NOVA SCOTIA, as Administrative Agent

	By:
	 

	 
	Name:

	 
	Title:

Acknowledged and agreed to as of this _________ day of _____________, 20_____.
	
		
	THE BANK OF NOVA SCOTIA, as Issuing Lender

	By:
	 

	 
	Name:

	 
	Title:

	
		
	1 ALLIED NEVADA GOLD CORP.

	By:
	 

	 
	Name:

	 
	Title:

	 
	 

	1 Only required if no Default has occurred and is continuing.

	
			
	 
	3
	Second Amended and Restated Credit Agreement

Schedule D     
FORM OF DRAWDOWN NOTICE

	
		
	TO:
	The Bank of Nova Scotia, as Administrative Agent

Global Wholesale Services
2nd Floor, 720 King Street
Toronto, Ontario  M5V 2T3
Att: Director, Loan Agency Services
Facsimile: (416) 866-5991

	RE:
	Second Amended and Restated Credit Agreement made as of December 27, 2013 (as amended to the date hereof, the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp. as borrower, the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders

Pursuant to the terms of the Credit Agreement, the undersigned hereby irrevocably notifies you that it wishes to draw down under the Credit Facility on [date of drawdown] as follows:
Availment Option:  _____________________________________
Currency & Amount:  ___________________________________
If LIBOR Loan, Interest Period:  __________________________
If Letter, (a copy being attached hereto):
Type of Letter (financial or performance): ____________________________
Date of Issuance:  ______________________________________
Named Beneficiary:  ____________________________________
Maturity Date:  ________________________________________
Currency & Amount:  ___________________________________
Other Terms:  _________________________________________
[You are hereby irrevocably authorized and directed to pay the proceeds of the drawdown to _______________ and this shall be your good and sufficient authority for so doing.]

Second Amended and Restated Credit Agreement

No Default has occurred and is continuing or would arise immediately after giving effect to or as a result of the extension of credit requested hereby.
All capitalized terms defined in the Credit Agreement and used herein shall have the meanings ascribed thereto in the Credit Agreement.
DATED the ______ day of _______________, 20___.

	
			
	

	ALLIED NEVADA GOLD CORP.

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
			
	 
	2
	Second Amended and Restated Credit Agreement

Schedule E     
FORM OF ROLLOVER NOTICE

	
		
	TO:
	The Bank of Nova Scotia, as Agent

Global Wholesale Services
2nd Floor, 720 King Street
Toronto, Ontario  M5V 2T3
Att: Director, Loan Agency Services
Facsimile: (416) 866-5991

	RE:
	Second Amended and Restated Credit Agreement made as of December 27, 2013 (as amended to the date hereof, the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp. as borrower, the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders

Pursuant to the terms of the Credit Agreement, the undersigned hereby irrevocably requests a rollover of outstanding credit under the Credit Facility on [date of rollover] as follows:
LIBOR Loans
	
		
	

Maturity Date of Maturing LIBOR Loan
	______________________

	Principal Amount of Maturing LIBOR Loan
	$_____________________

	Portion Thereof to be Replaced
	$_____________________

	Interest Period of New LIBOR Loan
	_______ months

No Default has occurred and is continuing or would arise immediately after giving effect to or as a result of the extension of credit requested hereby.
All capitalized terms defined in the Credit Agreement and used herein shall have the meaning ascribed thereto in the Credit Agreement.
DATED the _________ day of ________________, 20____.

	
			
	

	ALLIED NEVADA GOLD CORP.

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

Second Amended and Restated Credit Agreement

Schedule F     
FORM OF CONVERSION NOTICE

	
		
	TO:
	The Bank of Nova Scotia, as Agent

Global Wholesale Services
2nd Floor, 720 King Street
Toronto, Ontario  M5V 2T3
Att: Director, Loan Agency Services
Facsimile: (416) 866-5991

	RE:
	Second Amended and Restated Credit Agreement made as of December 27, 2013 (as amended to the date hereof, the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp. as borrower, the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders

Pursuant to the terms of the Credit Agreement, the undersigned hereby irrevocably requests a conversion of outstanding credit under the Credit Facility on [date of conversion] as follows:

	
		
	Converting From
	Converting Into

	 
	 

	LIBOR Loans

Maturity Date of   ______
Maturing LIBOR Loan
Principal Amount of   $_____________
Maturing LIBOR Loan
Portion Thereof to   $_____________
be converted
	LIBOR Loans

Principal      $_____________
Amount of
New LIBOR Loan

Interest         _____ months
Period of
New LIBOR Loan

	Base Rate Loans
	Base Rate Loan

	

Principal Amount   $_____________
of Base Rate
Loan to be converted
	

Principal      $_____________
Amount of
New Base Rate
Loan

	Portion Thereof   $_____________
to be converted
	 

Second Amended and Restated Credit Agreement

No Default has occurred and is continuing or would arise immediately after giving effect to or as a result of the extension of credit requested hereby.
All capitalized terms defined in the Credit Agreement and used herein shall have the meaning ascribed thereto in the Credit Agreement.
DATED the ________ day of _____________, 20____.

	
			
	

	ALLIED NEVADA GOLD CORP.

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
			
	 
	2
	Second Amended and Restated Credit Agreement

Schedule G     
CORPORATE STRUCTURE

Second Amended and Restated Credit Agreement

Schedule H     
SECURITY DOCUMENTS
		
	1.
	The Amended and Restated Security Agreement dated as of October 31, 2012, given by and among the Obligors, each as a grantor, and the Administrative Agent.

		
	2.
	The Amended and Restated Stock Pledge Agreement dated as of October 31, 2012 by and between the Borrower, as pledger, and the Administrative Agent.

		
	3.
	The Stock Pledge Agreement dated as of October 31, 2012, by and between Victory Gold Inc., as pledgor, and the Administrative Agent.

		
	4.
	The Amended and Restated Stock Pledge Agreement dated as of October 31, 2012, by and between Allied VGH Inc., as pledgor, and the Administrative Agent.

		
	5.
	The Membership Interest Pledge Agreement dated as of October 31, 2012, by and between the Borrower, as pledgor, and the Administrative Agent.

		
	6.
	The Membership Interest Pledge Agreement dated as of October 31, 2012, by and between Allied Nevada Gold Holdings LLC, as pledgor, and the Administrative Agent.

		
	7.
	The Membership Interest Pledge Agreement dated as of October 31, 2012, by and between Allied VGH Inc., as pledgor, and the Administrative Agent.

		
	8.
	The Deposit Account Control Agreements dated as of October 31, 2012, by and between the Borrower, the Administrative Agent and each of Wells Fargo Bank, NA and Wells Fargo Securities, LLC.

		
	9.
	The Deposit Account Control Agreement dated as of October 31, 2012, by and between Hycroft Resources, the Administrative Agent and Wells Fargo Bank, NA.

		
	10.
	The Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement dated October 31, 2012 made by Hycroft Resources in favor of the Administrative Agent.

		
	11.
	Confirmation of Guarantees and Security dated as of December 27, 2013 made by each Obligor in favour of the Administrative Agent.

		
	12.
	Reaffirmation of obligations under and pursuant to the Finance Documents dated as of December 27, 2013 made by each Obligor in favour of the Administrative Agent.

Second Amended and Restated Credit Agreement

Schedule I     
QUALIFIED AFFILIATE INSTRUMENT OF ADHESION
	
		
	TO:
	THE BANK OF NOVA SCOTIA, as Administrative Agent

	AND TO:
	THE OTHER PARTIES TO THE CREDIT AGREEMENT REFERRED TO BELOW

Reference is made to the second amended and restated credit agreement dated as of December 27, 2013 by and among, inter alia, Allied Nevada Gold Corp., as Borrower, the Lenders who may from time to time be parties thereto, and The Bank of Nova Scotia, as Administrative Agent (such credit agreement, as amended, modified, supplemented, replaced or restated from time to time, being the “Credit Agreement”.  The terms defined therein and not otherwise defined herein being used herein as therein defined).
WHEREAS the Credit Agreement provides that an Affiliate of a Lender may become a Qualified Affiliate under the Credit Agreement if it executes this instrument and delivers it to the Administrative Agent;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the undersigned, the undersigned hereby represents, warrants and covenants as follows:
		
	1.
	By executing this instrument, the undersigned shall, upon execution and delivery of a Risk Management Agreement, enjoy all benefits accruing to a Qualified Risk Management Lender pursuant to Article 14 of the Credit Agreement and hereby covenants and agrees to be bound by the terms and conditions of the Credit Agreement as a Qualified Affiliate, including all amendments, supplements and additions thereto, deletions therefrom and restatements thereof, solely as relates to the terms and conditions set forth in Article 14 of the Credit Agreement.

		
	2.
	The undersigned hereby acknowledges that it has been provided with a copy of the Credit Agreement.

DATED this ______ day of ____________, ______.
	
				
	 
	[INSERT NAME OF QUALIFIED AFFILIATE]

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:

Second Amended and Restated Credit Agreement

Schedule J     
BORROWING BASE CERTIFICATE
Pursuant to Section 11.1(b)(iv) of the second amended and restated credit agreement (as amended, modified, supplemented or restated from time to time, the “Credit Agreement”) made as of December 27, 2013 between Allied Nevada Gold Corp., as borrower, The Bank of Nova Scotia, as administrative agent and the lenders from time to time party thereto, I, ______________ , in my capacity as [insert title of senior officer] of Allied Nevada Gold Corp. (the “Borrower”), hereby certify that:
		
	1.
	I am a duly appointed officer of the Borrower and as such I have the knowledge of the matters expressed hereafter, and I certify in my capacity as an officer of the Borrower and not in my personal capacity that the Borrowing Base as of the last day of [insert month end date] is $ _____________, a detailed calculation of which is set forth in Exhibit 1 hereto.

		
	2.
	To the best of my knowledge, information and belief and after due inquiry, no Default has occurred and is continuing as at the date hereof.

		
	3.
	Unless the context otherwise requires, capitalized terms in the Credit Agreement which appear herein without definitions shall have the meanings ascribed thereto in the Credit Agreement.

DATED this ____day of ___________, 20____.

	
		
	 
	 

	(Signature)
	 

	(Name - please print)
	 

	[Insert title of senior officer]
	 

Second Amended and Restated Credit Agreement

EXHIBIT “1”
BORROWING BASE
	
					
	 
	Factor
	Units
	 
	 

	Gold
	 
	 
	 
	 

	Ounces of recoverable gold on heap leach pads of the Hycroft Mine(1) (5)
	 
	(oz)
	______________
	(A)

	Inventory gold ounces on carbon (1)
	 
	(oz)
	______________
	(B)

	Inventory gold ounces in precipitate (1)
	 
	(oz)
	______________
	(C)

	Inventory gold ounces as precious metals inventory (1)
	 
	(oz)
	______________
	(D)

	Total recoverable and inventory gold (A+B+C+D)
	 
	(oz)
	______________
	(E)

	Gross value of recoverable and inventory gold (E×Factor)
	AuP (2)
	(US$)
	______________
	(F)

	Silver
	 
	 
	 
	 

	Ounces of recoverable silver on heap leach pads (A×Factor)
	6.0 times (3)
	(oz)
	______________
	(G)

	Gross value of recoverable silver on heap leach pads (G×Factor)
	AgP (2)
	(US$)
	______________
	(H)

	Gold Hedging
	 
	 
	 
	 

	Hedged ounces of gold (1)
	 
	(oz)
	______________
	(I)

	Attributable hedged ounces of gold (lesser of E and I)
	 
	(oz)
	______________
	(J)

	Weighted average hedged price of attributable ounces (1)
	 
	(US$/oz)
	______________
	(K)

	Incremental unit value of attributable ounces (K-AuP)
	 
	(US$/oz)
	______________
	(L)

	Incremental value of attributable ounces (J×L)
	 
	(US$)
	______________
	(M)

	Costs
	 
	 
	 
	 

	Processing and selling costs for recoverable metal on heap leach pads ((A+B+C+D)×Factor)
	US$250/oz (4)
	(US$)
	______________
	(N)

	NV net proceeds tax ([F+H-(E×Factor)]×5%)
	US$1,100/oz (5)
	(US$)
	______________
	(O)

	Total processing and selling costs and NV tax (N+O)
	 
	(US$)
	______________
	(P)

	Borrowing Base
	 
	 
	 
	 

	Borrowing Base ([F+H+M-P]×80%)
	 
	(US$)
	______________
	(Q)

	Negative MTM of derivative obligations that are secured under this agreement other than gold (1)
	 
	(US$)
	______________
	(R)

	Aggregate face value of all of the Borrower’s consolidated non-cash collateralized Letters other than Letters issued pursuant to the Credit Agreement and surety bonds for reclamation obligations
	 
	(US$)
	______________
	(S)

	Effective Credit Limit ([Q-R-S] and Credit Limit)
	 
	(US$)
	______________
	(T)

1 All supporting documentation and calculations to accompany the borrowing base certification.
2 Assumed price for gold and silver shall be the lesser of: (a) 60 day trailing average LBMA fixing price and (b) spot price on the borrowing base calculation date.
3 Assumed silver to gold ratio subject to periodic review by Lenders.
4 Assumed processing and selling costs per gold ounce for each category subject to periodic review by Lenders.
5 Assumed total costs of production per gold ounce and ounces of gold in the Hycroft Mine’s heap leach pad subject to periodic review by Lenders.

	
			
	 
	2
	Second Amended and Restated Credit Agreement

Schedule K     
EXCLUDED SUBSIDIARIES
		
	1.
	Allied Nevada (Cayman) Corp.

		
	2.
	Allied Nevada Delaware Holdings Inc.

 

Second Amended and Restated Credit Agreement

Schedule L     
REIMBURSEMENT INSTRUMENT

	
		
	TO:
	The Bank of Nova Scotia (the “Issuing Lender”)

	RE:
	Second Amended and Restated Credit Agreement made as of December 27, 2013 (as amended to the date hereof, the “Credit Agreement”) between, inter alia, Allied Nevada Gold Corp. as borrower, the Lenders named therein and The Bank of Nova Scotia, as administrative agent of the Lenders

For good and valuable consideration, undersigned hereby agrees to immediately reimburse the Issuing Lender the amount of each and any demand or other request for payment presented to and paid by the Issuing Lender in accordance with each Letter (as defined in the Credit Agreement) issued by the Issuing Lender on behalf of the undersigned (even if, under laws applicable to the rights of the beneficiary of such Letter, a demand or other request for payment is validly presented after expiry of such Letter).
DATED as of the _______ day of ________________, ______.

	
			
	

	[NAME OF SUBSIDIARY]

	 
	By:
	 

	 
	 
	 

	

	

	 
	By:
	 

	 
	 
	 

Second Amended and Restated Credit Agreement

Schedule M     
FORM OF ACCORDION AGREEMENT
Reference is made to the second amended and restated credit agreement dated as of December 27, 2013 (as such agreement may be amended, supplemented, amended and restated, novated or otherwise modified and in effect from time to time, the “Credit Agreement”) between Allied Nevada Gold Corp., as Borrower, the Lenders named therein and The Bank of Nova Scotia, as Administrative Agent.  Capitalized terms used but not otherwise defined herein shall have the respective meanings assigned in the Credit Agreement. 
RECITALS:
Pursuant to Section 2.6(c) of the Credit Agreement, the Borrower wishes to designate the Accordion Lender defined below as a Lender under the Credit Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Borrower, the Lenders, the Administrative Agent and ________________ (the “Accordion Lender”), hereby agree as follows:
		
	1.
	The Credit Agreement shall, henceforth from the date of the execution and delivery of this Accordion Agreement, be read and construed as if the Accordion Lender were party to the Credit Agreement having all the rights and obligations of a Lender under the Credit Agreement having the Individual Commitment set out in paragraph 2 below.  Accordingly all references in any Credit Documents to (a) any “Lender” shall be treated as including a reference to the Accordion Lender and (b) the Credit Agreement shall be treated as a reference to the Credit Agreement as supplemented by this Accordion Agreement to the intent that this Accordion Agreement and the Credit Agreement shall be read and construed together as one single agreement.

		
	2.
	The Individual Commitment with respect to of the Accordion Lender shall be US$_________ and Schedule A of the Credit Agreement shall be deemed to be amended accordingly.

		
	3.
	The Accordion Lender represents and warrants to each of the other parties to the Credit Agreement that it has been provided with a copy of the Credit Agreement.

		
	4.
	The Accordion Lender irrevocably authorizes and directs the Administrative Agent, as its attorney and agent, with full power of substitution and delegation, to complete, execute and deliver on behalf of the Accordion Lender each Finance Document to be executed by it or on its behalf and each agreement, document and instrument to be executed by it or on its behalf pursuant to each Finance Document, and to take such action on its behalf as may be authorized or directed pursuant to any such Finance Document.

		
	5.
	This Accordion Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the 

Second Amended and Restated Credit Agreement

same instrument.  Transmission of an executed signature page of this Accordion Agreement by facsimile transmission or by e-mail in pdf format shall be as effective as delivery of a manually executed counterpart hereof.
		
	6.
	This Accordion Agreement shall be governed by, and interpreted in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable therein.

IN WITNESS WHEREOF, the parties hereto have caused this Accordion Agreement to be executed and delivered by their respective officers thereunto duly authorized as of the _____________ day of ___________________________, ______.

	
						
	ALLIED NEVADA GOLD CORP.
	 
	_________________, as Accordion Lender

	By:
	 
	 
	By:
	 

	 
	Name:
	 
	 
	Name:

	 
	Title:
	 
	 
	Title:

	 
	 
	

	By:
	 
	 
	By:
	 

	 
	Name:
	 
	 
	Name:

	 
	Title:
	 
	 
	Title:

	
			
	THE BANK OF NOVA SCOTIA,
as Administrative Agent

	By:
	 

	 
	Name:

	 
	Title:

	 

	By:
	 

	 
	Name:

	 
	Title:

	
			
	 
	2
	Second Amended and Restated Credit Agreement

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