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Exhibit 10.36  

 
 

FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT    
    

        THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is
entered into as of December 14, 2005 and amends in certain respects that Amended and Restated Credit Agreement, dated as of June 29, 2004, by and among WILLIS
LEASE FINANCE CORPORATION, a Delaware corporation (the "Borrower"), each of the financial institutions that is, or pursuant to
the terms thereof may become, a party as a Bank thereto (collectively, the "Banks"), NATIONAL CITY BANK,
as Administrative Agent for the Banks (the "Administrative Agent"), and FORTIS BANK (NEDERLAND) N.V., as
Structuring Agent and Security Agent for the Banks, as amended by that certain First Amendment to Amended and Restated Credit Agreement, dated as of September 24, 2004, that certain Second
Amendment to Amended and Restated Credit Agreement, dated as of December 9, 2004, and that certain Third Amendment to Amended and Restated Credit Agreement and Waiver, dated as of
November 11, 2005 (as so amended, the "Credit Agreement"). 

 
 

W I T N E S S E T H:  
    

        WHEREAS, pursuant to that certain Memorandum dated August 26, 2005 and in connection with the matters
described in that certain Memorandum dated December 12, 2005 (collectively, the "Amendment Request"), the Borrower has requested that the Agents
and the Banks agree to certain amendments to the Credit Agreement; and 

        WHEREAS, the Administrative Agent and the Banks are willing to agree to such amendments, but only on and subject to the terms and
conditions hereinafter set forth; 

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

        1.    Defined Terms.    Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings ascribed to them in the Credit Agreement. 

        2.    Credit Agreement Amendments.    Subject to the satisfaction of the conditions set forth in  Section 3 hereof, effective as of the date hereof,
the Credit Agreement is hereby amended as follows: 

        (a)   Section 1.1
is hereby amended as follows: 

          (i)  The
definition of "Debt" in Section 1.1 is hereby amended to add the following immediately before the
semi-colon at the end of subclause (v) thereof: 

",
including without limitation, recourse obligations with respect to Special Purpose Financing Vehicles and the recourse portion of Partial Recourse Debt" 

and
to add the following proviso at the end of such definition: 

"provided, however, that Debt of the Borrower and its Subsidiaries shall not include (to the extent otherwise included in this definition) fifty (50%)
percent of the outstanding principal amount of Debt of WOLF, subject to the conditions that (a) such Debt shall be Non-Recourse Debt and (y) the Borrower WOLF Interest shall
not exceed fifty (50%) percent of the issued and outstanding membership interests in WOLF. 

         (ii)  The
definition of "EBIT" in Section 1.1 is hereby amended and restated in its entirety to read as follows: 

        "EBIT' shall mean the sum of (i) Net Income (less Net Income attributable to the Oasis WOLF Interest) less any extraordinary gain
and plus any extraordinary loss taken into account in the calculation thereof, and in any event without taking into account gains or losses resulting from changes in the fair value of derivative
instruments (within the meaning of Statement of Financial Accounting Standards No. 133), plus (ii) amounts deducted for interest expense (less interest 

 

expense
attributable to the Oasis WOLF Interest), income taxes and dividends declared and paid on the Preferred Stock." 

        (iii)  The
definition of "Interest Coverage Ratio" in Section 1.1 is hereby amended and restated to read in its
entirety as follows: 

        "'Interest Coverage Ratio' shall mean the ratio of (x) EBIT of the Willis Companies plus rent expenses of the Willis Companies to
(y) interest expense of the Willis Companies (less interest expense attributable to the Oasis WOLF Interest) plus rent expense of the Willis Companies plus dividends declared and paid on the
Preferred Stock." 

        (iv)  The
definition of "Majority Banks" in Section 1.1 is hereby amended by replacing the number "50%" with "66?%". 

         (v)  The
definition of "WEF Funding Facility" in Section 1.1 is hereby amended and restated to read in its entirety as
follows: 

        "WEF Funding Facility' shall mean the transactions contemplated by (i) that certain Indenture dated as of August 9, 2005 by
and between WEST and Deutsche Bank Trust Company Americas, as indenture trustee, as supplemented by (ii) that certain Series A1 Supplement, Series B1 Supplement, Series A2 Supplement, Series B2
Supplement, each dated as of August 9, 2005, (iii) that certain Series A1 Note Purchase Agreement, among the Borrower, WEST and UBS Securities, LLC ("UBS
Securities"), Series B1 Note Purchase Agreement among the Borrower, WEST, Fortis Securities LLC ("Fortis Securities") and HSH
Nordbank A.G. ("HSH"), Series A2 Note Purchase Agreement among the Borrower, WEST, Fortis Securities and HSH, and Series B2 Note Purchase Agreement
among the Borrower, WEST, Fortis Securities and HSH, each dated as of August 9, 2005, (iv) that certain Asset Transfer Agreement dated as of August 9, 2005 among the Borrower,
WEST and WEF (the "Contribution Agreement"), (v) that certain Servicing Agreement dated as of August 9, 2005 among the Borrower, WEST, WEF
and the subsidiaries of WEF party thereto and (vi) certain other documents and agreements ancillary thereto; in each of cases (i), (ii), (iii), (iv), (v) and (vi), as amended, waived,
restated and supplemented from time to time (including without limitation any such amendments, waivers, restatements and supplements effective on or prior to the date hereof), copies of which shall be
promptly provided to the Administrative Agent and the Security Agent." 

        (vi)  The
definition of "WEST" is hereby amended and restated to read in its entirety as follows: 

        "WEST' shall mean Willis Engine Securitization Trust, a Delaware statutory trust, which is the sole member of WEF, and a wholly-owned
Subsidiary of the Borrower." 

        (b)   Section 1.1
is further amended to add the following new definitions to be inserted in the correct alphabetical order: 

        "'Borrower WOLF Interest' shall mean the membership interests in WOLF owned, directly or indirectly, and beneficially or of record, by the
Borrower and its Subsidiaries." 

        'Non-Recourse Debt' shall mean Debt of any Person for which the remedy for nonpayment or non-performance of any
obligation or any default (other than for breach of standard representations and warranties or misapplication of funds) in respect thereof is limited to any collateral securing such Debt and in
respect of which the Borrower is not subject to any personal liability. 

        'Oasis'—Oasis International Leasing (USA), Inc., a Washington corporation. 

        'Oasis WOLF Interest' shall mean the membership interests in WOLF owned, directly or indirectly and beneficially or of record, by Oasis
and its Subsidiaries. 

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        'Partial Recourse Debt' shall mean Debt of any Person a portion of which (but in no event less than eighty (85%) percent of the principal
amount thereof) shall constitute Non-Recourse Indebtedness. 

        'Preferred Stock' shall mean the Preferred Stock of the Borrower in aggregate face amount of not more than forty-six
($46,000,000) million Dollars, the terms and conditions of which shall have been approved in writing by the Administrative Agent and the Security Agent. 

        'Unrestricted Availability' shall mean, as of any date of determination, the sum of (i) cash,
(ii) cash-equivalents (within the meaning of GAAP and as set forth on the balance sheet of the Borrower prepared in accordance with GAAP) with remaining maturities of not more than
three (3) months and (iii) the excess of (a) the lesser of the Aggregate Revolving Loan Commitment and (b) the then current Asset Base (as stated in the most recent Asset
Base Certificate and provided the same is then available to be borrowed against under this Agreement) over the aggregate outstanding principal amount of the Loans. 

        'US Bank Engines' shall mean CFM56-2C1 Engines S/Ns 692620 and 692545 financed by U.S. Bank National Association the principal
amount of Debt in respect of which shall not exceed $3.3 million. 

        'WOLF' shall mean WOLF A340 LLC, a Delaware limited liability company, the members of which are Oasis and/or its Subsidiaries and the
Borrower and/or its Subsidiaries." 

        (c)   Section 1.1
is further amended to delete the definitions of "WEF Guaranty" and "Other
Indebtedness." 

        (d)   Section 5.9
is hereby amended to delete the reference therein to "Servicer Event of Default" and to substitute in lieu thereof "Early Amortization Event or
Servicer Termination Event." 

        (e)   Section 6.3
is hereby amended to add a period after the words "unreasonably withheld" and to delete the remainder of such section. 

        (f)    Section 6.9
is hereby amended and restated in its entirety to read as follows: 

        "6.9
Indebtedness. Unless approved in writing by the Majority Banks, the Borrower shall not, and shall not permit its Restricted
Subsidiaries to, create, enter into, or allow to exist any Debt other than (a) obligations incurred under this Agreement; (b) Debt, not to exceed in the aggregate $200,000,000;  provided that,
with respect to such Debt: (i) the Borrower shall have completed the offering of at least thirty-six million
($36,000,000) Dollars of Preferred Stock, (ii) the proceeds of such Debt shall be used solely for the purpose of financing Engines which do not constitute part of the Asset Base;
(iii) such Debt shall be Non-Recourse Indebtedness, (iv) the collateral securing such Debt shall be held by a Special Purpose Financing Vehicle; (v) the Engines
financed with the proceeds of such Debt shall be subject to Section 6.13 hereof and (vi) the final maturity shall be no less than the
final maturity of this Credit Facility and average life shall be no less than the remaining average life of this Credit Facility; and (c) Debt, not to exceed $55,000,000 in the aggregate;  provided,
that, except for Debt incurred in connection with the purchase of aviation assets which do not constitute part of the Asset Base and that are
secured solely by such assets, the Borrower shall not incur any Debt relating to the financing or refinancing of Eligible Engines except for Eligible Engines which Borrower is unable to finance under
this Agreement (subject to Section 6.13) and except for the US Bank Engines and (iii) except in the case of Debt which is purchase money
financing, the final maturity shall be no less than the final maturity of this Credit Facility and average life shall be no less than the remaining average life of this Credit Facility." 

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        (g)   Section 6.10(a)
(Restricted Payments) is hereby amended and restated to read in its entirety as follows: 

        "(a)
declare, pay or set aside for payment or make any redemptions, repurchases, dividends or distributions of any kind with respect to its capital stock;  provided? however, that the Borrower shall be permitted to declare and pay dividends on
shares of its Preferred Stock if no Potential Default or Event of Default exists prior to or after giving effect to such declaration, payment or reserve for payment;" 

        (h)   Section 6.11
is hereby amended to delete the words "Other than as contemplated by the WEF Funding Facility," and to capitalize the word "enter." 

        (i)    Section 6.12
is hereby amended and restated to read in its entirety as follows: 

        "Investments in Subsidiaries. Except for Borrower's investment in WEST, make or maintain any Investments (b) in Unrestricted
Subsidiaries which exceed in the aggregate 15% of Net Worth of the Borrower or (b) Subsidiaries which are liable in respect of, or party to, any Debt facilities permitted under
Section 6.9(a) which exceed the lesser of (x) one hundred and twenty-five (125%) percent of the net proceeds to the Borrower of the issuance of its Preferred Stock or
(y) twenty-five (25%) percent of the maximum principal amount of such Debt facility. 

        (j)    A
new Section 7.7 is hereby added to the Credit Agreement to read in its entirety as follows: 

        "7.7
Unrestricted Availability. The Borrower shall at all times have Unrestricted Availability of not less than $10,000,000." 

        (k)   Section 8.1(b)
is hereby amended to delete the reference therein to "7.6" and to substitute in lieu thereof "7.7." 

        (l)    Section 8.1(e)
is hereby amended to add immediately after the words "to become due and payable prior to the date on which it would otherwise be due and payable"
the following: 

",
or to permit such holders or trustee to terminate the Borrower or any Subsidiary thereof as servicer or manager in respect of such Debt or the assets secured thereby;" 

        (m)  Section 8.1(j)
is hereby amended and restated to read in its entirety as follows: 

        "WEF Funding Facility. An "Event of Default or" "Servicer Termination Event" (as such terms are defined in the WEF Funding Facility) shall
have occurred under the WEF Funding Facility." 

        (n)   A
new Section 11.22 is hereby added to the Credit Agreement which shall read in its entirety as follows: 

        "11.22  Other Credit Facilities. In the event that the agreements governing the terms of any Debt incurred by the Borrower under
Section 6.9(b) or (c) hereof (the "Other Credit Facility") (i) contain initial advance rates, covenants, representations and
warranties or events of default that are more restrictive or onerous on the Borrower than those covenants, representations and warranties or events of default contained in this Agreement or
(ii) provide for, or permit the exercise of, remedies upon the occurrence of an event of default thereunder (including, without limitation, any direct or indirect acceleration of the
obligations of the Borrower thereunder) which are not provided for in, or permitted to be exercised under or in respect of, this Agreement (each such covenant, event of default and provision described
in the preceding clauses (i) and (ii) being herein called a "More Favorable Provision"), then prior to or simultaneously with the Borrower
entering into or becoming bound by any of the documentation pertaining to the Other Credit Facility or any amendment, modification or supplement thereto containing a More Favorable Provision, the
Borrower shall execute and deliver to the Agents and the Banks a binding agreement and such other documents and instruments as the Agents shall reasonably request, in 

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each
case satisfactory in form and substance to the Agents, which modify the provisions of this Agreement so as to give the Agents and the Banks the benefit of each More Favorable Provision (during
the period such Other Credit Facility is outstanding). If the Borrower shall fail to provide the Agent and the Banks with such amendment, it is agreed that the More Favorable Provision shall be deemed
to be incorporated into this Agreement and the Agents and the Banks shall be entitled to all of the rights and benefits of the More Favorable Provision as if such More Favorable Provision was
incorporated into this Agreement as of the date hereof." 

        (o)   All
references in the Credit Agreement to "Willis Engine Funding LLC" are hereby deleted and "WEST" is hereby substituted in lieu thereof. 

        (p)   Schedule 1 to the Credit Agreement is deleted in its entirety and  Schedule 1 to this Amendment is hereby substituted in lieu thereof. The Banks hereby consent
to the liquidation and dissolution, or merger with
and into the Borrower, of the following wholly-owned Subsidiaries of the Borrower: T-11, Inc. and Terandon Leasing Corporation. 

        3.    Effectiveness.    This Amendment shall be effective upon the fulfillment (to the satisfaction of the
Administrative Agent) of each of the following conditions precedent: 

        (a)   Receipt
by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Administrative Agent and the Banks; 

        (b)   Receipt
by the Administrative Agent and the Security Agent of the documents constituting the WEF Funding Facility; and 

        (c)   Receipt
by the Administrative Agent of such other instruments, agreements and documents as it shall reasonably require in connection with this Amendment and the matters
referred to above. 

        For
purposes of determining compliance with the conditions specified in this Section 3, unless the Administrative Agent is
expressly notified in writing to the contrary, each Bank that has executed this Amendment and Waiver shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document
or other matter either sent, or made available for inspection, by the Borrower or the Administrative Agent for consent, approval, acceptance or satisfaction pursuant to this Amendment. 

        4.    Representations and Warranties.    The Borrower represents and warrants as follows: 

        (a)   The
making and performance of the Amendment are within its power and authority and have been duly authorized by all necessary corporate action and do not and under
present law will not require any consent or approval not obtained of any of its shareholders, or any other Person (including, without limitation, any Governmental Authority), do not and under present
law will not violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award, do not violate any provision of its charter or by-laws, do not and will
not result in any breach of any material agreement, lease or instrument to which it is a party, by which it is bound or to which any of its assets are or may be subject, and do not and will not give
rise to any Lien upon any of its assets except the Lien in favor of the Security Agent contemplated under the Loan Documents. 

        (b)   This
Amendment has been duly executed and delivered by the Borrower and constitutes the legal, valid and binding obligation of the Borrower, enforceable against it in
accordance with its terms. 

        (c)   No
Event of Default or Potential Default has occurred and is continuing, or, after giving effect to this Amendment, shall exist. 

        (d)   All
representations and warranties set forth in the Loan Documents are true and correct as if made on and as of the date hereof, except in each case for representations
and warranties which by their terms are expressly applicable to an earlier date, in which event such representations and warranties shall be true and correct as of such earlier date. 

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        (e)   The
information set forth in the Amendment Request is true and complete in all respects as of the date hereof. 

        (f)    The
Borrower has provided the Agent with true and complete copies of the principal agreements constituting the WEF Funding Facility. Such agreements are described in
clauses (i) through (v) of the definition of "WEF Funding Facility." 

        (g)   T-11, Inc.
and Terandon Leasing Corporation are inactive corporations with no assets and no liabilities (other than obligations under the Guaranty). 

        5.    Limitation of Amendment.    This Amendment shall be limited precisely as written and shall not be deemed
(a) to be an amendment, waiver or modification of any other term or condition of the Credit Agreement, any other Loan Document or any of the instruments or agreements referred to in any such
document or a waiver of any Event of Default or Potential Default under the Credit Agreement, whether or not known to the Agents or any of the Banks or (b) to prejudice any other right or
rights that the Agents or the Banks may now or in the future have under or in connection with the Credit Agreement, the Notes, any other Loan Document or any of the instruments or agreements referred
to in any such document. 

        6.    Reference to and Effect on Loan Documents.    On and after the date hereof, each reference in the Credit
Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import, and each reference in the other Loan Documents to the Credit Agreement, shall mean and be a reference to the
Credit Agreement as amended hereby. This Amendment shall constitute a Loan Document within the definition thereof in the Credit Agreement. 

        7.    Reaffirmation of Security Interest.    The Borrower hereby reaffirms as of the date hereof each and every
security interest and Lien granted in favor of the Security Agent and the Banks under the Loan Documents, and agrees and acknowledges that such security interests and Liens shall continue from and
after the date hereof and shall remain in full force and effect from and after the date hereof, in each case after giving effect to the Credit Agreement as amended by this Amendment, and the
obligations secured thereby and thereunder shall include the Borrower's obligations under the Credit Agreement as amended by this Amendment. Each such reaffirmed security interest and Lien remains and
shall continue to remain in full force and effect and is hereby in all respects ratified and confirmed. 

        8.    Further Assurances.    Each of the parties hereto hereby agrees, at the sole cost and expense of the Borrower,
to do such further acts and things and to execute, deliver and acknowledge such additional agreements, powers and instruments as any party hereto may reasonably require to carry into effect the
purposes of this Amendment. 

        9.    Costs and Expenses.    The Borrower hereby agrees to pay all costs and expenses of the Administrative Agent
(including attorneys' fees and expenses) incurred in connection with the negotiation, preparation, execution and delivery of this Amendment. 

        10.    Governing Law.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CALIFORNIA OR FEDERAL PRINCIPLES OF CONFLICTS OF LAWS. 

        11.    Severability.    The invalidity, illegality or unenforceability in any jurisdiction of any provision in or
obligation under this Amendment shall not affect or impair the validity, legality or enforceability of the remaining provisions or obligations under this Amendment or of such provision or obligation
in any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 

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        12.    Counterparts.    This Amendment may be executed in two or more counterparts (and by different parties on
separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. Execution and delivery of this Amendment by facsimile transmission
shall constitute execution and delivery of this Amendment for all purposes, with the same force and effect as execution and delivery of an originally manually signed copy thereof. 

        13.    Headings; Binding Effect.    The headings of the several sections of this Amendment are inserted for
convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment. The provisions of this Amendment shall inure to the benefit of and be binding upon the
parties hereto and their respective permitted successors and assigns. 

        14.    Consultation with Advisors.    The Borrower acknowledges that it has consulted with counsel and with such other
experts and advisors as it has deemed necessary in connection with the negotiation, execution and delivery of this Amendment. This Amendment shall be construed without regard to any presumption or any
rule requiring that it be construed against the party causing this Amendment or any part hereof to be drafted. 

        15.    Entire Agreement.    This Amendment sets forth the entire understanding and agreement of the parties hereto in
relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relative to such subject matter. None of the terms or conditions of this Amendment may be
changed, modified, waived or canceled, orally or otherwise, except as provided in the Credit Agreement. 

[Remainder of page intentionally left blank; signatures on following pages]

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        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. 

	 	 	BORROWER:
	 	 	WILLIS LEASE FINANCE CORPORATION
	

 	
 	

By:	

/s/  THOMAS C. NORD      
	 	 	 	
 Name: Thomas C. Nord

Title: Senior Vice President

Signature page 1 to

Willis Lease Finance Corporation

Fourth Amendment to Amended and Restated Credit Agreement  

	 	 	AGENTS AND BANKS:
	 	 	NATIONAL CITY BANK, as Administrative Agent
	

 	
 	

By:	

/s/  CHRISTOS KYTZIDIS      
	 	 	 	
 Name: Christos Kytzidis

Title: Senior Vice President
	

 	
 	
NATIONAL CITY BANK
	

 	
 	

By:	

/s/  CHRISTOS KYTZIDIS      
	 	 	 	
 Name: Christos Kytzidis

Title: Senior Vice President

Signature page 2 to

Willis Lease Finance Corporation

Fourth Amendment to Amended and Restated Credit Agreement  

	 	 	FORTIS BANK (NEDERLAND) N.V., as

Structuring Agent and Security Agent
	

 	
 	

By:	

/s/  P.R.G. ZAMAN      
	 	 	 	
 Name: P.R.G. Zaman

Title:
	

 	
 	

By:	

/s/  P.R.G. ZAMAN      
	 	 	 	
 Name: P.R.G. Zaman

Title:
	

 	
 	
FORTIS BANK (NEDERLAND) N.V.
	

 	
 	

By:	

/s/  P.R.G. ZAMAN      
	 	 	 	
 Name: P.R.G. Zaman

Title:
	

 	
 	

By:	

/s/  P.R.G. ZAMAN      
	 	 	 	
 Name: P.R.G. Zaman

Title:

Signature page 3 to

Willis Lease Finance Corporation

Fourth Amendment to Amended and Restated Credit Agreement  

	 	 	HSH NORDBANK AG, NEW YORK BRANCH
	

 	
 	

By:	

/s/  JACK CAMPBELL      
	 	 	 	
 Name: Jack Campbell

Title: Senior Vice President

Head of Transportation Americas
	

 	
 	

By:	

/s/  HARI RAGHAVAN      
	 	 	 	
 Name: Hari Raghavan

Title: Senior Vice President

Head of Transportation Americas

Signature page 6 to

Willis Lease Finance Corporation

Fourth Amendment to Amended and Restated Credit Agreement  

	 	 	CITY NATIONAL BANK
	

 	
 	

By:	

/s/  NAN BRUSATI DIAS      
	 	 	 	
 Name: Nan Brusati Dias

Title: Senior Vice President

Signature page 7 to

Willis Lease Finance Corporation

Fourth Amendment to Amended and Restated Credit Agreement  

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FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

W I T N E S S E T HConsulting Agreement

Consulting Agreement

This agreement (the “Agreement”) is made and entered into as of the 1st day of October 2005, by and between Wyomex LLC (the “Consultant”) and Paramount Gold Mining Corp, a  Delaware corporation with a class of securities registered under Section 12(g) of the Exchange Act (“PARAMOUNT”); the Consultant and Paramount being sometimes hereinafter collectively referred to as the “Parties” or generically as a “Party.”

Preamble:

WHEREAS, PARAMOUNT is engaged in the business more particularly described in its current filings with the Commission, as available on EDGAR;

WHEREAS, the Consultant has substantial gold and silver mining exploration experience in Mexico and PARAMOUNT desires to avail itself of the Consultant’s services in conjunction with the exploration and development of its mining property in Mexico; and

WHEREAS, the Consultant is agreeable to making its services available to PARAMOUNT, on the terms and subject to the conditions hereinafter set forth:

NOW, THEREFORE, in consideration for the Consultant’s agreement to render the hereinafter described services as well as of the premises, the sum of TEN ($10) DOLLARS, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

Witnesseth:

Article One

Obligations of the Parties

1.1

Description of Services

a)

(A)

(1) 

The Consultant shall provide on a non-exclusive basis during the term of this agreement advice, guidance and general consulting services to Paramount. Consultant will work with and report to Bill Reed, Manager of Exploration, Mexico.  

(2)

Neither the Consultant nor any of its partners, officers or directors shall be liable for consequential or incidental damages of any kind to PARAMOUNT or its stockholders, directors, officers, employees or agents that may arise out of or in connection with any services performed by the Consultant hereunder.

(B)

During the Initial Term of this Agreement (as hereinafter defined), the Consultant will provide PARAMOUNT with the consulting services, on a reasonable, as required basis, consistent with the Consultant’s other business activities.

(C)

Because of PARAMOUNT’s current and anticipated status under federal securities laws, in any circumstances where the Consultant is describing the securities of PARAMOUNT to a third Party, the Consultant shall disclose to such person the compensation received from PARAMOUNT  to the extent required under any applicable laws, including, without limitation, Section 17(b) of the Securities Act of 1933, as amended; however, the Parties acknowledge they do not contemplate that the Consultant shall be involved in any activities on behalf of PARAMOUNT requiring such descriptions or disclosures, or that the Services involve any activities subject to regulation under federal or state securities laws.

1.2

Fiduciary Obligation to PARAMOUNT

(A)

In rendering its services, the Consultant shall not disclose to any third party any confidential non-public information furnished by PARAMOUNT or otherwise obtained by it with respect to PARAMOUNT.

(B)

(1)

PARAMOUNT acknowledges that because of the Consultant’s pre-existing relationships with other clients (the “Prior Clients”), the Consultant may face a conflict of interest and that any such conflict, if not resolved to one or more of its Prior Clients’ satisfaction, may require the Consultant to take actions or assume positions that are not in the best interest of PARAMOUNT because the Consultant’s first allegiance in such case may be to one or more of such Prior Clients;

(C)

Notwithstanding such potential conflict and after having been advised of the foregoing, PARAMOUNT hereby prospectively waives any claims or causes of action against the Consultant as a result of actions taken in such event, and agrees that the Consultant’s first loyalty and duty shall, if deemed appropriate by the Consultant, in its sole discretion, be to one or more of its Prior Clients; and

(D)

The Parties hereby agree that in the event that an actual conflict arises between PARAMOUNT and one or more of the Prior Clients, PARAMOUNT shall have the unilateral right to immediately terminate this Agreement, but that such termination will not affect the Consultant’s right to compensation from PARAMOUNT, as hereinafter provided.

1.3

Limitations on Services

(A)

The Parties recognize that certain responsibilities and obligations are imposed by federal and state securities laws and by the applicable rules and regulations of stock exchanges, the National Association of Securities Dealers, Inc. (collectively with its subsidiaries being hereinafter referred to as the “NASD”), in-house "due diligence" or "compliance" departments of licensed securities firms, etc.;  accordingly, the Consultant agrees that he will not release any information or data about PARAMOUNT to any selected or limited person(s), entity, or group if the Consultant is aware that such information or data has not been generally released or promulgated.

(B)

The Consultant shall restrict or cease, as directed by PARAMOUNT, all efforts on behalf of PARAMOUNT, including all dissemination of information regarding PARAMOUNT, immediately upon receipt of instructions (in writing by fax or letter) to that effect from PARAMOUNT.

1.4

The Consultant’s Compensation

(A)

(1)

The Consultant shall be issued 50,000 shares of PARAMOUNT restricted Rule 

144 stock;   

(2) 

The Consultant shall receive a per diem fee equal to US$600 per day for time spent consulting for Paramount. The Consultant will invoice Paramount on a monthly basis, and Paramount will make payment within 15 days of receipt of said invoice. 

(B)

(1)

In addition to payment of fees, PARAMOUNT will be responsible for payment of all costs and expenses associated with the Consultant’s services to PARAMOUNT (except for expenses relating to general overhead and admin.), however payment of such expenses are subject to prior approval from PARAMOUNT for amounts in excess of $500.  

(2)

In the event collection activities are required, PARAMOUNT agrees to pay the entire Consultant’s out of pocket costs associated therewith.

(3)

There will be no change or waiver of the provisions contained herein, unless such charge is in writing and signed by PARAMOUNT and the Consultant.

1.5

PARAMOUNT’s Commitments

In conjunction with all services provided by the Consultant under this Agreement, whether directly or indirectly:

(A)

(1)

All work requiring legal review will be submitted for approval by PARAMOUNT to PARAMOUNT’s legal counsel prior to its use.

(2)

Final drafts of any matters prepared for use by the Consultant in conjunction with the provision of the Services will be reviewed by PARAMOUNT and, if legally required, by PARAMOUNT’ legal counsel, to assure that:

(a)

All required information has been provided; and

(b)

All materials are presented accurately.

(3)

Only after such review and approval by PARAMOUNT and, if required, PARAMOUNT’s legal counsel, will any documents be filed with regulatory agencies or provided to the Consultant or third parties.

(B)

(1)

PARAMOUNT shall supply the Consultant on a regular and timely basis with all approved data and information about PARAMOUNT, its management, and its operations and PARAMOUNT shall be responsible for advising the Consultant of any fact which would affect the accuracy of any prior data and information supplied to the Consultant.

ARTICLE TWO

TERM, RENEWALS & EARLIER TERMINATION

2.1

Term.

This Agreement shall be for an initial term of twelve months commencing November 1, 2005  (the “Initial Term”).

2.2

Renewals.

(A)

This Agreement may be renewed for an additional term on the mutual consent of both parties.  

2.3

Final Settlement.

(A)

Upon termination of this Agreement and payment to the Consultant of all amounts due it hereunder, the Consultant or its representative shall execute and deliver to PARAMOUNT a receipt for such sums and a release of all claims, except such claims as may have been submitted pursuant to the terms of this Agreement and which remain unpaid, and, shall forthwith tender to PARAMOUNT all records, manuals and written procedures, as may be desired by PARAMOUNT for the continued conduct of its business; and

(B)

PARAMOUNT or its representative shall execute and deliver to the Consultant a receipt for all materials returned and a release of all claims, except such claims as may have been submitted pursuant to the terms of this Agreement and which remain unpaid, and, shall forthwith tender to the Consultant all records, manuals and written procedures, as may be desired by the Consultant for the continued conduct of its business.

ARTICLE THREE

THE CONSULTANT’S CONFIDENTIALITY & COMPETITION COVENANTS

3.1

General Provisions.

(A)

The Consultant acknowledges that, in and as a result of its entry into this Agreement, he will be making use of confidential information of special and unique nature and value relating to such matters as PARAMOUNT’s trade secrets, systems, procedures, manuals, confidential reports; consequently, as material inducement to the entry into this Agreement by PARAMOUNT, the Consultant hereby covenants and agrees that he shall not, at anytime during the term of this Agreement, any renewals thereof and for one year following the terms of this Agreement, directly or indirectly, use, divulge or disclose, for any purpose whatsoever, any of such confidential information which has been obtained by or disclosed to it as a result of its entry into this Agreement or provision of services hereunder.

(B)

In the event of a breach or threatened breach by the Consultant of any of the provisions of this Article Three, PARAMOUNT, in addition to and not in limitation of any other rights, remedies or damages available to PARAMOUNT, whether at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by the Consultant, or by its partners, directors, officers, stockholders, agents, representatives, servants, employers, employees, affiliates and/or any and all persons directly or indirectly acting for or with it.

3.2

Special Remedies.

In view of the irreparable harm and damage which would undoubtedly occur to PARAMOUNT as a result of a breach by the Consultant of the covenants or agreements contained in this Article Three, and in view of the lack of an adequate remedy at law to protect PARAMOUNT’s interests, the Consultant hereby covenants and agrees that PARAMOUNT shall have the following additional rights and remedies in the event of a breach hereof:

(A)

The Consultant hereby consents to the issuance of a permanent injunction enjoining it from any violations of the covenants set forth in this Article Three; and 

3.3

Cumulative Remedies.

The Consultant hereby irrevocably agrees that the remedies described in this Article Three shall be in addition to, and not in limitation of, any of the rights or remedies to which PARAMOUNT may be entitled, whether at law or in equity, under or pursuant to this Agreement.

3.4

Acknowledgment of Reasonableness.

(A)

The Consultant hereby represents, warrants and acknowledges that he has carefully read and considered the provisions of this Article Three and, having done so, agrees that the restrictions set forth herein are fair and reasonable and are reasonably required for the protection of the interests of PARAMOUNT, its members, officers, directors, consultants, agents and employees; consequently, in the event that any of the above described restrictions shall be held unenforceable by any court of competent jurisdiction, the Consultant hereby covenants, agrees and directs such court to substitute a reasonable judicially enforceable limitation in place of any limitation deemed unenforceable and, the Consultant hereby covenants and agrees that if so modified, the covenants contained in this Article Three shall be as fully enforceable as if they had been set forth herein directly by the Parties.

(B)

In determining the nature of this limitation, the Consultant hereby acknowledges, covenants and agrees that it is the intent of the Parties that a court adjudicating a dispute arising hereunder recognize that the Parties desire that these covenants not to compete or circumvent be imposed and maintained to the greatest extent possible.

ARTICLE FOUR

PARAMOUNT’S CONFIDENTIALITY & COMPETITION COVENANTS

4.1

General Prohibitions

(A)

PARAMOUNT acknowledges that, in and as a result of its engagement of the Consultant, PARAMOUNT will be making use of confidential information of special and unique nature and value relating to such matters as the Consultant’s business contacts, professional advisors, trade secrets, systems, procedures, manuals, confidential reports, lists of PARAMOUNT’ potential customers and funders; consequently, as material inducement to the entry into this Agreement by the Consultant, PARAMOUNT hereby covenants and agrees that it shall not, at anytime during the term of this Agreement, any renewals thereof an for two years following the terms of this Agreement, directly or indirectly, use, divulge or disclose, for any purpose whatsoever, any of such confidential information which has been obtained by or disclosed to it as a result of its employment of the Consultant, or the Consultant’s affiliates.

(B)

In the event of a breach or threatened breach by PARAMOUNT of any of the provisions of this Article Four, the Consultant, in addition to and not in limitation of any other rights, remedies or damages available to the Consultant, whether at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by PARAMOUNT, or by PARAMOUNT’ partners, directors, officers, stockholders, agents, representatives, servants, employers, employees, affiliates and/or any and all persons directly or indirectly acting for or with it.

4.2

Special Remedies.

In view of the irreparable harm and damage which would undoubtedly occur to the Consultant as a result of a breach by PARAMOUNT of the covenants or agreements contained in this Article Four, and in view of the lack of an adequate remedy at law to protect the Consultant’s interests, PARAMOUNT hereby covenants and agrees that the Consultant shall have the following additional rights and remedies in the event of a breach hereof:

(A)

PARAMOUNT hereby consents to the issuance of a permanent injunction enjoining it from any violations of the covenants set forth in this Article Four is and 

4.3

Cumulative Remedies.

PARAMOUNT hereby irrevocably agrees that the remedies described in this Article Four shall be in addition to, and not in limitation of, any of the rights or remedies to which the Consultant is or may be entitled to, whether at law or in equity, under or pursuant to this Agreement.

4.4

Acknowledgment of Reasonableness.

(A)

PARAMOUNT hereby represents, warrants and acknowledges that its officers and directors  have carefully read and considered the provisions of this Article Four and, having done so, agree that the restrictions set forth herein are fair and reasonable and are reasonably required for the protection of the interests of the Consultant, its members, officers, directors, consultants,  agents and employees; consequently, in the event that any of the above described restrictions shall be held unenforceable by any court of competent jurisdiction, PARAMOUNT hereby covenants, agrees and directs such court to substitute a reasonable judicially enforceable limitation in place of any limitation deemed unenforceable and, PARAMOUNT hereby covenants and agrees that if so modified, the covenants contained in this Article Four shall be as fully enforceable as if they had been set forth herein directly by the Parties.

(B)

In determining the nature of this limitation, PARAMOUNT hereby acknowledges, covenants and agrees that it is the intent of the Parties that a court adjudicating a dispute hereunder recognize that the Parties desire that these covenants not to compete or circumvent be imposed and maintained to the greatest extent possible.

ARTICLE FIVE

MISCELLANEOUS

5.1

Notices.

All notices, demands or other written communications hereunder shall be in writing, and unless otherwise provided, shall be deemed to have been duly given on the first business day after mailing by United States registered or certified mail, return receipt requested, postage prepaid mailed to the principal place of business of the respective parties.

5.2

Amendment.

No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by Parties.

5.3

Merger.

(A)

This instrument, together with the instruments referred to herein, contains all of the understandings and agreements of the Parties with respect to the subject matter discussed herein.

(B)

All prior agreements whether written or oral are merged herein and shall be of no force or effect.

5.4

Survival.

The several representations, warranties and covenants of the Parties contained herein shall survive the execution hereof and shall be effective regardless of any investigation that may have been made or may be made by or on behalf of any Party.

5.5

Severability.

If any provision or any portion of any provision of this Agreement, other than a conditions precedent, if any, or the application of such provision or any portion thereof to any person or circumstance shall be held invalid or unenforceable, the remaining portions of such provision and the remaining provisions of this Agreement or the application of such provision or portion of such provision as is held invalid or unenforceable to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby.

5.6

Governing Law and Venue.

This Agreement shall be construed in accordance with the laws of the Province of Ontario and any proceeding arising between the Parties in any matter pertaining or related to this Agreement shall, to the extent permitted by law, be held in Ontario, Canada.

5.7

Dispute Resolution in lieu of Litigation.

(A)

In the event of any dispute arising under this Agreement, or the negotiation thereof or inducements to enter into the Agreement, the dispute shall, at the request of any Party, be exclusively resolved through the following procedures:

(1)

(a)

First, the issue shall be submitted to mediation before a mediation service in Ontario, Canada to be selected by lot from six alternatives to be provided, three by the Consultant and three by PARAMOUNT.

(b)

The mediation efforts shall be concluded within ten business days after their initiation unless the Parties unanimously agree to an extended mediation period;

(2)

In the event that mediation does not lead to a resolution of the dispute then at the request of any Party, the Parties shall submit the dispute to binding arbitration before an arbitration service located in Ontario, Canada, to be selected by lot, from six alternatives to be provided, in the manner set forth above for selection of a mediator;

(3)

(a)

Expenses of mediation shall be borne by the Parties equally if successful but if unsuccessful, expenses of mediation and of arbitration shall be borne by the Party or Parties against whom the arbitration decision is rendered.

(b)

If the terms of the arbitral award do not establish a prevailing Party, then the expenses of unsuccessful mediation and arbitration shall be borne 1⁄2 by PARAMOUNT and 1⁄2 by the Consultant.

(B)

Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

(C)

In any action between the Parties to enforce any of the terms of this Agreement or any other matter arising from this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including reasonable attorneys' fees up to and including all negotiations, trials and appeals, whether or not litigation is initiated.

5.8

Benefit of Agreement.

The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties, jointly and severally, their successors, assigns, personal representatives, estate, heirs and legatees.

5.9

Captions.

The captions in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope of this Agreement or the intent of any provisions hereof.

5.10

Number and Gender.

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the Party or Parties, or their personal representatives, successors and assigns may require.

5.11

Further Assurances.

The Parties hereby agree to do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered and to perform all such acts and deliver all such deeds, assignments, transfers, conveyances, powers of attorney, assurances, stock certificates and other documents, as may, from time to time, be required herein to effect the intent and purpose of this Agreement.

5.12

Status.

(A)

Nothing in this Agreement shall be construed or shall constitute a partnership, joint venture, employer-employee relationship, lessor-lessee relationship, or principal-agent relationship.

(B)

(1) 

Throughout the term of this Agreement, the Consultant shall serve an independent contractor, as that term is defined by the United States Internal Revenue Service, and in conjunction therewith, shall be responsible for all of his own tax reporting and payment obligations.

(2) 

The Consultant shall have the sole and exclusive responsibility and liability for making all reports and contributions, withholdings, payments and taxes to be collected, withheld, made and paid with respect to persons providing services to be performed hereunder on behalf of PARAMOUNT, whether pursuant to any social security, unemployment insurance, worker's compensation law or other federal, state or local law now in force and effect or hereafter enacted.

(C)

In amplification of the foregoing, the Consultant shall, subject to reasonable reimbursement on a pre-approved budgetary basis, be responsible for providing its own office facilities and supporting personnel.

5.13

Counterparts.

(A)

This Agreement may be executed in any number of counterparts delivered through facsimile transmission.

(B)

All executed counterparts shall constitute one Agreement notwithstanding that all signatories are not signatories to the original or the same counterpart.

In Witness Whereof, the Parties have executed this Agreement, effective as of 

November 1, 2005 

PARAMOUNT GOLD MINING CORP.

   

 /S/ Chris Crupi

____________________

Chris Crupi, President

Wyomex LLC

/S/ John Simons

______________________________

John Simons

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