Document:

ex10eleven.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing

MR. NOTARY, JULIO ANTONIO DEL POZO VALDEZ,

Kindly insert in your Registry of Public Deeds one of MINING ASSIGNMENT AND OPTION executed on the one part by MINERA ABX EXPLORACIONES
S.A. (hereinafter referred to as “ABX”), identified with Taxpayer Registration N° 20193380299, registered in Card N° 040049 of the Book of Contractual Companies in correlation with Item N° 11424233 of the Registry of Legal
Entities in and for Lima, domiciled at Avenida Víctor Andrés Belaunde 171 – Segundo Piso, San Isidro, Lima, acting by and through its legal representative, Mr. Ramón Araneda González, an engineer by profession,
identified with Alien Card N° 000069194, as per power-of-attorney registered in the above-mentioned Item; and on the other, by Compañía Minera Paramount S.A.C. (hereinafter referred to as “PARAMOUNT”), identified with
Taxpayer Registration N° 20511130710, registered in Electronic Item N° 11767861 of the Registry of Legal Entities in and for Lima, domiciled at Avenida El Rosario N° 380, San Isidro, Lima, acting by and through its General Manager, Mr.
Alain Vachon, an engineer by profession, identified with Alien Card N° 000092501, as per power-of-attorney registered in entry A00001 of the above-mentioned Electronic Item; under the following terms and conditions:

	
ONE. Recitals

	
1.1      		
ABX is the holder of the mining rights located in the district of Chipao, province of Lucanas, department of Ayacucho, and registered in the Book of Mining Rights of the Lima Registration Office of SUNARP, which are
indicated as follows:	
	 

	
Name 
		
 		
Code 
		
 		
Extension 
		
 		
Item 
	
	

		
		

		
		

		
		

	
	
Querco Nueve 
		
 		
  010118503 
		
 		
1,000 
		
 		
11599859 
	
	

		
		

		
		

		
		

	
	
Querco Diez 
		
 		
010118603 
		
 		
1,000 
		
 		
11599856 
	
	

		
		

		
		

		
		

	
	
Querco Once 
		
 		
010118703 
		
 		
1,000 
		
 		
11604732 
	
	

		
		

		
		

		
		

	
	
Querco Doce 
		
 		
010118803 
		
 		
200 
		
 		
11599858 
	
	

		
		

		
		

		
		

	
	
Surpe 10 
		
 		
010147502 
		
 		
1,000 
		
 		
11550540 
	
	

		
		

		
		

		
		

	
	
Surpe 11 
		
 		
010147602 
		
 		
300 
		
 		
11549040 
	

	
1.2      		
The mining rights indicated in the foregoing Subsection 1.1 shall be jointly referred to as the “Mining Rights”. A location map of the Mining Rights is attached hereto as Annex A.	
	 

	
1.2.1      		
ABX and PARAMOUNT, who shall be jointly referred to as “the Parties”, have agreed to enter into a Mining Assignment and Transfer Option contract, hereinafter referred to as “the
Contract”.	
	 

TWO.- Representations of ABX and PARAMOUNT

	
2.1      		
ABX represents that as of the date of execution hereof and to the best of its knowledge:	
	 
	 	
2.1.1      		
The Mining Rights have been properly requested and registered under a title.	
	 
	 	
2.1.2      		
The Mining Rights are free from contingencies, liens or encumbrances that affect or limit, or may affect or limit in any manner the execution of the Contract, undertaking to, in any event, carry out the disencumbrance
and warranty of title according to Law.	
	 
	 	
2.1.3      		
There is no right which may be enforceable as to third parties on the basis of any kind of contract that could have been executed with regard to the Mining Rights.	
	 
	 	
2.1.4.      		
Any and all formal obligations applicable to the Mining Rights according to the General Mining Law have been performed, and any and all statements, payments and other requirements set forth by the law are up to date
and in order up to 2005 inclusive; except for the payment of the 2005 operational rights, which shall be paid by ABX within the first 20 days of January 2006.	
	 
	 	
2.1.5      		
ABX has not started and is not aware of the start of any insolvency proceedings, reorganization proceedings or any other kind of bankruptcy proceedings against it.	
	 
	 	
2.1.6      		
ABX’s representative is empowered to subscribe the Contract.	
	 
	
2.2      		
PARAMOUNT represents that as of the date of execution hereof and to the best of its knowledge:	
	 
	 	
2.2.1      		
There is no proceeding, including but not limited to, administrative, court or arbitration proceedings or claims regarding PARAMOUNT that could affect PARAMOUNT or ABX’s interests in respect of the
Contract.	
	 

2

	
2.2.2      		
There is no legal or contractual situation that prevents PARAMOUNT from validly adopting the agreements indicated in the Contract.	
	 
	
2.2.3      		
Its representatives are sufficiently empowered to subscribe the Contract. Such powers have been granted according to the Bylaws and the General Business Corporations Law.	
	 
	
2.2.4      		
It has not started and is not aware of the start of any bankruptcy proceedings, whether ordinary or preventive, or of any other type of bankruptcy proceedings.	
	 
	
2.2.5      		
It undertakes to compensate ABX for any damages that ABX could suffer as a consequence of the falseness or inaccuracy of any of the representations made by PARAMOUNT in the points of this section.	
	 

THIRD.- Assignment of Mining Rights to PARAMOUNT

ABX hereby delivers PARAMOUNT under a Mining Assignment (hereinafter referred to as the “Assignment”) the Mining Rights.  Therefore, PARAMOUNT hereunder replaces ABX in all of the latter’s rights and
obligations with regard to the Mining Rights within the framework of the provisions hereof.

The conditions of the Assignment are the following:

	
3.1      		
Consideration for the Assignment	
	 
	 	
In consideration for the Assignment, PARAMOUNT shall pay ABX US$ 100 (One hundred and 00/100 United States Dollars).	
	 
	
3.2      		
Term	
	 
	 	
The term of the Assignment shall be two years as from the date of the public deed resulting from this preliminary deed.	
	 

3

	 	
Notwithstanding the above, in the event PARAMOUNT exercises the Option (as defined in the following clause), the Assignment shall be automatically terminated, there being no need of any additional formality or
representation.	
	 
	
3.3      		
PARAMOUNT's Obligations	
	 
	 	
During the effective term of the Assignment, PARAMOUNT undertakes to:	
	 
	 	
3.3.1      		
Keep the payments for operational rights and, when appropriate, the penalty for Mining Rights up to date.	
	 
	 	
3.3.2      		
File on an annual basis the Consolidated Annual Statement before the competent authority as from 2006, insofar as applicable according to the law.	
	 
	 	
3.3.3      		
File on an a monthly basis with the General Mining Bureau of the Ministry of Energy and Mines the information necessary to prepare mining statistics, insofar as appropriate, according to the law.	
	 
	 	
3.3.4      		
Perform its Exploration activities subject to Peruvian regulations on safety and hygiene and environmental sanitation, which are applicable to the mining industry.	
	 
	 	
3.3.5      		
The procedures in which the title ownership or area of the Mining Rights is discussed are understood as strictly referred to ABX and PARAMOUNT.	
	 
	 	
3.3.6      		
Authorize ABX's representatives to visit the Mining Rights area, prior written request from ABX, at least ten (10) business days in advance, and provided that, on a reasonable basis, such visit does not hinder the
performance of PARAMOUNT's activities. Such representatives shall be authorized to carry out field verifications in the Mining Rights area, and at all times, must abide by PARAMOUNT's safety provisions. Such verifications shall be conducted at
ABX’s sole expense.	
	 
	 	
3.3.7      		
Provide ABX, within a period of ten days following the filing, a copy of such documents filed with the administrative authorities in compliance with any and all obligations it has undertaken in its capacity as assignee
of the Mining Rights.	
	 

4

	
3.3.8      		
Assume sole liability in relation to the environmental and social obligations that may be generated by the mining activities performed under the Contract. It is understood that environmental and social liability also
comprises fines and other sanctions imposed as a result of the default on the provisions regarding this particular issue.	
	 
	
3.3.9      		
Comply before the competent authority with any and all legal obligations regarding the Mining Rights and those it is entitled to under the Contract. For such compliance, ABX shall collaborate as required in its
capacity as holder of the Mining Rights.	
	 
	
3.3.10      		
The environmental obligations undertaken by PARAMOUNT hereunder, as well as those resulting from the application of the legal and regulatory provisions corresponding to the activities to be conducted in the Mining
Rights shall remain in force even after the termination or cancellation, for any reason, of the Contract until PARAMOUNT has properly performed such obligations.	
	 

	
3.4      		
Information	
	 
	 	
During the effective term of the Assignment, PARAMOUNT shall prepare and deliver ABX six-monthly reports on its activities in the Mining Rights, describing its exploration activities, as well as providing detailed
reports on the amounts invested in such activities, and of the items to which such investments have been allocated.	
	 

	
FOUR.- Option

	
4.1      		
ABX hereby grants PARAMOUNT the option to acquire 51% of the Mining Rights, hereinafter referred to as the "Option".	
	 
	
4.2      		
The term of the Option is two (2) years as from the date of the public deed resulting from this preliminary deed. If the last day is not a business day, the term shall be extended up to the first business day following
such day.	
	 
	
4.3      		
In order to exercise the Option, PARAMOUNT should have met the following conditions:	
	 
	 	
4.3.1      		
To carry out a First Exploration Program in the Mining Rights, which includes geological and geophysical studies which, at its discretion, are determined as necessary by PARAMOUNT, and the drilling works for at least
2,000 meters in depth	
	 

5

	 	
before the expiration of the first year following the date of the public deed resulting from this preliminary deed; and,	
	 
	
4.3.2      		
To carry out a Second Exploration Program in the Mining Rights, which includes geological and geophysical studies which, at its discretion, are determined as necessary by PARAMOUNT, and the drilling works for at least
4,000 meters in depth before the expiration of the second year following the date of the public deed resulting from this preliminary deed.	
	 

The First Exploration Program referred to in Subsection 4.3.1 represents, in addition, a commitment undertaken by PARAMOUNT for the execution of the Contract, and therefore, it must be executed and completed even when
PARAMOUNT fails to exercise the Option.

	
4.4      		
Upon the expiration of the term established in the foregoing section 4.2, without PARAMOUNT having exercised the Option, it shall be understood that for all legal purposes, PARAMOUNT abandons the Option granted in its
favor.	
	 

	
FIVE.- Exercise of the Option

	
5.1      		
PARAMOUNT may exercise the Option until 6:00 p.m. of the last day of the term indicated in Subsection 4.2 hereof, and on any previous date, provided that (i) the term of the Option is in force and, (ii) the conditions
indicated in Subsections 4.3.1 and 4.3.2 hereof have been met.	
	 
	 	
The exercise of the Option shall be informed by notarial letter to ABX. Such letter shall indicate the Mining Rights subject-matter of the Option and it shall include the supporting documentation regarding the
performance of the obligations referred to Subsections 4.3.1 and 4.3.2 hereof.	
	 
	
5.2      		
If PARAMOUNT decides to exercise the Option, the preliminary deed and the public deed of the transfer contract attached hereto as Annex B (hereinafter referred to as "the Transfer") should be subscribed by the Parties
within a term of ten (10) business days following the receipt by ABX of the notarial letter referred to in Subsection 5.1 above.	
	 

6

SIX.- Price to be paid for the transfer of 51% of the Mining Rights

The price for the transfer of 51% of the Mining Rights subject-matter of the Option amounts to US$ 100.00 (One hundred and 00/100 United States Dollars) for each of the Mining Rights. 

The payment shall be made by delivering a non-negotiable banker's draft drawn to the order of Minera ABX Exploraciones S. A. upon the subscription of the public deed of the Transfer contract, under notarial
certification. 

The Parties agree that the sole delivery of the banker's draft shall be valid for payment.

	
SEVEN.- Grounds for Contract Termination:

	
7.1      		
PARAMOUNT may terminate, waive, abandon or relinquish the Assignment and Option at any time, while these are in force as stipulated in the Contract, and it shall suffice that PARAMOUNT sends ABX a written notice in
such regard.	
	 
	 	
In any event, the termination of the Contract shall become effective 60 days as from the notice regarding this subject. Within the period comprised between the submission of the notice and the last day of the sixty-day
term indicated in order to consider the Assignment and the Option as terminated, PARAMOUNT shall continue to be liable for the performance of any and all obligations corresponding to the Mining Rights, such as, for example, but not exclusively, the
payment of the Operational Rights.	
	 
	
7.2      		
ABX may terminate, by operation of the law, the Contract in case of default by PARAMOUNT of the obligations indicated in Clause Three, Subsection 3.3., and Clause Four, Subsections 4.3.1 and 4.3.2.	
	 
	
7.3      		
The Assignment shall be terminated by operation of the law if the Option is exercised without any need to subscribe any document. Moreover, the Assignment shall be terminated if the Option is exercised on an untimely
basis.	
	 
	
7.4      		
The Option shall be terminated by operation of the law if the Assignment is terminated without any need to subscribe any document.	
	 

7

	
7.5      		
The date of termination or cancellation of the Contract in the case indicated in Subsections 7.1 and 7.2 above, shall be, for all purposes, the date of receipt by PARAMOUNT or ABX, as applicable, of the notice
mentioned in such subsections.	
	 
	
7.6      		
The Parties agree that, upon the occurrence of the termination as provided for by the foregoing sections of this clause, both the Assignment and the Option shall be terminated.	
	 
	
7.7      		
In all cases of termination or cancellation of the Assignment, with the exception of the provisions of the first part of the foregoing Subsection 7.3, PARAMOUNT agrees to enter into the public or private documents
required and upon ABX's request, in order to file and make public the termination or cancellation of the Assignment, within a term of ten (10) calendar days as from the date of such termination determined as provided for by this Clause.	
	 
	
7.8      		
Termination or cancellation obligations	
	 
	 	
Upon the termination or cancellation of the Assignment which does not result from the exercise of the Option, PARAMOUNT shall have a term of thirty (30) business days as from the effective date of the termination or
cancellation of the Assignment in order to withdraw the machinery, tools, equipment and assets of its property which it has introduced into the area of the Mining Rights and the withdrawal of which does not compromise the safety and stability of
mining activities.	
	 
	 	
Moreover, in case the Assignment were terminated or cancelled without PARAMOUNT having exercised the Option, PARAMOUNT shall be obliged, within a term of 90 days as from the effective date of the termination or
cancellation to: (a) transfer without any cost for ABX, any and all information and results obtained from its activities in the Mining Rights; (b) transfer in favor of ABX, at its purchase price, any right on the superficial lands within the area of
the Mining Rights that may have been acquired by PARAMOUNT or a company or an individual related thereto; and (c) assign and/or transfer, at no cost for ABX, any right, license, permit or authorization that PARAMOUNT may have obtained for the
performance of its activities in the Mining Rights.	
	 
	
7.9      		
In case the Option is exercised, PARAMOUNT is obliged, within a period of 10 days following the date of incorporation of the company, which for these purposes the Parties agree to incorporate, to transfer for no
consideration to such company: a) any and all information obtained from its activities in the Mining Rights; (b) any right on the superficial	
	 

8

lands within the area of the Mining Rights that may have been acquired by PARAMOUNT or a company or an individual related thereto; and, (c) any right, license, permit or authorization that PARAMOUNT may have obtained
for the performance of its activities in the Mining Rights.

	
EIGHT.- Confidentiality

	
8.1      		
Any and all data, reports, records and other information of any kind developed or acquired with regard to the Contract shall be considered to be confidential (hereinafter referred to as the "Confidential Information"),
and therefore, the Parties undertake not to disclose the Confidential Information to third parties without the previous consent in writing of the other party and not to use the Confidential Information for purposes other than those referred to the
performance of the Contract. The Confidential Information which is available or becomes part of the public domain by any means other than the default of this provision shall cease to be considered as Confidential Information.	
	 
	 	
Each party is exempted from the confidentiality obligation indicated in this clause provided that, according to the reasonable opinion of the legal counsel of such party, it is required by the relevant regulations to
disclose the Confidential Information in any court, arbitration, administrative, police or tax proceeding, and only after having informed the other party of the legal need to disclose such information. However, the party that discloses the
information should take any and all reasonable measures in order not to affect the interests of the other party as a result of such disclosure, so that the disclosed information is only such information required by law and the requiring Authority
observes the confidential nature of the information disclosed.	
	 
	
8.2      		
The Parties agree that as of the date of termination or cancellation of the Contract as provided for by Clause Seven, the confidentiality obligation contained in this clause for ABX shall cease.	
	 
	
8.3.      		
The Parties agree that the provisions included in section 8.1 of this clause shall remain in force for PARAMOUNT up to for a period of 2 (two) years calculated as from the date on which the termination of the Contract
becomes effective or the term of the Assignment expires.	
	 

9

	
NINE.- Force Majeure

The parties' obligations shall be subject to suspension to the extent and provided that the compliance therewith is hindered or delayed due to any unforseeable cause which is beyond the reasonable control of the
affected party, including, among others, labor disputes (regardless of their origin, the reasonableness of the worker's claims, or whether the party is empowered thereto); acts of god; laws or injunctions issued by any government or government body,
and sentences or resolutions issued by any court, unless such injunctions, orders or sentences have been the result of violations against applicable laws and regulations by the affected party; lack of capacity to obtain under reasonably acceptable
terms any license, permit or other public or private authorization; reduction or suspension of the activities to resolve or avoid a violation, whether real or alleged, present or future, of the environmental protection regulations, unless it is the
case of a real violation against environmental protection regulations by the affected party; an act or omission by any government entity which delays or prevents the issuance or granting of any approval or authorization necessary to carry out
exploration activities; acts of war or conditions arising as a result of war, whether declared or not; acts of terrorism or conditions arising as a result of acts of terrorism, disturbances, civil war, insurrection or rebellion; fire, explosion,
earthquake, storm, flooding, sinkholes, drought or other adverse weather conditions; delay or non-performance by the suppliers or carriers in the delivery of materials, parts, supplies, services or equipment or as a result of the lack of labor,
transportation, materials, machinery, equipment, supplies, public services of the contractor or subcontractor or the lack of capacity thereof to obtain them; accidents, and equipment, machinery or facilities failure; actions by citizen groups,
including but not limited to, environmental protection organizations or groups for the defense of the rights of native communities, or any other cause, whether similar to or different from those previously mentioned. 

The affected party should immediately serve notice upon the other party on the suspension of the performance, and should indicate in such notice the nature of suspension, its reasons, and possible duration.
Immediately after the cessation of the force majeure event, the affected party should inform of such an event to the other party in writing, and should take the necessary measures to resume and continue the performance that was suspended as soon as
possible. 

The following events do not constitute act of god or force majeure events: bankruptcy, insolvency or illiquidity of PARAMOUNT, any variation in the exchange rate, the variation of prices for any reason, increased
interest rates, free availability of the amounts deposited or credited to a bank

10

account or other circumstances that may not be classified as an act of god, or a force majeure event according to Peruvian law. 

	
TEN.- Arbitral Agreement

	
10.1      		
Any litigation, controversy, dispute, difference or claim arising between the Parties related to the interpretation, performance, termination, cancellation, efficacy, nullity, annulment or validity derived from or
related to this Contract shall be subject to national de jure arbitration.	
	 
	 	
There shall be three arbitrators, two of whom shall be appointed by each of the Parties, and the two arbitrators thus appointed shall designate a third one, who shall chair the arbitration tribunal. If a party fails to
appoint the arbitrator it is entitled to within a term of 15 calendar days as from the receipt of the written request from the party requesting the arbitration or if, within an equal term of 15 calendar days as from the appointment of the second
arbitrator, the two arbitrators fail to reach an agreement on the appointment of the third arbitrator, the appointment of any of such arbitrators shall be made, upon request of any of the Parties, by	
	 
	 	
Instituto Nacional de Derecho de Minería, Petróleo y Energía ["National Institute of Mining, Oil and Energy Law"].	
	 
	 	
If, due to any circumstance, a substitute arbitrator should be appointed, he/she shall be designated by following the same procedure indicated above for the appointment of the arbitrator who is replaced.	
	 
	 	
The arbitration proceedings shall take place in the city of Lima, under the management of the arbitration center of Instituto Nacional de Derecho de Minería,
Petróleo y Energía, to which bylaws and regulations the parties expressly submit.	
	 
	 	
The parties waive the filing of an appeal against the arbitral award issued.	
	 
	 	
For any intervention from regular judges and courts within the arbitral procedure, the parties expressly submit to the jurisdiction of the judges and courts of the judicial district of Cercado de Lima, and waive the
jurisdiction of their domiciles.	
	 
	
10.2      		
The provisions of this clause shall supersede the termination, cancellation or any other form of ending this contract.	
	 

11

	
ELEVEN.- Assignment of contractual position

	
11.1      		
ABX may assign its position herein.	
	 
	
11.2      		
PARAMOUNT may assign its contractual position herein, only if it obtains the previous and written consent of ABX.	
	 

	
TWELVE.- Notices and Domiciles

Any and all notices and communications between the parties with regard to this Contract should be made in writing to the addresses indicated below. Such notices shall be considered to be known on the date on which they
are received with acknowledgement of receipt or submitted through a notary's office. If the receipt does not take place on a business day, the notice shall be considered as received on the following business day. Any change in the address shall be
informed through a notary's office or by reliable acknowledgement of receipt 10 (ten) calendar days in advance. If such requirement is not met, any notice or communication addressed to the previous address shall be considered to have been validly
submitted.

	
12.1      		
All Notices to ABX should be sent to: Minera ABX Exploraciones S.A.	
	 
	 	
Attention: General Manager	
	 
	 	
Address: Avenida Víctor Andrés Belaunde 171 – Segundo Piso, San Isidro, Lima.	
	 
	
12.2      		
All Notices to PARAMOUNT should be sent to: Compañía Minera Paramount S.A.C.	
	 
	 	
Attention: General Manager	
	 
	 	
Address: Avenida El Rosario No. 380, San Isidro, Lima	
	 

Notwithstanding the foregoing paragraph, the parties agree that their domiciles for the purposes of this Contract should necessarily remain within the urban area of the city of Lima. 

12

	
THIRTEEN.- Expenses

The expenses required by the public deed resulting from this preliminary deed, shall be at PARAMOUNT's expense, including the registration fees at the Mining Registry corresponding to this Contract and its termination
and/or cancellation. 

	
FOURTEEN.- Interpretation

Any and all references herein to any clause or section are to the appropriate clause or section in the Contract. 

Any reference in this Contract to a clause includes all sections within such clause and all references to any section include any and all paragraphs therein. 

Unless the context otherwise requires, words imparting the singular number only shall include the plural and viceversa, and any reference herein to gender shall include all genders.

	
FIFTEEN.- Applicable Law

This contract is governed by the laws of the Republic of Peru.

	
SIXTEEN.- Single Agreement

The Contract entirely replaces any oral or written agreement which may have been reached by the Parties with regard to the Mining Rights, especially the Letter of Intent, except for the shareholders' agreement executed
by the Parties on December 19, 2005. 

Mr. Notary, kindly insert the legal clauses and enter any other relevant insert, convert this preliminary deed into a public deed and send the relevant notices to the Mining Registry for recordation in the item
corresponding to the Mining Rights.

Lima, December 19, 2005

13

BY: MINERA ABX EXPLORACIONES S.A. /S/ Ramon Luis Araneda Gonzales SIGNED: RAMON LUIS ARANEDA GONZALES

BY: COMPAÑIA MINERA PARAMOUNT S.A.C. /S/ Alain Vachon SIGNED: ALAIN VACHON

The Preliminary Deed is authorized by Katia Castillo Pérez, Esq., registered under Lima Bar Association No 31982.

14EXHIBIT 10.1

 

FIRST
AMENDMENT TO

THIRD
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This FIRST AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT (this “Agreement”) is dated as of December 23,
2005, and is entered into by and among BEACON
SALES ACQUISITION, INC. (“Borrower”) and the Domestic Subsidiary
Guarantors which are signatories hereto (together with Borrower, “Obligors”); GENERAL ELECTRIC CAPITAL CORPORATION (“GE Capital”), for itself as a
Lender, as L/C Issuer and as Agent; and the Lenders which are signatories
hereto.

 

WHEREAS,
Agent, Lenders and Obligors are parties to a certain Third Amended and Restated
Loan and Security Agreement dated as of October 14, 2005 (as such
agreement has been or may hereafter be from time to time amended, supplemented
or otherwise modified, the “Loan Agreement”); and

 

WHEREAS,
Borrower has requested that GE Capital, as a Lender, enter into letters of
credit or other credit enhancement to support the payment obligations of
Borrower under any interest rate protection or hedging agreement as described
herein; and

 

WHEREAS,
the parties desire to amend the Loan Agreement to provide for such letters of
credit or other credit enhancement as hereinafter set forth.

 

NOW
THEREFORE, in consideration of the mutual conditions and
agreements set forth in the Loan Agreement and this Agreement, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

1.                                      Definitions. 
Capitalized terms used in this Agreement, unless otherwise defined
herein, shall have the meaning ascribed to such terms in the Loan Agreement.

 

2.                                      Amendments to Loan
Agreement.

 

2.1                                 Section 2.1
of the Loan Agreement is hereby amended by inserting the following as (J)
thereof:

 

“(J)                             Swap
Related Reimbursement Obligations.

 

(1)                                  Borrower
agrees to reimburse GE Capital in immediately available funds in the amount of
any payment made by GE Capital under a Swap Related L/C (such reimbursement
obligation, whether contingent upon payment by GE Capital under the Swap
Related L/C or otherwise, being herein called a “Swap Related Reimbursement
Obligation”).  No Swap Related
Reimbursement Obligation for any Swap Related L/C may exceed the amount of the
payment

 

 

obligations
owed by Borrower under the interest rate protection or hedging agreement or
transaction supported by the Swap Related L/C.

 

(2)                                  A
Swap Related Reimbursement Obligation shall be due and payable by Borrower
within one (1) Business Day after the date on which the related payment is
made by GE Capital under the Swap Related L/C.

 

(3)                                  Any
Swap Related Reimbursement Obligation shall, during the period in which it is
unpaid, bear interest at the rate per annum equal to LIBOR plus one percent
(1%), as if the unpaid amount of the Swap Related Reimbursement Obligation were
a LIBOR Loan, and not at any otherwise applicable Default Rate.  Such interest shall be payable upon
demand.  The following additional
provisions apply to the calculation and charging of interest by reference to
LIBOR:

 

(a)                                  LIBOR
shall be determined for each successive one-month LIBOR Period during which the
Swap Related Reimbursement Obligation is unpaid, notwithstanding the occurrence
of any Event of Default and even if the LIBOR Period were to extend beyond the
Termination Date.

 

(b)                                 If
a Swap Related Reimbursement Obligation is paid during a monthly period for
which LIBOR is determined, interest shall be pro-rated and charged for the
portion of the monthly period during which the Swap Related Reimbursement
Obligation was unpaid.  Section 2.9(B) and
any other provision relating to the indemnification by Borrower of losses,
costs and expenses relating to LIBOR Loans shall not apply to any payment of a
Swap Related Reimbursement Obligation during the monthly period.

 

(c)                                  Notwithstanding
the last paragraph of the definition of “LIBOR”, if LIBOR is no longer
available from Telerate News Service, LIBOR shall be determined by GE Capital
from such financial reporting service or other information available to GE
Capital as in GE Capital’s reasonable discretion indicates GE Capital’s cost of
funds.

 

(4)                                  Except
as provided in the foregoing provisions of this Section 2.1(J) and
in Section 10.1, Borrower shall not be obligated to pay to GE
Capital or any of its Affiliates any fees with respect to Letters of Credit, or
any other fees, charges or expenses, in respect of a Swap Related L/C or
arranging for any interest rate protection or hedging agreement or transaction
supported by the Swap Related L/C.  GE
Capital and its Affiliates shall look to the beneficiary of a Swap Related L/C
for payment of any such letter of credit fees or other fees, charges or
expenses and such beneficiary may factor such fees, charges, or expenses into
the pricing of any interest rate protection or hedging agreement or transaction
supported by the Swap Related L/C.

 

2

 

(5)                                  If
any Swap Related L/C is revocable prior to its scheduled expiry date, GE
Capital agrees not to revoke the Swap Related L/C unless the Termination Date
or an Event of Default has occurred.

 

(6)                                  GE
Capital or any of its Affiliates shall be permitted to (i) provide
confidential or other information furnished to it by any of the Credit Parties
(including, without limitation, copies of any documents and information in or
referred to in Schedule 3.1, financial statements and other reports
contained in the Reporting Rider and Compliance Certificates) to a beneficiary
or potential beneficiary of a Swap Related L/C and (ii) receive
confidential or other information from the beneficiary or potential beneficiary
relating to any agreement or transaction supported or to be supported by the
Swap Related L/C.  However, no
confidential information shall be provided to any Person under this paragraph
unless the Person has agreed to comply with the covenant substantially as
contained in Section 10.18 of this Agreement.”

 

2.2                                 Section 7.2(B) of
the Loan Agreement is hereby amended to read as follows:

 

(B)                                Swap
Related Reimbursement Obligations and those resulting from Currency Rate
Agreements and Interest Rate Agreements entered into by Borrower with any
Lender (or Affiliate of a Lender) upon prior or contemporaneous written notice
to Agent or otherwise with Agent’s prior written approval, including the
Interest Rate Agreement in effect on the Closing Date between Borrower and
LaSalle Bank National Association;

 

2.3                                 Section 8.7(b) of
the Loan Agreement is hereby amended to read as follows:

 

“(b) in the absence of a specific determination
by Agent with respect thereto, the proceeds of any sale of, or other
realization upon, all or any part of the Collateral shall be applied: first,
to all fees, costs and expenses incurred by or owing to Agent and then any
Lender with respect to this Agreement, the other Loan Documents or the
Collateral; second, to accrued and unpaid interest on the Loans, on
unpaid Swap Related Reimbursement Obligations and on unpaid Obligations under
Interest Rate Agreements and Currency Rate Agreements (including any interest
which but for the provisions of any bankruptcy or insolvency law would have
accrued on such amounts), ratably in proportion to the interest accrued as to
each Loan, unpaid Swap Related Reimbursement Obligation and unpaid Obligations
under each Interest Rate Agreement and Currency Rate Agreement, as applicable; third,
to the principal amounts of the Loans, unpaid Swap Related Reimbursement
Obligations and unpaid Obligations under Interest Rate Agreements and Currency
Rate Agreements, and the Letter of Credit Obligations outstanding, ratably to
the aggregate combined principal balance of the Loans, unpaid Swap Related
Reimbursement Obligations, unpaid Obligations under each Interest Rate
Agreement and Currency Rate Agreement, and outstanding Letter of Credit Obligations;
and fourth, to any other Obligations of Borrower owing to Agent or any
Lender under the Loan Documents or in respect of any Banking Services”.

 

3

 

2.4                                 The
last proviso of the first sentence of Section 9.4(A)of the Loan Agreement
is hereby amended to read as follows:

 

“; provided, further, no
amendment, modification, termination or waiver affecting the rights or duties
of Agent or L/C Issuer, or of GE Capital in respect of any Swap Related
Reimbursement Obligations, under this Agreement or any other Loan Document
including any release of any guaranty or Collateral requiring a writing signed
by all Lenders,  shall in any event be
effective unless in writing and signed by Agent or L/C Issuer or GE Capital, as
the case may be, in addition to Lenders required to take such action”.

 

2.5                                 Section 9.5
of the Loan Agreement is hereby amended by inserting the following as (F) thereof:

 

“(F)                           Nothing
contained in this Section 9 shall require the consent of any party
for GE Capital to assign any of its rights in respect of any Swap Related
Reimbursement Obligation.”

 

2.6                                 Subsection 11.1
of the Loan Agreement is hereby amended by inserting the following new
definitions in their proper alphabetical order:

 

““Swap Related L/C” means a letter of credit or other
credit enhancement provided by GE Capital to the extent supporting the payment
obligations by Borrower under an interest rate protection or hedging agreement
or transaction (including, but not limited to, interest rate swaps, caps,
collars, floors and similar transactions) designed to protect or manage
exposure to the fluctuations in the interest rates applicable to any of the
Loans, and which agreement or transaction Borrower entered into as the result
of a specific referral pursuant to which GE Capital, GE Corporate Financial
Services, Inc. or any other Affiliate of GE Capital had arranged for
Borrower to enter into such agreement or transaction.  The term includes a Swap Related L/C as it
may be increased from time to time fully to support Borrower’s payment
obligations under any and all such interest rate protection or hedging
agreements or transactions.”

 

““Swap Related Reimbursement Obligation” has the
meaning ascribed to it in Section 2.1(J).”

 

2.7                                 The
definitions of “Letters of Credit”, “Obligations”, “Permitted Small
Acquisitions” and “Reserves” set forth in subsection 11.1 of the
Loan Agreement are hereby amended to read as follows:

 

““Letters of Credit” means documentary or standby
letters of credit issued for the account of Borrower by any L/C Issuer, and
bankers’ acceptances issued by Borrower, for which Agent and Lenders have
incurred Letter of Credit Obligations. 
The term does not include a Swap Related L/C.”

 

4

 

““Obligations” means all obligations, liabilities and
indebtedness of every nature of each Loan Party from time to time owed to Agent
or to any Lender (or any Affiliate of any Lender) under the Loan Documents
(whether incurred before or after the Termination Date) including the principal
amount of all debts, claims and indebtedness, accrued and unpaid interest and
all fees, costs and expenses, whether primary, secondary, direct, contingent,
fixed or otherwise, heretofore, now and/or from time to time hereafter owing,
due or payable including, without limitation, all interest, fees, cost and
expenses accrued or incurred after the filing of any petition under any
bankruptcy or insolvency law whether or not allowed in such proceeding.  Obligations shall also include (i) all
obligations of the Loan Parties to any Lender (or any Affiliate of any Lender)
in respect of Banking Services and (ii) all obligations of the Loan
Parties in respect of Swap Related Reimbursement Obligations.”

 

““Permitted Small Acquisition” means a Permitted
Acquisition for which the purchase price payable in connection therewith
(together with all transaction costs incurred in connection therewith) does not
exceed $7,000,000.”

 

““Reserves” means, with respect to the Borrowing Base (a) the
Credit Memoranda Reserve and the Dilution Reserve, (b) a reserve in the
amount of the outstanding amount of Swap Related Reimbursement Obligations and
Obligations under Interest Rate and Currency Rate Agreements marked-to-market
on a monthly basis, and (c) other reserves against Eligible Accounts,
Eligible Inventory or Consolidated Borrowing Base that Agent may, in its
reasonable credit judgment, establish from time to time, with prior or
contemporaneous notice to Borrower.”

 

3.                                      Conditions. 
The effectiveness of this Agreement is subject to the following
conditions precedent (unless specifically waived in writing by Agent and
Lenders):

 

(a)                                  Obligors, Agent and Lenders shall
have executed and delivered this Agreement; provided, that the amendment to the
definition of “Permitted Small Acquisition” set forth in Section 2.6
herein shall become effective upon the execution of this Agreement by the
Obligors, Agent and Requisite Lenders;

 

(b)                                 Borrower shall have delivered such
other documents as Agent may have reasonably requested;

 

(c)                                  No Default or Event of Default shall
have occurred and be continuing; and

 

(d)                                 Beacon Canada, Canadian Facility
Agent and Canadian Facility Lenders shall have entered into an amendment to the
Canadian Facility Credit Agreement and the Canadian Facility Intercreditor
Agreement in form and substance satisfactory to Agent, together with a
reaffirmation by Holdings and by each Obligor of their respective obligations
under the Canadian Facility Loan Documents to which it is a party.

 

4.                                      Representations and
Warranties.  To induce Agent and Lenders to enter into
this Agreement, Obligors represent and warrant to Agent and Lenders:

 

5

 

(a)                                  that the Loan Parties have all
requisite organizational power and authority to enter into, and carry out the
transactions contemplated by, this Agreement and all other agreement and
documents executed in connection therewith to which such Loan Parties are
parties.

 

(b)                                 that the execution, delivery and
performance of this Agreement and all other agreements and documents executed
in connection therewith have been duly authorized by all requisite action on
the part of the Loan Parties which are parties thereto and that this Agreement
has been duly executed and delivered by Borrower;

 

(c)                                  that each of the representations and
warranties set forth in Section 4 of the Loan Agreement (other than
those which, by their terms, specifically are made as of certain date prior to
the date hereof) are true and correct in all material respects as of the date
hereof; and

 

(d)                                 that, after giving effect to this
Agreement, no Default or Event of Default has occurred and is continuing.

 

5.                                      Severability. 
Any provision of this Agreement held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the
remainder of this Agreement and the effect thereof shall be confined to the
provision so held to be invalid or unenforceable.

 

6.                                      Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall constitute an original, but all of which taken together shall be
one and the same instrument.

 

7.                                      Ratification. 
Except as expressly set forth herein, the terms and provisions set forth
in this Agreement shall not be deemed to be a modification or waiver of any
term or condition of the Loan Agreement. 
The terms and provisions of the Loan Agreement, as amended hereby, and the other Loan Documents are
ratified and confirmed and shall continue in full force and effect and all Collateral encumbered by any of the
Loan Documents will continue to secure, to the fullest extent possible, the
payment and performance of all Obligations under or in respect of the Loan
Agreement or any of the other Loan Documents.

 

6

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed under seal and
delivered by their respective duly authorized officers on the date first
written above

 

	
   

  	
  BEACON SALES ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  QUALITY
  ROOFING SUPPLY

  
	
   

  	
  COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEACON
  CANADA, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEST
  DISTRIBUTING CO.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ROOF CENTER, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WEST
  END LUMBER COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J.G.A.
  BEACON, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
				

 

 

	
   

  	
  SDI
  HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SDI
  ACQUISITION GUARANTOR, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHELTER
  DISTRIBUTION, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

  	
   

  
				

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL

  CORPORATION, as Agent, an L/C Issuer and a

  Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Ken A. Brown

  	
   

  
	
   

  	
   Its Authorized Signatory

  	
   

  
				

 

 

	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Jason
  Riley

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
				

 

 

	
   

  	
  THE
  CIT GROUP/BUSINESS CREDIT, INC.,

  as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Chad
  Ramsey

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
				

 

 

	
   

  	
  LASALLE
  BANK NATIONAL

  
	
   

  	
  ASSOCIATION,
  a national banking

  
	
   

  	
  association,
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Andrew
  Heinz

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
				

 

 

	
   

  	
  JP MORGAN CHASE BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Stephen
  Christ

  	
   

  
	
   

  	
  Title: Account
  Executive

  	
   

  
				

 

 

	
   

  	
  WACHOVIA CAPITAL FINANCE

  CORPORATION (CENTRAL), as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Vicky
  Geist

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
				

 

 

	
   

  	
  UPS CAPITAL CORPORATION, as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ John P.
  Holloway

  	
   

  
	
   

  	
  Title: Director
  of Portfolio Management

  	
   

  
				

 

 

	
   

  	
  FIFTH THIRD BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ John T.
  Penny

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
				

 

 

	
   

  	
  ANTARES CAPITAL CORPORATION,

  
	
   

  	
  as a
  Lender

  
	
   

  	
   

  
	
   

  	
  By: /s/ Chester
  R. Zara

  	
   

  
	
   

  	
  Title: Director

  	
   

  
				

 

 

CONSENT
AND REAFFIRMATION (HOLDINGS)

 

The undersigned hereby (i) acknowledges
receipt of a copy of the foregoing First Amendment to Third Amended and
Restated Loan and Security Agreement; (ii) consents to Obligors’ execution
and delivery thereof; and (iii) affirms that nothing contained therein
shall modify in any respect whatsoever its guaranty of the obligations of Borrower
to Agent and Lenders pursuant to the terms of that certain Guaranty dated as of
March 12, 2004 (the “Holdings Guaranty”) and reaffirms that the Holdings
Guaranty is and shall continue to remain in full force and effect and that each Loan Document to which it is a
party or otherwise bound and all Collateral encumbered thereby will continue to
guaranty or secure, as the case may be, to the fullest extent possible, the
payment and performance of all obligations under or in respect of the Holdings
Guaranty and such other Loan Documents.  Although the undersigned has been informed of
the matters set forth herein and has acknowledged and consented to same, the
undersigned understands that Agent and Lenders have no obligation to inform it
of such matters in the future or to seek its acknowledgment or consent to
future agreements or waivers, and nothing herein shall create such a duty.

 

IN WITNESS WHEREOF, the
undersigned has executed this Consent and Reaffirmation on and as of the date
of such Agreement.

 

	
   

  	
  BEACON
  ROOFING SUPPLY, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ David R.
  Grace

  	
   

  
	
   

  	
  Title: Chief
  Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]