Document:

MCP 10Q 9.30.2014 EX10.4

Exhibit 10.4

Execution Copy
EQUIPMENT LEASE AGREEMENT 

This Equipment Lease Agreement, dated as of September 11, 2014 (as amended, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), is made between OCM MLYCo CTB Ltd., an exempted company formed under the laws of the Cayman Islands (“Lessor”), and Molycorp Minerals, LLC, a Delaware limited liability company (“Lessee”).  Lessor and Lessee are referred to in this Agreement individually as a “Party” and, collectively, as the “Parties”.
WHEREAS, Lessee has agreed to sell to Lessor, and Lessor has agreed to purchase from Lessee certain assets of Lessee described in, and on the terms and subject to the conditions of, the Purchase and Sale Agreement dated as of the date hereof between Lessor and Lessee (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”); 
WHEREAS, Molycorp, Inc. (“Parent”), which indirectly owns Lessee, is concurrently herewith entering into a Credit Agreement with the lenders specified therein (the “Parent Lenders”) and OCM MLYCo CTB Ltd., as Administrative Agent and as First Priority Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Parent Financing Agreement”), pursuant to which the lenders party thereto are extending term loans in the aggregate original principal amount of up to One Hundred Eighty-Five Million Dollars ($185,000,000) to Parent, the proceeds of which shall be used for capital expenditures, to pay interest expense and for general working capital purposes;
WHEREAS, Magnequench, Inc., a Delaware corporation and an affiliate of Lessee (“Magnequench”), is concurrently herewith entering into a Credit Agreement with the lenders specified therein (collectively, the “Magnequench Lenders”) and OCM MLYCo CTB Ltd., as Administrative Agent and as First Priority Collateral Agent  (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Magnequench Financing Agreement”), pursuant to which the Magnequench Lenders are extending credit in the aggregate original principal amount of up to Seventy-Five Million Dollars ($75,000,000) to Magnequench to satisfy intercompany obligations of Magnequench and certain of its affiliates or for Magnequench to make an intercompany loan;
WHEREAS, the entities listed in Exhibit G (collectively, the “Guarantors”) have executed and delivered to Lessor certain guaranties or pledges (collectively, the “Guarantees”) providing, as applicable, a guarantee, subject to certain limitations contained therein, of (or a pledge of certain collateral to secure) Lessee’s payment obligations to Lessor under this Agreement and have executed and delivered to Lessor all applicable collateral documents relating to the Guarantees; 
WHEREAS, Lessee (a) is providing a guaranty for the benefit of the Parent Lenders guaranteeing the obligations of Parent under the Parent Financing Agreement, (b) is providing a guaranty for the benefit of the Magnequench Lenders guaranteeing the obligations of Magnequench 

 

under the Magnequench Financing Agreement and (c) has provided a guaranty to Wells Fargo Bank, National Association, in its capacity as trustee (the “Trustee”), for the benefit of the Holders of the Notes (each as defined in the 10% Senior Notes 2020 Indenture (as defined below)) under that certain Indenture, dated as of May 25, 2012, by and among Parent, the Guarantors (as defined thereunder) party thereto and the Trustee (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the Parent Financing Agreement, the “10% Senior Notes 2020 Indenture”); and
WHEREAS, Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, all of the assets described in the Bill of Sale executed by Lessee and Lessor pursuant to the Purchase Agreement and as further described in this Agreement, when and as the conditions to such lease are satisfied as provided herein.
NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth and for other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
1.LEASE.  Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor all of the assets set forth in Exhibit A attached hereto (the “Equipment”).  The Equipment is currently installed or located at the site of Lessee’s mining and mineral and chemical manufacturing facility (the “Mountain Pass Facility”) in or near Mountain Pass, California (the “Site”), except to the extent that such Equipment would be permitted to be at a location other than the Site pursuant to Section 8(c) hereof.  
2.TERM AND RENT.  Subject to the satisfaction of each of the conditions precedent set forth in the Purchase Agreement, the lease term (the “Lease Term”) for all Equipment shall be for a period of five (5) years commencing on the Acceptance Date as indicated in the Certificate of Acceptance attached hereto as Exhibit B (the “Lease Commencement Date”), and Lessee shall pay Lessor the Rent specified in Exhibit C throughout the Term for the use of the Equipment.  For purposes of this Agreement, the term “Rent” shall mean and include all amounts payable by Lessee to Lessor under this Agreement, including all regularly scheduled rent payments, any and all payments of Stipulated Loss Value (as defined below), any and all payments in respect of fees, costs, expenses and indemnities payable to Lessor or its related indemnitees and any and all payments in respect of damages or other liabilities upon a default by Lessee under this Agreement.  All Rent shall be paid by Lessee in lawful currency of the United States of America in immediately available funds to Lessor (or in the case of indemnities or other payments to be made to a person or entity other than Lessor, to such recipient as further described in Section 15 hereof) not later than 12:00 p.m. (New York City time) on the date due, to such account or other place as Lessor shall notify Lessee in writing from time to time.
3.LATE CHARGES.  If any Rent (whether regularly scheduled rent or any other amount due and payable hereunder) is not paid within five (5) days after the due date thereof and written notice thereof has been received by Lessee, effective at such time, Lessor shall have the right to add and collect, and Lessee agrees to pay a late charge on, such unpaid Rent for each day 

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that such unpaid Rent remains unpaid, at a default rate per annum equal to 14% until the amount of Rent due and owing is paid in full.
4.DISCLAIMER OF WARRANTIES.  Without waiving any claim that Lessee may have against any manufacturer, vendor or contractor, LESSEE ACKNOWLEDGES AND AGREES FOR THE BENEFIT OF LESSOR AND ITS SUCCESSORS THAT (a) THE EQUIPMENT AND EACH COMPONENT THEREOF IS OF A SIZE, DESIGN, CAPACITY AND MANUFACTURE ACCEPTABLE TO LESSEE, (b) LESSEE IS SATISFIED THAT THE EQUIPMENT AND EACH COMPONENT THEREOF IS SUITABLE FOR THEIR RESPECTIVE PURPOSES, (c)  LESSOR IS NOT A MANUFACTURER, A SUPPLIER OR A DEALER IN THE PROPERTY OF SUCH KIND, (d) THE EQUIPMENT IS LEASED HEREUNDER TO THE EXTENT PROVIDED HEREBY FOR THE LEASE TERM SUBJECT TO ALL APPLICABLE LAWS NOW IN EFFECT OR HEREAFTER ADOPTED, INCLUDING (i) ZONING REGULATIONS, (ii) ENVIRONMENTAL LAWS OR (iii) BUILDING RESTRICTIONS, AND IN THE STATE AND CONDITION OF EVERY PART THEREOF WHEN THE SAME FIRST BECAME SUBJECT TO THIS AGREEMENT WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND BY LESSOR (EXCEPT THAT LESSOR REPRESENTS AND WARRANTS THAT ON THE LEASE COMMENCEMENT DATE, THE EQUIPMENT WILL BE FREE OF LESSOR’S LIENS) AND (e)  LESSOR LEASES TO LESSEE, AND LESSEE LEASES AND TAKES FROM LESSOR THE EQUIPMENT UNDER THIS AGREEMENT “AS-IS”, “WHERE-IS” AND “WITH ALL FAULTS”, AND LESSEE ACKNOWLEDGES THAT LESSOR DOES NOT MAKE AND SHALL NOT BE DEEMED TO HAVE MADE, AND EXPRESSLY DISCLAIMS, ANY AND ALL RIGHTS, CLAIMS, WARRANTIES OR REPRESENTATIONS, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE, DESIGN, OPERATION, MERCHANTABILITY THEREOF, THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREOF OR CONFORMITY THEREOF TO SPECIFICATIONS, FREEDOM FROM PATENT, COPYRIGHT OR TRADEMARK INFRINGEMENT, THE ABSENCE OF ANY LATENT OR OTHER DEFECT, WHETHER OR NOT DISCOVERABLE, OR AS TO THE ABSENCE OF ANY OBLIGATIONS BASED ON STRICT LIABILITY IN TORT OR ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT THERETO, OR (EXCEPT AS SET FORTH IN THE PARENTHETICAL ABOVE) AS TO TITLE THERETO.  LESSOR SHALL NOT IN ANY EVENT BE LIABLE TO LESSEE OR ANY OTHER PERSON FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, OR ANY LOSS OF PROFIT OR REVENUES, IN EACH CASE AS MAY ARISE FROM LESSEE’S USE OF THE EQUIPMENT, ANY DEFECT OR MALFUNCTION OF THE EQUIPMENT, OR FOR DAMAGES BASED ON STRICT OR ABSOLUTE TORT LIABILITY.  No defect or unfitness of the Equipment shall relieve Lessee of the obligation to pay Rent, or to perform any other obligation under this Agreement.  
It is agreed that, as between Lessor and Lessee, all the risks referred to above are to be borne by Lessee.  Lessor shall have no responsibility or liability whatsoever to Lessee or any other person or entity with respect to any of the following: (x) any liability, loss or damage caused directly or indirectly by the Equipment or any component thereof or by any inadequacy thereof or deficiency or defect therein or by any other circumstances in connection therewith (except to the extent (i) caused by the bad faith, gross negligence or willful misconduct of Lessor as determined pursuant 

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to a final, non-appealable judgment or order of a court of competent jurisdiction or (ii) any damage to, or destruction of, the Equipment caused by or related to any action by Lessor or any person or entity acting on behalf of Lessor seeking to repossess the Equipment or any part thereof to the extent such damage or destruction results from Lessor’s or such other person’s or entity’s negligence as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction); (y) the use, operation or performance of the Equipment or any component thereof or any risks relating thereto (except to the extent caused by the bad faith, gross negligence or willful misconduct of Lessor, as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction); or (z) the delivery, operation, servicing, maintenance, repair, improvement, use, replacement, decommissioning or removal of the Equipment or any component thereof (except to the extent caused by the bad faith, gross negligence or willful misconduct of Lessor, as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction).
5.WARRANTIES AND CLAIMS IN RESPECT OF EQUIPMENT.  To the extent that Lessee determines it to be commercially reasonable, Lessee shall enforce its rights and remedies under the Warranties in existence as of the Lease Commencement Date to the extent that such Warranties are applicable to the Equipment.  Lessee hereby irrevocably appoints Lessor as Lessee’s agent and attorney-in-fact, which appointment is coupled with an interest, to assert and enforce, from time to time after the occurrence and during the continuance of a Lease Event of Default or after a repossession by Lessor of the Equipment as a result of a Lease Event of Default or return of the Equipment to Lessor upon the expiration of this Agreement without Lessee purchasing the Equipment pursuant to Section 14, any such Warranty in the name of and for the account of Lessor and Lessee, as their interests may appear, and Lessee shall reimburse Lessor for reasonable costs and expenses related thereto.    Nothing in this Section 5 shall require the Lessee to take any actions that would violate, invalidate or otherwise cause the Lessee to be in breach of any Warranty or any Project Document.  None of the provisions of this Section 5 shall be deemed to amend, modify or otherwise affect the representations, warranties or other obligations (express of implied) of a third party providing a warranty related to the Equipment or any component thereof.  
6.USE, OPERATION; MAINTENANCE; REQUIRED REPLACEMENT.  
(a)  Lessee shall use the Equipment (i) in the manner for which it was designed and intended, solely for Lessee’s business purposes, (ii) in accordance with all manufacturer manuals and instructions and in compliance with all laws, rules, regulations, orders, ordinances, codes, directives, guidelines, policies, orders, injunctions, writs and judgments or decisions of any governmental authority or arbitral body applicable to Lessee or the Equipment (collectively, “Applicable Law”) and (iii) in compliance with all permits, licenses, franchises, approvals, notifications, certifications, registrations, authorizations or qualifications required by any governmental authority (collectively, “Governmental Approvals”), except, in the case of each of clause (i), clause (ii) and clause (iii) above, where such violations would, in the aggregate, not have a Material Adverse Effect (as defined in the Parent Financing Agreement) and would not adversely affect in any material respect the fair market value of the Equipment.  Lessee, at Lessee’s own sole cost and expense, shall keep the Equipment in good repair, condition and working order, ordinary wear and tear excepted, and shall furnish or otherwise obtain all parts, mechanisms, devices and servicing required therefor in the 

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ordinary course of business.  With respect to any components or portions of the Equipment that wear out or become functionally obsolete during the term of this Agreement (“replaced equipment”), Lessee shall, at its own sole cost and expense, procure and cause to be delivered and installed replacement components or portions of the Equipment with equipment of equivalent or superior manufacture (“replacement equipment”), and such replacement equipment shall automatically become part of the “Equipment” owned by Lessor, and be subject to this Agreement.  Upon installation of the replacement equipment, title to the replaced equipment (that was replaced by the replacement equipment) shall vest in Lessee, free and clear of all rights of Lessor and shall no longer be subject to this Agreement.  Notwithstanding the foregoing, if Lessee has determined in its reasonable discretion that any components or portions of the Equipment, the value of which, in the aggregate over the Lease Term does not exceed 25% of the purchase price therefor paid pursuant to the Purchase Agreement, are obsolete (an “Obsolete Component”), Lessee shall have the option of removing such Obsolete Component without having to replace it, provided that no Obsolete Component shall be removed without being replaced if such removal would reasonably be expected to diminish or impair the then current fair market value of the Equipment in any material respect.  Lessee shall also make, at Lessee’s own sole cost and expense, all modifications to the Equipment required to comply with Applicable Law or Governmental Approvals (“Required Modifications”).  All  Required Modifications shall automatically become part of the “Equipment” owned by Lessor, and be subject to this Agreement.  Lessee may make such additional alterations, modifications or additions to the Equipment as Lessee may deem desirable in the conduct of its business (“Optional Modifications”); provided the same shall not diminish the fair market value of the Equipment in any material respect, or cause the loss of any warranty thereon or any certification necessary for the maintenance thereof, and shall be readily removable without causing damage to the Equipment (and if this Agreement is terminated without Lessee purchasing the Equipment pursuant to Section 14, Lessee shall, at Lessor’s request, remove any Optional Modifications at Lessee’s sole cost and expense).  Title to such Optional Modifications shall remain in the name of Lessee, free and clear of all rights of Lessor and shall not be subject to this Agreement.  Upon return to Lessor of the Equipment as to which such Optional Modifications have been made, Lessee, to the extent it has not removed such alterations, modifications or additions, if requested to do so by Lessor, Lessee shall remove the same and restore the Equipment and the portion of the Site on which the altered, modified or added Equipment is located to its original condition, ordinary wear and tear excepted, and, if not so removed, title thereto shall automatically vest in Lessor.  
(b)  In the event that any insurance proceeds are received by the Lessor with respect to damage to or loss of any Equipment (or any item thereof) that is to be repaired, replaced or restored pursuant to this Section 6, upon the reasonable request of the Lessee, Lessor shall, promptly after Lessee demonstrates to Lessor that Lessee has complied with the requirements of the first sentence of Section 11(c), remit such proceeds to the segregated bank account referred to in Section 11(c) so that Lessee can utilize such insurance proceeds to accomplish the foregoing.  Lessee shall have the right to access the funds in such bank account for the purposes of paying the costs of such repair, replacement or restoration without any consent of Lessor, unless a Lease Event of Default or an event that, with lapse of time or the giving of notice would mature into a Lease Event of Default if uncured, has occurred and is continuing (in which case Lessor alone shall have the right to direct the application of such funds).

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(c) To the extent that Lessee, through any Warranty or Project Document (in each case, including any subsequent amendments, revisions, restatements, supplements or other modifications thereto, provided, however, that if any such amendments, revisions, restatements, supplements or other modifications adversely affects the nature or extent of the warranty or the services provided in any material respect, Lessee shall be required to obtain the consent of Lessor therefor, which Lessor agrees not to withhold unreasonably), has retained the services of a third party to (i) keep the Equipment (or any part thereof) in good repair, condition and working order (ordinary wear and tear excepted); (ii) furnish or otherwise obtain parts, mechanisms, devices; (iii) provide for the servicing required therefor in the ordinary course of business or (iv) otherwise fulfill Lessee’s obligations in clause (a) above, and subject to Lessee exercising its rights and enforcing the obligations of any such third party with respect to the provision by such third party of the services described in clauses (i) through (iv) above, Lessee's compliance with the terms of such Warranty or Project Document shall be deemed to be in compliance with this Section 6.  The provisions of this Section 6(c) do not reduce, limit or otherwise affect the requirements of Section 13 with respect to the condition of the Equipment upon its return to Lessor as contemplated in that Section 13.

(d) Lessee shall not interconnect the approximately 24 MW power plant synchronously with the electric transmission or distribution facilities of any other person, shall take no actions to sell electric energy, capacity or ancillary services to any other person and shall take no actions that could reasonably be expected to cause Lessee to become subject to regulation by the FERC or the CPUC as a “public utility” or an “electrical corporation.”
7.NET LEASE.  This Agreement is a “net lease”, and except as expressly set forth in this Agreement, Lessee’s obligation to pay all Rent and any and all other amounts due and owing under this Agreement is absolute and unconditional and shall not be terminated, extinguished, diminished, setoff or otherwise impaired by any circumstance whatsoever, including by (a) any claim, setoff, counterclaim, defense or other right which Lessee may have against Lessor or any affiliate of Lessor; (b) any defect in the title, condition, design, operation, merchantability or fitness for use of the Equipment, or any eviction of the Equipment by paramount title or otherwise from the Site, or any unavailability of access to the Equipment at the Site; (c) any loss, theft or destruction of, or damage to, the Equipment or any portion thereof or interruption or cessation in the use or possession thereof or any part thereof for any reason whatsoever and of whatever duration except for such interruption or cessation resulting from Lessor’s Liens (as defined below); (d) the condemnation, requisitioning, expropriation, seizure or other taking of title to or use of the Equipment or the Site by any governmental entity or otherwise; (e) any ineligibility of the Equipment or any portion thereof for any particular use, whether or not due to any failure of Lessee to comply with any Applicable Law or Governmental Approval; (f) any event of “force majeure” or any frustration of purpose; (g) any insolvency, bankruptcy, reorganization or similar proceeding by or against Lessee; (h) termination or loss of the Site or any portion thereof, or of any other lease, sublease, right-of-way, easement or other interest in personal or real property upon or to which any portion of the Equipment is located, attached or appurtenant or in connection with which any portion of the Equipment is used or otherwise affects or may affect the Equipment or any right thereto; (i) any defect in the title to, or the existence of any Lien (as defined in the Purchase Agreement) with respect to, the Equipment (unless such defect or lien results from or is caused by any act or omission of Lessor, in which case Lessee may withhold Rent if and to the extent such defect or lien reasonably 

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interferes with Lessee’s use of the Equipment); (j) allegation of invalidity or unenforceability or lack of due authorization or other infirmity of this Agreement, the Purchase Agreement or any other document executed in connection herewith or therewith (collectively, the “Sale Leaseback Documents”); or (k) any other cause, whether similar or dissimilar to the foregoing, it being the intention of the Parties hereto that all Rent and other amounts payable under this Agreement shall continue to be payable in the amounts, manner and at times provided for herein.  If for any reason whatsoever this Agreement is terminated in whole or in part by operation of law or otherwise, except as specifically provided herein, Lessee nonetheless agrees, to the maximum extent permitted by Applicable Law, to pay to Lessor an amount equal to each installment of Rent and all other amounts due and owing under this Agreement, at the time such payment would have become due and payable in accordance with the terms of this Agreement had this Agreement not been so terminated.  To the maximum extent permitted by Applicable Law, Lessee hereby waives any and all rights which it may now have or which at any time hereafter may be conferred upon it, by statute or otherwise, to terminate, cancel, quit or surrender this Agreement.  Nothing contained in this Section 7 shall be construed to waive any claim which Lessee might have under this Agreement, the Purchase Agreement or any of the other Sale Leaseback Documents (as defined in the Purchase Agreement) for breach by Lessor of its representations, warranties or covenants set forth herein or therein or otherwise or to limit the right of Lessee to make any claim it might have against Lessor for breach by Lessor of its representations, warranties or covenants set forth herein or therein, or any against any other person or entity, or to pursue such claim in such manner as Lessee shall deem appropriate.
8.NO LIENS; REMOVAL; ABANDONMENT; QUIET ENJOYMENT.  
(a) Lessee shall not directly or indirectly create, incur, assume or suffer to exist any Lien on or with respect to the Equipment (or any component thereof), and shall keep the Equipment and each component thereof free and clear of all Liens, other than Permitted Liens (in each case used herein, as the terms “Lien” and “Permitted Liens” are defined in Section 5(e) of the Purchase Agreement).  Lessee shall promptly notify Lessor of the incurrence, imposition or attachment of any such Lien (other than Permitted Liens) and shall promptly cause each such Lien to be fully discharged and released at Lessee’s own sole cost and expense.  Without limiting or otherwise affecting the foregoing, Lessee shall cause the liens on the assets comprising item #20211 on Exhibit A hereto, in favor of Cashman Equipment Company, to be released of record, and the related financing statements terminated, not later than 30 days after the Lease Commencement Date; and if Lessee fails to do so for any reason, Lessee shall promptly pay to Lessor, upon Lessor’s demand, the portion of the Purchase Price (as defined in the Purchase Agreement) attributable to item #20211 paid by Lessor under the Purchase Agreement, together with interest thereon at a rate per annum equal to 12%, accruing from the Lease Commencement Date to and including the date of payment in full in cash.  Upon Lessor’s receipt of such payment in full in cash, the lease of item #20211 hereunder shall terminate, and ownership thereof shall re-vest in Lessee.  Under no circumstances shall Lessee be required to pay the Stipulated Loss Value related to item #20211 for a failure to release the liens related to item #20211 in favor of Cashman Equipment Company noted above.
(b) Except as expressly permitted in Section 8(c), Lessee shall not move the Equipment from the location specified in this Agreement without the prior written consent of Lessor (which shall not be unreasonably withheld, provided that the new location thereof (including rights of 

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access thereto) is subject to this Agreement (including Section 28 hereof) or a similar access, license or other agreement reasonably acceptable to Lessor).  
(c) Other than contemplated by any Warranty or any Project Document (in each case, including any subsequent amendments, revisions, restatements, supplements or other modifications thereto, provided, however, that if any such amendments, revisions, restatements, supplements or other modifications adversely affects the nature or extent of the warranty or the services provided in any material respect, Lessee shall be required to obtain the consent of Lessor therefor, which Lessor agrees not to withhold unreasonably), Lessee agrees that, without Lessor’s prior written consent (which Lessor shall not withhold unreasonably), Lessee shall not waive its right to use and possess the Equipment in favor of any party other than Lessor and further agrees not to abandon the Equipment to any party other than Lessor, provided, however, that Lessee may, without the prior consent of Lessor deliver temporary possession, use or operation of the Equipment or any part thereof to a maintenance provider or other organization for testing, repairs, maintenance or overhaul work or for alterations, modifications or additions to the extent reasonably required or otherwise permitted by the terms of this Agreement.  
(d) So long as no Lease Event of Default has occurred and is continuing hereunder, Lessee’s quiet and peaceful possession, operation and use of the Equipment will not be disturbed by Lessor or anyone claiming by, through or on behalf of Lessor.
(e) Except as expressly set forth herein or in the other Sale Leaseback Documents, so long as no Lease Event of Default has occurred and is continuing hereunder, neither Lessor nor any party claiming through Lessor, shall (i) create any Lien on the Equipment (or any component thereof) or (ii) suffer to exist any Lien on the Equipment (or any component thereof) arising out of any action or claim against Lessor that is unrelated to the transactions contemplated hereby (including a claim in respect of taxes assessed or levied on or against Lessor that are not indemnifiable or reimbursable by Lessee under this Agreement) (collectively, “Lessor’s Liens”).
9.TITLE.  
(a)  Lessor and Lessee agree that the Equipment is and at all times shall remain the sole and exclusive personal property of Lessor (subject to Section 22), and Lessee covenants that it shall at all times treat the Equipment as such and that no part of the Equipment shall be considered or treated as a fixture.  Except as expressly set forth herein, no right, title or interest in the Equipment shall pass to Lessee other than the right to maintain possession and use of the Equipment for the Lease Term, subject to Lessor’s remedies under Section 16 hereof and the other Sale Leaseback Documents.  If requested by Lessor, Lessee shall affix to or place on the Equipment, at Lessor’s expense, reasonably sized plates or markings indicating Lessor’s ownership.  
(b)    For U.S. federal and applicable state and local income tax purposes ("Income Tax Purposes"), the parties agree that this Agreement and the lease of the Equipment hereunder is not a "true lease," but instead the transactions arising under the Purchase Agreement and this Agreement are intended to collectively be treated as a financing by each of the Lessor and Lessee for such purposes, with Lessee continuing to be the owner of the Equipment for such purposes.  Except as otherwise required by law, Lessor and Lessee agree that they shall (and shall cause their affiliates 

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to) (i)  treat such transactions consistently with such intent for Income Tax Purposes, and (ii) take no position inconsistent with such treatment on any tax return or in any proceeding before any taxing authority.  In particular and without limiting the generality of the foregoing, Lessor agrees that it will not claim any deduction, credit or exemption with respect to the Equipment for Income Tax Purposes, and that its owners and affiliates also will not claim any such deduction, credit or exemption for such purposes; provided however, that if any of Lessor, any of Lessor’s owners or any of Lessor’s affiliates claim any such deduction, credit or exemption, Lessor shall indemnify Lessee for any applicable sales tax related to the transactions contemplated by the Sale Leaseback Documents.
(c) Lessee hereby grants Lessor a security interest in the Equipment (including any replacements or substitutions thereof that constitute Equipment pursuant to the terms hereof, and any additions and attachments thereto to the extent they become Equipment) and any proceeds thereof (within the meaning of Section 9-102(a) of the Uniform Commercial Code); and Lessor is hereby authorized to file such precautionary financing statements (including fixture filings) in such jurisdictions as Lessor reasonably deems necessary.
10.TAXES.  
(a)  Lessee shall promptly reimburse Lessor for, or shall pay directly if so requested by Lessor, as additional Rent, all taxes, charges and fees (including any interest or penalties) that may now or hereafter be imposed or levied by any governmental body or agency upon or in connection with the purchase, ownership, lease, possession, use or location of the Equipment or otherwise in connection with the transactions contemplated by this Agreement, including, but not limited to withholding, sales, use, value added or other transfer taxes on (i) the initial sale of Equipment to Lessor, (ii) the Rents and (iii) any exercise of the Purchase Option, but in each case excluding any and all taxes, charges and fees (including any interest or penalties) (A) on or measured by, or imposed with respect to, net income, alternative minimum taxable income, items of tax preference, branch profits, franchise, capital, conduct of business, stock value or net worth or other status of Lessor (in each case other than taxes that are (or are in the nature of) sales, use, value added, transfer, excise and personal property taxes), in each case, (x) imposed as a result of Lessor being organized under the laws of, being engaged in a trade or business in (unless Lessor is engaged (or deemed engaged) in a trade or business as a result of Lessor having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any of the transactions pursuant to, or enforced any Sale Leaseback Document), or having its principal office in the jurisdiction imposing such Tax (or any political subdivision thereof) (y) imposed as a result of a present or former connection between Lessor and the jurisdiction imposing such Tax (other than connections arising from Lessor having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Sale Leaseback Document), (B) resulting from Lessor’s or any of Lessor’s affiliates and its and their respective officers, directors, shareholders, members, partners, employees, agents, representatives and successors and assignees or other representatives, bad faith, gross negligence or willful misconduct, as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction, or the breach by Lessor of any of its representations, warranties, covenants or obligations 

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under any Sale Leaseback Document, (C) resulting from or arising out of any failure on the part of Lessor to file any tax returns or pay any taxes owing on a timely basis or any errors or omissions on Lessor’s tax returns unless Lessee is responsible under this Agreement for filing such returns or for providing information to Lessor required for accurately filing such returns, (D) attributable to a transfer or disposition (directly or indirectly) of any interest in the Equipment, this Agreement, any other Sale Leaseback Document or any part of the foregoing or any interest in Lessor (including a deemed transfer for tax purposes) other than (1) a transfer to Lessee pursuant to the exercise of the Purchase Option granted to Lessee under this Agreement, or (2) a transfer pursuant to Lessor’s exercise of remedies in Section 16 of this Agreement as a result of a Lease Event of Default, (E) resulting from the leasing, ownership, use or operation of any Equipment after the expiration or earlier termination of this Agreement with respect to such Equipment, (F) imposed on Lessor (including by way of withholding) pursuant to a law in effect on the date hereof as a result of the failure by Lessor (or any member of Lessor) to be a “United States person” (within the meaning of section 7701(a)(30) of the Code) , including any taxes owed as a result of Lessor's failure to provide Lessee with the applicable IRS form(s) and certificate in compliance with Section 22(d), (G) that are U.S. federal withholding taxes imposed under FATCA (as hereinafter defined), and (H) imposed on any transferee, assignee or successor in interest of Lessor (other than Lessee as transferee, assignee or successor in interest of Lessor) to the extent such taxes are in excess of the taxes that would have been imposed on the original Lessor had such transfer or assignment not occurred (such excluded taxes are referred to herein as "Excluded Taxes").  For the avoidance of doubt, if any applicable law requires the deduction or withholding of any Excluded Tax from any payment made hereunder, then Lessee shall be entitled to make such deduction or withholding, shall timely pay the full amount deducted or withheld to the relevant governmental authority, and shall not have any obligation to reimburse Lessor (or any transferee, assignee or successor in interest of Lessor) for any such Excluded Tax so deducted or withheld.  Lessee shall file, in a timely manner and in the name of Lessor as owner, any personal property tax returns relating to the Equipment that are required to be filed covering periods during the Lease Term, pay the amounts shown on the returns and provide copies of such returns and proof of payment to Lessor. Failure of Lessee to pay promptly amounts due hereunder shall be treated the same as failure to pay any installment of Rent pursuant to Section 3.  If Lessee is requested by Lessor to file any other returns or remit payments directly to any governmental body or agency, Lessee shall provide proof of said filing or payment to Lessor.
(b)    Lessee shall be entitled to contest the imposition of taxes, charges and fees (including penalties) subject to this Section 10 at Lessee’s sole cost and expense; provided that (i) Lessee has (A) confirmed in writing its liability for the amounts should it lose the contest and (B) either established adequate reserves in accordance with the generally accepted accounting principles (“GAAP”) or provided security acceptable to Lessor (in Lessor’s reasonable discretion but in any case not to exceed the amount of the anticipated tax liability plus expenses), (ii) the contest does not create a material risk of forfeiture of the Equipment, and (iii) Lessee keeps Lessor informed about the progress of the contest and provides Lessor copies of any material filings or correspondence with the tax authorities about the case.  Lessor shall provide to Lessee such information as Lessee may reasonably request in order to contest and shall otherwise cooperate with Lessee to the extent necessary to permit Lessee to conduct such contest.  Lessor agrees not to settle any claim that Lessee is contesting in accordance with this Section 10(b) without the prior written consent of Lessee, such consent not to be unreasonably withheld.  If Lessor shall obtain a refund attributable to an amount 

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paid by Lessee pursuant to this Section 10, Lessor shall promptly pay or credit to Lessee the amount of such refund net of all out-of-pocket expenses.
(c)     If a payment made to Lessor under this Agreement would be subject to U.S. federal withholding tax imposed by Sections 1471, 1472, 1473 or 1474 of the Internal Revenue Code, current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b) of the Internal Revenue Code (collectively, "FATCA") if such Lessor were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), the Lessor shall deliver to the Lessee at the time or times prescribed by law and at such time or times reasonably requested by Lessee such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by Lessee as may be necessary for Lessee to comply with its obligations under FATCA and to determine that the Lessor has complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment. Lessor agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Lessee in writing of its legal inability to do so.
11.LOSS OF OR DAMAGE TO EQUIPMENT. 
(a)   Lessee hereby assumes and shall bear the risk of loss or theft or destruction of or damage to the Equipment from any and every cause whatsoever, whether or not insured, other than destruction or damage resulting from the bad faith, gross negligence or willful misconduct of Lessor, as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction.  Lessee shall provide to Lessor written notice of any occurrence or event resulting in an Event of Loss (as defined below) or any occurrence or event, whether or not constituting an Event of Loss, resulting in damage to or theft, loss or destruction of any Equipment (or any item or part thereof) which in the aggregate, in the reasonable estimate of Lessee, is in excess than $10,000,000.  Such notice shall contain all material details with respect thereto.  In the case of any Event of Loss, Lessee shall at Lessee’s option (a) use commercially reasonable efforts to repair or rebuild, or otherwise to place the item or items of Equipment affected by the Event of Loss in good repair, condition and working order, (b) use commercially reasonable efforts to substitute such Equipment (or any item thereof) with equipment of equivalent or superior manufacture, in good repair, condition and working order and transfer such title to such replacement property, free and clear of any and all Liens other than Lessor’s Liens, to Lessor, whereupon such property shall be subject to this Agreement and be deemed Equipment for purposes hereof (and, at the request of Lessee, title to the replaced property shall concurrently vest in Lessee, free and clear of all rights of Lessor and shall no longer be subject to this Agreement) or (c) pay Lessor an amount equal to the sum of (i) all Rent accrued but unpaid to the date of such payment, plus (ii) the “Stipulated Loss Value” of the affected Equipment as set forth in Exhibit D attached hereto (the “Stipulated Loss Value”), whereupon the lease of the Equipment hereunder shall terminate, subject to Section 19, solely with respect to the Equipment (or any item thereof) for which such payment is received by Lessor, and Lessor shall transfer title to such Equipment (which shall be whatever title Lessor had received from Lessee pursuant to the Bill of Sale (as defined in the Purchase Agreement)) to Lessee 

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without recourse or warranty other than the absence of any Lessor’s Liens. In the event that within 365 days of an Event of Loss, Lessee has not elected option (a) or option (b) above, Lessee will be deemed to have elected  option (c), and within 60 days of such date, Lessee shall pay such amounts called for thereby. In the event that any insurance proceeds are received by the Lessor with respect to damage to or loss of any Equipment (or any item thereof) that is to be repaired, replaced or restored pursuant to this Section 11, upon the reasonable request of the Lessee, Lessor shall, promptly after Lessee demonstrates to Lessor that Lessee has complied with the requirements of the first sentence of Section 11(c), remit such proceeds to the segregated bank account referred to in Section 11(c) so that Lessee can, upon providing to Lessor its notice as to the selection of option (a), (b) or (c) above, utilize such insurance proceeds for the purpose of repairing or replacing the affected items of the Equipment or paying the Stipulated Loss Value with respect thereto, as applicable.  Upon providing such notice, Lessee shall have the right to access the funds in such bank account for the purposes of paying the costs of such repair, replacement or restoration without any consent of Lessor, unless a Lease Event of Default or an event that, with lapse of time or the giving of notice would mature into a Lease Event of Default if uncured, has occurred and is continuing (in which case Lessor alone shall have the right to direct the application of such funds). For the purposes of this Section 11, any insurance proceeds received with respect to the Equipment (or any item thereof) shall be applied, (x) in the event option (c) is elected, to payment of the then unpaid obligations of Lessee to Lessor hereunder, including the Stipulated Loss Value, to the extent not already paid by Lessee to Lessor, or, if already paid by Lessee to Lessor, to reimburse Lessee for such payment, or (y) in the event option (a) or (b) is elected, towards the payment of unpaid obligations of Lessee and/or to reimburse Lessee (or Lessee’s affiliates or such other persons as indicated by Lessee, to the extent such affiliates or other persons have paid for the repair, restoration or replacement of the affected Equipment) related to the costs of repairing, restoring or replacing the affected Equipment (or any item thereof).  If Lessee elects to repair, rebuild or replace the affected Equipment, Lessee shall use commercially reasonable efforts to effect such repair, rebuilding or replacement.  At the request of Lessor, Lessee shall promptly provide Lessor with evidence, which may include invoices for work or equipment, copies of contracts or purchase orders and engineering reports, and other such information reasonably requested by Lessor, of the progress or completion of such repair, restoration or replacement. To the extent that Lessor receives proceeds of insurance with respect to any damages, stolen or destroyed Equipment, and such proceeds are not applied pursuant to the foregoing, Lessor shall reasonably promptly remit such excess proceeds to Lessee.
(b)  For purposes of this Section 11, “Event of Loss” shall mean any of the following events with respect to any item of Equipment:
(i) the actual or constructive total loss of such items of Equipment or the use thereof due to the destruction thereof or damage thereto which, in Lessee’s reasonable opinion, would make repair thereof uneconomical or would render such item of Equipment unfit for normal use for any reason whatsoever for a period exceeding thirty (30) days or, if earlier, extending beyond the Lease Term or which results in an insurance settlement on the basis of a total loss, or an agreed constructive or a compromise total loss;

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(ii) the theft or disappearance of such item of Equipment which shall have resulted in the loss of possession thereof by Lessee for a period in excess of the lesser of thirty (30) days and the balance of the Lease Term;
(iii) the confiscation, condemnation, requisition, seizure, forfeiture, purchase or other taking for use of such item of Equipment by any governmental or purported Governmental Authority resulting in the loss of possession of such item of Equipment by Lessee and such loss of possession shall have continued beyond the earlier of thirty (30) days and the end of the Lease Term; or
(iv) the prohibition of operation of such item of Equipment by any competent governmental authority for a period of thirty (30) days.  
(c)   At any time after the date hereof, but in any case reasonably promptly after the occurrence of any Event of Loss or other damage, loss or destruction of any portion of the Equipment that is reasonably anticipated to result in insurance claims (or similar claims pursuant to a warranty or a claim for damages in contract or tort) in the aggregate amount equal to or exceeding $10,000,000, Lessee shall (i) cause to be established with a bank reasonably acceptable to Lessor a segregated collateral account for the purpose of holding the proceeds of any such claims, (ii) grant to Lessor a security interest in such bank account and in all cash and other property that is or may in the future be on deposit in or credited to such bank account (and any proceeds), (iii) obtain from such bank a control agreement in a form reasonably acceptable to Lessor permitting the security interest referred to in clause (ii) to be perfected by control within the meaning of Section 8-106 or Section 9-104 of the UCC, as applicable, and (iv) cause to be delivered to Lessor an opinion of counsel to Lessee as to the creation and perfection of such security interest.  Lessor shall cause all proceeds of such insurance or other claims to be remitted directly to such bank account and Lessee shall not commingle such proceeds with any other funds of Lessee or its affiliates.  Upon providing to Lessor notice of Lessee’s intention as to whether to repair or replace the affected Equipment or pay the Stipulated Loss Value with respect thereto, as contemplated by Section 11(a), Lessee shall have the right to access the funds in such bank account for the purposes of paying the costs of repair, replacement or restoration of the affected Equipment (or to reimburse itself or its affiliates for paying the cost of such repair or restoration (or paying Stipulated Loss Value, to the extent applicable) out of Lessee’s or such affiliates’ own funds) without any consent of Lessor, unless either a Lease Event of Default or an event that, with lapse of time or the giving of notice would mature into a Lease Event of Default if uncured, has occurred and is continuing (in which case Lessor alone shall have the right to direct the application of such funds).
12.INSURANCE.
(a)    During the term of this Agreement, Lessee agrees to obtain and maintain, at no cost to Lessor, the insurance coverages required pursuant to Section 5.5 of the Parent Financing Agreement as in effect on the date hereof (and without giving effect to any amendment or other modification or waiver thereof that would affect such requirements, and without giving effect to any earlier termination thereof), and otherwise to observe the insurance requirements set forth therein, provided, however, that:

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(i) the property insurance with respect to the Equipment shall be for an amount equal to the greater of (x) the replacement value of the applicable Equipment and (y) the Stipulated Loss Value of the Equipment (provided, however, that earthquake coverage may be subject to further limitations acceptable to Lessor, as available in the marketplace or required by law).  
(ii) all insurance claims for theft, loss or damage (which under no circumstances shall be deemed to include any business interruption insurance) in excess of $10,000,000 shall be payable to Lessor as the sole loss payee, and shall include a lessor’s loss payee endorsement (or other acceptable endorsement) in favor of Lessor as sole loss payee, provided that Lessor agrees that such proceeds may be remitted directly to the bank account referred to in Section 11(c) and shall be applied as provided in Section 11(c) for the purposes of repair, replacement or restoration of Equipment as contemplated by Section 6 and Section 11, or to reimburse Lessee or its affiliates for paying the cost of such repair or restoration (or paying Stipulated Loss Value, to the extent applicable) out of Lessee’s or such affiliates’ own funds, and
(iii) all liability insurance pertaining to the Equipment shall name Lessor (or Lessor’s assignee as appropriate) as additional insured, shall provide a severability of interests and cross liability clause, and shall be endorsed to state that it shall be primary insurance as to Lessor (and not excess to or contributing with any insurance or self-insurance maintained by Lessor).
(b)    Lessee shall pay the insurance premiums and deliver to Lessor a certificate of insurance or other evidence satisfactory to Lessor that such insurance coverage is in effect; provided, however, that Lessor shall be under no duty either to ascertain the existence of or to examine such insurance policies or to advise Lessee in the event such insurance coverage shall not comply with the requirements hereof.  Lessee shall use its commercially reasonable efforts to ensure that its insurance policies provide for at least thirty days’ prior written notice to Lessee of any modification or cancellation thereof.
(c)    If Lessee fails to obtain insurance or provide evidence thereof to Lessor, Lessee agrees that Lessor may, but shall not be obligated to obtain such insurance on Lessee’s behalf and charge Lessee for all costs and expenses associated therewith.      
(d)     Except as provided in the immediately preceding paragraph, any other insurance obtained by or available to Lessor shall be secondary insurance, and Lessor shall be solely liable for all costs associated therewith.
13.END OF LEASE TERM PURCHASE OPTION.  Not later than thirty (30) days prior to the expiration of the Lease Term, Lessee shall notify Lessor in writing whether it intends at the expiration of such term to purchase the Equipment in accordance with Section 14 of this Agreement (the “Purchase Option”), or (b) return the Equipment to Lessor (the “Return Option”); provided that Lessee may only exercise the Purchase Option so long as no Lease Event of Default under this Agreement has occurred and is then continuing.  If Lessee does not provide this notice at the end of the Lease Term, Lessee shall be deemed to have elected the Return Option.  If the 

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Equipment is not then in good repair, condition and working order, ordinary wear and tear excepted, or has not been maintained in accordance with Section 6 hereof, Lessee shall promptly reimburse Lessor for all reasonable costs incurred to restore the Equipment to such condition.  If, at the end of the Lease Term, Lessee has elected the Return Option, then, unless Lessor has notified Lessee in writing that Lessor has elected to abandon the Equipment in place (which shall be in Lessor’s sole discretion, and in which case title to the Equipment shall automatically pass back to Lessee, on an “as is,” “where is” basis, and without any representation or warranty other than that the Equipment is free and clear of all Lessor’s Liens), Lessee shall, (a) within sixty (60) days of the end of the Lease Term, at Lessee’s expense, reimburse Lessor for the costs to restore the Equipment as provided above and (b) take, for a period not to exceed sixty (60) days, at Lessee’s sole cost and expense, such other actions as Lessor may reasonably request with respect to the removal, disassembly, dismantling, decommissioning, preserving, keeping, packing the Equipment as may be directed by Lessor.
14.PURCHASE OPTION.  
(a)  If Lessee elects the Purchase Option in accordance with Section 13 of this Agreement, Lessee shall have the option to purchase all but not less than all of the Equipment from Lessor for One Dollar ($1.00) (such amount, the “Lessee Purchase Option Amount”).  The Purchase Option shall be consummated as of the close of business on the closing date set forth in Lessee’s notice or on such other date the Parties may otherwise agree (the “Lessee Purchase Date”).
(b)  If Lessee elects to exercise the Purchase Option, then on the Lessee Purchase Date, Lessee shall pay to Lessor (i) the Lessee Purchase Option Amount, and all sales, use, value added and other taxes required to be indemnified by Lessee pursuant to Section 10 plus (ii) any unpaid Rent and any other outstanding amount due under this Agreement on or before the Lessee Purchase Date.
(c)    Upon payment of all sums specified in this Section 14, this Agreement shall terminate and Lessor shall transfer its rights in the Equipment to Lessee on an “as is,” “where is” basis, and without any representation or warranty other than that the Equipment is free and clear of all Lessor’s Liens.
15.LESSEE INDEMNITY. 
(a)Subject to the exclusions stated in Section 15(b) below, Lessee assumes liability for and shall indemnify, defend, save, and hold harmless Lessor and Lessor’s affiliates and its and their respective officers, directors, shareholders, members, partners, employees, agents, representatives and successors and assignees (each an “Indemnitee”), on an After-Tax Basis, from and against any and all liabilities (including in respect of negligence (whether passive or active or other torts), strict or absolute liability in tort or otherwise, warranty, latent or other defects (regardless of whether or not discoverable), statutory liability, property damage, bodily injury or death), obligations, losses, settlements, damages, penalties, claims, actions, suits, proceedings (whether civil or criminal), judgments, penalties, fines and other legal or administrative sanctions, judicial or administrative proceedings, costs, expenses and disbursements, including reasonable legal, investigation and expert fees, expenses and reasonable related charges, of whatsoever kind and nature and any Taxes (all of 

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the foregoing, “Claims”) that may be imposed on, incurred or suffered by or asserted against any such Indemnitee in any way arising out of, in connection with, or relating to, any of the following: (i) the construction, financing, refinancing, acquisition, operation, use, non-use, warranty, ownership, possession, maintenance, repair, lease, condition, alteration, modification, restoration, refurbishing, return, purchase, sale or other disposition, insuring, sublease, abandonment or other use of the Equipment or any portion thereof or any interest therein, (ii) the conduct of the business or affairs of Lessee whether in connection with the Equipment or otherwise, (iii) the manufacture, design, purchase, acceptance, rejection, delivery, non-delivery, redelivery or condition of, or improvement of or to, the Equipment or any component thereof or any modification or alteration thereof, or any portion of any thereof or any interest therein, (iv) this Agreement or any other Sale Leaseback Document, any other documents contemplated hereby or thereby or the performance, enforcement or attempted enforcement of any terms hereof or thereof, or the transactions contemplated hereby or thereby or resulting therefrom, (v) any defects, including any latent defects in the Equipment (regardless of whether the same are discoverable by Lessor or Lessee) or any trademark, patent or copyright infringement, (vi) any environmental condition concerning Lessee, the Equipment or any portion or component thereof, including any release of hazardous materials from the Equipment or any portion or component thereof or any presence, or use, storage, transportation, treatment, disposal, arrangement for or permitting the disposal of, generation, manufacture of any hazardous materials in, at, under or from the Equipment or the Site or any portion or component thereof, (vii) the reasonable costs and expenses of each Indemnitee in connection with any amendment, supplement, modification, or waiver, to or of any of the Sale Leaseback Documents (whether or not actually entered into), or resulting from the actions of Lessee or in connection with any Lease Event of Default or any breach that with lapse of time or the giving of notice would mature into a Lease Event of Default if uncured), (viii) the imposition of any Lien other than, with respect to a particular Indemnitee, a Lien arising by or through such Indemnitee (or any of their agents, employees or representatives or affiliates of such Indemnitee), (ix) (A) any violation by, or liability relating to, the Equipment or to Lessee of or under any Applicable Laws, whether now or hereafter in effect, or (B) any action of any Governmental Authority or other Person (as defined in the Parent Financing Agreement) taken with respect to the Equipment or the Sale Leaseback Documents, including any Governmental Approvals, (x) the non-performance or breach by Lessee of any obligation, covenant or condition contained in this Agreement or any other Sale Leaseback Document or the inaccuracy of any representation or warranty of Lessee or any Guarantor under any Sale Leaseback Documents or in any document or certificate delivered in connection therewith, (xi) any strict liability or negligence in tort or violation of law, rule, regulation or order by Lessee or any affiliate thereof or their respective directors, officers, employees, agents or servants, and (xii) in any other way to the extent reasonably related to the Equipment or the transactions contemplated in any of the Sale Leaseback Documents.
(b)Any Claim, to the extent (but only to the extent) (i) attributable to, (ii) arising as a result of or (iii) such Claim would not have occurred but for, any of the following, is excluded from Lessee’s agreement to indemnify the appropriate Indemnitee under Section 15(a): (A) any acts, events or omissions, to the extent any of the foregoing occurs after (1)  the expiration or early termination of this Agreement and are not attributable to any events, conditions or circumstances that occurred prior to such expiration and (2) Lessee’s surrender to Lessor of Lessee’s interest in and possession of the Equipment in compliance with the provisions of this Agreement; (B) with 

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respect to Lessor, any offer, sale, assignment, transfer or other disposition by Lessor of its interest in the Equipment, unless occurring in connection with the exercise of remedies during a Lease Event of Default; (C) breach by the Indemnitee of its agreements, covenants, representations or warranties under this Agreement, the Purchase Agreement or any other Sale Leaseback Document; (D) with respect to any Indemnitee, any Claim constituting or arising from a Lien created by or through such Indemnitee other than Liens created pursuant to the Sale Leaseback Documents; (F) such Indemnitee’s bad faith, gross negligence or willful misconduct, as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction and (G) Taxes imposed on, based on or measured by gross or net income or gross or net receipts, or capital or net worth and Taxes in the nature of capital gain, accumulated earnings, personal holding company, excess profits, succession or estate, franchise, conduct of business and other similar taxes (other than Taxes that are, or are in the nature of sales, use, transfer, stamp, license, ad valorem, value added, rental or property taxes).  Furthermore, to the extent that Lessee’s agreement to indemnify an Indemnitee under this Section 15 may be unenforceable in whole or in part because it violates any law or public policy or judgment or order of a court or similar regulatory body, Lessee shall contribute the maximum portion that it is permitted to pay thereunder in satisfaction of such indemnified liabilities. 
(c)Reasonably promptly after receipt by an Indemnitee of notice of the assertion of a Claim against it by any Person other than Lessee (whether or not involving or lawsuit, arbitration or other proceeding) (a “Third-Party Claim”) against it, such Indemnitee shall give notice to Lessee of the assertion of such Third-Party Claim; provided that the failure to notify Lessee shall not relieve Lessee of any liability that it may have to any  Indemnitee,  except  to  the  extent  that  Lessee demonstrates that the defense of such Third-Party Claim is prejudiced by the Indemnitee’s failure to give such notice.  If an Indemnitee gives such notice to Lessee of the assertion of such Third-Party Claim, Lessee shall be entitled to participate in the defense of such Third-Party Claim and, to the extent that it wishes (unless (i) Lessee is also a Person against whom the Third-Party Claim is made and the Indemnitee determines in good faith that joint representation would be inappropriate, or (ii) Lessee fails to provide reasonable assurance to the Indemnitee of its financial capacity to defend such Third-Party Claim and provide indemnification with respect to such Third-Party Claim), to assume the defense of such Third-Party Claim with counsel satisfactory to the Indemnitee.  After notice from Lessee to the Indemnitee of its election to assume the defense of such Third-Party Claim, Lessee shall not, as long as it diligently conducts such defense, be liable to the Indemnitee under this Section 15 for any fees of other counsel or any other expenses with respect to the defense of such Third-Party Claim, in each case subsequently incurred by the Indemnitee in connection with the defense of such Third-Party Claim, other than reasonable costs of investigation.  If Lessee assumes the defense of a Third-Party Claim, (A) such assumption will conclusively establish for purposes of this Agreement that the claims made in that Third-Party Claim are within the scope of and subject to indemnification; and (B) no compromise or settlement of such Third-Party Claims may be effected by Lessee without the Indemnitee’s written consent unless (1) there is no finding or admission of any violation of Applicable Law or any violation of the rights of any Person, (2) the sole relief provided is monetary damages that are paid in full by Lessee, and (3) the Indemnitee shall have no liability with respect to any compromise or settlement of such Third-Party Claims effected without its written consent.   If notice is given to Lessee of the assertion of any Third-Party Claim and Lessee does not, within thirty days after the Indemnitee’s notice is given, give notice to the Indemnitee of its election to assume the defense of such Third-Party Claim, Lessee will be bound 

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by any determination made in such Third-Party Claim or any compromise or settlement effected in good faith by the Indemnitee. Notwithstanding the foregoing, if an Indemnitee determines in good faith that there is a reasonable probability that a Third-Party Claim may adversely affect it or its affiliates or other related Persons other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the Indemnitee may, by written notice to Lessee, assume the exclusive right to defend, compromise, or settle such Third-Party Claim, however, Lessee will not be bound by any determination of any Third-Party Claim so defended for the purposes of this Agreement or any compromise or settlement effected without its written consent (which may not be unreasonably withheld). 
(d)With respect to any Third-Party Claim subject to indemnification under this Section 15:  (i) both the Indemnitee and Lessee, as the case may be, shall keep the other Person fully informed of the status of such Third-Party Claims and any related proceedings at all stages thereof where such Person is not represented by its own counsel, and (ii) the parties agree (each at its own expense) to render to each other such assistance as they may reasonably require of each other and to cooperate in good faith with each other in order to ensure the proper and adequate defense of any Third-Party Claim.
(e)In this Section 15:
“After-Tax Basis” shall mean, with respect to any payment received or deemed to have been received, the amount of such payment increased so that, after deduction of the amount of all Taxes (assuming for this purpose that the recipient of such payment is subject to taxation at the highest federal and applicable state and local marginal tax rates generally applicable to persons or entities of the same type as the recipient for the year in which such income is taxable) required to be paid by the recipient (less any tax savings realized and the present value (determined by applying a discount rate of 13%) of any tax savings projected to be realized as a result of the payment of the indemnified amount, in each case using the same tax rate assumptions as set forth in the immediately preceding parenthetical phrase) with respect to the receipt by the recipient of such amounts, such increased payment (as so reduced) is equal to the payment otherwise required to be made or deemed to have been made or accrued; provided, however, that the foregoing shall not require the payment of the amount deemed to have been received by the recipient.
“Taxes” shall mean all taxes (including income, receipts, capital, excise and sales taxes, use taxes, stamp taxes, value-added taxes, ad valorem taxes and property taxes (personal and real, tangible and intangible)), levies, assessments, withholdings and other charges and impositions of any nature, plus all related interest, penalties, fines and additions to tax, now or hereafter imposed by any federal, state, local or foreign government or other taxing authority.
16.DEFAULT AND REMEDIES.  
(a)    A “Lease Event of Default” shall occur if: (i) Lessee fails to pay scheduled Rent on the due date thereof or fails to pay any other supplemental rent (that is, any amount payable under this Agreement other than scheduled Rent), or any guarantor fails to make any payment due, in each 

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case within five (5) days after the same shall be due and payable hereunder (and if no specific due date therefor is provided herein, any such payment shall be due and payable if such failure continues for five (5) days after receipt by Lessee of a written demand from Lessor therefor); (ii) Lessee fails to observe, keep or perform any other material term or condition of this Agreement or any other Sale Leaseback Document that is not otherwise addressed in this Section 16 and such failure continues for thirty (30) days following written notice to Lessee from Lessor; provided, however, that if such failure is not reasonably capable of cure within the thirty (30) day period, then Lessee shall be provided an additional period of time as is reasonably necessary to effect a cure hereunder but not to exceed sixty (60) days, so long as Lessee is diligently taking actions to remedy such failure; (iii) a Guarantor fails to observe, keep or perform any other material term or condition of guaranty that is not otherwise addressed in this Section 16 and such failure continues for thirty (30) days following written notice to Lessee from Lessor; provided, however, that if such failure is not reasonably capable of cure within the thirty (30) day period (iv) any representation or warranty made by Lessee herein or by Lessee or any Guarantor in any document delivered to Lessor in connection herewith shall prove to be false or misleading in any material respect and the false or misleading nature of such representation or warranty is not corrected within thirty (30) days following receipt of written notice thereof from Lessor; (v)  a Guarantee ceases to be in full force and effect or the validity thereof is disaffirmed by the applicable Guarantor; (vi) Lessee fails to observe, keep or perform its obligations under Section 28 and such failure is not cured within ten (10) days following written notice to Lessee from Lessor or following Lessee otherwise obtaining knowledge of such failure, (vii) Lessee fails to obtain or maintain any insurance required under this Agreement, (viii) any “Event of Default” under and as defined in the Parent Financing Agreement, the Magnequench Financing Agreement or the 10% Senior Notes 2020 Indenture (each agreement as in effect on the date of this Agreement) has occurred and is continuing, or (ix) a case in bankruptcy (voluntary or involuntary) is commenced with respect to Lessee under any bankruptcy, insolvency or similar debtor relief law, or a receiver, liquidator, judicial manager or similar is appointed with respect to Lessee or its assets, or Lessee makes any assignment for the benefit of creditors or becomes unable, or fails generally, or admits in writing its inability, to pay its debts as such debts become due.
(b)     If a Lease Event of Default shall have occurred and be continuing, Lessor shall have the right to take any one or more of the following actions:  (i) cancel or terminate this Agreement and repossess the Equipment (provided however that Lessee shall not be liable for any damage to, or destruction of, the Equipment caused by or related to any action by Lessor or any person or entity acting on behalf of Lessor seeking to repossess the Equipment or any part thereof to the extent such damage or destruction results from Lessor’s or such other person’s or entity’s negligence as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction); (ii) proceed by appropriate court action or actions at law or in equity to enforce performance by Lessee of the terms and conditions of this Agreement and/or recover damages for the breach thereof; (iii) accelerate all of the amounts due under this Agreement by requiring Lessee to pay Lessor an amount equal to the sum of (A) all accrued and then unpaid Rent and any other amounts accrued and unpaid to the date of such payment, plus (B) the Stipulated Loss Value; (iv) exercise any remedy available to a secured party under applicable law with respect to the collateral referred to in Section 29; and/or (v) exercise any other right or remedy available to Lessor at law or in equity.

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Lessee hereby agrees that any prepayment, repayment, payment, satisfaction (whether in whole or in part), distribution or discharge of the obligations arising under the Lease (including, without limitation, to the extent such obligations are satisfied or released by repossession or foreclosure (whether by power of judicial proceeding), or by any other means) prior to the date that is the fifth anniversary of the Lease Commencement Date, including without limitation upon the occurrence of any Lease Event of Default, including pursuant to  Section 16(a)(ix), and irrespective of whether such Lease Event of Default results in or causes the voluntary or automatic termination of the Lease, or otherwise accelerates the termination of the Lease,  or the commencement of any bankruptcy, insolvency, reorganization, liquidation or similar proceeding pursuant to any bankruptcy, insolvency or other debtor relief laws, the Stipulated Loss Value shall automatically become due and payable in cash including without limitation in respect of any claim for Rent in any bankruptcy, insolvency, reorganization, liquidation or similar proceeding.  In addition, and without limiting the foregoing, upon the occurrence of a Lease Event of Default pursuant to  Section 16(a)(ix), the Stipulated Loss Value and all other accrued and unpaid Rent obligations shall automatically become immediately due and payable in cash or otherwise accelerated, in each case without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by Lessee.
Lessee hereby further agrees that to the extent the Stipulated Loss Value (or any portion thereof) constitutes or is deemed to constitute a makewhole premium, a prepayment premium, or any similar premium or additional charge with respect to Lessee’s payment obligations hereunder (a “Makewhole Amount”), the full amount of the applicable Stipulated Loss Value shall be automatically due and payable regardless of whether the obligations of Lessee hereunder were voluntarily or involuntarily prepaid, repaid, paid, satisfied, distributed or discharged and shall constitute part of the Rent, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Lessor’s lost profits as a result thereof.   Any such amount that constitutes or is deemed to constitute a Makewhole Amount shall be presumed to be the liquidated damages sustained by Lessor as the result of the termination of the lease of the Equipment prior to the date that is the fifth anniversary of the Lease Commencement Date and Lessee agrees that it is reasonable under the circumstances currently existing.   LESSEE EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW WHICH PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKEWHOLE AMOUNT IN CONNECTION WITH ANY CIRCUMSTANCES REQUIRING THE PAYMENT OF THE STIPULATED LOSS VALUE HEREUNDER, INCLUDING ANY VOLUNTARY OR AUTOMATIC ACCELERATION REFERRED TO ABOVE, ANY RECISSION OF SUCH ACCELERATION, THE EARLIER MATURITY OF THE LEASE OBLIGATIONS, OR THE COMMENCEMENT OF ANY BANKRUPTCY OR INSOLVENCY PROCEEDING OR OTHER PROCEEDING PURSUANT TO THE BANKRUPTCY CODE OR ANY OTHER DEBTOR RELIEF LAWS, OR PURSUANT TO A PLAN OF REORGANIZATION.  Lessee expressly agrees that: (A) the Makewhole Amount and any discount on the financial accommodations provided for herein is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (B) the Makewhole Amount shall be payable notwithstanding the then prevailing market rates at the time payment is made; (C) there has been a course of conduct between Lessor and Lessee giving specific consideration in this transaction for such agreement to pay the Makewhole Amount; 

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and (D) Lessee shall be estopped hereafter from claiming differently than as agreed to in this paragraph.  Lessee expressly acknowledges that its agreement to pay the Makewhole Amount to Lessor as herein described is a material inducement to Lessor to purchase the Equipment pursuant to the Purchase Agreement and consummate the transactions contemplated by the Purchase Agreement and this Agreement.  
Upon Lessee’s payment in full to Lessor of the amounts set forth in Section 16(b)(iii), this Agreement shall terminate (except as set forth in Section 19) solely with respect to the Equipment (or any item thereof) for which such payment is received by Lessor, and Lessor shall transfer title to such Equipment to Lessee without recourse or warranty other than the absence of any Lessor’s Liens. 
17.REPORTS.  
(a)  Lessee shall deliver, or cause to be delivered, to Lessor, a copy of the reports and other deliverables that Parent is required to deliver to Administrative Agent and Lenders (as each such term is defined in the Parent Financing Agreement) under Sections 5.1(a), (b) and (c) of the Parent Financing Agreement (as in effect on the date of this Agreement) concurrently upon their delivery to Administrative Agent and Lenders pursuant to the Parent Financing Agreement. 
(b)    Promptly, but in any event within twenty (20) business days after receipt thereof, a copy of each material report regarding the Equipment received by Lessee during the Lease Term from each operation services or maintenance provider for the Equipment.
(c)    Promptly upon, Lessor’s written request from time to time, such data, certificates, reports, statements, documents and further material information regarding the Equipment and/or Lessee’s business or financial condition as Lessor may reasonably request.
18.FURTHER ASSURANCES.  Lessee and Lessor covenant and agree to cause to be done, executed, acknowledged and delivered each and every such further act, conveyance, assurance as such party shall by notice to the other party reasonably require for accomplishing the purpose of this Agreement.  Without limiting the foregoing, Lessee and Lessor shall execute and deliver such documents and instruments as such party shall by notice to such other party reasonably require under Applicable Law from time to time to protect the rights and remedies intended to be created by this Agreement.  Furthermore, Lessee agrees (a) at the written request of Lessor, to execute and deliver to Lessor any UCC financing statements, fixture filings or other instruments  Lessor reasonably deems necessary for expedient filing, recording or perfecting the interest and title of Lessor in this Agreement and the Equipment, (b) that all costs incurred in connection with any actions taken in accordance with clause (a), including, without limitation, costs for filing fees and taxes, shall be paid by Lessee, and (c) to promptly, at Lessee’s own sole cost and expense, deliver such other reasonable documents and assurances, and take such further action as Lessor may reasonably request in writing, in order to effectively carry out the intent and purpose of this Agreement.  
19.SURVIVAL.  Sections 10, 13, 15 and 28 of this Agreement shall survive, remain in full force and effect and be enforceable after the expiration or termination of this Agreement for 

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any reason (in the case of Section 28, for the period expressly set forth therein).  For the avoidance of doubt, any representations or warranties made in this Agreement by either Party are deemed to have been made as of the date of this Agreement and the date of execution of the Certificate of Acceptance, or as of such other date specified in this Agreement, and neither Party shall be deemed to have made such representation or warranty as of any other date.  Each other provision set forth in the Sale Leaseback Documents that, by its terms, survives termination of this Agreement shall also survive, remain in full force and effect and be enforceable after the expiration or termination of this Agreement for any reason.  
20.INSPECTION.  During the Lease Term, Lessor may, during normal business hours, on reasonable prior written notice to Lessee, and once during any twelve month consecutive period, inspect the Equipment and the records with respect to the operations and maintenance thereof, in Lessee’s custody or to which Lessee has access.  Lessee may be present at such inspection.  Any such inspection will not unreasonably disturb or interfere with the normal operation or maintenance of the Equipment or the conduct by Lessee of its business and will be in accordance with Lessee’s health, safety and insurance programs that are communicated or made available to Lessor in writing.  In no event shall Lessor have any duty or obligation to make any such inspection and Lessor shall not incur any liability or obligation by reason of not making any such inspection.  Any such inspection shall be at the sole cost of Lessor, provided however that if a Lease Event of Default or a breach by Lessee of its obligations hereunder that, with the lapse of time or the giving of notice, would mature into a Lease Event of Default if uncured has occurred and is continuing, any such inspection shall be at the sole cost of Lessee. 
21.ACCEPTANCE OF EQUIPMENT; LEASE NON CANCELABLE.  Lessee’s acceptance of the Equipment shall be conclusively and irrevocably evidenced by Lessee signing the Certificate of Acceptance in the form attached hereto as Exhibit B, and upon acceptance, this Agreement shall be noncancelable for the Lease Term.  
22.ASSIGNMENT.  
(a)    Lessor may, at any time, with the written consent of Lessee (not to be unreasonably withheld), in whole or in part, assign its rights and obligations under this Agreement and/or mortgage, or pledge or sell the Equipment subject to Lessee’s rights under this Agreement, provided that no consent of Lessee shall be required in connection with any assignment or transfer by Lessor or any of its Affiliates (as defined below) of its or their interests in and under this Agreement to an Eligible Assignee (as defined below) so long as Lessee and its Affiliates, after giving effect to any such assignment or transfer, hold collectively more than 50% of the Lessor interests in and under this Lease.  Each assignment pursuant to this Section 22 shall be in an aggregate amount of not less than $2,500,000, unless such lesser amount is agreed to by Lessee and Lessor.  Any such assignee, buyer, transferee, grantee or mortgagee shall have and be entitled to exercise any and all rights and powers of, and shall perform all obligations of, Lessor under this Agreement.
For the purposes of this Section:
“Affiliate” means, with respect to any specified person or entity, any other person or entity who directly or indirectly through one or more intermediaries controls, or is controlled by, 

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or is under common control with, such specified person or entity.  The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise.  For purposes of this definition, the terms “controlling”, “controlled by” and “under common control with” have correlative meanings.
“Eligible Assignee” means any person or entity other than a natural person that is (a) a “Lender” as defined in and under the Parent Financing Agreement, an Affiliate of any such Lender or of Lessor, or a Related Fund (as defined below) of Lessor or any such Lender, or (b) a commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended); provided that Lessee or Affiliate of Lessee shall be an Eligible Assignee.
“Related Fund” means, with respect to Lessor or any “Lender” as defined in and under the Parent Financing Agreement, any investment fund or account managed by the same investment manager as is affiliated with Lessor or such Lender, or any special purpose entity owned directly or indirectly by one or more of such investment funds or accounts.
(b)    Without limiting the foregoing, Lessee further acknowledges and agrees that in the event Lessee receives written notice of a permitted assignment from Lessor, Lessee shall pay all Rent and any and all other amounts payable by Lessee under this Agreement to such assignee or mortgagee or as instructed by Lessor, notwithstanding any defense or claim of whatever nature, whether by reason of breach of this Agreement or otherwise which it may now or hereafter have as against Lessor.  Lessee agrees to confirm in writing receipt of notice of assignment as may be reasonably requested by assignee or mortgagee.
(c)    Except as otherwise set forth in this Agreement, Lessee shall not assign, sublease, hypothecate, sell, transfer or part with possession of the Equipment or any interest in this Agreement without the written consent of Lessor, and any attempt to do so shall be null and void and shall constitute a Lease Event of Default hereunder.
(d)     Consistent with the treatment for Income Tax Purposes of the transactions arising under the Purchase Agreement and this Agreement collectively as a financing (as set forth in Section 9(b) herein) and Lessee's obligation to make payments hereunder as a loan obligation, the Parties intend to treat such obligation as a registered obligation within the meaning of Treasury Regulation Section 1.871-14(c)(1)(i).  Notwithstanding anything to the contrary set forth herein (or in any other document, instrument or agreement), any transfer or assignment by Lessor of its rights and obligations (in whole or in part) under this Agreement (or the right to receive any payments hereunder) may only be effected by (i) surrender of this Agreement and either the reissuance by the Lessee of this Agreement to the transferee/assignee or the issuance by the Lessee of a new Agreement to the transferee/assignee, or (ii) transfer through a book entry system maintained by Lessee (or its agent, which solely for purposes of this Section 22 and related U.S. federal income tax purposes shall be Lessor), within the meaning of Treasury Regulation Section 1.871-14(c)(1)(i)(B).  The Parties agree to cooperate with one another, and to execute and file such forms or other documents, or to do or refrain from doing such other acts, as may be required, to secure exemptions from United States withholding tax, information reporting, and backup withholding.  In furtherance of the 

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foregoing, the Lessor (and any transferee/assignee) shall furnish to the Lessee an IRS Form W-8BEN, W-8BEN-E or W-8IMY (or successor form), as applicable, as well as a certificate to the effect that Lessor (and any transferee/assignee) is not (1) a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (2) a “10 percent shareholder” of the Lessee within the meaning of Sections 881(c)(3)(B) of the Internal Revenue Code or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal Revenue Code.
23.REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS.  
Each of the representations and warranties of Lessee set forth in the Purchase Agreement is hereby incorporated by reference in this Agreement as if set forth in full herein, and is made by Lessee for the benefit of Lessor as of the date of this Agreement and the Lease Commencement Date.
24.NOTICES.  
(a)  Any notice or other communication herein required or permitted to be given to Lessee or Lessor shall be sent to such Party’s address set forth below or such other address as such Party may advise by notice given in accordance with this provision.  
(b)  Except as otherwise set forth in clause (c) below, each notice or other communication hereunder shall be in writing and may be personally served or sent by facsimile or United States mail  or courier service and shall be deemed to have been given when delivered in person or by courier service and signed for against receipt thereof, upon receipt of facsimile, or three (3) business days after depositing it in the United States mail with postage prepaid and properly addressed. 
(c)  Notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgment); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient. 
If to Lessee:
Molycorp Minerals, LLC 
5619 Denver Tech Center Parkway, Suite 1000
Greenwood Village, CO 80111
Attn: Michael Doolan, Chief Financial Officer  
 
 
Facsimile: (416) 367-5471 
E-mail: Michael.Doolan@Molycorp.com 
In each case, with a copy to:

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Molycorp Minerals, LLC 
5619 Denver Tech Center Parkway, Suite 1000
Greenwood Village, CO 80111
Attn: Kevin Johnson, General Counsel 
Facsimile: (303) 843-8082 
E-mail: Kevin.Johnson@Molycorp.com 
Jones Day
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114
Attention: Michael J. Solecki, Esq.
Facsimile: 216-579-0212
E-mail:     mjsolecki@jonesday.com
 
 
If to Lessor:
OCM MLYCo CTB Ltd. c/o Oaktree Capital Management, LP
333 South Grand Avenue, 28th Floor
Los Angeles, California 90071
Attention: Brook Hinchman
E-mail:     bhinchman@oaktreecapital.com

in each case, with a copy to:

Milbank, Tweed, Hadley & McCoy LLP
601 South Figueroa Street, Suite 3000
Los Angeles, California 90017
Attention: Eric Reimer, Esq.
E-mail:    ereimer@milbank.com

25.GOVERNING LAW; VENUE, WAIVER OF JURY TRIAL.  
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

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SUBJECT TO CLAUSE (E) OF THE FOLLOWING SENTENCE, ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO OR ANY OTHER SALE LEASEBACK DOCUMENTS, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN ANY FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE BOROUGH OF MANHATTAN OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY STATE COURT LOCATED IN THE CITY AND COUNTY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE (SUBJECT TO CLAUSE (E) BELOW) JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO BORROWER AT ITS ADDRESS SET FORTH IN THE PREAMBLE TO THIS AGREEMENT; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT LESSOR RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.
EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER SALE LEASEBACK DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THE TRANSACTION OR THE RELATIONSHIP THAT IS BEING ESTABLISHED PURSUANT TO THE SALE LEASEBACK DOCUMENTS.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL‐ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTION CONTEMPLATED BY THE SALE LEASEBACK DOCUMENTS, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 25 AND EXECUTED BY EACH OF 

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THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LEASE TRANSACTION CONTEMPLATED BY THE SALE LEASEBACK DOCUMENTS.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
26.FINANCE LEASE STATUS.  Lessee agrees that if Article 2A-Leases of the Uniform Commercial Code applies to this Agreement, this Agreement  shall be considered a “Finance Lease” as that term is defined in Article 2A.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, LESSEE WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY SECTIONS 508-522 OF ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE.
27.    CONFIDENTIALITY. Lessor shall hold all non‐public information regarding Lessee and its business identified as such by Lessee and obtained by Lessor pursuant to the requirements hereof in accordance with Lessor’s customary procedures for handling confidential information of such nature, it being understood and agreed by Lessee that, in any event, Lessor may make (i) disclosures of such information to its affiliates and to its and their respective officers, directors, partners, members, employees, legal counsel, independent auditors and other advisors, experts or agents who need to know such information and on a confidential basis (and to other persons or entities authorized by Lessor to organize, present or disseminate such information in connection with disclosures otherwise made in accordance with this Section 27), (ii) disclosures of such information reasonably required by any potential or prospective assignee, transferee or participant in connection with the contemplated assignment, transfer or participation of or in Lessor’s interest in this Agreement; provided that such assignees, transferees, participants, counterparties and advisors are advised of and agree to be bound by either the provisions of this Section 27 or other provisions at least as restrictive as this Section 27, (iii) disclosure to any rating agency when required by it; provided that, prior to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of any confidential information relating to Lessee received by it from Lessor, (iv) to the extent applicable, disclosure on a confidential basis to the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the interests in this Agreement, (v) disclosures in connection with the exercise of any remedies hereunder or under any other Sale Leaseback Document, (vi) disclosures made pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case such person or entity agrees to inform Lessee promptly thereof to the extent not prohibited by law) and (vii) disclosures made upon the request or demand of any regulatory or quasi-regulatory authority purporting to have jurisdiction over such person or entity or any of its affiliates.  In addition, Lessor may disclose the existence of this Agreement and the information about this Agreement to market data collectors, similar services providers to the lending or leasing industry, and service providers to Lessor in connection with the administration and management of this Agreement and the other Sale Leaseback Documents.  Notwithstanding anything to the contrary set forth herein, each party (and each of their respective employees, representatives or other agents) may disclose to any and all persons without limitation of any kind, the tax treatment and tax structure of the 

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transactions contemplated by this Agreement and all materials of any kind (including opinions and other tax analyses) that are provided to any such party relating to such tax treatment and tax structure.  However, any information relating to the tax treatment or tax structure shall remain subject to the confidentiality provisions hereof (and the foregoing sentence shall not apply) to the extent reasonably necessary to enable the parties hereto, their respective affiliates and their respective affiliates’ directors and employees to comply with applicable securities laws.  For this purpose, “tax structure” means any facts relevant to the federal income tax treatment of the transactions contemplated by this Agreement but does not include information relating to the identity of any of the parties hereto or any of their respective affiliates.
28.    GRANT OF RIGHT-OF-WAY AND ACCESS RIGHTS.  
Lessee hereby grants to Lessor and its representatives, its contractors and its lenders who may have a lien on or security interest in the Equipment, an irrevocable, non-cancellable and, subject to the terms hereof, unconditional right of way to enter upon the portions of the Site where the Equipment or any part thereof is located, and to access such portions of the Site and the Equipment across or through the Mountain Pass Facility, for the purposes of (i) monitoring, inspecting, dismantling, disassembling or removing the Equipment, (ii) marketing the Equipment if this Agreement terminates or is to expire without Lessee purchasing the Equipment pursuant to Section 14, and (iii) to the extent Lessee does not do so as in accordance with the requirements of this Agreement, replacing, modifying, repairing, operating, maintaining or servicing the Equipment.  So long as no Lease Event of Default has occurred and is continuing hereunder, Lessor shall, except in the case of an emergency, provide Lessee with at least two (2) business days’ notice before accessing any portion of the Mountain Pass Facility.  Such right of way and right of access shall be for a period co-terminous with the term of this Agreement plus two (2) years after the termination of this Agreement, but shall in any event expire upon the consummation, if any, of the purchase of the Equipment by Lessee pursuant to Section 14.  Lessee hereby represents and warrants that it owns the fee simple title to the Site, including all portions thereof where any of the Equipment is or may be located, and any portion thereof across or through which access may be had to the portions of the Site where any of the Equipment is or may be located, that Lessee has the full right, power and authority to grant the right of way and access rights contemplated herein, and that any or all consents thereto, and that the right of way and access rights granted herein do not violate the rights of, or require the consent of, any third party.  Lessor shall indemnify, defend and hold harmless Lessee from any and all claims, actions, damages, liabilities and expenses in connection with bodily injury or property damage to the extent caused by Lessor or its agents entry on the Mountain Pass Facility and/or removal of the Equipment, provided that if such removal is related to a Lease Event of Default Lessor’s obligation to indemnify Lessee shall be limited to claims that result from Lessor’s or its agent’s negligence as determined pursuant to a final, non-appealable judgment or order of a court of competent jurisdiction.  Lessor agrees to reimburse Lessee for the costs of repair for any damage done to the Mountain Pass Facility as a result of such entry and/or removal promptly following Lessee’s demand therefor or Lessor shall promptly repair, at Lessor’s cost and expense, any physical damage to the Mountain Pass Facility actually caused by Lessor or its agents, but Lessor shall not be liable for any diminution in value of the Mountain Pass Facility caused by the removal or absence of the Equipment.

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29.    GRANT OF SECURITY INTEREST IN CERTAIN COLLATERAL AS SECURITY FOR LESSEE’S OBLIGATIONS HEREUNDER.  
Without limiting Section 9(c), Lessee hereby grants to Lessor, as security for the full and timely payment and performance of all obligations and liabilities of Lessee under this Agreement, a lien on and a security interest in all of Lessee’s right, title and interest in and to the following properties and assets, wherever located and whether now owned or existing or acquired or arising in the future, together with all additions to, all replacements for and all proceeds and products of such properties and assets: the rights, title and interest of Lessee in, to or under the proceeds of any insurance claims (or similar claims pursuant to a warranty or a claim for damages in contract or tort) with respect to any damage, destruction or other loss of the Equipment or any part thereof, and the bank accounts in which any such proceeds may be deposited from time to time (together with all cash and other property on deposit therein or credited thereto), including the bank account contemplated by Section 11(c).  Lessee hereby authorizes Lessor to file in any jurisdiction any financing statement, financing statement amendment, continuation statement or like instrument with respect to any of the collateral described above, and agrees to take such other and further actions as Lessor may reasonably determine to be appropriate to create, perfect and establish the priority of the liens and the security interests granted hereunder. 
30.    MISCELLANEOUS; PRINCIPLES OF INTERPRETATION.  
(a) The captions of this Agreement are for convenience only and shall not be read to define or limit the intent of the provision that follows such captions.  
(b)  This Agreement and the other Sale Leaseback Documents contains the entire agreement and understanding between Lessor and Lessee relating to the subject matter hereof.  
(c)  Any variation or modification hereof and any waiver of any of the provisions or conditions hereof shall not be valid unless in writing signed by an authorized representative of the Parties hereto.  
(d)  Any provision of this Agreement that is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  
(e)  Lessor’s failure at any time to require strict performance by Lessee or any of the provisions hereof shall not waive or diminish Lessor’s right thereafter to demand strict compliance therewith or with any other provision.  
(f)  Lessor and Lessee agree that this Agreement shall inure to the benefit of and shall be binding upon each of Lessor and Lessee and their respective successors and permitted assigns. 
(g)  Capitalized terms used but not defined herein shall have the meaning set forth for such terms in the Purchase Agreement. 

29

 

(h)  (i) Reference to a given agreement, instrument, document, statute, regulation, rule, proclamation, ordinance or law is a reference to that agreement, instrument, document, statute, regulation, rule, proclamation, ordinance or law as modified, amended, supplemented, extended and restated (including by means of any change order, waiver or other modification) through the date as of which such reference is made, and, as to any statute, regulation, rule, proclamation, ordinance law, any successor statute, regulation, rule, proclamation, ordinance law; (ii) reference to a person or entity includes its predecessors, successors and permitted assigns; (iii) the singular includes the plural and the masculine includes the feminine, and vice versa; (iv) “includes” or “including” means “including, for example and without limitation”; (v) “business day” means any day which is not a Saturday, Sunday or other day on which banks are required to close for business in the State of New York or the State of California or in the Provence of Ontario, Canada; (vi) “shall” and “will” have the same meaning and (vii) “Dollars” and “$” means United States dollars or such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts in the United States of America.
(i)  This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, by facsimile or electronic mail, and all of said counterparts taken together shall be deemed to constitute one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signatures are physically attached to the same document.  A facsimile or “.pdf” signature page shall constitute an original for purposes hereof.
31.  MAXIMUM PARI PASSU SECURED INDEBTEDNESS. Notwithstanding anything to the contrary in this Agreement, any other Sale Leaseback Document, the Parent Financing Agreement, any other Credit Document (as defined in the Parent Financing Document) or any other Financing Agreement (as defined in the Parent Financing Agreement), the maximum principal amount of Indebtedness (as defined in the Parent Financing Agreement) under the Parent Financing Agreement, the Magnequench Financing (as defined in the Parent Financing Agreement) and the Sale Leaseback (as defined in the Parent Financing Agreement) secured by the Pari Passu Collateral (as defined in the Parent Financing Agreement) shall not exceed $300,000,000 in the aggregate at any time or such higher amount permitted by the Pari Passu Indenture (as defined in the Parent Financing Agreement), including, without limitation, Section 4.06(b)(1) thereof.
[Signature page follows.]

30

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Equipment Lease Agreement as of the date first above written.
LESSOR:
      OCM MLYCO CTB LTD.  
      
      By:  Oaktree Capital Management, L.P.
      Its:  Director

 
By:  /s/ Kenneth Liang            
Name:  Kenneth Liang
Title:  Managing Director

By:  /s/ Nick Basso            
Name:  Nick Basso
Title:  Vice President

Equipment Lease Agreement

 

LESSEE:
MOLYCORP MINERALS, LLC
By:  /s/ Geoffrey R. Bedford    
Name:  Geoffrey R. Bedford
Title:  President and CEO

Equipment Lease Agreement

 

EXHIBIT A 

THE EQUIPMENT

[attached]

 

	
														
	 

	Molycorp
Valuation of Certain Assets of Molycorp
Detail – Mountain Pass site
Valuation Date: August 1, 2014

	 

	D&P No.
	Asset
	No.
	Asset description
	Cap.date
	Acquis.val.
	Accum.dep.
	Book val.
	"Cost Center #"
	Cost Center Description
	Client Category
	D&P Category Description
	Exhibit Category
	Fair Value

	517
	20419
	 
	-  SRU A800 Brine Evaporation Package
	31.03.2014
	22,507,762
	(375,129)
	22,132,632
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	12,189,000

	504
	20406
	 
	-  SRU A200 Brine Treatment
	31.03.2014
	20,279,152
	(724,255)
	19,554,897
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	10,982,000

	525
	20428
	 
	-  Brine Recovery
	30.04.2014
	19,532,720
	(325,545)
	19,207,175
	123160
	Brine Recovery
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	10,696,000

	399
	20300
	 
	-  WATER TREATMENT Reverse Osmosis Skids
	01.01.2013
	18,799,951
	(2,169,225)
	16,630,726
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	9,455,000

	505
	20407
	 
	-  SRU A300 Electrolysis/cell/Xformer Electroylzer A
	31.03.2014
	15,226,083
	(253,768)
	14,972,315
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	8,246,000

	311
	20205
	 
	-  CHP Turbines
	01.09.2012
	14,365,694
	(1,316,294)
	13,049,400
	123161
	CHP
	HEAT & POWER
	Turbines & Generators
	Sale Leaseback Assets (Personal P
	7,973,000

	522
	20424
	 
	-  SRU A850 Utilities
	31.03.2014
	8,029,535
	(286,769)
	7,742,766
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	4,348,000

	513
	20415
	 
	-  SRU A500 HCL Synthesis / Storage HCLSynthesis Unit
	31.03.2014
	7,759,315
	(129,322)
	7,629,993
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	4,202,000

	312
	20206
	 
	-  CHP HRSGs
	01.09.2012
	7,282,692
	(667,957)
	6,614,735
	123161
	CHP
	HEAT & POWER
	Boilers
	Sale Leaseback Assets (Personal P
	4,137,000

	484
	20386
	 
	-  CHP Phase 2 Turbine
	31.12.2013
	6,960,885
	(174,022)
	6,786,863
	123161
	CHP
	SPARE PARTS
	Turbines & Generators
	Sale Leaseback Assets (Personal P
	3,929,000

	283
	20177
	 
	-  CRUSHER & MOBILE TRUCK - MP
	31.03.2012
	6,833,764
	(535,564)
	6,298,200
	123102
	Crushing
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	3,186,000

	407
	20308
	 
	-  WATER TREATMENT Multiple Equipment
	01.01.2013
	6,309,764
	(1,352,092)
	4,957,672
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	3,173,000

	511
	20413
	 
	-  SRU A400 Caustic Unit  Caustic Evap Package PH1
	31.03.2014
	5,894,623
	(98,244)
	5,796,379
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	3,192,000

	331
	20225
	 
	-  MILL Ball Mill
	01.12.2012
	5,389,336
	(945,692)
	4,443,643
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	2,703,000

	515
	20417
	 
	-  SRU A700 Bleach Plant/ Bleach Filtration Scrubber
	31.03.2014
	5,315,434
	(88,591)
	5,226,843
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	2,879,000

	506
	20408
	 
	-  SRU A300 Electrolysis/cell/Xformer Rectifer -A
	31.03.2014
	5,033,873
	(83,898)
	4,949,975
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	2,726,000

	508
	20410
	 
	-  SRU A300 Electrolysis/cell/Xformer Rectifier - B
	31.03.2014
	5,033,873
	(83,898)
	4,949,975
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	2,726,000

	398
	20299
	 
	-  WATER TREATMENT Weak Acid Cation Vessels
	01.01.2013
	5,022,885
	(502,288)
	4,520,596
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	2,526,000

	486
	20388
	 
	-  Mill & Flotation Elictrical & Instrumentation
	31.12.2013
	4,991,832
	(356,559)
	4,635,273
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	2,706,000

	485
	20387
	 
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	31.12.2013
	4,535,978
	(113,399)
	4,422,578
	123161
	CHP
	SPARE PARTS
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	2,525,000

	397
	20298
	 
	-  WATER TREATMENT Multimedia F1lters
	01.01.2013
	4,476,491
	(425,712)
	4,050,779
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	2,251,000

	510
	20412
	 
	-  SRU A300 Electrolysis/cell/Xformer
	31.03.2014
	3,491,483
	(124,696)
	3,366,787
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	1,891,000

	1490
	90002
	 
	-  CHP Phase 2 Turbine
	31.12.2013
	3,481,572
	-
	3,481,572
	123161
	CHP
	ASSETS FOR SALE
	Turbines & Generators
	Sale Leaseback Assets (Personal P
	1,965,000

	431
	20332
	 
	-  SXI Heavies Separation MixerSettler
	01.01.2013
	3,094,898
	(725,870)
	2,369,028
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Personal Property
	1,216,000

	348
	20242
	 
	-  MILL Reagent System  Flocculant System
	01.12.2012
	3,077,437
	(573,572)
	2,503,864
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	1,544,000

	446
	20347
	 
	-  SXI SXI MixerSettler
	01.01.2013
	2,891,981
	(644,012)
	2,247,969
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Personal Property
	1,136,000

	396
	20297
	 
	-  WATER TREATMENT Multiflo Clarifer
	01.01.2013
	2,753,523
	(206,514)
	2,547,009
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	1,385,000

	340
	20234
	 
	-  MILL Flotation Cells
	01.12.2012
	2,501,617
	(448,573)
	2,053,044
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	1,255,000

	499
	20401
	 
	-  SRU A100 Raw Brine
	31.03.2014
	2,322,050
	(82,930)
	2,239,120
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	1,258,000

	519
	20421
	 
	-  SRU A850 Utilities Cooling Tower
	31.03.2014
	2,189,375
	(36,490)
	2,152,885
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	1,186,000

	496
	20398
	 
	-  SRU A50 General 480 V MCC 1
	31.03.2014
	2,096,971
	(34,950)
	2,062,022
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	1,177,000

	1491
	90003
	 
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	31.12.2013
	1,591,769
	-
	1,591,769
	123161
	CHP
	ASSETS FOR SALE
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	886,000

	405
	20306
	 
	-  WATER TREATMENT Motor Control Center
	01.01.2013
	1,517,561
	(325,192)
	1,192,369
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	763,000

	402
	20303
	 
	-  WATER TREATMENT Chemical Feed Skids
	01.01.2013
	1,470,468
	(315,100)
	1,155,368
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	740,000

	432
	20333
	 
	-  SXI SXH MixerSettler 2
	01.01.2013
	1,363,324
	(303,597)
	1,059,727
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Personal Property
	536,000

	282
	20176
	 
	-  SD-2 CAT FRONT SHOVEL MODEL 6015
	31.03.2012
	1,345,914
	(444,786)
	901,127
	123102
	Crushing
	PLANT & EQUIPMENT
	Mining Vehicles
	Personal Property
	627,000

	507
	20409
	 
	-  SRU A300 Electrolysis/cell/Xformer Buss Bars - A
	31.03.2014
	1,304,916
	(21,749)
	1,283,168
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	707,000

	284
	20178
	 
	-  CRUSHER CONVEYOR
	31.03.2012
	1,257,031
	(243,256)
	1,013,775
	123102
	Crushing
	PLANT & EQUIPMENT
	Conveyors
	Personal Property
	535,000

	526
	20429
	 
	-  Brine Pipe Line fr Area 305 to Evap Pond
	30.04.2014
	1,231,738
	(20,529)
	1,211,209
	123160
	Brine Recovery
	PLANT & EQUIPMENT
	Piping
	Sale Leaseback Assets (Personal P
	692,000

	494
	20396
	 
	-  SRU A50  General Unit Sub Station
	31.03.2014
	1,174,405
	(19,573)
	1,154,831
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	659,000

	317
	20211
	 
	-  CHP Diesel Generator
	01.09.2012
	1,148,548
	(105,343)
	1,043,205
	123161
	CHP
	HEAT & POWER
	Turbines & Generators
	Sale Leaseback Assets (Personal P
	637,000

	509
	20411
	 
	-  SRU A300 Electrolysis/cell/Xformer Chlorate Reacto
	31.03.2014
	1,028,893
	(17,148)
	1,011,745
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	557,000

	338
	20232
	 
	-  MILL Tailings Filter Press  Conc Filter Press
	01.12.2012
	1,028,179
	(191,876)
	836,303
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Filter Presses
	Sale Leaseback Assets (Personal P
	303,000

	298
	20192
	 
	-  CRUSHER ALLOCATION MP
	01.07.2012
	1,027,457
	(79,333)
	948,124
	123102
	Crushing
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	493,000

	403
	20304
	 
	-  WATER TREATMENT FRP Tanks
	01.01.2013
	931,539
	(199,616)
	731,924
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	504,000

	448
	20349
	 
	-  SXI FRP Tanks
	01.01.2013
	848,419
	(188,933)
	659,485
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tanks
	Personal Property
	459,000

	447
	20348
	 
	-  SXI FRP Tanks
	01.01.2013
	807,782
	(179,884)
	627,898
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tanks
	Personal Property
	437,000

	321
	20215
	 
	-  CHP Load Banks
	01.09.2012
	807,171
	(74,032)
	733,139
	123161
	CHP
	HEAT & POWER
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	425,000

	514
	20416
	 
	-  SRU A500 HCL Synthesis / Storage
	31.03.2014
	801,057
	(28,609)
	772,447
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	434,000

	521
	20423
	 
	-  SRU A850 Utilities SRU Waste Collection Tank
	31.03.2014
	794,816
	(13,247)
	781,570
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	444,000

 

	
														
	 

	Molycorp
Valuation of Certain Assets of Molycorp
Detail – Mountain Pass site
Valuation Date: August 1, 2014

	 

	D&P No.
	Asset
	No.
	Asset description
	Cap.date
	Acquis.val.
	Accum.dep.
	Book val.
	"Cost Center #"
	Cost Center Description
	Client Category
	D&P Category Description
	Exhibit Category
	Fair Value

	297
	20191
	 
	-  CRUSHER-MECH & ELECT MP
	01.07.2012
	706,066
	(54,517)
	651,549
	123102
	Crushing
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	339,000

	498
	20400
	 
	-  SRU A100 Raw Brine Saturator
	31.03.2014
	698,750
	(11,646)
	687,104
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	378,000

	502
	20404
	 
	-  SRU A200 Brine Treatment Filtered Brine Tank
	31.03.2014
	692,527
	(11,542)
	680,985
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	387,000

	503
	20405
	 
	-  SRU A200 Brine Treatment Polished Brine Tank
	31.03.2014
	690,904
	(11,515)
	679,388
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	386,000

	520
	20422
	 
	-  SRU A850 Utilities Paste Tails Collection Tank
	31.03.2014
	620,423
	(10,340)
	610,082
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	346,000

	500
	20402
	 
	-  SRU A200  Brine Treatment Precip 2 Tank # 1
	31.03.2014
	614,784
	(10,246)
	604,537
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	343,000

	495
	20397
	 
	-  SRU A50  General Switch Gear
	31.03.2014
	607,233
	(10,121)
	597,113
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	341,000

	518
	20420
	 
	-  SRU A800 Brine Evaporation
	31.03.2014
	582,095
	(20,789)
	561,306
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	315,000

	497
	20399
	 
	-  SRU A50  General Switch , Rectifiers
	31.03.2014
	570,010
	(20,358)
	549,652
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	320,000

	501
	20403
	 
	-  SRU A200 Brine Treatment Precip Tank #2
	31.03.2014
	557,714
	(9,295)
	548,419
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	311,000

	512
	20414
	 
	-  SRU A400 Caustic Unit
	31.03.2014
	546,531
	(19,519)
	527,012
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	296,000

	434
	20335
	 
	-  SXI FRP Tanks
	01.01.2013
	537,687
	(119,737)
	417,951
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tanks
	Personal Property
	291,000

	395
	20296
	 
	-  WATER TREATMENT Filter Press
	01.01.2013
	525,127
	(52,513)
	472,615
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Filter Presses
	Sale Leaseback Assets (Personal P
	158,000

	406
	20307
	 
	-  WATER TREATMENT PLC
	01.01.2013
	472,478
	(101,245)
	371,233
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Computers/IT
	Sale Leaseback Assets (Personal P
	142,000

	316
	20210
	 
	-  CHP Centrifugal Chillers
	01.09.2012
	453,971
	(41,637)
	412,333
	123161
	CHP
	HEAT & POWER
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	239,000

	435
	20336
	 
	-  SXI FRP Tanks
	01.01.2013
	442,019
	(98,433)
	343,586
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tanks
	Personal Property
	239,000

	351
	20246
	 
	-  MILL Other Sump Pump Tank
	01.12.2012
	430,252
	(80,292)
	349,959
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	232,000

	400
	20301
	 
	-  WATER TREATMENT Clean -in-place Skids
	01.01.2013
	386,180
	(82,753)
	303,427
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	194,000

	339
	20233
	 
	-  MILL Concentrate Thickener
	01.12.2012
	368,347
	(68,740)
	299,607
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	199,000

	401
	20302
	 
	-  WATER TREATMENT Sludge Clarifier
	01.01.2013
	341,033
	(25,577)
	315,455
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Water Filtration
	Sale Leaseback Assets (Personal P
	172,000

	332
	20226
	 
	-  MILL Bridge Crane
	01.12.2012
	333,859
	(62,304)
	271,555
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Warehouse Equipment
	Sale Leaseback Assets (Personal P
	175,000

	334
	20228
	 
	-  MILL Crushing Systems
	01.12.2012
	332,211
	(61,996)
	270,214
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	167,000

	343
	20237
	 
	-  MILL Tank Agitator, Flotation
	01.12.2012
	330,001
	(61,584)
	268,417
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Sale Leaseback Assets (Personal P
	132,000

	404
	20305
	 
	-  WATER TREATMENT Bolted Steel Tanks
	01.01.2013
	306,884
	(65,761)
	241,123
	123165
	Water treatment-fresh water supply
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	166,000

	313
	20207
	 
	-  CHP Boiler Feedwater Pumps
	01.09.2012
	234,014
	(21,463)
	212,551
	123161
	CHP
	HEAT & POWER
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	118,000

	315
	20209
	 
	-  CHP Deaerator
	01.09.2012
	223,256
	(20,477)
	202,779
	123161
	CHP
	HEAT & POWER
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	117,000

	492
	20394
	 
	-  Mill Lab Equip
	01.01.2014
	217,227
	(15,516)
	201,711
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	116,000

	345
	20239
	 
	-  MILL Ball Mill & Mill Feed Slurry Pumps
	01.12.2012
	213,375
	(39,819)
	173,556
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	110,000

	346
	20240
	 
	-  MILL Mill  Flotation Sump Pumps
	01.12.2012
	205,495
	(38,349)
	167,146
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	106,000

	342
	20236
	 
	-  MILL Froth Pumps
	01.12.2012
	200,794
	(37,472)
	163,322
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	104,000

	449
	20350
	 
	-  SXI Mag Drive Pumps
	01.01.2013
	199,026
	(44,321)
	154,705
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Personal Property
	101,000

	318
	20212
	 
	-  CHP Cooling Towers
	01.09.2012
	194,201
	(17,812)
	176,389
	123161
	CHP
	HEAT & POWER
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	102,000

	309
	20203
	 
	-  CHP Epoxy Coated Treated Water Tank
	01.09.2012
	156,173
	(14,324)
	141,849
	123161
	CHP
	HEAT & POWER
	Tanks
	Sale Leaseback Assets (Personal P
	83,000

	307
	20201
	 
	-  CHP Condensate Storage Tank
	01.09.2012
	131,751
	(12,084)
	119,667
	123161
	CHP
	HEAT & POWER
	Tanks
	Sale Leaseback Assets (Personal P
	70,000

	341
	20235
	 
	-  MILL Flotation Blowers
	01.12.2012
	120,321
	(22,454)
	97,867
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	60,000

	437
	20338
	 
	-  SXI Used Heat Exchanger
	01.01.2013
	118,476
	(26,383)
	92,093
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	58,000

	308
	20202
	 
	-  CHP Aqueous Ammonia Storage Tanks
	01.09.2012
	116,885
	(10,721)
	106,164
	123161
	CHP
	HEAT & POWER
	Tanks
	Sale Leaseback Assets (Personal P
	62,000

	350
	20245
	 
	-  MILL Concentrate Water Screw Feeder
	01.12.2012
	107,315
	(20,027)
	87,289
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	54,000

	436
	20337
	 
	-  SXI Mag Drive Pumps
	01.01.2013
	95,120
	(21,182)
	73,938
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Personal Property
	48,000

	523
	20425
	 
	-  SRU Metrohm Autotitrator
	31.03.2014
	79,204
	(2,829)
	76,375
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Laboratory Equipment
	Sale Leaseback Assets (Personal P
	43,000

	352
	20247
	 
	-  MILL Air Receivers
	01.12.2012
	78,892
	(14,723)
	64,170
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	40,000

	516
	20418
	 
	-  SRU A700 Bleach Plant/ Bleach Filtration
	31.03.2014
	78,339
	(2,798)
	75,541
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	SRU (Chlor-alkali)
	Sale Leaseback Assets (Personal P
	42,000

	333
	20227
	 
	-  MILL Ball Mill Cyclone System
	01.12.2012
	75,761
	(14,138)
	61,623
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	38,000

	336
	20230
	 
	-  MILL Ball Mill Sump Pump Tank
	01.12.2012
	74,358
	(13,876)
	60,482
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Tanks
	Sale Leaseback Assets (Personal P
	40,000

	549
	20452
	 
	-  Mill Misc Equipments Improvements
	01.04.2014
	69,493
	(2,482)
	67,011
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	38,000

	1461
	60841
	 
	-  Rockwell Automation - CIP
	01.02.2013
	69,421
	(19,669)
	49,752
	123161
	CHP
	COMPUTER SOFTWARE
	Software
	Sale Leaseback Assets (Personal P
	28,000

	452
	20353
	 
	-  SXI Heat Exchangers
	01.01.2013
	65,548
	(14,597)
	50,951
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	32,000

	543
	20446
	 
	-  SRU CA Back-up Air Compressor
	01.04.2014
	61,994
	(1,550)
	60,445
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	34,000

	349
	20243
	 
	-  MILL Reclaim Water Pumps
	01.12.2012
	58,776
	(10,969)
	47,808
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	30,000

	319
	20213
	 
	-  CHP Water Filtration System
	01.09.2012
	57,890
	(5,310)
	52,580
	123161
	CHP
	HEAT & POWER
	Water Filtration
	Sale Leaseback Assets (Personal P
	28,000

	524
	20426
	 
	-  GC Carle 400
	31.03.2014
	55,037
	(1,966)
	53,071
	123162
	Salt Recovery/Chloralkali
	PLANT & EQUIPMENT
	Laboratory Equipment
	Sale Leaseback Assets (Personal P
	30,000

	344
	20238
	 
	-  MILL Concentrate Thickener Underflow Pumps
	01.12.2012
	54,524
	(10,175)
	44,349
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	28,000

 

	
														
	 

	Molycorp
Valuation of Certain Assets of Molycorp
Detail – Mountain Pass site
Valuation Date: August 1, 2014

	 

	D&P No.
	Asset
	No.
	Asset description
	Cap.date
	Acquis.val.
	Accum.dep.
	Book val.
	"Cost Center #"
	Cost Center Description
	Client Category
	D&P Category Description
	Exhibit Category
	Fair Value

	347
	20241
	 
	-  MILL Pumps: Wash Water, Filtrate, Overflow
	01.12.2012
	52,192
	(9,740)
	42,452
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	27,000

	353
	20248
	 
	-  MILL Indoor Gas Unit Heaters
	01.12.2012
	42,997
	(8,024)
	34,973
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	22,000

	441
	20342
	 
	-  SXI Scrubber Blower
	01.01.2013
	37,801
	(8,418)
	29,383
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	19,000

	337
	20231
	 
	-  MILL Ball Mill Disconnect Switch
	01.12.2012
	36,479
	(6,808)
	29,672
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	20,000

	530
	20433
	 
	-  Mobile Pump Skid
	01.04.2014
	29,538
	(1,055)
	28,483
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Personal Property
	16,000

	330
	20224
	 
	-  MILL Switches
	01.12.2012
	23,231
	(4,335)
	18,896
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Accessory Electrical Equipment
	Sale Leaseback Assets (Personal P
	13,000

	451
	20352
	 
	-  SXI Sump Pumps
	01.01.2013
	21,886
	(4,874)
	17,012
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Personal Property
	11,000

	335
	20229
	 
	-  MILL Mill  Flotation Sump Pumps
	01.12.2012
	19,739
	(3,684)
	16,056
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	10,000

	444
	20345
	 
	-  SXI Charcoal Absorption Columns
	01.01.2013
	14,875
	(3,313)
	11,563
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	7,000

	314
	20208
	 
	-  CHP Boiler Feedwater Pumps Piping
	01.09.2012
	14,515
	(1,331)
	13,183
	123161
	CHP
	HEAT & POWER
	Piping
	Sale Leaseback Assets (Personal P
	8,000

	450
	20351
	 
	-  SXI Heat Exchangers
	01.01.2013
	13,402
	(2,984)
	10,418
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	7,000

	433
	20334
	 
	-  SXI SXH MixerSettler 2
	01.01.2013
	13,269
	(2,955)
	10,314
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Personal Property
	5,000

	440
	20341
	 
	-  SXI One 2 Ton Capacity Electric Chain Hoist
	01.01.2013
	13,063
	(2,909)
	10,154
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Warehouse Equipment
	Personal Property
	7,000

	354
	20249
	 
	-  MILL Seal Water Pumps
	01.12.2012
	12,153
	(2,268)
	9,885
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Sale Leaseback Assets (Personal P
	6,000

	541
	20444
	 
	-  SXI Raff Organic Skim
	01.04.2014
	11,697
	(418)
	11,279
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	6,000

	439
	20340
	 
	-  SXI Refurbishing used heat exchangers
	01.01.2013
	11,171
	(2,488)
	8,683
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	5,000

	443
	20344
	 
	-  SXI Sump Pumps
	01.01.2013
	9,727
	(2,166)
	7,561
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Pumps and Compressors
	Personal Property
	5,000

	320
	20214
	 
	-  CHP Seal Flush Plan
	01.09.2012
	8,549
	(784)
	7,765
	123161
	CHP
	HEAT & POWER
	CHP Plant misc equipment
	Sale Leaseback Assets (Personal P
	4,000

	438
	20339
	 
	-  SXI Static Mixers for SXHSXI
	01.01.2013
	4,647
	(1,035)
	3,612
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Tank Agitators & Mixers
	Personal Property
	2,000

	442
	20343
	 
	-  SXI Heat Exchangers
	01.01.2013
	4,123
	(918)
	3,205
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	2,000

	355
	20251
	 
	-  MILL Filter Cloth
	01.12.2012
	2,192
	(496)
	1,697
	123104
	Milling and Flotation
	PLANT & EQUIPMENT
	Mining M&E
	Sale Leaseback Assets (Personal P
	1,000

	445
	20346
	 
	-  SXI Toe Plate Angle clips
	01.01.2013
	1,167
	(260)
	907
	123113
	SX-I Separation
	PLANT & EQUIPMENT
	Mining M&E
	Personal Property
	1,000

	Total
	 
	 
	 
	 
	264,921,701
	-18,318,841
	246,602,860
	 
	 
	 
	 
	 
	139,833,000

 

EXHIBIT B

CERTIFICATE OF ACCEPTANCE

Dated ____________, 2014
In compliance with the terms, conditions and provisions of the Equipment Lease Agreement dated as of September 11, 2014 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Agreement”) between the undersigned (“Lessee”) and OCM MLYCo CTB Ltd (“Lessor”), Lessee hereby:
		
	(a)
	certifies and warrants that all Equipment described in Exhibit A to the Agreement  (the “Equipment”) is delivered, inspected and fully installed, and operational as of the Acceptance Date as indicated below; and

		
	(b)
	accepts all the Equipment for all purposes under the Agreement and all attendant documents as of the date above (the “Acceptance Date”).

LESSEE:
MOLYCORP MINERALS, LLC
By:      
Name:
Title:

1

 

EXHIBIT C

SCHEDULED RENT SCHEDULE 

Scheduled Rent shall be due and payable quarterly in arrears during the Lease Term on the dates and in the amounts specified in Part A of Schedule 1 attached to this Exhibit C; provided that unless the 2016 Notes Equity Refinancing (as defined in the Parent Financing Agreement) has occurred by June 15, 2016, scheduled Rent shall be due and payable quarterly in arrears during the Lease Term on the dates and in the amounts specified in Part B of Schedule 1 attached to this Exhibit C.     

 

Schedule 1 
to Exhibit C 
to Equipment Lease Agreement
between Molycorp Minerals, LLC and OCM MLYCo CTB Ltd.

Part A.   Original scheduled Rent

Payment Date                       Lease Payment             

	
		
	Year 1 Quarter 1
	$2,474,267.25

	Year 1 Quarter 2
	$2,478,005.84

	Year 1 Quarter 3
	$2,564,736.05

	Year 1 Quarter 4
	$2,597,507.67

	Year 2 Quarter 1
	$2,602,103.50

	Year 2 Quarter 2
	$2,634,991.20

	Year 2 Quarter 3
	$2,697,616.48

	Year 2 Quarter 4
	$2,732,086.02

	Year 3 Quarter 1
	$2,736,919.97

	Year 3 Quarter 2
	$2,741,055.42

	Year 3 Quarter 3
	$2,836,992.36

	Year 3 Quarter 4
	$2,873,242.82

	Year 4 Quarter 1
	$2,878,326.52

	Year 4 Quarter 2
	$2,882,675.64

	Year 4 Quarter 3
	$2,983,569.29

	Year 4 Quarter 4
	$3,021,692.67

	Year 5 Quarter 1
	$3,027,039.02

	Year 5 Quarter 2
	$3,031,612.85

	Year 5 Quarter 3
	$3,137,719.30

	Year 5 Quarter 4
	$183,089,363.99

Part B.   Scheduled Rent if 2016 Notes Equity Refinancing (as defined in the Parent Financing Agreement) has not occurred by June 15, 20161.

Payment Date                      Lease Payment            Interest Accrual    
	
			
	Year 1 Quarter 1

	$2,474,267.25
	$4,241,601.00

  	
	
	 

 1Note: Consistent with the treatment for Income Tax Purposes of the transactions arising under the Purchase Agreement and this Agreement collectively as a financing, Lessee will treat the payments hereunder as payments of interest and principal and will determine the accruals of interest/OID (for U.S. federal income tax purposes only) based on the payment schedule in Part B. 

 

	
			
	Year 1 Quarter 2
	$2,478,005.84
	$4,248,010.01

	Year 1 Quarter 3
	$2,564,736.05
	$4,396,690.36

	Year 1 Quarter 4
	$2,597,507.67
	$4,452,870.30

	Year 2 Quarter 1
	$2,602,103.50
	$4,460,748.86

	Year 2 Quarter 2
	$2,634,991.20
	$4,517,127.77

	Year 2 Quarter 3
	$2,697,616.48
	$4,624,485.40

	Year 2 Quarter 4
	$9,957,303.49
	$4,289,652.64

	Year 3 Quarter 1
	$4,460,748.86
	$4,460,748.86

	Year 3 Quarter 2
	$4,411,729.65
	$4,411,729.65

	Year 3 Quarter 3
	$4,509,768.08
	$4,509,768.08

	Year 3 Quarter 4
	$4,509,768.08
	$4,509,768.08

	Year 4 Quarter 1
	$4,460,748.86
	$4,460,748.86

	Year 4 Quarter 2
	$4,411,729.65
	$4,411,729.65

	Year 4 Quarter 3
	$4,509,768.08
	$4,509,768.08

	Year 4 Quarter 4
	$4,509,768.08
	$4,509,768.08

	Year 5 Quarter 1
	$4,460,748.86
	$4,460,748.86

	Year 5 Quarter 2
	$4,411,729.65
	$4,411,729.65

	Year 5 Quarter 3
	$4,509,768.08
	$4,509,768.08

	Year 5 Quarter 4
	$151,567,422.95
	$4,509,768.08

Above, “Year 1 Quarter 1” means December 11, 2014, and each Payment Date thereafter is the 11th day of the third month following the immediately preceding Payment Date, except that (i) if any Payment Date would fall on a day that is not a business day, Payment Date shall be the next succeeding business day and (ii) “Year 5 Quarter 4” is the date that is the fifth anniversary of the Lease Commencement Date.
 

 

EXHIBIT D

STIPULATED LOSS OF VALUE SCHEDULE

[attached]

 

	
																																											
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass site
	Stipulated Loss Values

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	517
	20419
	-  SRU A800 Brine Evaporation Package
	12,189,000
	17,749,314
	17,971,180
	18,200,812
	18,433,378
	17,355,297
	17,574,649
	17,799,213
	18,026,648
	16,793,580
	17,003,500
	17,220,766
	17,440,810
	16,009,988
	16,210,113
	16,417,242
	16,627,018
	15,553,614
	15,748,034
	15,949,259
	15,682,578

	504
	20406
	-  SRU A200 Brine Treatment
	10,982,000
	15,991,711
	16,191,607
	16,398,500
	16,608,036
	15,636,711
	15,834,342
	16,036,669
	16,241,582
	15,130,617
	15,319,750
	15,515,502
	15,713,756
	14,424,619
	14,604,927
	14,791,546
	14,980,549
	14,013,437
	14,188,605
	14,369,904
	14,129,631

	525
	20428
	-  Brine Recovery
	10,696,000
	15,575,245
	15,769,935
	15,971,440
	16,175,520
	15,229,490
	15,421,974
	15,619,033
	15,818,609
	14,736,576
	14,920,784
	15,111,438
	15,304,529
	14,048,965
	14,224,577
	14,406,335
	14,590,416
	13,648,491
	13,819,097
	13,995,674
	13,761,658

	399
	20300
	-  WATER TREATMENT Reverse Osmosis Skids
	9,455,000
	13,768,132
	13,940,234
	14,118,359
	14,298,760
	13,462,493
	13,632,644
	13,806,839
	13,983,260
	13,026,770
	13,189,604
	13,358,138
	13,528,826
	12,418,938
	12,574,175
	12,734,845
	12,897,568
	12,064,929
	12,215,741
	12,371,831
	12,164,966

	505
	20407
	-  SRU A300 Electrolysis/cell/Xformer Electroylzer A
	8,246,000
	12,007,617
	12,157,712
	12,313,061
	12,470,394
	11,741,060
	11,889,454
	12,041,375
	12,195,237
	11,361,052
	11,503,065
	11,650,048
	11,798,910
	10,830,943
	10,966,329
	11,106,455
	11,248,370
	10,522,200
	10,653,728
	10,789,859
	10,609,446

	311
	20205
	-  CHP Turbines
	7,973,000
	11,610,081
	11,755,207
	11,905,412
	12,057,537
	11,352,349
	11,495,830
	11,642,721
	11,791,489
	10,984,922
	11,122,233
	11,264,351
	11,408,284
	10,472,363
	10,603,267
	10,738,754
	10,875,971
	10,173,842
	10,301,015
	10,432,639
	10,258,199

	522
	20424
	-  SRU A850 Utilities
	4,348,000
	6,331,448
	6,410,591
	6,492,504
	6,575,464
	6,190,896
	6,269,142
	6,349,248
	6,430,377
	5,990,523
	6,065,405
	6,142,907
	6,221,400
	5,711,004
	5,782,391
	5,856,278
	5,931,108
	5,548,209
	5,617,561
	5,689,341
	5,594,212

	513
	20415
	-  SRU A500 HCL Synthesis / Storage HCLSynthesis Unit
	4,202,000
	6,118,846
	6,195,332
	6,274,494
	6,354,668
	5,983,014
	6,058,633
	6,136,048
	6,214,454
	5,789,369
	5,861,736
	5,936,636
	6,012,493
	5,519,236
	5,588,227
	5,659,632
	5,731,949
	5,361,907
	5,428,931
	5,498,301
	5,406,366

	312
	20206
	-  CHP HRSGs
	4,137,000
	6,024,195
	6,099,497
	6,177,435
	6,256,369
	5,890,464
	5,964,913
	6,041,131
	6,118,323
	5,699,815
	5,771,062
	5,844,804
	5,919,487
	5,433,860
	5,501,783
	5,572,084
	5,643,283
	5,278,965
	5,344,952
	5,413,248
	5,322,736

	484
	20386
	-  CHP Phase 2 Turbine
	3,929,000
	5,721,310
	5,792,827
	5,866,846
	5,941,812
	5,594,303
	5,665,009
	5,737,395
	5,810,706
	5,413,239
	5,480,905
	5,550,939
	5,621,867
	5,160,656
	5,225,165
	5,291,931
	5,359,550
	5,013,549
	5,076,218
	5,141,081
	5,055,119

	283
	20177
	-  CRUSHER & MOBILE TRUCK - MP
	3,186,000
	4,639,373
	4,697,365
	4,757,387
	4,818,176
	4,536,383
	4,593,718
	4,652,416
	4,711,863
	4,389,560
	4,444,429
	4,501,219
	4,558,735
	4,184,742
	4,237,051
	4,291,191
	4,346,023
	4,065,454
	4,116,272
	4,168,869
	4,099,163

	407
	20308
	-  WATER TREATMENT Multiple Equipment
	3,173,000
	4,620,442
	4,678,198
	4,737,975
	4,798,516
	4,517,873
	4,574,974
	4,633,432
	4,692,637
	4,371,649
	4,426,295
	4,482,853
	4,540,134
	4,167,667
	4,219,763
	4,273,682
	4,328,290
	4,048,865
	4,099,476
	4,151,858
	4,082,437

	511
	20413
	-  SRU A400 Caustic Unit  Caustic Evap Package PH1
	3,192,000
	4,648,110
	4,706,211
	4,766,346
	4,827,249
	4,544,926
	4,602,369
	4,661,177
	4,720,737
	4,397,826
	4,452,799
	4,509,696
	4,567,320
	4,192,623
	4,245,031
	4,299,273
	4,354,208
	4,073,110
	4,124,024
	4,176,720
	4,106,882

	331
	20225
	-  MILL Ball Mill
	2,703,000
	3,936,040
	3,985,241
	4,036,163
	4,087,736
	3,848,664
	3,897,307
	3,947,106
	3,997,541
	3,724,099
	3,770,651
	3,818,831
	3,867,627
	3,550,332
	3,594,711
	3,640,644
	3,687,163
	3,449,128
	3,492,242
	3,536,865
	3,477,726

	515
	20417
	-  SRU A700 Bleach Plant/ Bleach Filtration Scrubber
	2,879,000
	4,192,327
	4,244,731
	4,298,969
	4,353,901
	4,099,262
	4,151,072
	4,204,113
	4,257,832
	3,966,586
	4,016,168
	4,067,486
	4,119,459
	3,781,504
	3,828,773
	3,877,696
	3,927,245
	3,673,710
	3,719,632
	3,767,160
	3,704,171

	506
	20408
	-  SRU A300 Electrolysis/cell/Xformer Rectifer -A
	2,726,000
	3,969,532
	4,019,151
	4,070,507
	4,122,519
	3,881,413
	3,930,469
	3,980,692
	4,031,556
	3,755,788
	3,802,735
	3,851,326
	3,900,537
	3,580,542
	3,625,299
	3,671,622
	3,718,537
	3,478,477
	3,521,958
	3,566,960
	3,507,319

	508
	20410
	-  SRU A300 Electrolysis/cell/Xformer Rectifier - B
	2,726,000
	3,969,532
	4,019,151
	4,070,507
	4,122,519
	3,881,413
	3,930,469
	3,980,692
	4,031,556
	3,755,788
	3,802,735
	3,851,326
	3,900,537
	3,580,542
	3,625,299
	3,671,622
	3,718,537
	3,478,477
	3,521,958
	3,566,960
	3,507,319

	398
	20299
	-  WATER TREATMENT Weak Acid Cation Vessels
	2,526,000
	3,678,297
	3,724,276
	3,771,864
	3,820,060
	3,596,643
	3,642,100
	3,688,638
	3,735,771
	3,480,235
	3,523,738
	3,568,763
	3,614,364
	3,317,846
	3,359,319
	3,402,244
	3,445,717
	3,223,269
	3,263,560
	3,305,261
	3,249,995

	486
	20388
	-  Mill & Flotation Elictrical & Instrumentation
	2,706,000
	3,940,409
	3,989,664
	4,040,643
	4,092,273
	3,852,936
	3,901,633
	3,951,487
	4,001,978
	3,728,233
	3,774,835
	3,823,069
	3,871,920
	3,554,272
	3,598,701
	3,644,684
	3,691,255
	3,452,956
	3,496,118
	3,540,790
	3,481,586

	485
	20387
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	2,525,000
	3,676,841
	3,722,802
	3,770,371
	3,818,548
	3,595,219
	3,640,659
	3,687,178
	3,734,292
	3,478,857
	3,522,343
	3,567,351
	3,612,933
	3,316,533
	3,357,990
	3,400,897
	3,444,353
	3,221,993
	3,262,268
	3,303,953
	3,248,709

	397
	20298
	-  WATER TREATMENT Multimedia F1lters
	2,251,000
	3,277,849
	3,318,822
	3,361,230
	3,404,179
	3,205,084
	3,245,593
	3,287,065
	3,329,066
	3,101,349
	3,140,116
	3,180,240
	3,220,876
	2,956,640
	2,993,598
	3,031,849
	3,070,590
	2,872,359
	2,908,264
	2,945,425
	2,896,175

	510
	20412
	-  SRU A300 Electrolysis/cell/Xformer
	1,891,000
	2,753,626
	2,788,047
	2,823,672
	2,859,752
	2,692,499
	2,726,529
	2,761,368
	2,796,652
	2,605,354
	2,637,921
	2,671,628
	2,705,765
	2,483,788
	2,514,835
	2,546,969
	2,579,514
	2,412,986
	2,443,148
	2,474,366
	2,432,993

	1490
	90002
	-  CHP Phase 2 Turbine
	1,965,000
	2,861,383
	2,897,151
	2,934,170
	2,971,662
	2,797,864
	2,833,225
	2,869,428
	2,906,093
	2,707,309
	2,741,150
	2,776,176
	2,811,649
	2,580,985
	2,613,247
	2,646,639
	2,680,457
	2,507,413
	2,538,755
	2,571,195
	2,528,203

	431
	20332
	-  SXI Heavies Separation MixerSettler
	1,216,000
	1,770,708
	1,792,842
	1,815,751
	1,838,952
	1,731,401
	1,753,284
	1,775,687
	1,798,376
	1,675,362
	1,696,304
	1,717,979
	1,739,931
	1,597,190
	1,617,155
	1,637,818
	1,658,746
	1,551,661
	1,571,057
	1,591,131
	1,564,527

	348
	20242
	-  MILL Reagent System  Flocculant System
	1,544,000
	2,248,334
	2,276,438
	2,305,526
	2,334,985
	2,198,423
	2,226,209
	2,254,655
	2,283,464
	2,127,269
	2,153,860
	2,181,382
	2,209,255
	2,028,011
	2,053,361
	2,079,598
	2,106,171
	1,970,201
	1,994,829
	2,020,318
	1,986,537

	446
	20347
	-  SXI SXI MixerSettler
	1,136,000
	1,654,214
	1,674,892
	1,696,294
	1,717,968
	1,617,493
	1,637,936
	1,658,865
	1,680,062
	1,565,141
	1,584,706
	1,604,955
	1,625,462
	1,492,111
	1,510,763
	1,530,067
	1,549,618
	1,449,578
	1,467,698
	1,486,452
	1,461,597

	396
	20297
	-  WATER TREATMENT Multiflo Clarifer
	1,385,000
	2,016,802
	2,042,012
	2,068,104
	2,094,530
	1,972,031
	1,996,955
	2,022,472
	2,048,315
	1,908,205
	1,932,057
	1,956,745
	1,981,748
	1,819,168
	1,841,907
	1,865,443
	1,889,279
	1,767,311
	1,789,403
	1,812,267
	1,781,965

	340
	20234
	-  MILL Flotation Cells
	1,255,000
	1,827,499
	1,850,343
	1,873,986
	1,897,932
	1,786,931
	1,809,515
	1,832,637
	1,856,054
	1,729,095
	1,750,709
	1,773,079
	1,795,735
	1,648,415
	1,669,021
	1,690,347
	1,711,946
	1,601,426
	1,621,444
	1,642,163
	1,614,705

	499
	20401
	-  SRU A100 Raw Brine
	1,258,000
	1,831,868
	1,854,766
	1,878,466
	1,902,469
	1,791,202
	1,813,841
	1,837,018
	1,860,491
	1,733,229
	1,754,894
	1,777,318
	1,800,028
	1,652,356
	1,673,010
	1,694,388
	1,716,038
	1,605,254
	1,625,320
	1,646,088
	1,618,565

	519
	20421
	-  SRU A850 Utilities Cooling Tower
	1,186,000
	1,727,023
	1,748,611
	1,770,954
	1,793,583
	1,688,685
	1,710,028
	1,731,879
	1,754,008
	1,634,030
	1,654,455
	1,675,595
	1,697,006
	1,557,785
	1,577,258
	1,597,411
	1,617,823
	1,513,380
	1,532,297
	1,551,876
	1,525,928

	496
	20398
	-  SRU A50 General 480 V MCC 1
	1,177,000
	1,713,918
	1,735,342
	1,757,515
	1,779,973
	1,675,870
	1,697,052
	1,718,736
	1,740,698
	1,621,630
	1,641,900
	1,662,880
	1,684,128
	1,545,964
	1,565,289
	1,585,289
	1,605,546
	1,501,895
	1,520,669
	1,540,100
	1,514,349

	1491
	90003
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	886,000
	1,290,171
	1,306,298
	1,322,990
	1,339,894
	1,261,530
	1,277,475
	1,293,798
	1,310,330
	1,220,700
	1,235,959
	1,251,752
	1,267,746
	1,163,742
	1,178,289
	1,193,345
	1,208,593
	1,130,569
	1,144,701
	1,159,328
	1,139,943

 

	
																																											
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass site
	Stipulated Loss Values

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	405
	20306
	-  WATER TREATMENT Motor Control Center
	763,000
	1,111,061
	1,124,950
	1,139,324
	1,153,882
	1,086,397
	1,100,128
	1,114,185
	1,128,422
	1,051,235
	1,064,375
	1,077,976
	1,091,750
	1,002,184
	1,014,711
	1,027,677
	1,040,808
	973,616
	985,786
	998,383
	981,689

	402
	20303
	-  WATER TREATMENT Chemical Feed Skids
	740,000
	1,077,569
	1,091,039
	1,104,980
	1,119,099
	1,053,648
	1,066,965
	1,080,599
	1,094,406
	1,019,546
	1,032,291
	1,045,481
	1,058,840
	971,974
	984,124
	996,699
	1,009,434
	944,267
	956,071
	968,287
	952,097

	432
	20333
	-  SXI SXH MixerSettler 2
	536,000
	780,510
	790,266
	800,364
	810,591
	763,183
	772,829
	782,704
	792,705
	738,482
	747,713
	757,267
	766,943
	704,024
	712,825
	721,933
	731,158
	683,956
	692,505
	701,354
	689,627

	282
	20176
	-  SD-2 CAT FRONT SHOVEL MODEL 6015
	627,000
	913,022
	924,434
	936,247
	948,210
	892,753
	904,037
	915,588
	927,288
	863,859
	874,657
	885,833
	897,152
	823,551
	833,845
	844,500
	855,291
	800,075
	810,076
	820,427
	806,709

	507
	20409
	-  SRU A300 Electrolysis/cell/Xformer Buss Bars - A
	707,000
	1,029,516
	1,042,384
	1,055,704
	1,069,193
	1,006,661
	1,019,384
	1,032,410
	1,045,602
	974,080
	986,256
	998,858
	1,011,621
	928,629
	940,237
	952,251
	964,419
	902,158
	913,435
	925,107
	909,638

	284
	20178
	-  CRUSHER CONVEYOR
	535,000
	779,053
	788,792
	798,871
	809,078
	761,759
	771,387
	781,244
	791,226
	737,104
	746,318
	755,854
	765,513
	702,711
	711,495
	720,586
	729,794
	682,680
	691,213
	700,045
	688,340

	526
	20429
	-  Brine Pipe Line fr Area 305 to Evap Pond
	692,000
	1,007,673
	1,020,269
	1,033,306
	1,046,509
	985,304
	997,757
	1,010,506
	1,023,418
	953,414
	965,331
	977,666
	990,158
	908,927
	920,289
	932,048
	943,957
	883,018
	894,055
	905,479
	890,339

	494
	20396
	-  SRU A50  General Unit Sub Station
	659,000
	959,619
	971,614
	984,029
	996,603
	938,317
	950,176
	962,317
	974,613
	907,947
	919,297
	931,043
	942,940
	865,582
	876,402
	887,600
	898,942
	840,908
	851,420
	862,299
	847,881

	317
	20211
	-  CHP Diesel Generator
	637,000
	927,583
	939,178
	951,179
	963,333
	906,992
	918,455
	930,191
	942,077
	877,636
	888,607
	899,961
	911,461
	836,686
	847,144
	857,969
	868,932
	812,836
	822,996
	833,512
	819,575

	509
	20411
	-  SRU A300 Electrolysis/cell/Xformer Chlorate Reacto
	557,000
	811,089
	821,228
	831,721
	842,349
	793,084
	803,108
	813,370
	823,763
	767,415
	777,008
	786,936
	796,992
	731,607
	740,753
	750,218
	759,804
	710,753
	719,637
	728,832
	716,646

	338
	20232
	-  MILL Tailings Filter Press  Conc Filter Press
	303,000
	441,221
	446,736
	452,444
	458,226
	431,426
	436,879
	442,461
	448,115
	417,463
	422,681
	428,082
	433,552
	397,984
	402,959
	408,108
	413,322
	386,639
	391,472
	396,474
	389,845

	298
	20192
	-  CRUSHER ALLOCATION MP
	493,000
	717,894
	726,868
	736,156
	745,562
	701,958
	710,830
	719,912
	729,111
	679,238
	687,729
	696,516
	705,416
	647,545
	655,639
	664,017
	672,501
	629,086
	636,950
	645,089
	634,302

	403
	20304
	-  WATER TREATMENT FRP Tanks
	504,000
	733,912
	743,086
	752,581
	762,197
	717,620
	726,690
	735,975
	745,379
	694,394
	703,074
	712,057
	721,156
	661,993
	670,268
	678,833
	687,507
	643,123
	651,162
	659,482
	648,455

	448
	20349
	-  SXI FRP Tanks
	459,000
	668,384
	676,739
	685,386
	694,144
	653,547
	661,807
	670,263
	678,828
	632,394
	640,299
	648,481
	656,767
	602,887
	610,423
	618,222
	626,122
	585,701
	593,022
	600,600
	590,557

	447
	20348
	-  SXI FRP Tanks
	437,000
	636,348
	644,303
	652,535
	660,873
	622,222
	630,086
	638,137
	646,291
	602,083
	609,609
	617,399
	625,288
	573,990
	581,165
	588,591
	596,112
	557,628
	564,598
	571,813
	562,252

	321
	20215
	-  CHP Load Banks
	425,000
	618,874
	626,610
	634,617
	642,726
	605,136
	612,784
	620,614
	628,544
	585,550
	592,870
	600,445
	608,117
	558,228
	565,206
	572,428
	579,743
	542,316
	549,095
	556,111
	546,812

	514
	20416
	-  SRU A500 HCL Synthesis / Storage
	434,000
	631,980
	639,880
	648,056
	656,337
	617,951
	625,761
	633,757
	641,855
	597,950
	605,424
	613,160
	620,995
	570,050
	577,175
	584,550
	592,019
	553,800
	560,723
	567,887
	558,392

	521
	20423
	-  SRU A850 Utilities SRU Waste Collection Tank
	444,000
	646,542
	654,623
	662,988
	671,459
	632,189
	640,179
	648,359
	656,644
	611,728
	619,374
	627,289
	635,304
	583,184
	590,474
	598,019
	605,660
	566,560
	573,642
	580,972
	571,258

	297
	20191
	-  CRUSHER-MECH & ELECT MP
	339,000
	493,643
	499,814
	506,200
	512,668
	482,685
	488,785
	495,031
	501,356
	467,062
	472,901
	478,943
	485,063
	445,269
	450,835
	456,596
	462,430
	432,577
	437,984
	443,580
	436,163

	498
	20400
	-  SRU A100 Raw Brine Saturator
	378,000
	550,434
	557,314
	564,436
	571,648
	538,215
	545,017
	551,982
	559,035
	520,795
	527,305
	534,043
	540,867
	496,495
	502,701
	509,124
	515,630
	482,342
	488,371
	494,612
	486,341

	502
	20404
	-  SRU A200 Brine Treatment Filtered Brine Tank
	387,000
	563,540
	570,584
	577,875
	585,259
	551,030
	557,994
	565,124
	572,345
	533,195
	539,860
	546,758
	553,745
	508,316
	514,670
	521,246
	527,907
	493,826
	499,999
	506,388
	497,921

	503
	20405
	-  SRU A200 Brine Treatment Polished Brine Tank
	386,000
	562,083
	569,109
	576,381
	583,746
	549,606
	556,552
	563,664
	570,866
	531,817
	538,465
	545,345
	552,314
	507,003
	513,340
	519,900
	526,543
	492,550
	498,707
	505,079
	496,634

	520
	20422
	-  SRU A850 Utilities Paste Tails Collection Tank
	346,000
	503,836
	510,134
	516,653
	523,254
	492,652
	498,878
	505,253
	511,709
	476,707
	482,666
	488,833
	495,079
	454,464
	460,144
	466,024
	471,979
	441,509
	447,028
	452,740
	445,170

	500
	20402
	-  SRU A200  Brine Treatment Precip 2 Tank # 1
	343,000
	499,468
	505,711
	512,173
	518,718
	488,380
	494,553
	500,872
	507,272
	472,573
	478,481
	484,595
	490,787
	450,523
	456,155
	461,983
	467,886
	437,681
	443,152
	448,814
	441,310

	495
	20397
	-  SRU A50  General Switch Gear
	341,000
	496,556
	502,763
	509,187
	515,693
	485,533
	491,669
	497,952
	504,314
	469,818
	475,691
	481,769
	487,925
	447,896
	453,495
	459,289
	465,158
	435,129
	440,568
	446,197
	438,736

	518
	20420
	-  SRU A800 Brine Evaporation
	315,000
	458,695
	464,429
	470,363
	476,373
	448,512
	454,181
	459,985
	465,862
	433,996
	439,421
	445,036
	450,722
	413,746
	418,918
	424,270
	429,692
	401,952
	406,976
	412,176
	405,284

	497
	20399
	SRU A50  General Switch , Rectifiers
	320,000
	465,976
	471,801
	477,829
	483,935
	455,632
	461,390
	467,286
	473,257
	440,885
	446,396
	452,100
	457,877
	420,313
	425,567
	431,005
	436,512
	408,332
	413,436
	418,719
	411,718

	501
	20403
	SRU A200 Brine Treatment Precip Tank #2
	311,000
	452,870
	458,531
	464,390
	470,324
	442,817
	448,414
	454,144
	459,946
	428,485
	433,841
	439,385
	444,999
	408,492
	413,598
	418,883
	424,235
	396,847
	401,808
	406,942
	400,138

	512
	20414
	SRU A400 Caustic Unit
	296,000
	431,028
	436,416
	441,992
	447,640
	421,459
	426,786
	432,239
	437,763
	407,818
	412,916
	418,192
	423,536
	388,790
	393,649
	398,679
	403,774
	377,707
	382,428
	387,315
	380,839

	434
	20335
	SXI FRP Tanks
	291,000
	423,747
	429,044
	434,526
	440,078
	414,340
	419,577
	424,938
	430,368
	400,930
	405,941
	411,128
	416,382
	382,222
	387,000
	391,945
	396,953
	371,327
	375,968
	380,772
	374,406

	395
	20296
	WATER TREATMENT Filter Press
	158,000
	230,076
	232,952
	235,928
	238,943
	224,968
	227,812
	230,722
	233,671
	217,687
	220,408
	223,224
	226,077
	207,530
	210,124
	212,809
	215,528
	201,614
	204,134
	206,742
	203,286

	406
	20307
	WATER TREATMENT PLC
	142,000
	206,777
	209,362
	212,037
	214,746
	202,187
	204,742
	207,358
	210,008
	195,643
	198,088
	200,619
	203,183
	186,514
	188,845
	191,258
	193,702
	181,197
	183,462
	185,806
	182,700

 

	
																																											
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass site
	Stipulated Loss Values

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	316
	20210
	CHP Centrifugal Chillers
	239,000
	348,026
	352,376
	356,879
	361,439
	340,300
	344,601
	349,004
	353,464
	329,286
	333,402
	337,662
	341,977
	313,921
	317,845
	321,907
	326,020
	304,973
	308,785
	312,731
	307,502

	435
	20336
	SXI FRP Tanks
	239,000
	348,026
	352,376
	356,879
	361,439
	340,300
	344,601
	349,004
	353,464
	329,286
	333,402
	337,662
	341,977
	313,921
	317,845
	321,907
	326,020
	304,973
	308,785
	312,731
	307,502

	351
	20246
	MILL Other Sump Pump Tank
	232,000
	337,833
	342,055
	346,426
	350,853
	330,333
	334,508
	338,782
	343,111
	319,642
	323,637
	327,772
	331,961
	304,727
	308,536
	312,478
	316,471
	296,041
	299,741
	303,571
	298,495

	400
	20301
	WATER TREATMENT Clean -in-place Skids
	194,000
	282,498
	286,029
	289,684
	293,385
	276,227
	279,718
	283,292
	286,912
	267,286
	270,628
	274,086
	277,588
	254,815
	258,000
	261,297
	264,635
	247,551
	250,646
	253,848
	249,604

	339
	20233
	MILL Concentrate Thickener
	199,000
	289,779
	293,401
	297,150
	300,947
	283,346
	286,927
	290,593
	294,307
	274,175
	277,602
	281,150
	284,742
	261,382
	264,649
	268,031
	271,456
	253,931
	257,105
	260,391
	256,037

	401
	20302
	WATER TREATMENT Sludge Clarifier
	172,000
	250,462
	253,593
	256,833
	260,115
	244,902
	247,997
	251,166
	254,376
	236,976
	239,938
	243,004
	246,109
	225,918
	228,742
	231,665
	234,625
	219,478
	222,222
	225,061
	221,298

	332
	20226
	MILL Bridge Crane
	175,000
	254,831
	258,016
	261,313
	264,652
	249,174
	252,323
	255,547
	258,812
	241,109
	244,123
	247,242
	250,401
	229,859
	232,732
	235,706
	238,718
	223,306
	226,098
	228,987
	225,158

	334
	20228
	MILL Crushing Systems
	167,000
	243,181
	246,221
	249,367
	252,553
	237,783
	240,788
	243,865
	246,981
	230,087
	232,963
	235,940
	238,954
	219,351
	222,093
	224,931
	227,805
	213,098
	215,762
	218,519
	214,865

	343
	20237
	MILL Tank Agitator, Flotation
	132,000
	192,215
	194,618
	197,105
	199,623
	187,948
	190,324
	192,755
	195,218
	181,865
	184,138
	186,491
	188,874
	173,379
	175,546
	177,789
	180,061
	168,437
	170,542
	172,721
	169,833

	404
	20305
	WATER TREATMENT Bolted Steel Tanks
	166,000
	241,725
	244,747
	247,874
	251,041
	236,359
	239,346
	242,405
	245,502
	228,709
	231,568
	234,527
	237,524
	218,037
	220,763
	223,584
	226,441
	211,822
	214,470
	217,210
	213,578

	313
	20207
	CHP Boiler Feedwater Pumps
	118,000
	171,829
	173,976
	176,200
	178,451
	168,014
	170,138
	172,312
	174,513
	162,576
	164,608
	166,712
	168,842
	154,990
	156,928
	158,933
	160,964
	150,572
	152,455
	154,403
	151,821

	315
	20209
	CHP Deaerator
	117,000
	170,372
	172,502
	174,706
	176,939
	166,590
	168,696
	170,851
	173,035
	161,199
	163,214
	165,299
	167,411
	153,677
	155,598
	157,586
	159,600
	149,296
	151,163
	153,094
	150,534

	492
	20394
	Mill Lab Equip
	116,000
	168,916
	171,028
	173,213
	175,426
	165,166
	167,254
	169,391
	171,556
	159,821
	161,819
	163,886
	165,980
	152,363
	154,268
	156,239
	158,236
	148,020
	149,871
	151,786
	149,248

	345
	20239
	MILL Ball Mill & Mill Feed Slurry Pumps
	110,000
	160,179
	162,181
	164,254
	166,353
	156,623
	158,603
	160,630
	162,682
	151,554
	153,449
	155,409
	157,395
	144,483
	146,289
	148,158
	150,051
	140,364
	142,119
	143,935
	141,528

	346
	20240
	MILL Mill  Flotation Sump Pumps
	106,000
	154,355
	156,284
	158,281
	160,303
	150,928
	152,836
	154,788
	156,766
	146,043
	147,869
	149,758
	151,672
	139,229
	140,969
	142,770
	144,595
	135,260
	136,951
	138,701
	136,381

	342
	20236
	MILL Froth Pumps
	104,000
	151,442
	153,335
	155,294
	157,279
	148,080
	149,952
	151,868
	153,808
	143,288
	145,079
	146,932
	148,810
	136,602
	138,309
	140,077
	141,866
	132,708
	134,367
	136,084
	133,808

	449
	20350
	SXI Mag Drive Pumps
	101,000
	147,074
	148,912
	150,815
	152,742
	143,809
	145,626
	147,487
	149,372
	139,154
	140,894
	142,694
	144,517
	132,661
	134,320
	136,036
	137,774
	128,880
	130,491
	132,158
	129,948

	318
	20212
	CHP Cooling Towers
	102,000
	148,530
	150,386
	152,308
	154,254
	145,233
	147,068
	148,947
	150,851
	140,532
	142,289
	144,107
	145,948
	133,975
	135,649
	137,383
	139,138
	130,156
	131,783
	133,467
	131,235

	309
	20203
	CHP Epoxy Coated Treated Water Tank
	83,000
	120,863
	122,373
	123,937
	125,521
	118,179
	119,673
	121,202
	122,751
	114,355
	115,784
	117,263
	118,762
	109,019
	110,381
	111,792
	113,220
	105,911
	107,235
	108,605
	106,789

	307
	20201
	CHP Condensate Storage Tank
	70,000
	101,932
	103,206
	104,525
	105,861
	99,669
	100,929
	102,219
	103,525
	96,444
	97,649
	98,897
	100,161
	91,943
	93,093
	94,282
	95,487
	89,323
	90,439
	91,595
	90,063

	341
	20235
	MILL Flotation Blowers
	60,000
	87,370
	88,463
	89,593
	90,738
	85,431
	86,511
	87,616
	88,736
	82,666
	83,699
	84,769
	85,852
	78,809
	79,794
	80,813
	81,846
	76,562
	77,519
	78,510
	77,197

	437
	20338
	SXI Used Heat Exchanger
	58,000
	84,458
	85,514
	86,607
	87,713
	82,583
	83,627
	84,696
	85,778
	79,910
	80,909
	81,943
	82,990
	76,182
	77,134
	78,120
	79,118
	74,010
	74,935
	75,893
	74,624

	308
	20202
	CHP Aqueous Ammonia Storage Tanks
	62,000
	90,283
	91,411
	92,579
	93,762
	88,279
	89,394
	90,537
	91,694
	85,421
	86,489
	87,594
	88,714
	81,436
	82,454
	83,507
	84,574
	79,114
	80,103
	81,127
	79,770

	350
	20245
	MILL Concentrate Water Screw Feeder
	54,000
	78,633
	79,616
	80,634
	81,664
	76,888
	77,860
	78,855
	79,862
	74,399
	75,329
	76,292
	77,267
	70,928
	71,814
	72,732
	73,661
	68,906
	69,767
	70,659
	69,477

	436
	20337
	SXI Mag Drive Pumps
	48,000
	69,896
	70,770
	71,674
	72,590
	68,345
	69,209
	70,093
	70,989
	66,133
	66,959
	67,815
	68,682
	63,047
	63,835
	64,651
	65,477
	61,250
	62,015
	62,808
	61,758

	523
	20425
	SRU Metrohm Autotitrator
	43,000
	62,616
	63,398
	64,208
	65,029
	61,226
	61,999
	62,792
	63,594
	59,244
	59,984
	60,751
	61,527
	56,480
	57,186
	57,916
	58,656
	54,870
	55,555
	56,265
	55,325

	352
	20247
	MILL Air Receivers
	40,000
	58,247
	58,975
	59,729
	60,492
	56,954
	57,674
	58,411
	59,157
	55,111
	55,799
	56,512
	57,235
	52,539
	53,196
	53,876
	54,564
	51,041
	51,679
	52,340
	51,465

	516
	20418
	SRU A700 Bleach Plant/ Bleach Filtration
	42,000
	61,159
	61,924
	62,715
	63,516
	59,802
	60,557
	61,331
	62,115
	57,866
	58,589
	59,338
	60,096
	55,166
	55,856
	56,569
	57,292
	53,594
	54,263
	54,957
	54,038

	333
	20227
	MILL Ball Mill Cyclone System
	38,000
	55,335
	56,026
	56,742
	57,467
	54,106
	54,790
	55,490
	56,199
	52,355
	53,010
	53,687
	54,373
	49,912
	50,536
	51,182
	51,836
	48,489
	49,096
	49,723
	48,891

	336
	20230
	MILL Ball Mill Sump Pump Tank
	40,000
	58,247
	58,975
	59,729
	60,492
	56,954
	57,674
	58,411
	59,157
	55,111
	55,799
	56,512
	57,235
	52,539
	53,196
	53,876
	54,564
	51,041
	51,679
	52,340
	51,465

	549
	20452
	Mill Misc Equipments Improvements
	38,000
	55,335
	56,026
	56,742
	57,467
	54,106
	54,790
	55,490
	56,199
	52,355
	53,010
	53,687
	54,373
	49,912
	50,536
	51,182
	51,836
	48,489
	49,096
	49,723
	48,891

	1461
	60841
	Rockwell Automation - CIP
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	41,410
	38,577
	39,060
	39,559
	40,064
	36,777
	37,237
	37,713
	38,195
	35,729
	36,176
	36,638
	36,025

	452
	20353
	SXI Heat Exchangers
	32,000
	46,598
	47,180
	47,783
	48,393
	45,563
	46,139
	46,729
	47,326
	44,088
	44,640
	45,210
	45,788
	42,031
	42,557
	43,100
	43,651
	40,833
	41,344
	41,872
	41,172

	543
	20446
	SRU CA Back-up Air Compressor
	34,000
	49,510
	50,129
	50,769
	51,418
	48,411
	49,023
	49,649
	50,284
	46,844
	47,430
	48,036
	48,649
	44,658
	45,216
	45,794
	46,379
	43,385
	43,928
	44,489
	43,745

	349
	20243
	MILL Reclaim Water Pumps
	30,000
	43,685
	44,231
	44,796
	45,369
	42,715
	43,255
	43,808
	44,368
	41,333
	41,850
	42,384
	42,926
	39,404
	39,897
	40,407
	40,923
	38,281
	38,760
	39,255
	38,599

	319
	20213
	CHP Water Filtration System
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	41,410
	38,577
	39,060
	39,559
	40,064
	36,777
	37,237
	37,713
	38,195
	35,729
	36,176
	36,638
	36,025

	524
	20426
	GC Carle 400
	30,000
	43,685
	44,231
	44,796
	45,369
	42,715
	43,255
	43,808
	44,368
	41,333
	41,850
	42,384
	42,926
	39,404
	39,897
	40,407
	40,923
	38,281
	38,760
	39,255
	38,599

	344
	20238
	MILL Concentrate Thickener Underflow Pumps
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	41,410
	38,577
	39,060
	39,559
	40,064
	36,777
	37,237
	37,713
	38,195
	35,729
	36,176
	36,638
	36,025

	347
	20241
	MILL Pumps: Wash Water, Filtrate, Overflow
	27,000
	39,317
	39,808
	40,317
	40,832
	38,444
	38,930
	39,427
	39,931
	37,200
	37,665
	38,146
	38,633
	35,464
	35,907
	36,366
	36,831
	34,453
	34,884
	35,329
	34,739

 

	
																																											
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass site
	Stipulated Loss Values

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	353
	20248
	MILL Indoor Gas Unit Heaters
	22,000
	32,036
	32,436
	32,851
	33,271
	31,325
	31,721
	32,126
	32,536
	30,311
	30,690
	31,082
	31,479
	28,897
	29,258
	29,632
	30,010
	28,073
	28,424
	28,787
	28,306

	441
	20342
	SXI Scrubber Blower
	19,000
	27,667
	28,013
	28,371
	28,734
	27,053
	27,395
	27,745
	28,100
	26,178
	26,505
	26,843
	27,186
	24,956
	25,268
	25,591
	25,918
	24,245
	24,548
	24,861
	24,446

	337
	20231
	MILL Ball Mill Disconnect Switch
	20,000
	29,123
	29,488
	29,864
	30,246
	28,477
	28,837
	29,205
	29,579
	27,555
	27,900
	28,256
	28,617
	26,270
	26,598
	26,938
	27,282
	25,521
	25,840
	26,170
	25,732

	530
	20433
	Mobile Pump Skid
	16,000
	23,299
	23,590
	23,891
	24,197
	22,782
	23,070
	23,364
	23,663
	22,044
	22,320
	22,605
	22,894
	21,016
	21,278
	21,550
	21,826
	20,417
	20,672
	20,936
	20,586

	330
	20224
	MILL Switches
	13,000
	18,930
	19,167
	19,412
	19,660
	18,510
	18,744
	18,983
	19,226
	17,911
	18,135
	18,367
	18,601
	17,075
	17,289
	17,510
	17,733
	16,588
	16,796
	17,010
	16,726

	451
	20352
	SXI Sump Pumps
	11,000
	16,018
	16,218
	16,425
	16,635
	15,662
	15,860
	16,063
	16,268
	15,155
	15,345
	15,541
	15,740
	14,448
	14,629
	14,816
	15,005
	14,036
	14,212
	14,393
	14,153

	335
	20229
	MILL Mill  Flotation Sump Pumps
	10,000
	14,562
	14,744
	14,932
	15,123
	14,238
	14,418
	14,603
	14,789
	13,778
	13,950
	14,128
	14,309
	13,135
	13,299
	13,469
	13,641
	12,760
	12,920
	13,085
	12,866

	444
	20345
	SXI Charcoal Absorption Columns
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	10,352
	9,644
	9,765
	9,890
	10,016
	9,194
	9,309
	9,428
	9,549
	8,932
	9,044
	9,159
	9,006

	314
	20208
	CHP Boiler Feedwater Pumps Piping
	8,000
	11,649
	11,795
	11,946
	12,098
	11,391
	11,535
	11,682
	11,831
	11,022
	11,160
	11,302
	11,447
	10,508
	10,639
	10,775
	10,913
	10,208
	10,336
	10,468
	10,293

	450
	20351
	SXI Heat Exchangers
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	10,352
	9,644
	9,765
	9,890
	10,016
	9,194
	9,309
	9,428
	9,549
	8,932
	9,044
	9,159
	9,006

	433
	20334
	SXI SXH MixerSettler 2
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,395
	6,889
	6,975
	7,064
	7,154
	6,567
	6,649
	6,734
	6,821
	6,380
	6,460
	6,542
	6,433

	440
	20341
	SXI One 2 Ton Capacity Electric Chain Hoist
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	10,352
	9,644
	9,765
	9,890
	10,016
	9,194
	9,309
	9,428
	9,549
	8,932
	9,044
	9,159
	9,006

	354
	20249
	MILL Seal Water Pumps
	6,000
	8,737
	8,846
	8,959
	9,074
	8,543
	8,651
	8,762
	8,874
	8,267
	8,370
	8,477
	8,585
	7,881
	7,979
	8,081
	8,185
	7,656
	7,752
	7,851
	7,720

	541
	20444
	-  SXI Raff Organic Skim
	6,000
	8,737
	8,846
	8,959
	9,074
	8,543
	8,651
	8,762
	8,874
	8,267
	8,370
	8,477
	8,585
	7,881
	7,979
	8,081
	8,185
	7,656
	7,752
	7,851
	7,720

	439
	20340
	-  SXI Refurbishing used heat exchangers
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,395
	6,889
	6,975
	7,064
	7,154
	6,567
	6,649
	6,734
	6,821
	6,380
	6,460
	6,542
	6,433

	443
	20344
	-  SXI Sump Pumps
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,395
	6,889
	6,975
	7,064
	7,154
	6,567
	6,649
	6,734
	6,821
	6,380
	6,460
	6,542
	6,433

	320
	20214
	-  CHP Seal Flush Plan
	4,000
	5,825
	5,898
	5,973
	6,049
	5,695
	5,767
	5,841
	5,916
	5,511
	5,580
	5,651
	5,723
	5,254
	5,320
	5,388
	5,456
	5,104
	5,168
	5,234
	5,146

	438
	20339
	-  SXI Static Mixers for SXHSXI
	2,000
	2,912
	2,949
	2,986
	3,025
	2,848
	2,884
	2,921
	2,958
	2,756
	2,790
	2,826
	2,862
	2,627
	2,660
	2,694
	2,728
	2,552
	2,584
	2,617
	2,573

	442
	20343
	-  SXI Heat Exchangers
	2,000
	2,912
	2,949
	2,986
	3,025
	2,848
	2,884
	2,921
	2,958
	2,756
	2,790
	2,826
	2,862
	2,627
	2,660
	2,694
	2,728
	2,552
	2,584
	2,617
	2,573

	355
	20251
	-  MILL Filter Cloth
	1,000
	1,456
	1,474
	1,493
	1,512
	1,424
	1,442
	1,460
	1,479
	1,378
	1,395
	1,413
	1,431
	1,313
	1,330
	1,347
	1,364
	1,276
	1,292
	1,308
	1,287

	445
	20346
	-  SXI Toe Plate Angle clips
	1,000
	1,456
	1,474
	1,493
	1,512
	1,424
	1,442
	1,460
	1,479
	1,378
	1,395
	1,413
	1,431
	1,313
	1,330
	1,347
	1,364
	1,276
	1,292
	1,308
	1,287

	 
	 
	 
	139,833,000
	203,621,280
	206,166,546
	208,800,896
	211,468,908
	199,101,093
	201,617,510
	204,193,734
	206,802,876
	192,657,038
	195,065,251
	197,557,752
	200,082,101
	183,667,619
	185,963,465
	188,339,664
	190,746,227
	178,432,070
	180,662,471
	182,970,936
	179,911,552

	
																									
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass Site
	Stipulated Loss Values – Adjusted Rent Schedule

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	517
	

	20419
	-  SRU A800 Brine Evaporation Package
	12,189,000
	17,749,314
	17,971,180
	18,200,812
	18,433,378
	17,355,297
	17,574,649
	17,799,213
	17,138,683
	15,767,076
	15,767,076
	15,767,076
	15,767,076
	14,292,918
	14,292,918
	14,292,918
	14,292,918
	13,203,323
	13,203,323
	13,203,323
	12,818,761

	504
	20406
	-  SRU A200 Brine Treatment
	10,982,000
	15,991,711
	16,191,607
	16,398,500
	16,608,036
	15,636,711
	15,834,342
	16,036,669
	15,441,547
	14,205,761
	14,205,761
	14,205,761
	14,205,761
	12,877,580
	12,877,580
	12,877,580
	12,877,580
	11,895,881
	11,895,881
	11,895,881
	11,549,399

	525
	20428
	-  Brine Recovery
	10,696,000
	15,575,245
	15,769,935
	15,971,440
	16,175,520
	15,229,490
	15,421,974
	15,619,033
	15,039,409
	13,835,806
	13,835,806
	13,835,806
	13,835,806
	12,542,214
	12,542,214
	12,542,214
	12,542,214
	11,586,082
	11,586,082
	11,586,082
	11,248,623

	399
	20300
	-  WATER TREATMENT Reverse Osmosis Skids
	9,455,000
	13,768,132
	13,940,234
	14,118,359
	14,298,760
	13,462,493
	13,632,644
	13,806,839
	13,294,466
	12,230,511
	12,230,511
	12,230,511
	12,230,511
	11,087,008
	11,087,008
	11,087,008
	11,087,008
	10,241,810
	10,241,810
	10,241,810
	9,943,505

	505
	20407
	-  SRU A300 Electrolysis/cell/Xformer Electroylzer A
	8,246,000
	12,007,617
	12,157,712
	12,313,061
	12,470,394
	11,741,060
	11,889,454
	12,041,375
	11,594,518
	10,666,610
	10,666,610
	10,666,610
	10,666,610
	9,669,325
	9,669,325
	9,669,325
	9,669,325
	8,932,202
	8,932,202
	8,932,202
	8,672,040

	311
	20205
	-  CHP Turbines
	7,973,000
	11,610,081
	11,755,207
	11,905,412
	12,057,537
	11,352,349
	11,495,830
	11,642,721
	11,210,659
	10,313,471
	10,313,471
	10,313,471
	10,313,471
	9,349,203
	9,349,203
	9,349,203
	9,349,203
	8,636,484
	8,636,484
	8,636,484
	8,384,935

	522
	20424
	-  SRU A850 Utilities
	4,348,000
	6,331,448
	6,410,591
	6,492,504
	6,575,464
	6,190,896
	6,269,142
	6,349,248
	6,113,627
	5,624,353
	5,624,353
	5,624,353
	5,624,353
	5,098,499
	5,098,499
	5,098,499
	5,098,499
	4,709,824
	4,709,824
	4,709,824
	4,572,645

	513
	20415
	-  SRU A500 HCL Synthesis / Storage HCLSynthesis Unit
	4,202,000
	6,118,846
	6,195,332
	6,274,494
	6,354,668
	5,983,014
	6,058,633
	6,136,048
	5,908,339
	5,435,495
	5,435,495
	5,435,495
	5,435,495
	4,927,299
	4,927,299
	4,927,299
	4,927,299
	4,551,675
	4,551,675
	4,551,675
	4,419,102

	312
	20206
	-  CHP HRSGs
	4,137,000
	6,024,195
	6,099,497
	6,177,435
	6,256,369
	5,890,464
	5,964,913
	6,041,131
	5,816,944
	5,351,415
	5,351,415
	5,351,415
	5,351,415
	4,851,079
	4,851,079
	4,851,079
	4,851,079
	4,481,266
	4,481,266
	4,481,266
	4,350,744

	484
	20386
	-  CHP Phase 2 Turbine
	3,929,000
	5,721,310
	5,792,827
	5,866,846
	5,941,812
	5,594,303
	5,665,009
	5,737,395
	5,524,480
	5,082,356
	5,082,356
	5,082,356
	5,082,356
	4,607,177
	4,607,177
	4,607,177
	4,607,177
	4,255,957
	4,255,957
	4,255,957
	4,131,997

	283
	20177
	-  CRUSHER & MOBILE TRUCK - MP
	3,186,000
	4,639,373
	4,697,365
	4,757,387
	4,818,176
	4,536,383
	4,593,718
	4,652,416
	4,479,764
	4,121,249
	4,121,249
	4,121,249
	4,121,249
	3,735,929
	3,735,929
	3,735,929
	3,735,929
	3,451,127
	3,451,127
	3,451,127
	3,350,609

 

	
																									
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass Site
	Stipulated Loss Values – Adjusted Rent Schedule

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	407
	20308
	-  WATER TREATMENT Multiple Equipment
	3,173,000
	4,620,442
	4,678,198
	4,737,975
	4,798,516
	4,517,873
	4,574,974
	4,633,432
	4,461,485
	4,104,433
	4,104,433
	4,104,433
	4,104,433
	3,720,685
	3,720,685
	3,720,685
	3,720,685
	3,437,045
	3,437,045
	3,437,045
	3,336,937

	511
	20413
	-  SRU A400 Caustic Unit  Caustic Evap Package PH1
	3,192,000
	4,648,110
	4,706,211
	4,766,346
	4,827,249
	4,544,926
	4,602,369
	4,661,177
	4,488,201
	4,129,010
	4,129,010
	4,129,010
	4,129,010
	3,742,965
	3,742,965
	3,742,965
	3,742,965
	3,457,626
	3,457,626
	3,457,626
	3,356,919

	331
	20225
	-  MILL Ball Mill
	2,703,000
	3,936,040
	3,985,241
	4,036,163
	4,087,736
	3,848,664
	3,897,307
	3,947,106
	3,800,628
	3,496,464
	3,496,464
	3,496,464
	3,496,464
	3,169,559
	3,169,559
	3,169,559
	3,169,559
	2,927,934
	2,927,934
	2,927,934
	2,842,654

	515
	20417
	-  SRU A700 Bleach Plant/ Bleach Filtration Scrubber
	2,879,000
	4,192,327
	4,244,731
	4,298,969
	4,353,901
	4,099,262
	4,151,072
	4,204,113
	4,048,098
	3,724,129
	3,724,129
	3,724,129
	3,724,129
	3,375,938
	3,375,938
	3,375,938
	3,375,938
	3,118,580
	3,118,580
	3,118,580
	3,027,747

	506
	20408
	-  SRU A300 Electrolysis/cell/Xformer Rectifer -A
	2,726,000
	3,969,532
	4,019,151
	4,070,507
	4,122,519
	3,881,413
	3,930,469
	3,980,692
	3,832,968
	3,526,216
	3,526,216
	3,526,216
	3,526,216
	3,196,529
	3,196,529
	3,196,529
	3,196,529
	2,952,848
	2,952,848
	2,952,848
	2,866,842

	508
	20410
	-  SRU A300 Electrolysis/cell/Xformer Rectifier - B
	2,726,000
	3,969,532
	4,019,151
	4,070,507
	4,122,519
	3,881,413
	3,930,469
	3,980,692
	3,832,968
	3,526,216
	3,526,216
	3,526,216
	3,526,216
	3,196,529
	3,196,529
	3,196,529
	3,196,529
	2,952,848
	2,952,848
	2,952,848
	2,866,842

	398
	20299
	-  WATER TREATMENT Weak Acid Cation Vessels
	2,526,000
	3,678,297
	3,724,276
	3,771,864
	3,820,060
	3,596,643
	3,642,100
	3,688,638
	3,551,753
	3,267,506
	3,267,506
	3,267,506
	3,267,506
	2,962,008
	2,962,008
	2,962,008
	2,962,008
	2,736,204
	2,736,204
	2,736,204
	2,656,509

	486
	20388
	-  Mill & Flotation Elictrical & Instrumentation
	2,706,000
	3,940,409
	3,989,664
	4,040,643
	4,092,273
	3,852,936
	3,901,633
	3,951,487
	3,804,847
	3,500,345
	3,500,345
	3,500,345
	3,500,345
	3,173,077
	3,173,077
	3,173,077
	3,173,077
	2,931,183
	2,931,183
	2,931,183
	2,845,809

	485
	20387
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	2,525,000
	3,676,841
	3,722,802
	3,770,371
	3,818,548
	3,595,219
	3,640,659
	3,687,178
	3,550,347
	3,266,213
	3,266,213
	3,266,213
	3,266,213
	2,960,835
	2,960,835
	2,960,835
	2,960,835
	2,735,121
	2,735,121
	2,735,121
	2,655,457

	397
	20298
	-  WATER TREATMENT Multimedia F1lters
	2,251,000
	3,277,849
	3,318,822
	3,361,230
	3,404,179
	3,205,084
	3,245,593
	3,287,065
	3,165,081
	2,911,780
	2,911,780
	2,911,780
	2,911,780
	2,639,540
	2,639,540
	2,639,540
	2,639,540
	2,438,320
	2,438,320
	2,438,320
	2,367,301

	510
	20412
	-  SRU A300 Electrolysis/cell/Xformer
	1,891,000
	2,753,626
	2,788,047
	2,823,672
	2,859,752
	2,692,499
	2,726,529
	2,761,368
	2,658,893
	2,446,102
	2,446,102
	2,446,102
	2,446,102
	2,217,402
	2,217,402
	2,217,402
	2,217,402
	2,048,362
	2,048,362
	2,048,362
	1,988,701

	1490
	90002
	-  CHP Phase 2 Turbine
	1,965,000
	2,861,383
	2,897,151
	2,934,170
	2,971,662
	2,797,864
	2,833,225
	2,869,428
	2,762,943
	2,541,825
	2,541,825
	2,541,825
	2,541,825
	2,304,175
	2,304,175
	2,304,175
	2,304,175
	2,128,520
	2,128,520
	2,128,520
	2,066,524

	431
	20332
	-  SXI Heavies Separation MixerSettler
	1,216,000
	1,770,708
	1,792,842
	1,815,751
	1,838,952
	1,731,401
	1,753,284
	1,775,687
	1,709,791
	1,572,956
	1,572,956
	1,572,956
	1,572,956
	1,425,891
	1,425,891
	1,425,891
	1,425,891
	1,317,191
	1,317,191
	1,317,191
	1,278,826

	348
	20242
	-  MILL Reagent System  Flocculant System
	1,544,000
	2,248,334
	2,276,438
	2,305,526
	2,334,985
	2,198,423
	2,226,209
	2,254,655
	2,170,984
	1,997,241
	1,997,241
	1,997,241
	1,997,241
	1,810,507
	1,810,507
	1,810,507
	1,810,507
	1,672,486
	1,672,486
	1,672,486
	1,623,773

	446
	20347
	-  SXI SXI MixerSettler
	1,136,000
	1,654,214
	1,674,892
	1,696,294
	1,717,968
	1,617,493
	1,637,936
	1,658,865
	1,597,304
	1,469,472
	1,469,472
	1,469,472
	1,469,472
	1,332,083
	1,332,083
	1,332,083
	1,332,083
	1,230,534
	1,230,534
	1,230,534
	1,194,693

	396
	20297
	-  WATER TREATMENT Multiflo Clarifer
	1,385,000
	2,016,802
	2,042,012
	2,068,104
	2,094,530
	1,972,031
	1,996,955
	2,022,472
	1,947,418
	1,791,566
	1,791,566
	1,791,566
	1,791,566
	1,624,062
	1,624,062
	1,624,062
	1,624,062
	1,500,255
	1,500,255
	1,500,255
	1,456,558

	340
	20234
	-  MILL Flotation Cells
	1,255,000
	1,827,499
	1,850,343
	1,873,986
	1,897,932
	1,786,931
	1,809,515
	1,832,637
	1,764,628
	1,623,405
	1,623,405
	1,623,405
	1,623,405
	1,471,623
	1,471,623
	1,471,623
	1,471,623
	1,359,436
	1,359,436
	1,359,436
	1,319,841

	499
	20401
	-  SRU A100 Raw Brine
	1,258,000
	1,831,868
	1,854,766
	1,878,466
	1,902,469
	1,791,202
	1,813,841
	1,837,018
	1,768,846
	1,627,285
	1,627,285
	1,627,285
	1,627,285
	1,475,141
	1,475,141
	1,475,141
	1,475,141
	1,362,686
	1,362,686
	1,362,686
	1,322,996

	519
	20421
	-  SRU A850 Utilities Cooling Tower
	1,186,000
	1,727,023
	1,748,611
	1,770,954
	1,793,583
	1,688,685
	1,710,028
	1,731,879
	1,667,608
	1,534,150
	1,534,150
	1,534,150
	1,534,150
	1,390,713
	1,390,713
	1,390,713
	1,390,713
	1,284,695
	1,284,695
	1,284,695
	1,247,276

	496
	20398
	-  SRU A50 General 480 V MCC 1
	1,177,000
	1,713,918
	1,735,342
	1,757,515
	1,779,973
	1,675,870
	1,697,052
	1,718,736
	1,654,954
	1,522,508
	1,522,508
	1,522,508
	1,522,508
	1,380,160
	1,380,160
	1,380,160
	1,380,160
	1,274,946
	1,274,946
	1,274,946
	1,237,811

	1491
	90003
	-  CHP PH 2 Equipment / Pumps / Gen. / Boiler
	886,000
	1,290,171
	1,306,298
	1,322,990
	1,339,894
	1,261,530
	1,277,475
	1,293,798
	1,245,785
	1,146,085
	1,146,085
	1,146,085
	1,146,085
	1,038,931
	1,038,931
	1,038,931
	1,038,931
	959,730
	959,730
	959,730
	931,776

	405
	20306
	-  WATER TREATMENT Motor Control Center
	763,000
	1,111,061
	1,124,950
	1,139,324
	1,153,882
	1,086,397
	1,100,128
	1,114,185
	1,072,837
	986,978
	986,978
	986,978
	986,978
	894,700
	894,700
	894,700
	894,700
	826,494
	826,494
	826,494
	802,421

	402
	20303
	-  WATER TREATMENT Chemical Feed Skids
	740,000
	1,077,569
	1,091,039
	1,104,980
	1,119,099
	1,053,648
	1,066,965
	1,080,599
	1,040,498
	957,227
	957,227
	957,227
	957,227
	867,730
	867,730
	867,730
	867,730
	801,580
	801,580
	801,580
	778,233

	432
	20333
	-  SXI SXH MixerSettler 2
	536,000
	780,510
	790,266
	800,364
	810,591
	763,183
	772,829
	782,704
	753,658
	693,343
	693,343
	693,343
	693,343
	628,518
	628,518
	628,518
	628,518
	580,604
	580,604
	580,604
	563,693

	282
	20176
	-  SD-2 CAT FRONT SHOVEL MODEL 6015
	627,000
	913,022
	924,434
	936,247
	948,210
	892,753
	904,037
	915,588
	881,611
	811,056
	811,056
	811,056
	811,056
	735,225
	735,225
	735,225
	735,225
	679,177
	679,177
	679,177
	659,395

	507
	20409
	-  SRU A300 Electrolysis/cell/Xformer Buss Bars - A
	707,000
	1,029,516
	1,042,384
	1,055,704
	1,069,193
	1,006,661
	1,019,384
	1,032,410
	994,097
	914,540
	914,540
	914,540
	914,540
	829,034
	829,034
	829,034
	829,034
	765,834
	765,834
	765,834
	743,528

	284
	20178
	-  CRUSHER CONVEYOR
	535,000
	779,053
	788,792
	798,871
	809,078
	761,759
	771,387
	781,244
	752,252
	692,049
	692,049
	692,049
	692,049
	627,345
	627,345
	627,345
	627,345
	579,521
	579,521
	579,521
	562,641

	526
	20429
	-  Brine Pipe Line fr Area 305 to Evap Pond
	692,000
	1,007,673
	1,020,269
	1,033,306
	1,046,509
	985,304
	997,757
	1,010,506
	973,006
	895,136
	895,136
	895,136
	895,136
	811,445
	811,445
	811,445
	811,445
	749,586
	749,586
	749,586
	727,753

	494
	20396
	-  SRU A50  General Unit Sub Station
	659,000
	959,619
	971,614
	984,029
	996,603
	938,317
	950,176
	962,317
	926,605
	852,449
	852,449
	852,449
	852,449
	772,749
	772,749
	772,749
	772,749
	713,840
	713,840
	713,840
	693,048

	317
	20211
	-  CHP Diesel Generator
	637,000
	927,583
	939,178
	951,179
	963,333
	906,992
	918,455
	930,191
	895,672
	823,991
	823,991
	823,991
	823,991
	746,951
	746,951
	746,951
	746,951
	690,009
	690,009
	690,009
	669,911

 

	
																									
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass Site
	Stipulated Loss Values – Adjusted Rent Schedule

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	509
	20411
	-  SRU A300 Electrolysis/cell/Xformer Chlorate Reacto
	557,000
	811,089
	821,228
	831,721
	842,349
	793,084
	803,108
	813,370
	783,185
	720,507
	720,507
	720,507
	720,507
	653,143
	653,143
	653,143
	653,143
	603,351
	603,351
	603,351
	585,778

	338
	20232
	-  MILL Tailings Filter Press  Conc Filter Press
	303,000
	441,221
	446,736
	452,444
	458,226
	431,426
	436,879
	442,461
	426,042
	391,946
	391,946
	391,946
	391,946
	355,300
	355,300
	355,300
	355,300
	328,215
	328,215
	328,215
	318,655

	298
	20192
	-  CRUSHER ALLOCATION MP
	493,000
	717,894
	726,868
	736,156
	745,562
	701,958
	710,830
	719,912
	693,196
	637,720
	637,720
	637,720
	637,720
	578,096
	578,096
	578,096
	578,096
	534,026
	534,026
	534,026
	518,471

	403
	20304
	-  WATER TREATMENT FRP Tanks
	504,000
	733,912
	743,086
	752,581
	762,197
	717,620
	726,690
	735,975
	708,663
	651,949
	651,949
	651,949
	651,949
	590,994
	590,994
	590,994
	590,994
	545,941
	545,941
	545,941
	530,040

	448
	20349
	-  SXI FRP Tanks
	459,000
	668,384
	676,739
	685,386
	694,144
	653,547
	661,807
	670,263
	645,390
	593,739
	593,739
	593,739
	593,739
	538,227
	538,227
	538,227
	538,227
	497,196
	497,196
	497,196
	482,715

	447
	20348
	-  SXI FRP Tanks
	437,000
	636,348
	644,303
	652,535
	660,873
	622,222
	630,086
	638,137
	614,456
	565,281
	565,281
	565,281
	565,281
	512,430
	512,430
	512,430
	512,430
	473,366
	473,366
	473,366
	459,578

	321
	20215
	-  CHP Load Banks
	425,000
	618,874
	626,610
	634,617
	642,726
	605,136
	612,784
	620,614
	597,583
	549,759
	549,759
	549,759
	549,759
	498,358
	498,358
	498,358
	498,358
	460,367
	460,367
	460,367
	446,958

	514
	20416
	-  SRU A500 HCL Synthesis / Storage
	434,000
	631,980
	639,880
	648,056
	656,337
	617,951
	625,761
	633,757
	610,238
	561,401
	561,401
	561,401
	561,401
	508,912
	508,912
	508,912
	508,912
	470,116
	470,116
	470,116
	456,423

	521
	20423
	-  SRU A850 Utilities SRU Waste Collection Tank
	444,000
	646,542
	654,623
	662,988
	671,459
	632,189
	640,179
	648,359
	624,299
	574,336
	574,336
	574,336
	574,336
	520,638
	520,638
	520,638
	520,638
	480,948
	480,948
	480,948
	466,940

	297
	20191
	-  CRUSHER-MECH & ELECT MP
	339,000
	493,643
	499,814
	506,200
	512,668
	482,685
	488,785
	495,031
	476,660
	438,513
	438,513
	438,513
	438,513
	397,514
	397,514
	397,514
	397,514
	367,210
	367,210
	367,210
	356,515

	498
	20400
	-  SRU A100 Raw Brine Saturator
	378,000
	550,434
	557,314
	564,436
	571,648
	538,215
	545,017
	551,982
	531,497
	488,962
	488,962
	488,962
	488,962
	443,246
	443,246
	443,246
	443,246
	409,456
	409,456
	409,456
	397,530

	502
	20404
	-  SRU A200 Brine Treatment Filtered Brine Tank
	387,000
	563,540
	570,584
	577,875
	585,259
	551,030
	557,994
	565,124
	544,152
	500,604
	500,604
	500,604
	500,604
	453,799
	453,799
	453,799
	453,799
	419,205
	419,205
	419,205
	406,995

	503
	20405
	-  SRU A200 Brine Treatment Polished Brine Tank
	386,000
	562,083
	569,109
	576,381
	583,746
	549,606
	556,552
	563,664
	542,746
	499,310
	499,310
	499,310
	499,310
	452,627
	452,627
	452,627
	452,627
	418,121
	418,121
	418,121
	405,943

	520
	20422
	-  SRU A850 Utilities Paste Tails Collection Tank
	346,000
	503,836
	510,134
	516,653
	523,254
	492,652
	498,878
	505,253
	486,503
	447,568
	447,568
	447,568
	447,568
	405,722
	405,722
	405,722
	405,722
	374,793
	374,793
	374,793
	363,877

	500
	20402
	-  SRU A200  Brine Treatment Precip 2 Tank # 1
	343,000
	499,468
	505,711
	512,173
	518,718
	488,380
	494,553
	500,872
	482,285
	443,687
	443,687
	443,687
	443,687
	402,205
	402,205
	402,205
	402,205
	371,543
	371,543
	371,543
	360,722

	495
	20397
	-  SRU A50  General Switch Gear
	341,000
	496,556
	502,763
	509,187
	515,693
	485,533
	491,669
	497,952
	479,473
	441,100
	441,100
	441,100
	441,100
	399,859
	399,859
	399,859
	399,859
	369,377
	369,377
	369,377
	358,618

	518
	20420
	-  SRU A800 Brine Evaporation
	315,000
	458,695
	464,429
	470,363
	476,373
	448,512
	454,181
	459,985
	442,915
	407,468
	407,468
	407,468
	407,468
	369,371
	369,371
	369,371
	369,371
	341,213
	341,213
	341,213
	331,275

	497
	20399
	SRU A50  General Switch , Rectifiers
	320,000
	465,976
	471,801
	477,829
	483,935
	455,632
	461,390
	467,286
	449,945
	413,936
	413,936
	413,936
	413,936
	375,235
	375,235
	375,235
	375,235
	346,629
	346,629
	346,629
	336,533

	501
	20403
	SRU A200 Brine Treatment Precip Tank #2
	311,000
	452,870
	458,531
	464,390
	470,324
	442,817
	448,414
	454,144
	437,290
	402,294
	402,294
	402,294
	402,294
	364,681
	364,681
	364,681
	364,681
	336,880
	336,880
	336,880
	327,068

	512
	20414
	SRU A400 Caustic Unit
	296,000
	431,028
	436,416
	441,992
	447,640
	421,459
	426,786
	432,239
	416,199
	382,891
	382,891
	382,891
	382,891
	347,092
	347,092
	347,092
	347,092
	320,632
	320,632
	320,632
	311,293

	434
	20335
	SXI FRP Tanks
	291,000
	423,747
	429,044
	434,526
	440,078
	414,340
	419,577
	424,938
	409,169
	376,423
	376,423
	376,423
	376,423
	341,229
	341,229
	341,229
	341,229
	315,216
	315,216
	315,216
	306,035

	395
	20296
	WATER TREATMENT Filter Press
	158,000
	230,076
	232,952
	235,928
	238,943
	224,968
	227,812
	230,722
	222,160
	204,381
	204,381
	204,381
	204,381
	185,272
	185,272
	185,272
	185,272
	171,148
	171,148
	171,148
	166,163

	406
	20307
	WATER TREATMENT PLC
	142,000
	206,777
	209,362
	212,037
	214,746
	202,187
	204,742
	207,358
	199,663
	183,684
	183,684
	183,684
	183,684
	166,510
	166,510
	166,510
	166,510
	153,817
	153,817
	153,817
	149,337

	316
	20210
	CHP Centrifugal Chillers
	239,000
	348,026
	352,376
	356,879
	361,439
	340,300
	344,601
	349,004
	336,053
	309,158
	309,158
	309,158
	309,158
	280,253
	280,253
	280,253
	280,253
	258,889
	258,889
	258,889
	251,348

	435
	20336
	SXI FRP Tanks
	239,000
	348,026
	352,376
	356,879
	361,439
	340,300
	344,601
	349,004
	336,053
	309,158
	309,158
	309,158
	309,158
	280,253
	280,253
	280,253
	280,253
	258,889
	258,889
	258,889
	251,348

	351
	20246
	MILL Other Sump Pump Tank
	232,000
	337,833
	342,055
	346,426
	350,853
	330,333
	334,508
	338,782
	326,210
	300,103
	300,103
	300,103
	300,103
	272,045
	272,045
	272,045
	272,045
	251,306
	251,306
	251,306
	243,987

	400
	20301
	WATER TREATMENT Clean -in-place Skids
	194,000
	282,498
	286,029
	289,684
	293,385
	276,227
	279,718
	283,292
	272,779
	250,949
	250,949
	250,949
	250,949
	227,486
	227,486
	227,486
	227,486
	210,144
	210,144
	210,144
	204,023

	339
	20233
	MILL Concentrate Thickener
	199,000
	289,779
	293,401
	297,150
	300,947
	283,346
	286,927
	290,593
	279,809
	257,416
	257,416
	257,416
	257,416
	233,349
	233,349
	233,349
	233,349
	215,560
	215,560
	215,560
	209,282

	401
	20302
	WATER TREATMENT Sludge Clarifier
	172,000
	250,462
	253,593
	256,833
	260,115
	244,902
	247,997
	251,166
	241,845
	222,491
	222,491
	222,491
	222,491
	201,689
	201,689
	201,689
	201,689
	186,313
	186,313
	186,313
	180,887

	332
	20226
	MILL Bridge Crane
	175,000
	254,831
	258,016
	261,313
	264,652
	249,174
	252,323
	255,547
	246,064
	226,371
	226,371
	226,371
	226,371
	205,206
	205,206
	205,206
	205,206
	189,563
	189,563
	189,563
	184,042

	334
	20228
	MILL Crushing Systems
	167,000
	243,181
	246,221
	249,367
	252,553
	237,783
	240,788
	243,865
	234,815
	216,023
	216,023
	216,023
	216,023
	195,826
	195,826
	195,826
	195,826
	180,897
	180,897
	180,897
	175,628

	343
	20237
	MILL Tank Agitator, Flotation
	132,000
	192,215
	194,618
	197,105
	199,623
	187,948
	190,324
	192,755
	185,602
	170,749
	170,749
	170,749
	170,749
	154,784
	154,784
	154,784
	154,784
	142,985
	142,985
	142,985
	138,820

	404
	20305
	WATER TREATMENT Bolted Steel Tanks
	166,000
	241,725
	244,747
	247,874
	251,041
	236,359
	239,346
	242,405
	233,409
	214,729
	214,729
	214,729
	214,729
	194,653
	194,653
	194,653
	194,653
	179,814
	179,814
	179,814
	174,577

	313
	20207
	CHP Boiler Feedwater Pumps
	118,000
	171,829
	173,976
	176,200
	178,451
	168,014
	170,138
	172,312
	165,917
	152,639
	152,639
	152,639
	152,639
	138,368
	138,368
	138,368
	138,368
	127,820
	127,820
	127,820
	124,097

	315
	20209
	CHP Deaerator
	117,000
	170,372
	172,502
	174,706
	176,939
	166,590
	168,696
	170,851
	164,511
	151,345
	151,345
	151,345
	151,345
	137,195
	137,195
	137,195
	137,195
	126,736
	126,736
	126,736
	123,045

 

	
																									
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass Site
	Stipulated Loss Values – Adjusted Rent Schedule

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	492
	20394
	Mill Lab Equip
	116,000
	168,916
	171,028
	173,213
	175,426
	165,166
	167,254
	169,391
	163,105
	150,052
	150,052
	150,052
	150,052
	136,023
	136,023
	136,023
	136,023
	125,653
	125,653
	125,653
	121,993

	345
	20239
	MILL Ball Mill & Mill Feed Slurry Pumps
	110,000
	160,179
	162,181
	164,254
	166,353
	156,623
	158,603
	160,630
	154,669
	142,290
	142,290
	142,290
	142,290
	128,987
	128,987
	128,987
	128,987
	119,154
	119,154
	119,154
	115,683

	346
	20240
	MILL Mill  Flotation Sump Pumps
	106,000
	154,355
	156,284
	158,281
	160,303
	150,928
	152,836
	154,788
	149,044
	137,116
	137,116
	137,116
	137,116
	124,296
	124,296
	124,296
	124,296
	114,821
	114,821
	114,821
	111,477

	342
	20236
	MILL Froth Pumps
	104,000
	151,442
	153,335
	155,294
	157,279
	148,080
	149,952
	151,868
	146,232
	134,529
	134,529
	134,529
	134,529
	121,951
	121,951
	121,951
	121,951
	112,654
	112,654
	112,654
	109,373

	449
	20350
	SXI Mag Drive Pumps
	101,000
	147,074
	148,912
	150,815
	152,742
	143,809
	145,626
	147,487
	142,014
	130,649
	130,649
	130,649
	130,649
	118,433
	118,433
	118,433
	118,433
	109,405
	109,405
	109,405
	106,218

	318
	20212
	CHP Cooling Towers
	102,000
	148,530
	150,386
	152,308
	154,254
	145,233
	147,068
	148,947
	143,420
	131,942
	131,942
	131,942
	131,942
	119,606
	119,606
	119,606
	119,606
	110,488
	110,488
	110,488
	107,270

	309
	20203
	CHP Epoxy Coated Treated Water Tank
	83,000
	120,863
	122,373
	123,937
	125,521
	118,179
	119,673
	121,202
	116,704
	107,365
	107,365
	107,365
	107,365
	97,326
	97,326
	97,326
	97,326
	89,907
	89,907
	89,907
	87,288

	307
	20201
	CHP Condensate Storage Tank
	70,000
	101,932
	103,206
	104,525
	105,861
	99,669
	100,929
	102,219
	98,425
	90,548
	90,548
	90,548
	90,548
	82,083
	82,083
	82,083
	82,083
	75,825
	75,825
	75,825
	73,617

	341
	20235
	MILL Flotation Blowers
	60,000
	87,370
	88,463
	89,593
	90,738
	85,431
	86,511
	87,616
	84,365
	77,613
	77,613
	77,613
	77,613
	70,356
	70,356
	70,356
	70,356
	64,993
	64,993
	64,993
	63,100

	437
	20338
	SXI Used Heat Exchanger
	58,000
	84,458
	85,514
	86,607
	87,713
	82,583
	83,627
	84,696
	81,553
	75,026
	75,026
	75,026
	75,026
	68,011
	68,011
	68,011
	68,011
	62,827
	62,827
	62,827
	60,997

	308
	20202
	CHP Aqueous Ammonia Storage Tanks
	62,000
	90,283
	91,411
	92,579
	93,762
	88,279
	89,394
	90,537
	87,177
	80,200
	80,200
	80,200
	80,200
	72,702
	72,702
	72,702
	72,702
	67,159
	67,159
	67,159
	65,203

	350
	20245
	MILL Concentrate Water Screw Feeder
	54,000
	78,633
	79,616
	80,634
	81,664
	76,888
	77,860
	78,855
	75,928
	69,852
	69,852
	69,852
	69,852
	63,321
	63,321
	63,321
	63,321
	58,494
	58,494
	58,494
	56,790

	436
	20337
	SXI Mag Drive Pumps
	48,000
	69,896
	70,770
	71,674
	72,590
	68,345
	69,209
	70,093
	67,492
	62,090
	62,090
	62,090
	62,090
	56,285
	56,285
	56,285
	56,285
	51,994
	51,994
	51,994
	50,480

	523
	20425
	SRU Metrohm Autotitrator
	43,000
	62,616
	63,398
	64,208
	65,029
	61,226
	61,999
	62,792
	60,461
	55,623
	55,623
	55,623
	55,623
	50,422
	50,422
	50,422
	50,422
	46,578
	46,578
	46,578
	45,222

	352
	20247
	MILL Air Receivers
	40,000
	58,247
	58,975
	59,729
	60,492
	56,954
	57,674
	58,411
	56,243
	51,742
	51,742
	51,742
	51,742
	46,904
	46,904
	46,904
	46,904
	43,329
	43,329
	43,329
	42,067

	516
	20418
	SRU A700 Bleach Plant/ Bleach Filtration
	42,000
	61,159
	61,924
	62,715
	63,516
	59,802
	60,557
	61,331
	59,055
	54,329
	54,329
	54,329
	54,329
	49,250
	49,250
	49,250
	49,250
	45,495
	45,495
	45,495
	44,170

	333
	20227
	MILL Ball Mill Cyclone System
	38,000
	55,335
	56,026
	56,742
	57,467
	54,106
	54,790
	55,490
	53,431
	49,155
	49,155
	49,155
	49,155
	44,559
	44,559
	44,559
	44,559
	41,162
	41,162
	41,162
	39,963

	336
	20230
	MILL Ball Mill Sump Pump Tank
	40,000
	58,247
	58,975
	59,729
	60,492
	56,954
	57,674
	58,411
	56,243
	51,742
	51,742
	51,742
	51,742
	46,904
	46,904
	46,904
	46,904
	43,329
	43,329
	43,329
	42,067

	549
	20452
	Mill Misc Equipments Improvements
	38,000
	55,335
	56,026
	56,742
	57,467
	54,106
	54,790
	55,490
	53,431
	49,155
	49,155
	49,155
	49,155
	44,559
	44,559
	44,559
	44,559
	41,162
	41,162
	41,162
	39,963

	1461
	60841
	Rockwell Automation - CIP
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	39,370
	36,219
	36,219
	36,219
	36,219
	32,833
	32,833
	32,833
	32,833
	30,330
	30,330
	30,330
	29,447

	452
	20353
	SXI Heat Exchangers
	32,000
	46,598
	47,180
	47,783
	48,393
	45,563
	46,139
	46,729
	44,994
	41,394
	41,394
	41,394
	41,394
	37,523
	37,523
	37,523
	37,523
	34,663
	34,663
	34,663
	33,653

	543
	20446
	SRU CA Back-up Air Compressor
	34,000
	49,510
	50,129
	50,769
	51,418
	48,411
	49,023
	49,649
	47,807
	43,981
	43,981
	43,981
	43,981
	39,869
	39,869
	39,869
	39,869
	36,829
	36,829
	36,829
	35,757

	349
	20243
	MILL Reclaim Water Pumps
	30,000
	43,685
	44,231
	44,796
	45,369
	42,715
	43,255
	43,808
	42,182
	38,806
	38,806
	38,806
	38,806
	35,178
	35,178
	35,178
	35,178
	32,496
	32,496
	32,496
	31,550

	319
	20213
	CHP Water Filtration System
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	39,370
	36,219
	36,219
	36,219
	36,219
	32,833
	32,833
	32,833
	32,833
	30,330
	30,330
	30,330
	29,447

	524
	20426
	GC Carle 400
	30,000
	43,685
	44,231
	44,796
	45,369
	42,715
	43,255
	43,808
	42,182
	38,806
	38,806
	38,806
	38,806
	35,178
	35,178
	35,178
	35,178
	32,496
	32,496
	32,496
	31,550

	344
	20238
	MILL Concentrate Thickener Underflow Pumps
	28,000
	40,773
	41,283
	41,810
	42,344
	39,868
	40,372
	40,888
	39,370
	36,219
	36,219
	36,219
	36,219
	32,833
	32,833
	32,833
	32,833
	30,330
	30,330
	30,330
	29,447

	347
	20241
	MILL Pumps: Wash Water, Filtrate, Overflow
	27,000
	39,317
	39,808
	40,317
	40,832
	38,444
	38,930
	39,427
	37,964
	34,926
	34,926
	34,926
	34,926
	31,660
	31,660
	31,660
	31,660
	29,247
	29,247
	29,247
	28,395

	353
	20248
	MILL Indoor Gas Unit Heaters
	22,000
	32,036
	32,436
	32,851
	33,271
	31,325
	31,721
	32,126
	30,934
	28,458
	28,458
	28,458
	28,458
	25,797
	25,797
	25,797
	25,797
	23,831
	23,831
	23,831
	23,137

	441
	20342
	SXI Scrubber Blower
	19,000
	27,667
	28,013
	28,371
	28,734
	27,053
	27,395
	27,745
	26,715
	24,577
	24,577
	24,577
	24,577
	22,280
	22,280
	22,280
	22,280
	20,581
	20,581
	20,581
	19,982

	337
	20231
	MILL Ball Mill Disconnect Switch
	20,000
	29,123
	29,488
	29,864
	30,246
	28,477
	28,837
	29,205
	28,122
	25,871
	25,871
	25,871
	25,871
	23,452
	23,452
	23,452
	23,452
	21,664
	21,664
	21,664
	21,033

	530
	20433
	Mobile Pump Skid
	16,000
	23,299
	23,590
	23,891
	24,197
	22,782
	23,070
	23,364
	22,497
	20,697
	20,697
	20,697
	20,697
	18,762
	18,762
	18,762
	18,762
	17,331
	17,331
	17,331
	16,827

	330
	20224
	MILL Switches
	13,000
	18,930
	19,167
	19,412
	19,660
	18,510
	18,744
	18,983
	18,279
	16,816
	16,816
	16,816
	16,816
	15,244
	15,244
	15,244
	15,244
	14,082
	14,082
	14,082
	13,672

	451
	20352
	SXI Sump Pumps
	11,000
	16,018
	16,218
	16,425
	16,635
	15,662
	15,860
	16,063
	15,467
	14,229
	14,229
	14,229
	14,229
	12,899
	12,899
	12,899
	12,899
	11,915
	11,915
	11,915
	11,568

	335
	20229
	MILL Mill  Flotation Sump Pumps
	10,000
	14,562
	14,744
	14,932
	15,123
	14,238
	14,418
	14,603
	14,061
	12,935
	12,935
	12,935
	12,935
	11,726
	11,726
	11,726
	11,726
	10,832
	10,832
	10,832
	10,517

	444
	20345
	SXI Charcoal Absorption Columns
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	9,843
	9,055
	9,055
	9,055
	9,055
	8,208
	8,208
	8,208
	8,208
	7,583
	7,583
	7,583
	7,362

	314
	20208
	CHP Boiler Feedwater Pumps Piping
	8,000
	11,649
	11,795
	11,946
	12,098
	11,391
	11,535
	11,682
	11,249
	10,348
	10,348
	10,348
	10,348
	9,381
	9,381
	9,381
	9,381
	8,666
	8,666
	8,666
	8,413

	450
	20351
	SXI Heat Exchangers
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	9,843
	9,055
	9,055
	9,055
	9,055
	8,208
	8,208
	8,208
	8,208
	7,583
	7,583
	7,583
	7,362

	433
	20334
	SXI SXH MixerSettler 2
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,030
	6,468
	6,468
	6,468
	6,468
	5,863
	5,863
	5,863
	5,863
	5,416
	5,416
	5,416
	5,258

	440
	20341
	SXI One 2 Ton Capacity Electric Chain Hoist
	7,000
	10,193
	10,321
	10,453
	10,586
	9,967
	10,093
	10,222
	9,843
	9,055
	9,055
	9,055
	9,055
	8,208
	8,208
	8,208
	8,208
	7,583
	7,583
	7,583
	7,362

	354
	20249
	MILL Seal Water Pumps
	6,000
	8,737
	8,846
	8,959
	9,074
	8,543
	8,651
	8,762
	8,436
	7,761
	7,761
	7,761
	7,761
	7,036
	7,036
	7,036
	7,036
	6,499
	6,499
	6,499
	6,310

 

	
																									
	Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Valuation of Certain Assets of Molycorp
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Detail – Mountain Pass Site
	Stipulated Loss Values – Adjusted Rent Schedule

	Valuation Date: August 1, 2014
	 
	Year 1
	Year 2
	Year 3
	Year 4
	Year 5

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D&P No.
	Asset
	Asset description
	Fair Value
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4
	Q1
	Q2
	Q3
	Q4

	541
	20444
	-  SXI Raff Organic Skim
	6,000
	8,737
	8,846
	8,959
	9,074
	8,543
	8,651
	8,762
	8,436
	7,761
	7,761
	7,761
	7,761
	7,036
	7,036
	7,036
	7,036
	6,499
	6,499
	6,499
	6,310

	439
	20340
	-  SXI Refurbishing used heat exchangers
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,030
	6,468
	6,468
	6,468
	6,468
	5,863
	5,863
	5,863
	5,863
	5,416
	5,416
	5,416
	5,258

	443
	20344
	-  SXI Sump Pumps
	5,000
	7,281
	7,372
	7,466
	7,561
	7,119
	7,209
	7,301
	7,030
	6,468
	6,468
	6,468
	6,468
	5,863
	5,863
	5,863
	5,863
	5,416
	5,416
	5,416
	5,258

	320
	20214
	-  CHP Seal Flush Plan
	4,000
	5,825
	5,898
	5,973
	6,049
	5,695
	5,767
	5,841
	5,624
	5,174
	5,174
	5,174
	5,174
	4,690
	4,690
	4,690
	4,690
	4,333
	4,333
	4,333
	4,207

	438
	20339
	-  SXI Static Mixers for SXHSXI
	2,000
	2,912
	2,949
	2,986
	3,025
	2,848
	2,884
	2,921
	2,812
	2,587
	2,587
	2,587
	2,587
	2,345
	2,345
	2,345
	2,345
	2,166
	2,166
	2,166
	2,103

	442
	20343
	-  SXI Heat Exchangers
	2,000
	2,912
	2,949
	2,986
	3,025
	2,848
	2,884
	2,921
	2,812
	2,587
	2,587
	2,587
	2,587
	2,345
	2,345
	2,345
	2,345
	2,166
	2,166
	2,166
	2,103

	355
	20251
	-  MILL Filter Cloth
	1,000
	1,456
	1,474
	1,493
	1,512
	1,424
	1,442
	1,460
	1,406
	1,294
	1,294
	1,294
	1,294
	1,173
	1,173
	1,173
	1,173
	1,083
	1,083
	1,083
	1,052

	445
	20346
	-  SXI Toe Plate Angle clips
	1,000
	1,456
	1,474
	1,493
	1,512
	1,424
	1,442
	1,460
	1,406
	1,294
	1,294
	1,294
	1,294
	1,173
	1,173
	1,173
	1,173
	1,083
	1,083
	1,083
	1,052

	 
	 
	 
	139,833,000
	203,621,280
	206,166,546
	208,800,896
	211,468,908
	199,101,093
	201,617,510
	204,193,734
	196,616,085
	180,880,915
	180,880,915
	180,880,915
	180,880,915
	163,969,285
	163,969,285
	163,969,285
	163,969,285
	151,469,385
	151,469,385
	151,469,385
	147,057,655

EXHIBIT E

LIST OF PROJECT DOCUMENTS

Extended Service Agreement, dated as of May 22, 2012, by and between Lessee and Solar Turbines Incorporated, a Delaware corporation. 

Operations & Maintenance Agreement, dated as of October 18, 2012, between Lessee and Veolia Water Americas-Industrial Business Group, a division of Veolia Water North America Operating Services, LLC, a Delaware limited liability company, as amended by Amendment #1 to Operations & Maintenance Agreement, dated as of May 28, 2013 and as further amended by Amendment #2 to Operations & Maintenance Agreement, dated as of June 7, 2013. 

 

EXHIBIT F

LIST OF WARRANTIES

None, other than the warranties provided under the Project Documents

 

EXHIBIT G

GUARANTORS
Guarantors:

	
	
	Molycorp Luxembourg Holdings S.a.r.l.

	MCP Exchangeco Inc.

	MCP Callco ULC

	MCP Canada Limited Partnership

	Molycorp Minerals Canada ULC

	MCP Canada Holdings ULC

	Molycorp Rare Metals Holdings, Inc.

	Molycorp Rare Metals (Utah), Inc.

	Magnequench, Inc.

	Magnequench Neo Powders Pte. Ltd.

	Magnequench International, Inc.

	Molycorp Chemicals & Oxides, Inc.

	Molycorp Korea Inc.

	Neo International Corp.

	Neo Performance Materials (Singapore) Pte. Ltd.

	Molycorp Chemicals & Oxides (Europe) Ltd

	Molycorp Japan, Inc.

	NMT Holdings GmbH

	Magnequench Limited

	Molycorp Silmet AS

 

	
	
	PP IV Mountain Pass II, Inc.

	PP IV Mountain Pass, Inc.

	RCF IV Speedwagon Inc.

	Molycorp Minerals, LLC

	Molycorp Metals & Alloys, Inc.

Pledgees only:

	
	
	Molycorp Rare Metals (Oklahoma), LLC

	Xin Bao Investment Limited

	Magnequench (Korat) Co., Ltd.MCP 10Q 9.30.2014 EX10.5

Exhibit 10.5

 
WARRANT AGREEMENT
 
THIS WARRANT AGREEMENT (this “Agreement”), dated as of September 11, 2014, is by and among Molycorp, Inc., a Delaware corporation (the “Company”), Computershare Inc., a Delaware corporation, and its fully owned subsidiary Computershare Trust Company, N.A., a federally chartered trust company (collectively, the “Warrant Agent”).
 
WHEREAS, the Company has entered into that certain Credit Agreement, dated as of September 11, 2014, among the Company, as Borrower, the Lenders party thereto listed on the signature pages thereto and OCM MLYCo CTB Ltd., as Administrative Agent and First Priority Collateral Agent (the “Credit Agreement”), pursuant to which the Lenders (as defined therein) will be issued warrants (the “Warrants”) to purchase an aggregate of 2.5% of the Company’s outstanding common stock;

WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer, exchange, redemption and replacement of the certificates evidencing the Warrants to be issued under this Agreement (each a “Warrant Certificate”) and the exercise of Warrants; 
 
WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and
 
WHEREAS, all acts have been performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Agreement.
 
NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:
 
1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Agreement (and no implied terms or conditions) and every Holder (as defined herein), by acceptance of his, her or its Warrant Certificate shall, be bound to the same.

2. Warrants.
 
2.1 Form of Warrant. Each Warrant shall be issued in registered form only and shall be in substantially the form of Exhibit A hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company or the Warrant Agent may deem appropriate and as are not inconsistent with the provisions of this Agreement or as may be required to comply with any law or with any rule or regulation made pursuant thereto, or to conform to usage, the provisions of which are incorporated herein. Each Warrant shall be signed by, or bear the facsimile signature of, the President, Chief Executive Officer, Chief Financial Officer, General Counsel, Treasurer, Secretary or other authorized officer 

1

of the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. With respect to the rights, duties, obligations and liabilities of the Warrant Agent, in the event of any conflict or inconsistency between this Agreement and the terms of the Warrants, the provisions of this Agreement shall govern in all respects.  
 
2.2 Effect of Countersignature. Unless and until countersigned by the Warrant Agent (by manual or facsimile signature) pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.
 
2.3 Register.

 2.3.1 Warrant Register. The Warrant Agent shall maintain or caused to be maintained a register for the Warrants in which the Warrant Agent shall record the name and address of each person or entity in whose name Warrants have been issued (including the name and address of each transferee) and the number of Warrants held by such person or entity (the “Warrant Register”) for the registration of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Warrant Agent by the Company. Upon direction from the Company and with reasonable notice to the Warrant Agent, the Warrant Agent shall open its register for inspection by any Holder of a Warrant hereunder or its legal representatives; provided that any such Holder requesting to exercise such right shall certify to the Warrant Agent that such inspection shall be for a proper purpose reasonably related to such Holder’s interest as an owner of a Warrant.  If agreed to by the Warrant Agent in writing, the Warrants may be issued by the Company to the holders thereof via book-entry registration on the books and records of the Warrant Agent and evidenced by statements issued by the Warrant Agent from time to time to the registered holders thereof reflecting such book-entry position (the “Warrant Statements”). If any Warrants are issued via such book-entry registration, references herein to Warrant Certificates shall also mean Warrant Statements, when applicable.

2.3.2 Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered Holder” or “Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.
 
2.4 Restrictive Legend. Any Warrant Certificate issued pursuant to this Agreement, including upon transfer or replacement of any Warrant, shall be imprinted with a legend in substantially the following form, in addition to any legend required under applicable state securities laws:

THIS SECURITY, AS WELL AS THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS 

2

AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THIS SECURITY,  AS WELL AS THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY, MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT, (II) IN THE ABSENCE OF AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS, AS EVIDENCED (IF REQUESTED BY THE COMPANY) BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT, OR (III) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT (PROVIDED THAT THE TRANSFEROR PROVIDES THE COMPANY WITH REASONABLE ASSURANCES (IN THE FORM OF A SELLER REPRESENTATION LETTER AND A BROKER REPRESENTATION LETTER, IN EITHER CASE AS MAY BE APPLICABLE) THAT THE SECURITIES MAY BE SOLD PURSUANT TO SUCH RULE).  NO REPRESENTATION IS MADE BY THE COMPANY AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT FOR RESALES OF THIS SECURITY, OR THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY.
 
2.5 Registration.

2.5.1 As promptly as practicable after the date hereof, the Company shall prepare and file with the United States Securities and Exchange Commission (the “SEC”) one or more registration statements (collectively, the “Registration Statement”) for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act of 1933, and the rules and regulations of the SEC promulgated thereunder, as from time to time amended (the “Securities Act”), registering the resale from time to time of Common Stock (as defined below) issued or issuable under the Warrants by Holders (“Electing Holders”) of Warrants and/or shares of Common Stock so issued or issuable (such Common Stock, collectively, “Registrable Securities”) who have provided the Company with a Notice and Questionnaire in the Form of Exhibit B (the “Notice and Questionnaire”). The Company shall give written notice of the filing of each Registration Statement (and each amendment or supplement thereto (excluding any amendment or supplement thereto effected pursuant to the filing of any document that is incorporated or deemed incorporated by reference in such Registration Statement) at least five (5) days prior to filing each such Registration Statement to all Holders of Registrable Securities, together with a copy of such Notice and Questionnaire and a request to complete and return such Notice and Questionnaire, and shall include in such Registration Statements all Registrable Securities of Electing Holders. The Registration Statement shall be on Form S-3 if the Company is eligible to use Form S-3 or another appropriate form permitting registration of such Common Stock for resale. The Company shall use commercially reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act as soon as practicable after filing, and once effective, to keep the Registration Statement continuously effective under the Securities Act at all times until the earlier of (i) three months following the Expiration Date 

3

(as defined below) and (ii) the date on which all shares of Common Stock issued under the Warrants have been transferred pursuant to Rule 144 or the plan of distribution included in one or more prospectuses (each a “Prospectus”) in such Registration Statement (the “Effectiveness Period”); provided, however, that the Company may, for a period of up to 60 days in any three-month period, not to exceed 90 days in any twelve-month period, suspend the use of the Prospectus contained in each Registration Statement (with prompt written notice thereof to the Warrant Agent) if the Company reasonably determines that it  is in possession of material non-public information, the disclosure of which would be detrimental to the Company or would otherwise materially adversely affect a financing, acquisition, disposition, merger or other significant transaction (a “Blackout Period”).  The Company shall give prompt written notice of the filing of each Registration Statement (and each amendment or supplement thereto, excluding any amendment or supplement thereto effected pursuant to the filing of any document that is incorporated or deemed incorporated by reference in such Registration Statement) to the Warrant Agent.

2.5.2 The Company shall:

(a) subject to any Blackout Period, prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement continuously effective for the Effectiveness Period; subject to any Blackout Period, cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and use reasonable efforts to comply with the provisions of the Securities Act applicable to it; provided, however, that a reasonable period of time before filing a Registration Statement or Prospectus or any amendments or supplements thereto (excluding documents that would be incorporated or deemed to be incorporated therein by reference), the Company shall, if requested by a Holder of Registrable Securities covered by such Registration Statement, furnish or otherwise make available to such Holder of Registrable Securities, its counsel and the managing underwriters, if any, copies of all such documents proposed to be filed, which documents will be subject to the reasonable review and comment of such counsel, and such other documents reasonably requested by such counsel, including any comment letter from the SEC; 

(b) use its commercially reasonable efforts to (i) register or qualify the Common Stock covered by the Registration Statement under such securities or “blue sky” laws of any applicable jurisdiction in the United States and (ii) take such action necessary to cause such Common Stock covered by the Registration Statement to be registered with or approved by such other governmental authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be necessary or advisable to enable the Registered Holders to consummate the disposition of such Common Stock in such jurisdictions; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify or take any action to which it would be subject to general service of process or taxation in any such jurisdiction where it is not then otherwise so subject;

(c)  use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction at the earliest date reasonably practical;

4

(d) cause all such Common Stock issuable under the Warrants to be listed on the principal Exchange (as defined below) on which the Common Stock is then listed;

(e) maintain a transfer agent and registrar for the Common Stock;

(f) as promptly as reasonably practicable, but within two (2) business days in any event, give notice to the Registered Holders (i) when any Prospectus, Prospectus supplement, Registration Statement or post-effective amendment to a Registration Statement has been filed with the SEC and, with respect to a Registration Statement or any post-effective amendment, when the same has been declared effective and (ii) of any request, following the effectiveness of a Registration Statement under the Securities Act, by the SEC or any other federal or state governmental authority for amendments or supplements to such Registration Statement or related Prospectus;

(g) notify the Registered Holders in writing of the effectiveness of the Registration Statement and furnish to the Registered Holders, without charge, such number of copies of the Registration Statement (including any amendments, supplements and exhibits), the Prospectus contained therein (including each preliminary prospectus and all related amendments and supplements) and such other documents as the Registered Holders may reasonably request in order to facilitate the sale of the Common Stock in the manner described in the Registration Statement;

(h) subject to any Blackout Period, promptly prepare and file with the SEC from time to time such amendments and supplements to the Registration Statement and Prospectus used in connection therewith (or file a new Registration Statement) as may be necessary to keep the Registration Statement effective, to ensure the information pertaining to the Electing Holders is current, and to comply in all material respects with the provisions of the Securities Act with respect to the disposition of all such Common Stock during the Effectiveness Period;

(i) give notice to the Registered Holders and the Warrant Agent as promptly as practicable (and in any event within one (1) business day) following notice to the Company (i) of the issuance by the SEC or any other federal or state governmental authority of any stop order or injunction suspending or enjoining the use of any Prospectus or the effectiveness of a Registration Statement or the initiation or threatening in writing of any proceedings for that purpose, (ii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Common Stock for sale in any jurisdiction or the initiation or threatening in writing of any proceeding for such purpose, and (iii) of the happening of any event that makes any statement made in a Registration Statement or the related Prospectus an untrue statement of a material fact or such that the Registration Statement or the related Prospectus omits to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

(j) reasonably cooperate with each Registered Holder and their respective counsel in connection with any filings required to be made with the Financial Industry Regulatory Authority, Inc. (“FINRA”), and use its commercially reasonable efforts to make 

5

or cause to be made any filings required to be made by an issuer with FINRA  in connection with the filing of the Registration Statement; 

(k) pay the filing fee under the Securities Act covering all Common Stock issuable pursuant to the Warrants at the time a Registration Statement is filed;

(l) during the Effectiveness Period, if at any time the Company is required to re-evaluate its eligibility to utilize a form of registration statement and the Company determines that it is not eligible to use such form, use its commercially reasonable efforts to refile the Registration Statement on such form as it is eligible to use and, subject to any Blackout Period, keep such registration statement effective during the Effectiveness Period; 

(m) no later than ten (10) days following a request in writing made by Holders of a majority of the Registrable Securities (which request shall specify the Registrable Securities intended to be disposed of by such Holders and the intended method of distribution thereof) to sell pursuant to a Prospectus supplement (a “Shelf Takedown Prospectus Supplement”) Registrable Securities held by such Holders available for sale pursuant to such Registration Statement, cause to be filed a Shelf Takedown Prospectus Supplement with respect to the sale of such Registrable Securities pursuant to the method of distribution specified in such request; 

(n) if requested by the managing underwriters, if any, or the Holders of a majority of the then issued and outstanding Registrable Securities being sold in connection with an underwritten offering, promptly include in a Prospectus supplement or post-effective amendment such information as the managing underwriters, if any, and such Holders may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such Prospectus supplement or such post-effective amendment as promptly as practicable after the Company has received such request; 

(o)    deliver to each selling Holder of Registrable Securities, its counsel, and the underwriters, if any, without charge, as many copies of the Prospectus or Prospectuses (including each form of Prospectus) and each amendment or supplement thereto as such persons may reasonably request from time to time in connection with the distribution of the Registrable Securities; and the Company, subject to the last paragraph of this Section 2.5.2(o), hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders of Registrable Securities and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any such amendment or supplement thereto; 

(p)     in connection with an underwritten offering, enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten offerings) and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith (including those reasonably requested by the managing underwriters, if any) to expedite or facilitate the disposition of such Registrable Securities, and in such connection, (i) make such representations and warranties to the Holders of such Registrable Securities and the underwriters with respect to the business of the Company and its Subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be 

6

incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings, and, if true, confirm the same if and when requested, (ii) use its commercially reasonable efforts to furnish to the selling Holders of such Registrable Securities opinions of the Company’s outside counsel and updates thereof (which opinions (in form, scope and substance) shall be reasonably satisfactory to the underwriters), addressed to each selling Holder of Registrable Securities and each of the underwriters, if any, covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such counsel and underwriters, (iii) use its commercially reasonable efforts to obtain “cold comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each selling Holder of Registrable Securities (provided that such Holders provided such accountants with any requisite representations and warranties and unless such accountants shall be prohibited from so addressing such letters by applicable standards of the accounting profession) and each of the underwriters, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with underwritten offerings, and (iv) deliver such documents and certificates as may be reasonably requested by the managing underwriters, if any, to evidence the continued validity of the representations and warranties made pursuant to clause (i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.  The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder;

(q)    make available for inspection by a representative of the selling Holders of Registrable Securities, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorneys or accountants retained by such selling Holders or underwriter, at the offices where normally kept or through an electronic file sharing service, during reasonable business hours and in a reasonable manner, all pertinent financial and other records and corporate documents of the Company and its subsidiaries, and cause the officers, directors and employees of the Company and its subsidiaries to supply all such pertinent information in each case reasonably requested by any such representative, underwriter, attorney or accountant in connection with such Registration Statement; provided, that if any such information is identified by the Company as being confidential or proprietary, each Holder and its representatives  receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any such Holder; 

(r)    in connection with an underwritten offering, cause its officers to support the marketing of the Registrable Securities covered by the applicable Prospectus (including, without limitation, participation in “road shows”) at reasonable times and in a reasonable manner;  

(s)    pay all fees and expenses incident to the performance of or compliance with this Section 2.5 by the Company (including, without limitation, (i) all 

7

registration and filing fees (including, without limitation, fees and expenses (x) with respect to filings required to be made with the SEC, FINRA and the Trading Market (as defined below) and (x) of compliance with securities or “blue sky” laws, including, without limitation, any reasonable fees and disbursements of counsel for the underwriters in connection with “blue sky” qualifications of the Registrable Securities pursuant to Section 2.5.2(b), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriters, if any, or by the Holders of a majority of the Registrable Securities included in any such Prospectus), (iii) messenger, telephone and delivery expenses of the Company, (iv) fees and disbursements of counsel for the Company, (v) expenses of the Company incurred in connection with road shows in respect of any underwritten offering, (vi) fees and disbursements of all independent certified public accountants referred to in Section 2.5.2(p) hereof (including, without limitation, the expenses of any annual audit, special audit or “cold comfort” letters required by this Section 2.5) and any other persons, including special experts retained by the Company, and (vii) reasonable fees and disbursements of underwriters customarily paid by issuers of securities (including, if applicable, the reasonable fees and expenses of any “qualified independent underwriter” (and its counsel) that is required to be retained in accordance with the rules and regulations of FINRA), (viii) reasonable fees and disbursements of one separate counsel and, to the extent reasonably required, one local counsel, for the Holders of Registrable Securities whose shares are included in a Registration Statement, which counsel shall be selected by the Holders of a majority of the Registrable Securities included in the applicable Prospectus included in such Registration Statement and (ix) the fees and expenses of any special experts retained by the Company in connection with such registration (collectively, the “Registration Expenses”); and 

(t)    indemnify and hold harmless, to the fullest extent permitted by law, each Holder of Registrable Securities whose Registrable Securities are covered by a Registration Statement or Prospectus, the officers, directors, partners, members, managers, and shareholders of each of them, each person who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, managers and shareholders of each such controlling person (each such person being referred to herein as a “Covered Person”), from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and reasonable attorneys’ fees and any legal or other fees or expenses incurred by such party in connection with any investigation or proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement (collectively, “Losses”), as incurred, arising out of or based upon (i) any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement or any amendment or supplement thereto, or on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) any untrue statement (or alleged untrue statement) of a material fact contained in any Prospectus or any amendment or supplement thereto, any free writing prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any omission (or alleged omission) to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in connection with the related offering of Registrable Securities (without limitation of the preceding portions of this Section 2.5.2(t) and will reimburse each such Covered Person, for any legal and any other expenses reasonably incurred in connection with investigating and defending or 

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settling any such Loss, provided that the Company will not be liable in any such case to the extent that any such Loss arises out of or is based on any untrue statement or omission by such Covered Person or underwriter, but only to the extent that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Prospectus or Registration Statement or any amendment or supplement thereto, free writing prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act in respect of such Registrable Securities in reliance upon and in conformity with written information furnished to the Company by the applicable Electing Holder or underwriter specifically for use in the Prospectus or Registration Statement or any amendment or supplement thereto, free writing prospectus or any “issuer information.” 

2.5.3 Each of the Electing Holders agrees, severally and not jointly, to indemnify and hold harmless, to the fullest extent permitted by law, the Company, the directors of the Company, each officer of the Company who signed the Registration Statement and each person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, and the rules and regulations of the SEC promulgated thereunder, as from time to time amended (the “Exchange Act”), to the same extent as the indemnity set forth in Section 2.5.2(t) above, but only with respect to any Losses that arise out of, or are based upon, any untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Prospectus or Registration Statement or any amendment or supplement thereto, free writing prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act in respect of such Registrable Securities in reliance upon and in conformity with written information furnished to the Company by the applicable Electing Holder specifically for use in the Prospectus or Registration Statement or any amendment or supplement thereto, free writing prospectus or any “issuer information.”

2.5.4 Each of the Electing Holders agrees that, upon receipt of any notice from the Company of a Blackout Period or the happening of any event of the kind described in Section 2.5.2(i), such Electing Holder will forthwith discontinue the disposition of Common Stock pursuant to the Registration Statement until such Electing Holder (i) is notified by the Company  that such Electing Holder may once again utilize the Registration Statement or (ii) receives copies of the supplemented or amended Prospectus contemplated by such Section, and, if so directed by the Company, each Electing Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Electing Holder’s possession, of the Prospectus covering such Common Stock current at the time of receipt of such notice. Each Electing Holder also agrees to notify the Company as promptly as practicable of any event relating to such Electing Holder that occurs that would require the preparation of a supplement or amendment to the Prospectus so that such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  In accordance with the Notice and Questionnaire, the Company may require any holder of a Warrant or Common Stock issued upon exercise of a Warrant to furnish to the Company such information regarding such holder and the intended distribution of the shares of Common Stock issuable upon exercise of the Warrant and such other information as the Company may from time to time reasonably request in writing in connection with the registration.

2.6  Lock-up.  Notwithstanding anything to the contrary in this Agreement, during the period (the “Restricted Period”) commencing on the date hereof and ending 90 days thereafter, no Registered Holder may (i) offer, pledge, sell, contract to sell, sell any option or contract to 

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purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock issued or issuable upon exercise of such Registered Holder’s Warrant or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any shares of Common Stock issued or issuable upon exercise of such Registered Holder’s Warrant, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of Common Stock, in cash or otherwise

3. Terms and Exercise of Warrants.
 
3.1 Warrant Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement, to purchase from the Company the number of shares of common stock, par value $0.001 per share, of the Company (“Common Stock”) stated therein or any portion thereof, at an exercise price of $2.04 per share (the “Warrant Price”), subject to the adjustments provided in Section 4 hereof.  The term “Warrant Price” as used in this Agreement shall mean the price per share at which Common Stock may be purchased at the time a Warrant is exercised.  
 
3.2 Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) commencing on the date hereof and terminating at 5:00 p.m., New York City time on September 11, 2019 (the “Expiration Date”). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m. New York City time on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration Date; provided, that the Company shall provide at least twenty (20) days’ prior written notice of any such extension to the Warrant Agent and the Registered Holders of the Warrants.
 
3.3 Exercise of Warrants.
 
3.3.1 Payment. Subject to the provisions of the Warrant and this Agreement, a Warrant, when countersigned by the Warrant Agent, may be exercised by the Registered Holder thereof by surrendering it at the office of the Warrant Agent designated for such purpose, or at the office of its successor as Warrant Agent, with the subscription form, as set forth in the Warrant, properly completed and duly executed (such signature to be guaranteed by an eligible institution participating in a recognized signature guarantee medallion program at a guarantee level satisfactory to the Warrant Agent), and by paying in full the Warrant Price for each full share of Common Stock as to which the Warrant is exercised, as follows:
 
(a) with respect to the exercise of any Warrant on a “cash basis”, by wire transfer of immediately available funds, by good certified check or good bank draft payable to the order of the Company; provided, that the Registered Holder provides the information on the notice to purchase in the form attached to such Warrant (each, an “Exercise Notice”) that is reasonably necessary for the Company to issue the Common Stock as to which such Warrant is exercised in compliance with U.S. federal securities law; or
 
(b) with respect to the exercise of any Warrant on a “cashless basis”, by surrendering such Warrant for that number of shares of Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying such Warrant or any portion thereof being exercised (at the election of the Registered 

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Holder), multiplied by the difference between the Fair Market Value and the Warrant Price by (y) the Fair Market Value. “Fair Market Value” means (i) at any time the Common Stock is listed or quoted for trading on the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market, OTC Bulletin Board or any other national securities exchange (each, an “Exchange”), the average last sale price of a share of Common Stock for the ten (10) trading days ending on the third trading day prior to the date on which notice of exercise of such Warrant is sent to the Warrant Agent; or (ii) at any time the Common Stock is not listed or quoted for trading on an Exchange, the fair market value of a share of Common Stock as shall be determined by the Board of Directors of the Company (the “Board”) in its good faith judgment,

provided, however, that, notwithstanding the foregoing, the issuance of shares of Common Stock or other securities upon the exercise of any Warrant shall be made without charge to the Registered Holder for any issue or other tax or charge (which tax or charge shall be paid by the Company pursuant to Section 7.1 hereof). The Warrant Agent shall promptly forward any sum collected by it to the Company or to such persons as the Company shall specify by written notice.  The Warrant Agent shall have no duty or obligation under this Section unless and until it is satisfied that all such taxes and/or charges have been paid.  For the avoidance of doubt, in the event of any exercise of Warrants on a “cashless basis”, the Company shall be solely responsible for calculating the number of shares of Common Stock issuable in connection with such cashless exercise and transmitting such calculation in a written notice to the Warrant Agent and the exercising Holder, and the Warrant Agent shall have no duty, responsibility or obligation to calculate or determine the number of Common Stock issuable in connection with such cashless exercise, or to investigate or confirm whether the Company’s calculation or determination of the number of shares of Common Stock to be issued in connection with such cashless exercise is accurate or correct.  The Warrant Agent shall have no duty, obligation or responsibility with respect to any cashless exercise of Warrants until it receives such written notice from the Company, and shall be entitled to rely conclusively on any such written notice provided by the Company, including the calculations and determinations contained therein, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with such written instructions, while waiting for such written instructions, or pursuant to this Agreement.  In the event of an exercise of any Warrant, the Company shall provide the cost basis for shares issued pursuant to such exercise at the time such shares are issued.

3.3.2 Issuance of Common Stock on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Warrant Price (if payment is on a “cash basis” pursuant to subsection 3.3.1(a)), the Warrant Agent is hereby authorized to (i) requisition from any transfer agent for the Common Stock (or make available if the Warrant Agent is also the transfer agent for the Common Stock), and upon receipt, make delivery to the Registered Holder of such Warrant a certificate or certificates for the number of full shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it or (ii) credit the account of the Registered Holder’s broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system, and, in either case, if such Warrant shall not have been exercised in full, the Company shall issue and deliver to the Warrant Agent and the Warrant Agent, upon the written instructions of the Company shall, countersign a new Warrant for the number of shares as to which such Warrant shall not have been exercised. The Company’s obligations to issue and deliver shares of Common Stock upon the exercise of any Warrants in accordance with the terms hereof are absolute and unconditional.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief 

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with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock or credit the account of the Registered Holder’s broker upon exercise of any Warrant as required pursuant to the terms hereof.  
3.3.3 Valid Issuance. All Common Stock issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly issued, fully paid and nonassessable, and free and clear of all Liens. For purposes hereof, “Lien” means any mortgage, lien (statutory or otherwise), charge, pledge, hypothecation, conditional sales agreement, adverse claim, title retention agreement or other security interest, encumbrance or other title defect in or on any interest or title of any vendor, lessor, lender or other secured party to or of such person or entity under any conditional sale, trust receipt or other title retention agreement with respect to any property or asset of such person or entity. At any time that the Warrants are outstanding, the Company shall cause to be maintained all corporate authorizations required for the issuance of a number of shares of Common Stock which the Company may be liable to issue upon exercise of the Warrants from time to time remaining outstanding, in accordance with the terms and conditions this Agreement and the Warrants. All shares of Common Stock delivered upon exercise of the Warrants shall be newly issued shares or shares held in treasury by the Company and shall not be subject to any preemptive rights or similar rights and shall rank pari passu in all respects with other existing Common Stock.
3.3.4 Date of Issuance. Each person or entity in whose name any certificate for Common Stock is issued shall for all purposes be deemed to have become the holder of record of such Common Stock on the date on which the Warrant was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such shares of Common Stock, except that if the date of such surrender and payment is a date when the share transfer books of the Company are closed, such person or entity shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the share transfer books are open. The Warrant Agent shall, upon request of the Holder, use its commercially reasonable efforts to record the ownership of the Warrant Shares upon exercise in book-entry form rather than through the issuance of physical stock certificates (provided that such book-entry interests will continue to bear any required restrictive legends).

3.3.5 Closing of Books. The Company will at no time close its transfer books against the transfer of any Warrant in any manner which prevents the timely exercise hereof.

3.3.6 Listing of Common Stock.  In the time and manner required by any Exchange on which the Common Stock is listed or quoted for trading on the date in question (the “Trading Market”), the Company shall, to the extent required by the applicable rules of the Trading Market, prepare and file with such Trading Market additional shares listing application covering all the Common Stock issuable upon exercise of the Warrants and shall use its commercially reasonable efforts to take all steps necessary to cause all of the Common Stock issuable upon exercise of the Warrants to be approved for listing on the Trading Market at all times.

3.3.7 Conditional Exercise. Notwithstanding any other provision hereof, if an exercise of any portion of any Warrant is to be made in connection with a public offering or a sale of the Company (pursuant to a merger, sale of stock, or otherwise), such exercise may at the election of the Holder be conditioned upon the consummation of such transaction, in which case 

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such exercise shall not be deemed to be effective until immediately prior to the consummation of such transaction.

4. Adjustments. 

4.1 Share Dividends.
 
4.1.1 Split-Ups. If, after the date hereof and prior to the Expiration Date, the number of outstanding shares of Common Stock is increased by a stock dividend payable in Common Stock, or by a split-up or sub-division of Common Stock or other similar event, then, on the effective date of such stock dividend, split-up, sub-division or similar event, the number of shares of Common Stock issuable on exercise of each unexercised Warrant shall be increased in proportion to such increase in the outstanding shares of Common Stock, subject to the provisions of Section 4.7 below.  
  
4.1.2 Other Distributions. If, after the date hereof and prior to the Expiration Date, the Company makes a distribution (a “Distribution”) to the holders of its Common Stock (other than in connection with the liquidation, dissolution or winding up of the Company) of any asset (including cash or evidence of its indebtedness) or security (including any subscription right) (the total value of the assets or securities so distributed, the “Distribution Amount”) other than a distribution referred to in Section 4.1.1, then the Company shall distribute to the holder of each unexercised Warrant the portion of the Distribution Amount which a holder of the number of shares of Common Stock for which such Warrant is exercisable immediately prior to the Distribution (determined as if such Warrant had been exercised on a “cashless” basis) would have owned or received immediately after and as a result of such Distribution.  

4.2 Aggregation of Shares. If after the date hereof and prior to the Expiration Date, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Common Stock issuable on exercise of each unexercised Warrant shall be decreased in proportion to such decrease in outstanding Common Stock, subject to the provisions of Section 4.7 hereof.  

4.3    Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants is adjusted, as provided in Section 4.1 or Section 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter.  

4.4   Issuance of Additional Shares of Common Stock, Options and Convertible Securities.

4.4.1 Issuance of Additional Shares of Common Stock. In case the Company at any time or from time to time after the date hereof and prior to the Expiration Date shall issue or sell Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Section 4.4.2 but excluding a dividend or distribution described in Section 4.1, with respect to which an adjustment to the number of shares of Common Stock 

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issuable upon exercise of the Warrants and the Warrant Price shall be made pursuant to the terms of Section 4.1 and Section 4.3) without consideration or for a consideration per share less than the Warrant Price in effect immediately prior to such issue or sale, then, and in each such case, the Warrant Price with respect to each unexercised Warrant shall be reduced, concurrently with such issue or sale, (x) if such issuance or sale is on or prior to September 11, 2016, to a price equal to the consideration payable for such Additional Shares (calculated to the nearest .001 of a cent, but not less than the par value of the Common Stock) and (y) if such issuance or sale is after September 11, 2016, to a price determined by multiplying such Warrant Price by a fraction

(a)the numerator of which shall be (i) the number of shares of Common Stock outstanding immediately prior to such issue or sale plus (ii) the number of shares of Common Stock which the aggregate consideration received or to be received by the Company for the total number of such Additional Shares of Common Stock so issued or sold (or deemed issued or sold pursuant to Section 4.4.2) would purchase at such Warrant Price, and

(b)the denominator of which shall be the number of shares of Common Stock outstanding immediately after such issue or sale,

provided, that for the purposes of this Section 4.4.1, (x) immediately after any Additional Shares of Common Stock are deemed to have been issued pursuant to Section 4.4.2, such Additional Shares shall be deemed to be outstanding, and (y) treasury shares shall not be deemed to be outstanding.  

4.4.2 Treatment of Options and Convertible Securities. In case the Company at any time or from time to time after the date hereof and prior to the Expiration Date shall issue, sell, grant or assume, or shall fix a record date for the determination of holders of any class of the Company’s securities entitled to receive, any Options or Convertible Securities (other than a Distribution involving an Option or Convertible Security pursuant to Section 4.1.2), then, and in each such case, the maximum number of Additional Shares of Common Stock (as set forth in the instrument relating thereto, without regard to any provisions contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue, sale, grant or assumption or, in case such a record date shall have been fixed, as of the close of business on such record date (or, if the Common Stock trades on an ex-dividend basis, on the date prior to the commencement of ex-dividend trading), provided that such Additional Shares of Common Stock shall not be deemed to have been issued unless the consideration per share (determined pursuant to Section 4.4.3) of such shares would be less the Warrant Price of the unexercised Warrants in effect on the date of and immediately prior to such issue, sale, grant or assumption or immediately prior to the close of business on such record date (or, if the Common Stock trades on an ex-dividend basis, on the date prior to the commencement of ex-dividend trading), as the case may be, and provided, further, that in any such case in which Additional Shares of Common Stock are deemed to be issued;

(a)no further adjustment of the Warrant Price of the unexercised Warrants shall be made upon the subsequent issue or sale of Convertible Securities or shares of Common Stock upon the exercise of such Options or the conversion or exchange of such Convertible Securities;
 

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(b)if such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any increase in the consideration payable to the Company, or decrease in the number of Additional Shares of Common Stock issuable, upon the exercise, conversion or exchange thereof (by change of rate or otherwise), the Warrant Price of the unexercised Warrants computed upon the original issue, sale, grant or assumption thereof (or upon the occurrence of the record date, or date prior to the commencement of ex-dividend trading, as the case may be, with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease becoming effective, be recomputed to reflect such increase or decrease insofar as it affects such Options, or the rights of conversion or exchange under such Convertible Securities, which are outstanding at such time;

(c)upon the expiration (or purchase by the Company and cancellation or retirement) of any such Options which shall not have been exercised or the expiration of any rights of conversion or exchange under any such Convertible Securities which (or purchase by the Company and cancellation or retirement of any such Convertible Securities the rights of conversion or exchange under which) shall not have been exercised, the Warrant Price of the unexercised Warrants computed upon the original issue, sale, grant or assumption thereof (or upon the occurrence of the record date, or date prior to the commencement of ex-dividend trading, as the case may be, with respect thereto), and any subsequent adjustments based thereon, shall, upon such expiration (or such cancellation or retirement, as the case may be), be recomputed as if:

(i)in the case of Options for Common Stock or Convertible Securities, the only Additional Shares of Common Stock issued or sold were the Additional Shares of Common Stock, if any, actually issued or sold upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the consideration received therefor was the consideration actually received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration actually received by the Company upon such exercise, or for the issue or sale of all such Convertible Securities which were actually converted or exchanged, plus the additional consideration, if any, actually received by the Company upon such conversion or exchange, and

(ii)in the case of Options for Convertible Securities, only the Convertible Securities, if any, actually issued or sold upon the exercise of such Options were issued at the time of the issue, sale, grant or assumption of such Options, and the consideration received by the Company for the Additional Shares of Common Stock deemed to have then been issued was the consideration actually received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration deemed to have been received by the Company (pursuant to Section 4.4.3) upon the issue or sale of such Convertible Securities with respect to which such Options were actually exercised;

(d)no readjustment pursuant to subsections 4.4.2(b) or (c) above shall have the effect of increasing the Warrant Price of the unexercised Warrants by an amount in excess of the amount of the adjustment thereof originally made in respect of the issue, sale, grant or assumption of such Options or Convertible Securities; and

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(e)in the case of any such Options which expire by their terms not more than 30 days after the date of issue, sale, grant or assumption thereof, no adjustment of the Warrant Price of the unexercised Warrants shall be made until the expiration or exercise of all such Options, whereupon such adjustment shall be made in the manner provided in subsection 4.4.2(c) above.

4.4.3 Computation of Consideration. For the purposes of this Section 4.4,

(a)the consideration for the issue or sale of any Additional Shares of Common Stock shall, irrespective of the accounting treatment of such consideration,

(i)    insofar as it consists of cash, be computed at the net amount of cash received by the Company, 
(ii)    insofar as it consists of property (including securities) other than cash, be computed at the fair value thereof at the time of such issue or sale, as determined in good faith by the Board, and
(iii)    in case Additional Shares of Common Stock are issued or sold together with other stock or securities or other assets of the Company for a consideration which covers both, be the portion of such consideration so received, computed as provided in clauses (i) and (ii) above, allocable to such Additional Shares of Common Stock, all as determined in good faith by the Board; 
(b)Additional Shares of Common Stock deemed to have been issued pursuant to Section 4.4.2, relating to Options and Convertible Securities, shall be deemed to have been issued for a consideration per share determined by dividing

(i)    the total amount, if any, received and receivable by the Company as consideration for the issue, sale, grant or assumption of the Options or Convertible Securities in question, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration to protect against dilution) payable to the Company upon the exercise in full of such Options or the conversion or exchange of such Convertible Securities or, in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, in each case computing such consideration as provided in the foregoing subsection 4.4.3(a),
by

(ii)    the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number to protect against dilution) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities.
4.4.4 Warrant Price. The number of shares of Common Stock which the Holder of any Warrant shall be entitled to receive upon each exercise thereof shall be determined by multiplying the number of shares of Common Stock which would otherwise (but for the 

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provisions of this Section 4.4) be issuable upon such exercise, as designated by such Holder pursuant to Section 3.3, by the fraction of which (a) the numerator is $2.04 and (b) the denominator is the Warrant Price in effect on the date of such exercise. The "Warrant Price" shall initially be $2.04 per share, shall be adjusted and readjusted from time to time as provided in this Section 4 and, as so adjusted or readjusted, shall remain in effect until a further adjustment or readjustment thereof is required by this Section 4.

4.4.5 Definitions. As used in this Section 4.4, unless the context otherwise requires, the following terms have the following respective meanings:

“Additional Shares of Common Stock” means all shares (including treasury shares) of Common Stock issued or sold (or, pursuant to Section 4.4.2, deemed to be issued) by the Company after the date hereof and prior to the Expiration Date, whether or not subsequently reacquired or retired by the Company, other than

(a)shares of Common Stock issued upon the exercise of the Warrants and those certain warrants to purchase Common Stock for $0.01 per share (as such exercise price may be adjusted from time to time in accordance with the terms of such warrants) issued substantially concurrently with the Warrants to the Lenders under the Credit Agreement as a condition to the obligations of such Lenders under the Credit Agreement,

(b)shares of Common Stock, or Options or other equity awards for shares of Common Stock, issued or issuable pursuant to equity compensation plans, stock purchase plans or other compensation arrangements for officers, directors and other employees of the Company and its subsidiaries, 

(c)shares of Common Stock issued or issuable upon the conversion or exchange of any security of the Company or its subsidiaries convertible into or exchangeable for Common Stock outstanding on the date hereof, including, without limitation, upon conversion of the Company’s convertible debt securities, and up to 1,000,000 shares of Common Stock (as may be adjusted as a result of any stock dividend, stock split or reverse stock split) issuable pursuant to the terms of that certain Share Lending Agreement dated as of January 24, 2013 by and between the Company and Morgan Stanley Capital Services LLC,   

(d)shares of Common Stock, Convertible Securities or shares of Common Stock issued or issuable upon the conversion of Convertible Securities (i) the net proceeds of which are exclusively used to repay Outstanding Indebtedness or (ii) issued exclusively in exchange for Outstanding Indebtedness, 

(e)shares of Common Stock, Options or Convertible Securities issued to an unaffiliated  third party or group of third parties in connection with any bona fide merger, acquisition, business combination or joint venture, and 

(f)such additional number of shares of Common Stock as may become issuable upon the exercise of any of the securities referred to in the foregoing clauses (a) through (e) by reason of adjustments required pursuant to anti-dilution provisions applicable to such securities in order to reflect any subdivision or combination of Common Stock, by 

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reclassification or otherwise, or any dividend on Common Stock payable in Common Stock 

“Convertible Securities” means any evidences of indebtedness, shares of stock (other than Common Stock) or other securities directly or indirectly convertible into or exchangeable for Additional Shares of Common Stock.

“Options” means rights, options or warrants to subscribe for, purchase or otherwise acquire either Additional Shares of Common Stock or Convertible Securities.

“Outstanding Indebtedness” means the 2016 Notes, the 2017 Notes, the 2018 Notes and the Pari Passu Notes, each as defined in the Credit Agreement.
 
4.5 Replacement of Securities upon Reorganization, etc. In case of any recapitalization, reclassification or reorganization of the outstanding Common Stock (other than a change under subsections 4.1.1 or 4.1.2 or Section 4.2 hereof or that solely affects the par value of such Common Stock), or in the case of any amalgamation, conversion, merger or consolidation of the Company with or into another corporation or other entity (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any recapitalization, reclassification or reorganization of the outstanding Common Stock), or in the case of any sale, lease, license, transfer or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, liquidated or wound up, the holders of the Warrants shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such recapitalization, reclassification, reorganization, amalgamation, conversion, merger or consolidation, or upon a dissolution, liquidation or winding up following any such sale, lease, license, transfer or conveyance, that the holder of the Warrants would have received if such holder had exercised his, her or its Warrant(s) immediately prior to such event (the “Alternative Issuance”); provided, however, that (i) if the holders of the Common Stock were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such amalgamation, conversion, merger or consolidation, or upon a dissolution, liquidation or winding up following any such sale, lease, license, transfer or conveyance, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the Common Stock in such amalgamation, conversion, merger or consolidation, or upon a dissolution, liquidation or winding up following any such sale, lease, license, transfer or conveyance, that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have been made to and accepted by the holders of the Common Stock under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding Common Stock, the holder of a Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other property to which such holder would actually have 

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been entitled as a stockholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Common Stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 4. If any recapitalization, reclassification or reorganization also results in a change in Common Stock covered by both subsection 4.1.1 or Section 4.2 and this Section 4.5, then such adjustment shall be made pursuant to both subsection 4.1.1 or Section 4.2 and this Section 4.5.  The provisions of this Section 4.5 shall similarly apply to successive recapitalizations, reclassifications, reorganizations, amalgamations, conversions, mergers or consolidations, sales, leases, licenses, transfers, conveyances and other similar transactions, and the Company shall not effect any such transaction unless, prior to the consummation thereof, the successor person or entity (if other than the Company) resulting from such transaction, shall assume, by written instrument substantially similar in form and substance to this Agreement and reasonably satisfactory to the majority in interest of the Registered Holders, the obligation to deliver to the Registered Holder such shares of stock, securities or assets which, in accordance with the foregoing provisions, such Registered Holder shall be entitled to receive upon exercise of the Warrants held by them. 

Notwithstanding anything to the contrary contained herein, with respect to any corporate event or other transaction contemplated by the provisions of this Section 4.5, each Registered Holder shall have the right to elect prior to the consummation of such event or transaction, to give effect to the exercise rights contained herein instead of giving effect to the provisions contained in this Section 4.5 with respect to Warrants held by such Registered Holder.
4.6 Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the Company shall give prompt written notice thereof to the Warrant Agent and the Holders, which notice shall state the increase or decrease, if any, in Warrant Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at the Warrant Price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1, 4.2, 4.3 or 4.4, the Company shall give written notice of the occurrence of such event to the Warrant Agent and each holder of a Warrant, at the last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.   The Warrant Agent shall have no obligation under any section of this Agreement to calculate any of the adjustments set forth herein.  The Warrant Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate, notice or instructions by the Company with respect to any adjustment of the Warrant Price of the number of shares of Common Stock, cash or other property issuable upon exercise of a Warrant, or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with any such certificate, notice or instruction pursuant to this Agreement.  The Warrant Agent shall not be deemed to have knowledge of any adjustment or event specified in Sections 4.1, 4.2, 4.3 or 4.4, or any adjustment to the Warrant Price or the number or type of securities issue upon exercise of a Warrant required or permitted hereunder, unless and until it shall have received written notice thereof from the Company.  The Company hereby agrees that it will provide the Warrant Agent with reasonable notice of all adjustment events, including any new or amended exercise terms.  The Warrant Agent shall have no obligation under any section of this Agreement to determine whether an adjustment event has occurred or to calculate any of the adjustments set forth herein.

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In the event: (a) that the Company shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; (b) of any recapitalization or reorganization of the Company, any reclassification of the Common Stock of the Company, any amalgamation, conversion, consolidation or merger of the Company with or into another person or entity, or sale, lease, license, transfer or conveyance of all or substantially all of the Company’s assets to another person or entity; or (c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company; then, and in each such case, the Company shall send or cause to be sent to the Warrant Agent and Registered Holders at least 20 days prior to the applicable record date or the applicable expected effective date, as the case may be, for the event, a written notice specifying, as the case may be, (i) the record date for such dividend, distribution, or other right, and a description of such dividend, distribution or other right to be taken at such meeting or by written consent, or (ii) the effective date on which such reorganization, reclassification, amalgamation, conversion, consolidation, merger, sale, lease, license, transfer, conveyance, dissolution, liquidation or winding-up is proposed to take place, and the date, if any is to be fixed, as of which the books of the Company shall close or a record shall be taken with respect to which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon exercise of the Warrant) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such recapitalization, reorganization, reclassification, amalgamation, conversion, consolidation or merger, sale, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Warrant and the shares of Common Stock issuable upon exercise of the Warrants. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.
4.7 No Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company (or the Warrant Agent) shall not issue fractional shares upon exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, upon such exercise, the Company shall promptly prepare and deliver to the Warrant Agent a certificate instructing the Warrant Agent to, at its option, either (a) round up to the nearest whole number, the number of shares of Common Stock to be issued to such holder or (b) in lieu of such fractional share interests, pay to such holder an amount in cash equal to the product obtained by multiplying (i) the fractional share interest to which such holder would otherwise be entitled by (ii) the Fair Market Value on the exercise date.  The certificate delivered by the Company to the Warrant Agent shall set forth in reasonable detail the facts relating to such payment or adjustment, including the prices and/or formulas used to calculate such payment or adjustment, and the Company shall provide the Warrant Agent with sufficient monies in the form of fully collected funds to make such payments.  The Warrant Agent shall be fully protected in relying upon such  a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Warrants or fractional shares of Common Stock under any section of this agreement unless and until the Warrant Agent shall have received such a certificate and sufficient monies. 
4.8 Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant to this Agreement; provided, however, that the Company may at any time in its sole 

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discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof or the rights, duties, obligations and liabilities of the Warrant Agent, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

5. Transfer and Exchange of Warrants.
 
5.1 Registration of Transfer. The Warrant Agent, upon the written request of a Holder, shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request.  In connection with any such transfer, upon reasonable request by the Company or the Warrant Agent to such transferring holder at the expense of such holder, such holder will give to the Company or the Warrant Agent, as applicable, an opinion of counsel (which may be in-house counsel or outside counsel to such holder or its investment adviser) in form and substance reasonably satisfactory to the Company or the Warrant Agent, as applicable,  to the effect that the proposed transfer of such Warrant may be effected without registration or qualification of such Warrant under the Securities Act or any applicable state securities law and evidence of authority that may be required by the Warrant Agent, including but not limited to, a signature guarantee from an eligible institution participating in a recognized signature guarantee medallion program at a guarantee level satisfactory to the Warrant Agent.
 
5.2 Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent in accordance with Section 5.1, together with a written request for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants.
 
5.3 Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which shall result in the issuance of a Warrant Certificate for a fraction of a Warrant.
 
5.4 Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.
 
5.5 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.
 
6. Other Provisions Relating to Rights of Holders of Warrants.
 
6.1 No Rights as Stockholder; Limitation on Liability. A Warrant does not entitle the Registered Holder thereof to any of the rights of a stockholder of the Company, including, without limitation, the right to receive dividends or other distributions (except as provided in Section 4), exercise any preemptive rights to vote or to consent or to receive notice as 

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stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other matter. No provisions hereof, in the absence of affirmative action by the Registered Holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of any Registered Holder, shall give rise to any liability of any Registered Holder for the Warrant Price or as a stockholder of the Company, whether such liability is asserted by the Company or by its creditors.
 
6.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or otherwise as they may in their reasonable discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.
 
6.3 Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued Common Stock that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

6.4 No Impairment. The Company will not, by amendment of its governing documents or through any recapitalization, reclassification, reorganization, amalgamation, conversion, merger, consolidation, or through any sale, lease, license, transfer, conveyance of its assets, or through any other similar transactions, or through any dissolution, liquidation, winding up of the Company or through issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holders against impairment.  Without limiting the generality of the foregoing, the Company (a) will not increase the par value of any shares of Common Stock issuable upon exercise of any Warrant above the amount payable therefor on such exercise, (b) will take all such action as may be reasonably necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares Common Stock upon the exercise of this Warrant, and (c) will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant.

7. Concerning the Warrant Agent and Other Matters.
 
7.1 Payment of Taxes. The Company shall from time to time promptly pay any taxes or charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Common Stock to the registered holder thereof upon the exercise of the Warrants, including such taxes imposed pursuant to Section 3.3.1 hereof, but the Company shall not be obligated to pay any transfer taxes associated with transfers by any Registered Holder of the Warrants or the Common Stock issuable upon exercise of any Warrants.  The Warrant Agent shall have no duty or obligation to take any action under any section of this Agreement that requires the payment of taxes, charges or expense unless and until the Warrant Agent is satisfied that all such taxes and/or charges have been paid.
 
7.2 Resignation, Consolidation, or Merger of Warrant Agent.
 

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7.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent; provided that any such successor Warrant Agent shall be a nationally recognized transfer agent that is registered as a “transfer agent” with the SEC pursuant to Section 17A(c) of the Exchange Act. Any such properly appointed successor Warrant Agent shall be deemed the “Warrant Agent” for all purposes hereunder. If the Company shall fail to make such appointment within a period of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent, then the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost.  After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.
 
7.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment.
 
7.2.3 Merger or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which it may be consolidated or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without any further act. If, at the time such successor to the Warrant Agent by merger or consolidation succeeds to the agency created by this Agreement, any of the Warrants shall have been countersigned but not delivered, any such successor to the Warrant Agent may adopt the countersignature of the original Warrant Agent and deliver such Warrants so countersigned; and if, at that time any of the Warrants shall not have been countersigned, any such successor to the Warrant Agent may countersign such Warrants either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such cases such Warrants shall have the full force and effect provided in the Warrants in this Agreement.  If at any time the name of the Warrant Agent shall be changed and at such time any of the Warrants shall have been countersigned but not delivered, the Warrant Agent whose name has changed may adopt the countersignature under its prior name and deliver Warrants so countersigned; and if at that time any of the Warrants shall not have been countersigned, the Warrant Agent may countersign such Warrants either in its prior name or in its changed name; and in all such cases such Warrants shall have the full force and effect provided in the Warrants and in this Agreement.
 
7.3 Fees and Expenses of Warrant Agent.
 

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7.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall, pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.
 
7.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions of this Agreement.
 
7.4 Liability of Warrant Agent.
 
7.4.1 Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Company’s Chief Executive Officer, President, Chief Financial Officer, General Counsel, Treasurer or Secretary and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.  The Warrant Agent is hereby authorized to accept instructions with respect to the performance of its duties hereunder from the Company’s Chief Executive Officer, President, Chief Financial Officer, General Counsel, Treasurer or Secretary, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable and shall be indemnified and held harmless for any action taken or suffered to be taken by it in the absence of gross negligence, bad faith or willful misconduct (each as determined by a final non-appealable judgment of a court of competent jurisdiction) in accordance with instructions of any such officer, provided Warrant Agent carries out such instructions without gross negligence, bad faith or willful misconduct (each as determined by a final judgment of a court of competent jurisdiction).
 
7.4.2 Indemnity. The Company covenants and agrees to indemnify the Warrant Agent for, and to defend and hold the Warrant Agent harmless against, any liabilities, suits, actions, proceedings, judgments, claims, settlements, costs, expenses (including reasonable fees and expenses of its legal counsel), losses or damages, which may be paid, incurred or suffered by or to which it may become subject, arising from or out of, directly or indirectly, any action taken, suffered or omitted to be taken by the Warrant Agent in connection with the preparation, delivery, acceptance, administration, execution or amendment of this Agreement and the exercise or performance of its duties hereunder, including the costs and expenses of enforcing its rights hereunder; provided, that such covenant and agreement does not extend to, and the Warrant Agent shall not be indemnified with respect to, such liabilities, suits, actions, proceedings, judgments, claims, settlements, costs, expenses, losses and damages incurred or suffered by the Warrant Agent as a result of, or arising out of, its own gross negligence, bad faith, or willful misconduct (each as determined by a final non-appealable judgment of a court of competent jurisdiction).  The Warrant Agent shall not be obligated to expend or risk its own funds or to take any action that it believes would expose or subject it to expense or liability or to a risk of incurring expense or liability, unless it has been furnished with assurances of repayment or indemnity satisfactory to it.
 
7.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution of any Warrant (except 

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its countersignature thereof). The Warrant Agent shall not be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any Common Stock shall, when issued, be valid and fully paid and nonassessable; nor shall it have any duty or responsibility in the case of the receipt of any written demand from any Holder with respect to any such action or default by the Company, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Company.

7.4.4 Limitation of Liability.  Notwithstanding anything to the contrary contained herein, the Warrant Agent’s aggregate liability during the term of this Agreement with respect to, arising from, or arising in connection with this Agreement, or from all services provided or omitted to be provided under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the lesser of (i) the total amounts paid under this Agreement by the Company to Warrant Agent as fees and charges, but not including reimbursable expenses, and (ii) the amounts paid under this Agreement by the Company to Warrant Agent as fees and charges, but not including reimbursable expenses, during the sixty (60) months immediately preceding the event for which recovery from Warrant Agent is being sought.  The Warrant Agent shall not be liable to the Company or any other person or entity for any consequential, indirect, special, punitive or incidental damages under any provisions of this Agreement or for any consequential, indirect, punitive, special or incidental damages arising out of any act or failure to act hereunder even if that party has been advised of or has foreseen the possibility or likelihood of such damages

7.5 Certain Other Rights of the Warrant Agent.

The Warrant Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Warrant Agent as to any action taken or omitted by it in the absence of gross negligence, bad faith, or willful misconduct (each as determined by a final non appealable judgment of a court of competent jurisdiction) and in accordance with such opinion.    
The Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity.
The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorney or agents, and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a final non appealable judgment of a court of competent jurisdiction) in the selection and continued employment thereof.

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The Warrant Agent may rely on and shall be held harmless and protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in reliance upon any certificate, statement, instrument, opinion, notice, letter, facsimile transmission or other document, or any security delivered to it, and believed by it to be genuine and to have been made or signed by the proper party or parties, or upon any written or oral instructions or statements from the Company with respect to any matter relating to its acting as Warrant Agent hereunder.
All funds received by the Warrant Agent under this Agreement that are to be distributed or applied by the Warrant Agent in the performance of its services hereunder (the “Funds”) shall be held by the Warrant Agent as agent for the Company and deposited in one or more bank accounts to be maintained by the Warrant Agent in its name as agent for the Company.  Until paid pursuant to this Agreement, the Warrant Agent may hold or invest the Funds through such accounts in: (i) obligations of, or guaranteed by, the United States of America, (ii) commercial paper obligations rated A-1 or P-1 or better by Standard & Poor's Corporation (“S&P”) or Moody's Investors Service, Inc. (“Moody’s”), respectively, (iii) money market funds that comply with Rule 2a-7 of the Investment Company Act of 1940, or (iv) demand deposit accounts, short-term certificates of deposit, bank repurchase agreements or bankers’ acceptances, of commercial banks with Tier 1 capital exceeding $1 billion or with an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default Rating) (each as reported by Bloomberg Finance L.P.).  The Warrant Agent shall have no responsibility or liability for any diminution of the Funds that may result from any deposit or investment made by the Warrant Agent in accordance with this paragraph, including any losses resulting from a default by any bank, financial institution or other third party.  The Warrant Agent may from time to time receive interest, dividends or other earnings in connection with such deposits or investments.  The Warrant Agent shall not be obligated to pay such interest, dividends or earnings to the Company, any Registered Holder or any other party.  Notwithstanding the foregoing, in the event that the Warrant Agent is obligated to hold or handle cash, however received, pursuant to the terms of this Agreement, any references to the Warrant Agent in connection therewith shall be interpreted to refer to Computershare Inc. only and not Computershare Trust Company, N.A.  The Warrant Agent shall forward funds received for warrant exercises upon the request of the Company, provided, that if the Company has not provided any such request, the Warrant Agent shall forward funds received for warrant exercises in a given month by the fifth (5th) business day of the following month by wire transfer to an account designated by the Company.
The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any Warrants authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the proceeds of the issue and sale, or exercise, of the Warrants.
The Warrant Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature by an eligible institution participating in a recognized signature guarantee medallion program at a guarantee level satisfactory to the Warrant Agent or insurance program in addition to, or in substitution for, the foregoing; or (b) any law, act, regulation or any interpretation of the same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed.
The provisions of this Section 7 shall survive the termination of this Agreement and the resignation, removal or replacement of the Warrant Agent.
7.6 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon and subject to the express terms and 

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conditions set forth herein (and no implied terms or conditions) all of which the Company and the Holders of the Warrants, by their acceptance thereof, shall be bound.
 
8. Miscellaneous Provisions.
 
8.1 Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns. The Company will not amalgamate, merge, convert  or consolidate with or into, or sell, transfer, license or lease all or substantially all of its property or assets to, any other party unless the successor, transferee, licensee or lessee party, as the case may be (if not the Company), assumes (expressly or by operation of law) the due and punctual performance and observance of each and every covenant and condition of this Agreement and the Warrants to be performed and observed by the Company. Subject to the preceding sentence, nothing in this Agreement shall be construed to give to any person or entity other than the Company, each Registered Holder and each Electing Holder any legal or equitable right, remedy or cause of action under this Agreement.
 
8.2 Notices. All notices, statements or other documents which are required or contemplated by this Agreement or any Warrant (including, without limitation, the delivery of any Exercise Notice or notice of assignment (in the form attached to each Warrant), the surrender of any Warrant and the issuance of any new Warrant) to be given, delivered or made by the Company, the Warrant Agent or any Holder (each, a “Notice”) shall be in writing and shall be:  (a) delivered personally or by commercial messenger; (b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt requested; or (d) sent by facsimile transmission, provided confirmation of receipt is received by sender and the original Notice is sent or delivered contemporaneously by an additional method provided in this Section 8.2; in each case so long as such Notice is addressed to the intended recipient thereof as set forth below:
 
If to the Company:

Molycorp, Inc.
5619 DTC Parkway, Suite 1000
Greenwood Village, Colorado 80111
Attention: Michael Doolan, Chief Financial Officer
Facsimile: (416) 367-5471
E-mail:     Michael.Doolan@molycorp.com

with a copy to:

Molycorp, Inc.
5619 DTC Parkway, Suite 1000
Greenwood Village, Colorado 80111
Attention: Kevin Johnson, General Counsel
Facsimile: (303) 843-8082
E-mail:     Kevin.Johnson@molycorp.com

If to the Warrant Agent:

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         Computershare Trust Company, N.A.
                          250 Royall Street
                          Canton, Massachusetts 02021
                          Attention: Client Administration - Corporate Actions

      with a copy to:

                   Computershare Trust Company, N.A.
                          250 Royall Street
                          Canton, Massachusetts 02021
                          Attention: Legal Department
 
If to any Holder, at such address as is reflected in the records of the Warrant Agent for such Holder.
 
 Any party may change its address specified above by giving each party Notice of such change in accordance with this Section 8.2.  Any Notice shall be deemed given upon actual receipt (or refusal of receipt).

8.3 Applicable Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto agree that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submit to such jurisdiction, which jurisdiction shall be exclusive. The parties hereto waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.
 
8.4 Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Registered Holders of the Warrants, each of whom are third party beneficiaries of this Agreement.  
 
8.5 Examination of the Agreement. A copy of this Agreement shall be available for inspection during business hours upon reasonable notice to the Warrant Agent by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit his, her or its Warrant(s) for inspection by it.

8.6 Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
 

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8.7 Effect of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.
 
8.8 Amendments. This Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein. All other modifications or amendments, including any amendment to increase the Warrant Price, change the number of shares of Common Stock issuable upon exercise of the Warrants or shorten the Exercise Period, shall require the written consent of the Registered Holders of then outstanding Warrants then exercisable into a majority of the shares of Common Stock issuable upon exercise of all then outstanding Warrants. Notwithstanding the foregoing, the Company may extend the duration of the Exercise Period pursuant to Section 3.2 without the consent of the Registered Holders. Notwithstanding the foregoing, in the event that the Company or any of its subsidiaries or any of the Company’s “affiliates” (as defined in Rule 405 under the Securities Act) (the “Affiliated Holders”) holds any Warrants, for purposes of any amendment, waiver or modification of this Agreement, all such Affiliated Holders will not have the right to consent to any amendment, waiver or modification, but will be deemed to have consented in the same proportion as all other Registered Holders consenting on such matter.  As  a  condition  precedent  to  the  Warrant Agent’s  execution  of  any amendment, the Company shall deliver to the Warrant Agent a certificate from a duly authorized officer of the Company that states that the proposed amendment is in compliance with the terms of this Section 8.8.  The Warrant Agent may, but shall not be obligated to, enter into any amendment that affects its own rights, duties, liabilities or obligations hereunder. 
 
8.9 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

8.10 Remedies. If the Company fails to perform, comply with or observe any covenant or agreement to be performed, complied with or observed by it under this Agreement or any Warrant, any Registered Holder may proceed to protect and enforce its rights by suit in equity or action at law, whether for specific performance of any term contained in this Agreement or any Warrant or for an injunction against the breach or threatened breach of any such term or in aid of the exercise of any power granted in this Agreement or any Warrant or to enforce any other legal or equitable right, or to take any one or more of such actions.   The Company hereby agrees that any Registered Holder shall not be required or otherwise obligated to, and hereby waives any right to demand that such Registered Holder, post any performance or other bond in connection with the enforcement of its rights and remedies hereunder. The Company agrees to pay all reasonable fees, costs, and expenses, including, without limitation, fees and expenses of attorneys, accountants and other experts retained by any such Registered Holder, and all reasonable fees, costs and expenses of appeals, incurred or expended by such Registered Holder in connection with the enforcement of this Agreement, any Warrant or the collection of any sums due hereunder, whether or not suit is commenced.  None of the rights, powers or remedies conferred under this Agreement and any Warrant shall be mutually exclusive, and each right, power or remedy shall be cumulative and in addition to any other right, power or remedy whether 

29

conferred by this Agreement or any Warrant or now or hereafter available at law, in equity, by statute or otherwise.

8.11 Force Majeure. Notwithstanding anything to the contrary contained herein, Warrant Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

8.12 Confidentiality. The Warrant Agent and the Company agree that all books, records, information and data pertaining to the business of the other party, including inter alia, personal, non-public warrant holder information, which are exchanged or received pursuant to the negotiation or the carrying out of this Agreement including the fees for services provided hereunder shall remain confidential, and shall not be voluntarily disclosed to any other person, except as may be required by law, including, without limitation, pursuant to subpoenas from state or federal government authorities (e.g., in divorce and criminal actions).

8.13 Further Assurances. The Company shall perform, acknowledge and deliver or cause to be performed, acknowledged and delivered all such further and other acts, documents, instruments and assurances as may be reasonably required by the Warrant Agent for the carrying out or performing by the Warrant Agent of the provisions of this Agreement.

30

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

	
			
	 
	MOLYCORP, INC.

	 
	 

	 
	By:
	/s/ Geoffrey R. Bedford

	 
	 
	Name: Geoffrey R. Bedford  
Title: President and CEO

	
			
	 
	COMPUTERSHARE TRUST COMPANY, N.A.

COMPUTERSHARE INC.

	 
	 

	 
	By:
	/s/ Michael Legregin

	 
	 
	Name: Michael Legregin 
Title: Manager

 

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EXHIBIT A 
 

THIS SECURITY, AS WELL AS THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THIS SECURITY,  AS WELL AS THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY, MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT, (II) IN THE ABSENCE OF AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS, AS EVIDENCED (IF REQUESTED BY THE COMPANY) BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT, OR (III) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT (PROVIDED THAT THE TRANSFEROR PROVIDES THE COMPANY WITH REASONABLE ASSURANCES (IN THE FORM OF A SELLER REPRESENTATION LETTER AND A BROKER REPRESENTATION LETTER, IN EITHER CASE AS MAY BE APPLICABLE) THAT THE SECURITIES MAY BE SOLD PURSUANT TO SUCH RULE).  NO REPRESENTATION IS MADE BY THE COMPANY AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT FOR RESALES OF THIS SECURITY, OR THE COMMON STOCK OF THE COMPANY UNDERLYING THIS SECURITY
MOLYCORP, INC.
WARRANT
Warrant No.     Original Issue Dated:  September 11, 2014
Re-issuance Date: ___________, 20__
Molycorp, Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, OCM MLYCo PT LLC, a Delaware limited liability company or its registered assigns (the “Holder”), is the registered holder of warrants (the “Warrants”) to purchase 6,119,340 shares of common stock, $0.001 par value per share (the “Common Stock”), of the Company. Each Warrant entitles the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from the Company that number of fully paid and nonassessable shares of Common Stock as set forth below, at the exercise price (the “Exercise Price”) of $2.04 per share of Common Stock, payable in lawful money of the United States of America (or through “cashless exercise” as permitted by the Warrant Agreement) upon surrender of this Warrant Certificate and payment of the Exercise Price at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement. In the event of a conflict between this Warrant and the Warrant Agreement, the terms of the Warrant Agreement shall prevail.

Each Warrant is initially exercisable for one fully paid and non-assessable share of Common Stock. The number of shares of Common Stock issuable upon exercise of the Warrants is subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement. The initial Exercise Price per share of Common Stock for any Warrant is equal to $2.04 per share. The Exercise Price is subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement. Subject to the conditions set forth in the Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the end of such Exercise Period, such Warrants shall become void. 

Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement. This Warrant Certificate shall be governed and construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles thereof. 

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IN WITNESS WHEREOF, the following parties have executed this Warrant as of the date first above written.
MOLYCORP, INC.            

By:                         
Name:                        
Its:                        

COMPUTERSHARE INC.            

By:                         
Name:                    
Its:         

COMPUTERSHARE TRUST COMPANY, N.A.            

By:                         
Name:                        
Its:        

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MOLYCORP, INC. (WARRANT) 
  
The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common Stock and are issued pursuant to a Warrant Agreement dated as of September 11, 2014 and as may be amended from time to time (the “Warrant Agreement”), duly executed and delivered by the Company to Computershare Inc., a Delaware corporation, and its fully owned subsidiary Computershare Trust Company, N.A., a federally chartered trust company, collectively as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder” meaning the Registered Holders or Registered Holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement. 
Warrants may be exercised at any time during the Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by surrendering this Warrant Certificate, with the form of election to purchase set forth hereon properly completed and executed, together with payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless exercise” as permitted by the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised.
Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless either (A) exercised through a “cashless exercise” as permitted by the Warrant Agreement or (B) if not exercised pursuant to a “cashless exercise,” at the time of exercise: either (i) a registration statement covering the shares of Common Stock to be issued upon exercise is effective under the Securities Act and a prospectus thereunder relating to the shares of Common Stock is current; or (ii) the issuance such shares is exempt from registration under the federal securities laws and the securities laws of the state of residence of the holder.
The Warrant Agreement provides that upon the occurrence of certain events the number of the Warrants set forth on the face hereof may, subject to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest in a share of Common Stock, the Company shall, upon exercise, at its option either (i) round up to the nearest whole number of shares of Common Stock to be issued to the holder of the Warrant or (ii) pay cash in lieu of such fractional interest.
Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants. 
Upon due presentation (i) for registration of transfer of this Warrant Certificate at the office of the Warrant Agent and (ii) of the assignment form set forth hereon properly completed and executed, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge, except for any transfer tax imposed in connection with the transfer by the Registered Holder thereof.
The Company and the Warrant Agent may deem and treat the Registered Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company. 
 

34

 

ELECTION TO PURCHASE 
(To Be Executed Upon Exercise of Warrants) 
The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to receive __________ shares of Common Stock and herewith tenders payment for such shares to the order of Molycorp, Inc. (the “Company”) in the amount of $___________ in accordance with the terms hereof. The undersigned requests that a certificate for such shares be registered in the name of: 
 
 

 
	
			
	 
	 
	 

	whose address is
	 
	 

 
	
			
	 
	 
	 

	and that such shares be delivered to:
	 
	 

 
	
			
	 
	 
	 

	whose address is
	 
	 

If said number of shares is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares be registered in the name of                                                 
 
	
			
	 
	 
	 

	whose address is
	 
	 

 
	
			
	 
	 
	 

	and that such Warrant Certificate be delivered to:
	 
	 

 
	
			
	 
	 
	 

	whose address is
	 
	 

In the event that the Warrant is to be exercised on a “cashless basis” pursuant to the Warrant Agreement, (i) the number of shares that this Warrant is exercisable for shall be determined in accordance with the Warrant Agreement and (ii) the holder hereof shall complete the following: The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of the Warrant Agreement, to receive shares of Common Stock. If said number of shares is less than all of the shares of Common Stock purchasable hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares be registered in the name of                                     . 
 

35

	
			
	 
	 
	 

	whose address is
	 
	 

 
	
			
	 
	 
	 

	and that such Warrant Certificate be delivered to:
	 
	 

 
	
			
	 
	 
	 

	whose address is
	 
	 

 

In the event that the Warrant is to be exercised by paying the Warrant Price in cash pursuant to the Warrant Agreement, the undersigned confirms that (by checking each below):
__It is an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”)), and hereby confirms to the Warrant Agent each of the following representations and agreements are true as of the date hereof (by checking each that applies to the undersigned):
__It either alone or together with its representatives has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Warrant, and has so evaluated the merits and risks of such investment;

__It will not offer or sell the Warrant by any form of general solicitation or general advertising, including but not limited to the methods described in Rule 502(c) under the Securities Act;

__It understands that the Warrant is characterized as “restricted security” under the U.S. federal securities laws inasmuch as it is being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances; and

__It is understood that certificates evidencing the Warrant will bear any legend as required by the Blue Sky laws of any state and a restrictive legend in substantially the form set forth in the Warrant Agreement (as defined in the Warrant Certificate).

Unless the foregoing items are checked, the Warrant Agent may refuse to permit the exercise of any Warrants evidenced by this certificate other than on a “cashless basis”; provided, however, that if the foregoing items are checked, the Company or the Warrant Agent may require, prior to permitting any such exercise of this Warrant on other than a “cashless basis”, in their reasonable discretion, such written legal opinions, certifications and other information as the Warrant Agent or the Company has reasonably requested to confirm that such exercise is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

36

	
						
	 
	 
	 
	 
	 

	Dated:              , 20    .
	 
	 
	 
	Signature(s)

	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	(Address)

	 
	 
	 

	

 
	 

	Signature(s) Guaranteed
	 

IN THE EVENT THE NUMBER OF SHARES FOR WHICH THIS WARRANT IS BEING EXERCISED IS LESS THAN ALL OF THE SHARES OF COMMON STOCK PURCHASABLE HEREUNDER, AND THE UNDERSIGNED HAS REQUESTED THAT A NEW WARRANT CERTIFICATE REPRESENTING THE REMAINING BALANCE OF SUCH SHARES BE REGISTERED IN THE NAME OF PERSON OTHER THAN THE RECORD HOLDER OF THIS WARRANT, THE SIGNATURE(S) ABOVE MUST BE  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17AD-15).

37

ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned registered holder of the within Warrant hereby sells, assigns and transfers unto ________________________, whose address is _________________________________________, all of the rights of the undersigned under the within Warrant, with respect to __________ shares of Common Stock of MOLYCORP, INC. and, if such shares of Common Stock shall not include all the shares of Common Stock issuable as provided in the within Warrant, that a new Warrant of like tenor for the shares not being transferred hereunder be issued in the name of _______________________ ______________ and delivered to [choose one by circling the applicable letter] (a) the undersigned or (b) _____________________, whose address is _____________________________________, and does hereby irrevocably constitute and appoint [TRANSFER AGENT] as Attorney to register such transfer on the books of MOLYCORP, INC. maintained for the purpose, with full power of substitution in the premises.
	
			
	Dated:               
	 
	[               ]

By:                
(Signature of Registered Holder)

	 
	 
	 

	 
	 
	 

	Dated:               
	Signed:
	                   
(Sign exactly as name appears on the other side of this Warrant)

	 
	 
	 

In connection with any transfer of this Warrant, the undersigned confirms that it has not utilized any general solicitation or general advertising in connection with the transfer and is making the transfer pursuant to one of the following:
[Check One]
	
		
	(1) ___
	to the Company; or

	(2) ___
	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”)) that has furnished to the Warrant Agent a signed letter containing certain representations and agreements (the form of which letter can be obtained from the Warrant Agent); or

	(3) ___
	pursuant to the exemption from registration provided by Rule 144 under the Securities Act or pursuant to another exemption available under the Securities Act; or

	(4) ___
	Pursuant to an effective registration statement under the Securities Act.

and unless the box below is checked, the undersigned confirms that such Warrant is not being transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act (an “Affiliate”):
 ̈    The transferee is an Affiliate of the Company.
Unless one of the foregoing items (1) through (4) is checked, the Warrant Agent may refuse to register any Warrants evidenced by this certificate in the name of any person other than the registered Holder thereof; provided, however, that if item (2) or (3) is checked, the Company or the Warrant Agent may require, prior to registering any such transfer of this Warrant, in their reasonable discretion, such written legal opinions, certifications (including an investment letter in the case of box (2) or (3)) and other information as the Warrant Agent or the Company has 

38

reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
	
				
	 
	 
	 

	Dated:               
	Signed:
	                   
(Sign exactly as name appears on the other side of this Warrant)

	 
	

	 

	 
	Signature(s) Guaranteed
	 

THE SIGNATURE(S) ABOVE MUST BE  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17AD-15).

39

EXHIBIT B

Notice and Questionnaire

The undersigned beneficial holder of warrants (“Warrants”) to purchase common stock, par value $0.001 (the “Common Stock”), of Molycorp, Inc. (the “Company”) understands that the Company intends to file or has filed with the Securities and Exchange Commission a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Common Stock issuable under the Warrants (“Registrable Securities”), in accordance with the terms of the warrant agreement (the “Warrant Agreement”), among the Company and Computershare Trust Company, N.A. and Computershare Inc., collectively, as Warrant Agent. A copy of the Warrant Agreement is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Warrant Agreement.
In order to sell, or otherwise dispose of, any Registrable Securities pursuant to the Registration Statement, a holder of Warrants or Registrable Securities generally will be required to be named as a selling securityholder in the related prospectus, and deliver a prospectus to purchasers of Registrable Securities.  Holders of Warrants or Registrable Securities that do not complete this Notice and Questionnaire and deliver it to the Company as provided below will not be named as selling securityholders in the prospectus and, therefore, will not be permitted to sell any Registrable Securities pursuant to the Registration Statement.
Certain legal consequences arise from being named as a selling securityholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Registration Statement and the related prospectus.
NOTICE
The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities hereby gives notice to the Company of its intention to sell or otherwise dispose of Registrable Securities beneficially owned by it and listed below in Item 3 (unless otherwise specified under such Item 3) pursuant to the Shelf  Registration Statement. The undersigned, by signing and returning this Notice and Questionnaire, understands that it will be bound by the terms and conditions of this Notice and Questionnaire.
QUESTIONNAIRE
Please respond to every item, even if your response is “none.” If you need more space for any response, please attach additional sheets of paper. Please be sure to indicate your name and the number of the item being responded to on each such additional sheet of paper, and to sign each such additional sheet of paper before attaching it to this Questionnaire. Please note that you may be asked to answer additional questions depending on your responses to the following questions.
If you have any questions about the contents of this Questionnaire or as to who should complete this Questionnaire, please contact Kevin Johnson of the Company at telephone number: (303) 843-8047 or Michael J. Solecki of Jones Day at (216) 586-7103.
The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate and complete:

40

1.Identity and Background as the holder of Warrants or Registrable Securities.
(a)Full legal name of holder of Warrants or Registrable Securities:

(b)Business address of holder of Warrants or Registrable Securities (including street address) (or residence if no business address), telephone number and facsimile number:
Address:
Telephone No.:
Fax No.:
(c)Are you a broker-dealer registered pursuant to Section 15 of the Exchange Act?
 ̈    Yes 
 ̈    No
(d)If your response to Item 1(c) above is no, are you an “affiliate” of a broker-dealer registered pursuant to Section 15 of the Exchange Act?
 ̈    Yes 
 ̈    No
For the purposes of this Item 1(d), an “affiliate” of a registered broker-dealer includes any person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such broker-dealer, and does not include any individuals employed by such broker-dealer or its affiliates.
2.Relationship with the Company.
(a)    Have you or any of your affiliates, officers, directors or principal equity holders (owners of 5% or more of the equity securities of the undersigned) held any position or office or have you had any other material relationship with the Company (or its predecessors or affiliates) within the past three years?
 ̈    Yes 
 ̈    No
(b)    If your response to Item 2(a) above is yes, please state the nature and duration of your relationship with the Company:
3.Interest in the Registrable Securities.
(a)    State whether you are a record holder of Warrants or Registrable Securities and the amount of each beneficially owned by you:

41

(b)    Other than as set forth in your response to Item 3(a) above, do you beneficially own any other securities of the Company?
 ̈    Yes 
 ̈    No
(c)    If your answer to Item 3(b) above is yes, state the type, the aggregate amount and CUSIP No. of such other securities of the Company beneficially owned by you:
Type:
Aggregate amount:
CUSIP No.:
(d)    Did you acquire the securities listed in Item 3(a) above in the ordinary course of business?
 ̈    Yes 
 ̈    No
(e)    At the time of your purchase of the securities listed in Item 3(a) above, did you have any agreements or understandings, direct or indirect, with any person to distribute the securities?
 ̈    Yes 
 ̈    No
(f)    If your response to Item 3(e) above is yes, please describe such agreements or understandings:
4.Nature of your Beneficial Ownership.
(a)    Check if the beneficial owner set forth in your response to Item 1(a) is any of the below:
(i)A reporting company under the Exchange Act.  ̈
(ii)A majority-owned subsidiary of a reporting company under the Exchange Act.  ̈
(iii)A registered investment fund under the 1940 Act.  ̈
(b)    If the beneficial owner of the Registrable Securities set forth in your response to Item 1(a) above is a limited partnership, state the names of the general partner(s) of such limited partnership:
(i)    With respect to each general partner listed in Item 4(b) above who is not a natural person and is not publicly-held, name each shareholder (or holder of partnership 

42

interests, if applicable) of such general partner. If any of these named shareholders are not natural persons or publicly-held entities, please provide the same information. This process should be repeated until you reach natural persons or a publicly-held entity.
(c)    Name your controlling shareholder(s) (the “Controlling Entity”). If the Controlling Entity is not a natural person and is not a publicly-held entity, name each shareholder of such Controlling Entity. If any of these named shareholders are not natural persons or publicly-held entities, please provide the same information. This process should be repeated until you reach natural persons or a publicly-held entity.
(i)    (A) Full legal name of Controlling Entity(ies) or natural person(s) who has/have sole or shared voting or dispositive power over the Registrable Securities:
(B) Business address (including street address) (or residence if no business address), telephone number and facsimile number of such person(s):
Address:
Telephone No.:
Fax No.:
(C)    Name of shareholders:
(ii)    (A)    Full legal name of Controlling Entity(ies):
(B)    Business address (including street address) (or residence if no business address), telephone number and facsimile number of such person(s):
Address:
Telephone No.:
Fax No.:
(iii)    Name of shareholders:
5.Plan of Distribution.
Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (3) only as follows (if at all):  All or any portion of such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder or, alternatively, through one or more underwriters, broker-dealers or agents.  Such Registrable Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices.  Such sales may be effected in transactions (which may involve crosses or block transactions) (i) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market, or (iv) through the writing of options, whether such options are listed on an options exchange or otherwise, (v) ordinary brokerage transactions and transactions in which the broker-dealer 

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solicits purchasers, (vi) block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction, (vii) purchases by a broker-dealer as principal and resale by the broker-dealer for its account, (viii) an exchange distribution in accordance with the rules of the applicable exchange, (ix) privately negotiated transactions, (x) short sales, (xi) sales pursuant to Rule 144, (xii) broker-dealers may agree with the selling securityholder to sell a specified number of shares at a stipulated price per share, (xiii) a combination of any such methods of sale, and (xiv) any other method permitted pursuant to applicable law.  In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging the positions they assume.  The Selling Securityholder may also sell Registrable Securities short and deliver Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such Registrable Securities.
State any exceptions here:

The undersigned acknowledges its obligation to comply with the provisions of the Exchange Act and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities. The undersigned agrees that neither it nor any person acting on its behalf will engage in any transaction in violation of such provisions.
In accordance with the undersigned’s obligation under the Warrant Agreement to provide such information as may be required by law for inclusion in the Shelf  Registration Statement, the undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Shelf  Registration Statement remains effective and the undersigned still holds Registrable Securities.
The undersigned acknowledges the Company may require the undersigned to furnish to the Company, in addition to the information provided herein, such information regarding the undersigned and the intended distribution of the shares of Common Stock issuable upon exercise of the Warrant and such other information as the Company may from time to time reasonably request in writing in connection with the registration pursuant to the Registration Statement.
All notices to the beneficial owner hereunder and pursuant to the Warrant Agreement shall be made in writing to the undersigned at the address set forth in Item 1(b) of this Notice and Questionnaire.
By signing below, the undersigned acknowledges that it is the beneficial owner of the Registrable Securities set forth herein, represents that the information provided herein is accurate, and consents to the disclosure of the information contained in this Notice and Questionnaire and the inclusion of such information in the Shelf  Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Shelf  Registration Statement and the related prospectus.
Once this Notice and Questionnaire is executed by the undersigned beneficial owner and received by the Company, the terms of this Notice and Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives and assigns of the Company and the undersigned beneficial owner. This Notice and Questionnaire shall be governed in all respects by the laws of the State of New York, without giving effect to rules governing the conflict of laws.

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IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.
	
		
	 
	RECORD OWNER OF WARRANTS OR REGISTRABLE SECURITIES: 

                      
(Please Print)
Signature:                
Date:                  

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO MOLYCORP, INC. AS FOLLOWS:
Molycorp, Inc.
5619 Denver Tech Center Parkway, Suite 1000
Greenwood Village, CO  80111
Telecopy: 
Attention:  

This Notice and Questionnaire must be returned within five (5) days after receipt of the Company’s notice with respect to the filing of a Registration Statement pursuant to Section 2.5 of the Warrant Agreement in order to include Warrants in such Registration Statement.

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