Document:

Exhibit 10.1

 

May 28,
2009

 

BNP Paribas, as Lender and
Administrative Agent

787 Seventh Avenue

New York, NY 10019

 

Deutsche
Bank Trust Company Americas, as Collateral Agent and Depositary Agent

60
Wall Street, 27th Floor

Mail
Stop: NYC60-2710

New
York, NY 10005

 

The
Lender parties to the Credit

Agreement (as defined below)

 

Re:                             Limited
Consent and Waiver and Amendment under the Credit Agreement and Account
Agreement (each as defined below)

 

Ladies
and Gentlemen:

 

1.                                       This request
for limited consent and waiver and amendment (this “Consent”) is
delivered to you pursuant to (i) that certain Credit Agreement, dated as
of September 25, 2006 (as amended, supplemented and modified from time to
time, the “Credit Agreement”), among BFE Operating Company, LLC (“Opco”),
Buffalo Lake Energy, LLC (“Buffalo Lake”), Pioneer Trail Energy, LLC (“Pioneer
Trail” and, together with Opco and Buffalo Lake, the “Borrowers”),
Opco, as Borrowers’ Agent (the “Borrowers’ Agent”), the Lenders party
thereto, BNP Paribas, as Administrative Agent and Arranger, and Deutsche Bank
Trust Company Americas, as Collateral Agent and (ii) that certain
Collateral Account Agreement, dated as of September 25, 2006 (as amended,
supplemented and modified from time to time, the “Account Agreement”),
among Borrowers, the Borrowers’ Agent, the Collateral Agent, and Deutsche Bank
Trust Company Americas, as the Depositary Agent (the “Depositary Agent”).  All capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit
Agreement.

 

2.                                       The Borrowers
hereby acknowledge having received notice by letter dated May 22, 2009
that: (a) a number of Defaults and Events of Default under the Credit
Agreement have occurred and are continuing as of the date hereof; and (b) as
a result thereof, the Borrowers cannot satisfy the conditions precedent to
borrow funds under the Credit Agreement.

 

3.                                       Section 6.1(a) of
the Account Agreement provides that, on and after the date on which the
Depositary Agent has received a notice of an Event of Default (and this Consent
constitutes such a notice of an Event of Default pursuant to paragraph 9 of
this Consent), the Depositary Agent shall accept all notices and instructions
required to be given to the Depositary Agent pursuant to the Account Agreement
only from the Collateral Agent (acting on the instructions of the
Administrative Agent pursuant to the Credit Agreement) and not from any other
Person, and the Depositary Agent shall not withdraw, dispose of, transfer, pay
or otherwise distribute any monies in any of the Accounts except pursuant to
notices and instructions from the 

 

 

Collateral
Agent (acting on the instructions of the Administrative Agent pursuant to the
Credit Agreement).

 

4.                                       The Borrowers
are in immediate need of funds for the purposes and in the amounts specified in
Exhibit A and therefore hereby request the Lenders to permit the
transfers set forth in paragraph 5 below.

 

5.                                       Notwithstanding
anything to the contrary contained in Section 6.1(c) or any other
provision of the Account Agreement but subject to the proviso below in this
paragraph, the Collateral Agent (acting on the instructions of the
Administrative Agent) hereby instructs the Depositary Agent to not withdraw,
dispose of, transfer, pay or otherwise distribute any monies in any of the
Accounts except pursuant to Sections 4.2(a)(iv), 4.2(a)(v)(A), 4.2(b), 4.2(d),
4.2(e), 4.3(b), 4.4 and 4.5 of the Account Agreement in accordance with a
certificate provided in conformity with the requirements of the Account Agreement
for such purpose, unless the Depositary Agent shall have been instructed
otherwise in writing by the Collateral Agent (acting on the instructions of the
Administrative Agent), in the order of priority set forth in such Sections; provided,
however, that the Depository Agent may only make transfers out of the
Payment Accounts pursuant to Section 4.3(b) from funds on deposit in
the Payment Accounts on the date hereof and solely for the uses and in the
amounts specified in Exhibit A. 
The foregoing consent and waiver shall expire on May 31, 2009
unless otherwise extended by a written consent of the Required Lenders or
terminated earlier by a written notice from the Administrative Agent.

 

6.                                       Exhibit B hereto sets
forth the current balances in each of the Accounts as of the date hereof.

 

7.                                       The parties
hereto agree that Section 4.2(b) of the Account Agreement is hereby
amended by replacing “Section 4.2(a)(iii)” appearing in the third line
with “Section 4.2(a)(iv)”.

 

8.                                       Notwithstanding
anything provided herein or in the Financing Documents, the Borrowers
acknowledge and agree that: (a) the foregoing waivers and instructions
provided herein may be modified or revoked at any time upon unilateral notice
from the Administrative Agent (acting in its sole discretion), except that the
extension of the expiration date of the waiver contained in paragraph 5 above
shall require the prior written consent of the Required Lenders; (b) the
Construction Budget in effect on the date hereof is hereby suspended for all
purposes and the Borrowers may not request a Borrowing in accordance with such
Construction Budget unless otherwise approved in writing by the Required
Lenders; and (c) the Borrowers may not request any transfers, withdrawals
or payments under the Account Agreement except as provided in this Consent.

 

9.                                       The Collateral
Agent and Depositary Agent hereby agree that this Consent shall be deemed to
constitute a written “Notice of Default”: (a) from the Lenders pursuant to
Section 8.5(b) of the Credit Agreement (in the case of the Collateral
Agent) and (b) from the Administrative Agent pursuant to Section 6.1(a) of
the Account Agreement (in the case of the Depositary Agent).

 

10.                                 The Lenders and
Agents (collectively the “Lender Parties”) provide this Consent (i) without
prejudice to any of the Lender Parties’ rights under the Credit Agreement, the
other 

 

2

 

Financing
Documents and/or under applicable law, all of which rights and remedies are
specifically reserved and (ii) without prejudice to the Borrowers’
continuing obligations under the Credit Agreement, all of which remain in full
force and effect.

 

11.                                 On its own
behalf and on behalf of the other Lender Parties, the Administrative Agent
hereby expressly reserves all of the Lender Parties’ respective individual and
collective rights and remedies under the Credit Agreement, the other Financing
Documents and applicable law, including, without limitation, with respect to
the existence of any Defaults or Events of Default under the Credit Agreement,
and the remedies available under Section 7.2(b) thereof.  The Lender Parties (i) have not waived
and do not intend to waive any existing or future Defaults or Events of Default
under the Credit Agreement, and (ii) are not obligated in any way, and
have not agreed, to “stand still” or in any respect forbear from individually
or collectively enforcing rights or remedies under the Credit Agreement, any
other Financing Document or under any applicable law, all of which rights and
remedies are expressly reserved by the Lender Parties, including the right to
exercise any remedies in respect of the Events of Default described
hereunder.  No oral communication, course
of conduct, past or future forbearance on the part of any of the Lender Parties
should be viewed as a limitation upon or waiver of the absolute right and
privilege of the Lender Parties in exercising remedies that currently or may in
the future exist, and any single or partial exercise of any right or remedy
under the Financing Documents shall not preclude any other or further exercise
thereof or the exercise of any other right or remedy.

 

12.                                 Pursuant to Section 9.12(a) of
the Credit Agreement, the Lenders hereby authorize and direct the
Administrative Agent, the Administrative Agent (acting upon instructions of the
Required Lenders) hereby authorizes and directs the Collateral Agent and the
Collateral Agent hereby authorizes and directs the Depositary Agent, to execute
and deliver this Consent and any other documents which may be reasonably
necessary to give effect to this Consent.

 

13.                                 Except as
expressly amended hereby, all terms and conditions contained in the Credit
Agreement and all other Financing Documents shall remain unchanged and in full
force and effect in accordance with their respective terms.

 

14.                                 THIS CONSENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

15.                                 This Consent
shall become effective as of the date first written above (the “Effective
Date”) upon the following conditions having been fully satisfied:  (a) the Required Lenders shall have
executed and delivered (including by way of facsimile or electronic “pdf”
format) to the Administrative Agent duly executed counterparts of this Consent
and (b) the Administrative Agent, the Collateral Agent and the Depositary
Agent shall have executed and delivered duly executed counterparts of this
Consent.

 

16.                                 The parties
hereto agree that this Consent may be executed in counterparts.

 

3

 

{signature pages follow}

 

4

 

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

 

 

	
  BFE
  OPERATING COMPANY, LLC,

  	
   

  
	
  as
  Borrower

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  BUFFALO
  LAKE ENERGY, LLC,

  	
   

  
	
  as
  Borrower

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  PIONEER
  TRAIL ENERGY, LLC, as

  	
   

  
	
  Borrower

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  BFE
  OPERATING COMPANY, LLC,

  	
   

  
	
  as
  Borrowers’ Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

Accepted
and Agreed:

 

	
  BNP PARIBAS, as Lender

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  STANDARD
  CHARTERED BANK,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  AGFIRST
  FARM CREDIT BANK,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  FARM
  CREDIT SERVICES OF AMERICA,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

	
  GREENSTONE
  FARM CREDIT SERVICES, ACA/FLCA, 

  as Lender

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  METROPOLITAN
  LIFE INSURANCE COMPANY, as Lender

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  AMARILLO
  NATIONAL BANK,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  FARM
  CREDIT BANK OF TEXAS,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

	
  COÖPERATIEVE
  CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK
  BRANCH,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  FIRST
  NATIONAL BANK OF OMAHA,

  	
   

  
	
  as
  Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  CIFC
  Funding 2006-IB, LTD., as Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  CIFC
  Funding 2006-II, LTD., as Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  CIFC
  Funding 2006-III, LTD., as Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

	
  DEUTSCHE
  BANK TRUST COMPANY

  	
   

  
	
  AMERICAS,
  as Collateral Agent and Depositary Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS, as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

EXHIBIT A TO CONSENT

 

PERMITTED OPERATION AND
MAINTENANCE EXPENSES UNDER CONSENT

 

 

EXHIBIT B TO CONSENT

 

OUTSTANDING BALANCES IN
ACCOUNTSex101.htm

    
       

       

      The
Toronto-Dominion Bank 

      4499
Highway 7

    

    
      Woodbridge,
Ontario

    

    
      L4L9A9

    

    
       

       

      Dear
Sir/Madam:

    

    
       

       

      RE:
Canada Small Business Financial Loan

    

    
          CONFORCE
1 CONTAINER TERMINAL INC. (hereinafter referred to as “The
Borrower")

    

    
       

       

      Further
to Canada Small Business Financial Loan Authorization provided by the Bank in
the name of Borrower dated November 21, 2008 in the amount of $250,000.00,
kindly accept this letter as your authority to advance the CSBFL funds into
business account #5234680, Transit #I890,
in the name of the Borrower and supported by vendor issued invoices representing
the purchase by the Borrower of pre-approved qualifiable assets to be financed
under the Canada Small Business Financial Loan Program.

    

    
       

       

      Subsequent
to the aforementioned fundings taking place as detailed above, please also
accept this letter as your authority to DEBIT business account # 5234680,
Transit # I890, in the name of the Borrower for the sole purpose of making
direct payment by way of Bank Draft on behalf of The Borrower to the vendors
issuing the aforementioned invoices.

    

    
       

      Dated at
Woodbridge this 26 day of November, 2008

    

    
       

       

      CONFORCE
1 CONTAINER TERMINAL INC.

       

      /s/ 
Marino Kulas

       

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    
      	
              

            	
              Canada
      Small Business Financing Act Loan

              Credit
    Agreement

            
	     Small Business
      banking	 
	
               

              Date:________________________________

            	 
	 	 
	
              Customer(s)
      Name:

              CONFORCE 1 CONTAINER TERMINAL INC.

            	
              xxxx 
      of Account

              5234680/1890

            
	
              Address
      (Street, City, Towm, Province, Postal Code)

              51 A CALDARI ROAD, UNIT 1M, CONCORD, ON
      L4K4G3

            	 
	
              Customer
      Contact:

              MARINO KULAS 416-234-0266

            	Branch
      Contact: 

              ANGELA SCAUZILLO    905-851-5556

            
	 	 

    

    x Floating
Rate Loan

    
    

     

    
      
        	
                Loan
      Amount:

                $ 250,000.00

              	
                oFloat Principle
      Interest

                xFloat
      Dividend

              	
                Interest
      Rate: TD Prime Rate Plus 

                3.00 % Per
      Annum

              	
                Payments
      of Principal and Interest:

                $  2902.49

              	
                Frequency:

                x Monthly
      

              
	
                First
      Principal Payment Date:

                JAN. 1, 2009

              	
                First
      Interest payment Date:

                 

              	
                Term:

                120 MONTHS

              	
                Term End
      Date:

                JAN. 1, 2019

              	
                Amortization
      Date:

                JAN. 1,  2019

              
	 	 	 	 	 

      

    

    o Fixed Rate
Loan

    
       

      
        	
                Loan
      Amount:

              	
                 

              	
                Interest
      Rate: 

                         
      Per Annum

              	
                Payments
      of Principal and Interest:

                 

              	
                 

              
	
                Frequency:

              	
                First
      payment Date:

                 

              	
                Term:

                 

              	
                Term End
      Date:

                 

              	
                Amortization
      Date:

                 

              
	 	 

      

    

    

      
        Use of
Information - In this section, the words you, your and yours mean the
customer. The words we, us
and our mean the
TD Bank Financial Groups. The word Information means your
personal financial information (except health information). It includes
information provided to us by you, including through [he products and services
you use, and obtained from others with your consent. You agree as
follows:

      

      
         

        How We
Use Information -We may
use Information: to establish and serve you as our customer; to determine
whether any products or services of the TD Bank Financial Group are suitable for
you and offer them to you; or, as required or permitted by law. When you provide
us with your Social Insurance Number, we may use it to keep your Information
separate from that of other customers with a similar name, including Information
obtained through the credit approval process. We may share Information within
the TD Bank Financial Group where permitted by law,

      

      
         

        Collection
and Use of Credit Information - WE MAY OBTAIN INFORMATION ABOUT YOU FROM PARTIES
OUTSIDE THE TD BANK FINANCIAL GROUP, INCLUDING THROUGH A CREDIT CHECK, AND
VERIFY INFORMATION WITH THEM. YOU AUTHORIZE THOSE PARTIES TO GIVE US THE
INFORMATION. WE MAY DISCLOSE INFORMATION TO OTHER LENDERS

      

      
        AND
CREDIT BUREAUS - THIS HELPS ESTABLISH YOUR CREDIT HISTORY AND SUPPORT THE
PROCESS.

      

      
         

        You
may obtain our privacy code - "Protecting Your Privacy " - or review your
options for refusing or withdrawing this consent, including vour option nt! to
be contacted about offers of products or services, by contacting your branch or
calling us at 1-366-567-8888.

      

      
         

        *The
TD Bank Financial Group means The Toronto-Dominion Bank and its subsidiaries and
affiliates, who provide deposit, investment.

      

      
        loan,
securities, trust, insurance and  other products or
services.

      

      
         

        Your
Agreement

      

      
         

        By
signing below you agree to be bound by the terms and conditions of the Canada
Small  Business Financing Act Loan - Credit Agreement above and on the
reverse.

      

    

    
      CONFORCE 1 CONTAINER TERMINAL INC.

    

    /s/ Marino Kulas

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
       

      Definitions. In this Agreement the
capitalized terms used shall have the meaning ascribed to them on the front of
this Agreement. Other capitalized terms mean: "Loan" means the Loan
described on the front of this Agreement, and all amounts outstanding under the
Loan including, without limitation, all principal, interest, and any costs and
expenses incurred in connection with the Loan "TD Prime Rate" means the
annual interest rate established by the Bank from time to time as the reference
rate of interest for the determination of interest rates the Bank
charges to customers of varying degrees of creditworthiness in Canada for
Canadian dollar loans made by the Bank in Canada "You" and "Your" and "Yours" means the customer(s) named
on the front of this Agreement The "Bank" means
"The Toronto-Dominion Bank and its successors and
assigns

    

    
       

      Repayment of
Loan (i)
Fixed Rate Loans: You
will repay The Loan at the Frequency and in the Payments of Principal and
Interest commencing on the First Payrnent Date until the Term End Date when the
balance, if any, of the Loan shall be paid, (ii) Floating Rate
Loans:

    

    
       

      For Float
Proposal + Interest, you will repay the principal of the Loan at the Frequency
and in the Minimum Principal Payment commencing on The First Principal Payment
Date until the Term End Date when the balance, if any, of the Loan shall be paid Interest
must be paid monthly commencing on the first Interest Payment
date.

    

    
       

      For Float
Blended, you will repay the principal and interest of the Loan at
The Frequency and in the Payments of Principal and interest commencing on
the First Principal and Interest Dates until the Term End Date when the balance,
if any, of the Loan shall be paid. If the TD Prime Rate at any time
increases above the TD Prime Rate in effect at any time, we may
increase the Payments of Principal and Interest without prior nonce to you. but
we will give you notice of such increase thereafter. if we do not increase the
Payments of Principal and Interest, you will he required to continue to make
such payments at the Frequency until the Loan Amount and accrued interest
thereon  have been paid in full. If this results in the
Loan not being paid in full
by the Amortization Date, you will at such time, without demand by us,
pay us such Loan in full. If the TD Prime Rate at any time decreases below the
TD Prime Rate in effect at any tune, the Payments of Principal and Interest will
continue to be payable unless you request in writing that we decrease such
payments to reflect such lower TD Prime Rate.

    

    
       

      Multiple
Advances. If the loan is to be advanced in
stages, notwithstanding the provisions of Repayment of Loan above and the First
Principal Payment Date or First Payment Date set out an page 1 hereof,
repayment of the principal of the Loan will commence on the earlier of (i)
thirty (30) days after the final advance is made or (ii) one hundred and eighty
(180) days after the first advance is made.

    

    
       

      If the
Floating Rate Loan is to be advanced in stages, and. after the final advance,
the actual Loan Amount advanced is different than as shown on the front,
the Bank may send you a written notice setting out changes to the amount of the
Payments of Principal and Interest or Minimum Principal Payments. First
Principal Payment Date, First Interest Payment Date or Term End Date so that the
actual loan Amount is repaid over equal installments during the Term taking into
consideration the actual Loan amount and the date of the final advance. The Bank
may require that any advance be not less than a minimum amount as specified by
the Bank. You may repay all amounts outstanding under the Loan within 10 days
after you are deemed to receive The written notice. If you do repay the Bank in
full you will be deemed to accept the change and the Bank will maintain the Loan
according to the revised terms and conditions described in the
notice

    

    
       

      Payment of
Invoices. You
acknowledge and agree that the Bank will fund the payment of invoices or
portions thereof which relate solely to eligible assets under the Canada
Small Business Financing Loan Act program and that The Bank will debit
any of your accounts with the Bank for any ineligible invoice or portion
thereof. You authorize the Bank to pay the full remaining balance due on any
invoice by issuing a draft payable to the issuer of the
invoice. You also authorize the Bank to debit any of your accounts with the Bank
for the portion of the purchase price not financed by the
Loan.

    

    
       

      The Interest
Rate. You will
pay interest on the Loan at the applicable interest rate set out on the front of
this Agreement as follows; in the case of a Fixed Rate Loan on the First Payment
Date and at the Frequency, and in the case of a Floating Rate Loan, on a monthly
basis commencing on the First Interest Payment Date.

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    
       

      Compounded and
Payable Monthly. Interest on the Loan is
calculated daily and compounded monthly not in advance at the applicable
interest rate set out on the front of this Agreement.

    

    
       

      How Interest Is
Calculated And Payable.
The Bank calculates interest on the basis of a 365/366 day year. Interest
will continue to be payable by you both before and after (i) maturity, (ii) the
Bank demands payment in full, (iii) a default on this Agreement, and/or (iv) a
judgment is rendered against you.

    

    
       

      Prepayment of
Loans. Floating
Rate loans may be prepaid at any time without penalty. The following applies
only to the Fixed Rate Loans. During each one year period. (“Year”), commencing
on the date of the first advance under the Loan, you may, on
the anniversary of the date of the first advance under The Loan,
("Anniversary"), prepay an aggregate amount not exceeding 10% of the Loan Amount
without penalty, provided that an Event of Default has not occurred. This
privilege is not cumulative from Year to Year. On the Anniversary, you may
prepay more than 10% of The Loan Amounts(The "Excess") upon payment of an amount
equal to the greater of: (i) three months interest on the Excess at the interest
rate chargeable hereunder, and (ii) the amount, if any, by which (a) the net
present value of the of the Excess or the remained of the term calculated at the
Date of prepayment and discounted at the Bank of Canada Rate as of that date
exceeds (b) the net present value, calculated and discounted at the Bank of
Canada Rate as of the date of the prepayment, of a loan for the Excess if it
were made on that Date for the remainder of The Term. You may, at any time other
than on the Anniversary, prepay the whole or any part of The Loan Amount upon
payment of an amount equal to the greater of: (i) three months interest on the
amount prepaid at the interest rate chargeable hereunder, and (ii) the amount,
if any, by which (a) the net present value of the amount prepaid for the
remainder of the Term calculated at the date of prepayment
and discounted at the Bank of Canada Rate as of that Date exceeds (b) the net
present value, calculated and discounted at the Bank of Canada Rate as of the
date of prepayment, of a Loan for the amount prepaid if it were made on that
date for the remainder of The Term (The "Prepayment Charge")

    

    
       

      Renewal of Term
Loan, Prior to
the Term End Date, the Bank may give you notice of the renewal options (the
"Renewal Agreement"), if any. Available for each subsequent period, (“Subsequent
Period”) You shall confirm to the Bank your agreement to renew (by signing
and returning the Renewal Agreement) on or before the first day of each
Subsequent Period (the "Renewal Date"). If you do not sign and return the
Renewal Agreement this Loan will be deemed to be renewed for a Subsequent Period of
one (1) year at the interest Rate determined by the Bank. This
Agreement shall apply during each Subsequent Period except as amended by the
Renewal Agreement.

    

    
      

      Payments The Bank may apply your
payments to any part of The loan as it sees fit. If any payment due Date fails
on a Date which is a Saturday, Sunday or Bank holiday, any payment
scheduled for that date will not be applied until the business day first
following that date. The Bank may debit any account you maintain with the Bank
any amount owed by you under the Agreement.

    

    
       

      Default. The Bank may require you to
repay the Loan, (and an amount equal to the Prepayment Charge), upon The
occurrence of any one of the following events of default ("Event of Default"):
(i) you default in paying any amount due hereunder, (ii) you or any guarantor of
the Loan (a "Guarantor") default in paying any other creditor or any other
loan to the Bank, (iii) you or a Guarantor fail to comply with any of
provisions of this Agreement or any other agreement (including a security
agreement to which you or a Guarantor are a
party, (iv) you or a Guarantor make any false misleading representation to the
Bank, (v) you or a Guarantor fail to provide any security or guarantee
requested by the Bank, (vi) you or a Guarantor commit an act of bankruptcy or
become insolvent, (vii) a receiver is appointed for your business or any part of
your property, (viii) any other event occurs which causes the Bank to
deem itself insecure or to believe that the prospect of payment by you or a
Guarantor or the performance of any obligation to the Bank is or is about
to be impaired,(ix) the Bank believes that there has
occurred a material adverse change in the creditworthiness, assets, business, or
financial condition of you or a Guarantor, or (x) The Bank believes that the
value of any security for the Loan has declined, or is likely to
decline.

    

    
      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Non
Waiver, Any
failure by the Bank to object to or take action with respect to a breach of this
Agreement or any security or upon the occurrence of an Event of Default
shall not constitute a waiver of the Bank's right to take action at a later date
based on that breach or Event of Default. No course of conduct by the Bank will
give rise to any reasonable expectation which is in any way inconsistent
with The terms and conditions of this Agreement and the security or
the Bank's rights thereunder which can only be amended with the express written
consent of the Bank.

    

    
       

      Cost &
Expenses. You
will pay the Bank on demand all of the Bank's costs and expenses including the
few and charges of legal counsel, on a solicitor client basis and notarial
fees), relating to enforcing the loan, and taking, enforcing and
realizing on the security provided for the Loan.

    

    
       

      Positive
Covenants, In addition to all
of your other obligations in this Agreement you will (i) pay all
amounts outstanding to the Bank when due or demanded, (ii)
maintain your existence as a corporation, partnership or sole
proprietorship, as the case may be, and keep all material agreements, rights,
franchises, licenses, operations, contracts or other arrangements in full
force and effect, (iii) pay all taxes, (iv) maintain your property, plant
and equipment in good repair and working condition (v) continue to carry on
the business now being carried on by you, (vi) maintain adequate insurance
on all of your assets, undertakings, and business risks, and (vii) permit
the Bank and its authorized representatives full access to your
premises, business, financial and computer records and allow the
duplication or extraction of pertinent information therefrom.

    

    
       

      Negative
Covenants. You
will not: (i) create, incur, assume, or suffer to exist, any mortgage, deed of
trust, pledge, lien, security interest, assignment, charge, or encumbrance
(including without limitation, any conditional sale, or other
title retention agreement, or finance lease) of any nature, upon or with
respect to any of your property, now owned or hereafter acquired. (ii) merge or
amalgamate with any other entity or permit any change of ownership or
change your capital structure, (iii) sell, lease, assign, or otherwise dispose
of all or substantially all of your assets

    

    
       

      Agreement to
Provide Information and Security. You will provide, or cause
to be provided, whatever information the Bank may request from time to time. You
will provide, or cause to be provided, any security or guarantees required by
the Bank from time to time. You will keep the Bank advised of your current
address. You authorize the Bank to attach one or more schedules to any and all
security agreements provided to the Bank to enable the Bank to more specifically
describe the assets secured by the security agreement,

    

    
       

      Environmental. You represent, warrant
and covenant (which representation, warranty and covenant shall continue
each day hereafter) that your property and your business is being operated
in compliance with applicable environmental, health and safety laws and
regulations and that there are no judicial or administrative proceedings in
respect thereto.

    

    
       

      You
shall, when asked by the Bank, at your expense, obtain and provide to the
Bank an appraisal, environmental audit or inspection report of any of your
property from appraisers, auditors or inspectors acceptable to the
Bank.

    

    
       

      You will
defend, indemnify and hold harmless the Bank, its officers, directors,
employees, agents and shareholders, against all loss, costs, claims, damages and
expenses (including legal, audit and inspection expenses) which may be suffered
incurred in connection with the breach of this environmental representation,
warranty and covenant and against environmental damage occasioned by your
activities or contamination of or from any of your
property.

    

    
      

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      Books and
Records. You agree that the
Bank's books and records are evidence of the amount of principal and interest
outstanding under the Loan and of all other amounts owed by
you.

    

    
       

      Method of
Communication To
You, The
Bank may communicate with you by ordinary, uninsured mail or other means,
including hand delivery or facsimile transmission. Mailed information is deemed
to be received by you five days after mailing. Delivered information is deemed
to be received when delivered or left at your address. Messages sent by
facsimile are deemed to be received when the Bank receives a fax
confirmation.

    

    
       

      Who Is
Bound By This
Agreement. This
Agreement shall be binding on and enured to the benefit of the Bank and its
successors and assigns. It shall also be binding on you, your heirs, your
successors and personal representatives - including executors and
administrators. You must obtain our written consent to assign this
Agreement another person. The Bank may assign this Agreement without notice to
you and without your consent.

    

    
       

      Joint and
Several. You are
jointly and severally (which means individually and collectively) liable to the
Bank (and in Quebec you are solidarily liable to the Bank for the loan with
each other person who is liable for the Loan.

    

    
       

      The
Law That
Applies. This Agreement shall be
governed by the law of the Province in which The Branch of Account named on
the front of this Agreement is situated. If any provision in this Agreement is
contrary to applicable- law, the Agreement shall continue in force with
such amendments  as may be required by law

    

    
       

      APPLICABLE IN PROVINCE OF QUEBEC ONLY: It is the
express wish of the parties that this Agreement and any directly or indirectly
related documents be drawn up in English.

    

    
      
         

      

      
        -6-

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