Document:

Exhibit 10.1

 

EXECUTION VERSION

	
   

  	
   

  

 

$290,000,000

 

 

CREDIT AGREEMENT

 

among

 

THOMPSON CREEK METALS COMPANY INC.,

 

 

as Borrower,

 

 

 The Several Lenders from Time to
Time Parties Hereto,

 

 

JPMORGAN CHASE BANK, N.A. 

as Administrative Agent,

 

ROYAL BANK OF CANADA,

as Syndication Agent,

 

BBVA COMPASS, DEUTSCHE BANK AG CANADA BRANCH,
STANDARD BANK and SOCIÉTÉ 

GÉNÉRALE (CANADA BRANCH),

as Documentation Agents,

 

J.P. MORGAN SECURITIES LLC

and RBC CAPITAL MARKETS

as Joint Bookrunners

 

and

 

J.P. MORGAN SECURITIES LLC

and RBC CAPITAL MARKETS

as Joint Lead Arrangers,

 

 

Dated as of December 10, 2010

	
   

  	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
  1

  
	
  1.2

  	
  Other Definitional Provisions

  	
  24

  
	
  1.3

  	
  Accounting Terms; GAAP

  	
  25

  
	
  1.4

  	
  Currency Translations

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF COMMITMENTS

  	
  26

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Commitments

  	
  26

  
	
  2.2

  	
  Procedure for Revolving Loan Borrowing

  	
  26

  
	
  2.3

  	
  Bankers’ Acceptances

  	
  27

  
	
  2.4

  	
  Swingline Commitment

  	
  29

  
	
  2.5

  	
  Procedure for Swingline Borrowing; Refunding of Swingline
  Loans

  	
  30

  
	
  2.6

  	
  Commitment Fees, etc.

  	
  31

  
	
  2.7

  	
  Termination or Reduction of Commitments

  	
  31

  
	
  2.8

  	
  Optional Prepayment

  	
  31

  
	
  2.9

  	
  Mandatory Prepayments

  	
  32

  
	
  2.10

  	
  Conversion and Continuation Options

  	
  32

  
	
  2.11

  	
  Limitations on Interest Periods and Contract Periods

  	
  34

  
	
  2.12

  	
  Interest Rates and Payment Dates

  	
  34

  
	
  2.13

  	
  Computation of Interest and Fees

  	
  36

  
	
  2.14

  	
  Inability to Determine Interest Rate

  	
  36

  
	
  2.15

  	
  Pro Rata Treatment and Payments

  	
  38

  
	
  2.16

  	
  Requirements of Law

  	
  39

  
	
  2.17

  	
  Taxes

  	
  41

  
	
  2.18

  	
  Indemnity

  	
  42

  
	
  2.19

  	
  Change of Lending Office

  	
  43

  
	
  2.20

  	
  Replacement of Lenders

  	
  43

  
	
  2.21

  	
  Defaulting Lender

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
  45

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  L/C Commitment

  	
  45

  
	
  3.2

  	
  Procedure for Issuance of Letter of Credit

  	
  45

  
	
  3.3

  	
  Fees and Other Charges

  	
  45

  
	
  3.4

  	
  L/C Participations

  	
  46

  
	
  3.5

  	
  Reimbursement Obligation of the Borrower

  	
  47

  
	
  3.6

  	
  Obligations Absolute

  	
  47

  
	
  3.7

  	
  Letter of Credit Payments

  	
  48

  
	
  3.8

  	
  Applications

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  48

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Financial Condition

  	
  48

  
	
  4.2

  	
  No Change

  	
  48

  
	
  4.3

  	
  Existence; Compliance with Law

  	
  48

  
				

 

 

	
  4.4

  	
  Power; Authorization; Enforceable Obligations

  	
  49

  
	
  4.5

  	
  No Legal Bar

  	
  49

  
	
  4.6

  	
  Litigation

  	
  49

  
	
  4.7

  	
  No Default

  	
  49

  
	
  4.8

  	
  Ownership of Property; Liens

  	
  49

  
	
  4.9

  	
  Intellectual Property

  	
  49

  
	
  4.10

  	
  Taxes

  	
  50

  
	
  4.11

  	
  Federal Regulations

  	
  50

  
	
  4.12

  	
  Labor Matters

  	
  50

  
	
  4.13

  	
  ERISA

  	
  50

  
	
  4.14

  	
  Canadian Pension Plans and Benefit Plans

  	
  51

  
	
  4.15

  	
  Investment Company Act; Other Regulations

  	
  51

  
	
  4.16

  	
  Subsidiaries

  	
  51

  
	
  4.17

  	
  Use of Proceeds

  	
  51

  
	
  4.18

  	
  Environmental Matters

  	
  52

  
	
  4.19

  	
  Accuracy of Information, etc.

  	
  52

  
	
  4.20

  	
  Security Documents

  	
  53

  
	
  4.21

  	
  Solvency

  	
  53

  
	
  4.22

  	
  Regulation H

  	
  53

  
	
  4.23

  	
  Senior Debt

  	
  53

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS PRECEDENT

  	
  54

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Conditions to Initial Extension of Credit

  	
  54

  
	
  5.2

  	
  Conditions to Each Extension of Credit

  	
  55

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
  56

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial Statements

  	
  56

  
	
  6.2

  	
  Certificates; Other Information

  	
  56

  
	
  6.3

  	
  Payment of Obligations

  	
  58

  
	
  6.4

  	
  Maintenance of Existence; Compliance

  	
  58

  
	
  6.5

  	
  Maintenance of Property; Insurance

  	
  58

  
	
  6.6

  	
  Inspection of Property; Books and Records; Discussions

  	
  58

  
	
  6.7

  	
  Notices

  	
  59

  
	
  6.8

  	
  Environmental Laws

  	
  59

  
	
  6.9

  	
  Additional Collateral, etc.

  	
  60

  
	
  6.10

  	
  Post-Closing Actions

  	
  61

  
	
  6.11

  	
  Canadian Real Estate Post-Closing Actions

  	
  63

  
	
  6.12

  	
  Dissolution of New Jersey Entity

  	
  63

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  NEGATIVE COVENANTS

  	
  64

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Financial Condition Covenants

  	
  64

  
	
  7.2

  	
  Indebtedness

  	
  64

  
	
  7.3

  	
  Liens

  	
  66

  
	
  7.4

  	
  Fundamental Changes

  	
  67

  
	
  7.5

  	
  Disposition of Property

  	
  68

  
	
  7.6

  	
  Restricted Payments

  	
  69

  
	
  7.7

  	
  Capital Expenditures

  	
  69

  
	
  7.8

  	
  Investments

  	
  70

  
				

 

 

	
  7.9

  	
  Optional Payments and Modifications of Certain Debt
  Instruments

  	
  71

  
	
  7.10

  	
  Transactions with Affiliates; Transactions with Excluded
  Subsidiaries

  	
  71

  
	
  7.11

  	
  Sales and Leasebacks

  	
  71

  
	
  7.12

  	
  Swap Agreements

  	
  71

  
	
  7.13

  	
  Changes in Fiscal Periods

  	
  71

  
	
  7.14

  	
  Negative Pledge Clauses

  	
  72

  
	
  7.15

  	
  Clauses Restricting Subsidiary Distributions

  	
  72

  
	
  7.16

  	
  Lines of Business

  	
  72

  
	
  7.17

  	
  Amendments to Material Agreements

  	
  72

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
  72

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  THE AGENTS

  	
  75

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
  75

  
	
  9.2

  	
  Delegation of Duties

  	
  76

  
	
  9.3

  	
  Exculpatory Provisions

  	
  76

  
	
  9.4

  	
  Reliance by Administrative Agent

  	
  76

  
	
  9.5

  	
  Notice of Default

  	
  76

  
	
  9.6

  	
  Non-Reliance on Agents and Other Lenders

  	
  77

  
	
  9.7

  	
  Indemnification

  	
  77

  
	
  9.8

  	
  Agents in Their Individual Capacity

  	
  77

  
	
  9.9

  	
  Successor Administrative Agent

  	
  78

  
	
  9.10

  	
  Documentation Agent, Joint Lead Arrangers, Joint Bookrunners
  and Syndication Agent

  	
  78

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
  78

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendments and Waivers

  	
  78

  
	
  10.2

  	
  Notices

  	
  79

  
	
  10.3

  	
  No Waiver; Cumulative Remedies

  	
  80

  
	
  10.4

  	
  Survival of Representations and Warranties

  	
  80

  
	
  10.5

  	
  Payment of Expenses and Taxes

  	
  80

  
	
  10.6

  	
  Successors and Assigns; Participations and Assignments

  	
  81

  
	
  10.7

  	
  Adjustments; Set-off

  	
  84

  
	
  10.8

  	
  Counterparts

  	
  85

  
	
  10.9

  	
  Severability

  	
  85

  
	
  10.10

  	
  Integration

  	
  85

  
	
  10.11

  	
  GOVERNING LAW

  	
  85

  
	
  10.12

  	
  Submission To Jurisdiction; Waivers

  	
  85

  
	
  10.13

  	
  Acknowledgements

  	
  86

  
	
  10.14

  	
  Releases of Guarantees and Liens

  	
  86

  
	
  10.15

  	
  Confidentiality

  	
  86

  
	
  10.16

  	
  WAIVERS OF JURY TRIAL

  	
  87

  
	
  10.17

  	
  USA Patriot Act

  	
  87

  
	
  10.18

  	
  Judgment Currency

  	
  87

  
				

 

 

SCHEDULES:

 

	
  1.1A

  	
  Commitments

  
	
  1.1B

  	
  Mortgaged
  Property

  
	
  4.4

  	
  Consents,
  Authorizations, Filings and Notices

  
	
  4.6

  	
  Litigation

  
	
  4.12

  	
  Labor
  Matters

  
	
  4.14

  	
  Canadian
  Pension Plan and Benefit Plans

  
	
  4.16(a)

  	
  Subsidiaries

  
	
  4.16(b)

  	
  Capital
  Stock

  
	
  4.20(a)

  	
  UCC
  Filing Jurisdictions

  
	
  4.20(b)

  	
  Mortgage
  Filing Jurisdictions

  
	
  6.1

  	
  Financial
  Statements

  
	
  7.2(d)

  	
  Existing
  Indebtedness

  
	
  7.3(f)

  	
  Existing
  Liens

  
	
  7.10

  	
  Transactions
  with Affiliates

  

 

EXHIBITS:

 

	
  A-1

  	
  Form of
  US Guarantee and Collateral Agreement

  
	
  A-2

  	
  Form of
  Canadian Guarantee and Collateral Agreement

  
	
  B

  	
  Form of
  Compliance Certificate

  
	
  C

  	
  Form of
  Closing Certificate

  
	
  D-1

  	
  Form of
  US Mortgage

  
	
  D-2

  	
  Form of
  Canadian Mortgage

  
	
  E

  	
  Form of
  Assignment and Assumption

  
	
  F

  	
  Form of
  Solvency Certificate

  
	
  G

  	
  Form of
  Discount Note

  
	
  H

  	
  Form of
  Royal Gold Intercreditor Agreement

  

 

 

CREDIT
AGREEMENT (this “Agreement”), dated as of December 10, 2010, among
THOMPSON CREEK METALS COMPANY INC., a corporation organized under the laws of
British Columbia (the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”),
ROYAL BANK OF CANADA, as
Syndication Agent, BBVA COMPASS,
DEUTSCHE BANK AG CANADA BRANCH, STANDARD BANK and SOCIÉTÉ GÉNÉRALE,
(CANADA BRANCH), as Documentation Agents, JPMORGAN CHASE BANK, N.A. and RBC CAPITAL MARKETS, as Joint
Bookrunners, JPMORGAN CHASE BANK, N.A. and
RBC CAPITAL MARKETS, as Joint Lead Arrangers, and JPMORGAN CHASE BANK,
N.A., as Administrative Agent.

 

The parties hereto hereby agree as follows:

 

SECTION 1.           DEFINITIONS

 

1.1           Defined Terms. 
As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

 

“ABR”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in
effect on such day plus 1⁄2 of 1% and (c) the Eurodollar Rate that
would be calculated as of such day (or, if such day is not a Business Day, as
of the next preceding Business Day) in respect of a proposed Eurodollar Loan
with a one-month Interest Period plus 1.0%.  Any change in the ABR due to a change in the
Prime Rate, the Federal Funds Effective Rate or such Eurodollar Rate shall be
effective as of the opening of business on the day of such change in the Prime
Rate, the Federal Funds Effective Rate or such Eurodollar Rate, respectively.

 

“ABR
Loans”:  Loans denominated in Dollars
the rate of interest applicable to which is based upon the ABR.

 

“Acceptance
Fee”:  a fee payable in Canadian
Dollars by the Borrower with respect to the acceptance of a Bankers’ Acceptance
by a Lender under this Agreement, as set forth in Section 2.12(e).

 

“Administrative
Agent”:  JPMorgan Chase Bank, N.A.,
together with its affiliates, as the arranger of the Commitments and as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of such Person or (b) direct or cause the direction of
the management and policies of such Person, whether by contract or otherwise.

 

“Agents”:
the collective reference to the Syndication Agent, the Documentation Agents,
the Joint Bookrunners, the Joint Lead Arrangers and the Administrative Agent.

 

“Agreement”:  as defined in the preamble hereto.

 

“Applicable
Margin”: (a) as to any ABR Loan or Canadian Prime Rate Loan, 2.00% and
(b) as to any Eurodollar Loan, CDOR Loan or the Acceptance Fees, 3.00%; provided,
that on and after the earlier of (x) the first date financial statements
are delivered pursuant to Section 6.1 after the Closing 

 

 

Date
and (y) the first date financial statements are required to be delivered
pursuant to Section 6.1 after the Closing Date, the Applicable Margin will
be determined pursuant to the Applicable Pricing Grid.

 

“Applicable
Pricing Grid”:  the table set forth
below:

 

	
  Level

  	
   

  	
  Consolidated 

  Leverage Ratio

  	
   

  	
  Eurodollar Loans/

  CDOR 

  Loans/Acceptance 

  Fees

  	
   

  	
  ABR Loans/

  Canadian Prime

   Rate Loans

  	
   

  	
  Commitment

  Fee

  	
   

  
	
  I

  	
   

  	
  < 0.5x

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  	
  0.75

  	
  %

  
	
  II

  	
   

  	
  > 0.5x but < 1.0x

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  	
  0.875

  	
  %

  
	
  III

  	
   

  	
  > 1.0x

  	
   

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  	
  1.00

  	
  %

  

 

For purposes of the foregoing, changes in the Applicable Margin
resulting from the changes in the Consolidated Leverage Ratio shall become
effective on the date that is three Business Days after the date on which
financial statements are delivered to Administrative Agent pursuant to Section 6.1
(commencing with the first such date after the Closing Date) and shall remain
in effect until the next change to be effected pursuant to this paragraph.  If any financial statements referred to above
are not delivered within the time periods specified in Section 6.1
(including in respect of the first such date after the Closing Date), then,
until the date that is three business days after the date on which such
financial statements are delivered, Level III of the Pricing Grid shall apply.

 

“Applicable
Percentage”: at any time with respect to any Lender, a percentage equal to
a fraction, the numerator of which is such Lender’s Commitment and the
denominator of which is the Total Commitment, in each case at such time;
provided that, for purposes of Section 2.21, when a Defaulting Lender
shall exist, “Applicable Percentage” shall mean the percentage of the Total
Commitment (disregarding any Defaulting Lender’s Commitment) represented by
such Lender’s Commitment.  If, however,
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Total Commitment most recently in effect, giving
effect to any assignments and to any Lender’s status as a Defaulting Lender at
the time of determination.

 

“Application”:  an application, in such form as the Issuing
Lender may specify from time to time, requesting the Issuing Lender to open a
Letter of Credit.

 

“Approved
Fund”:  as defined in Section 10.6(b)(ii)(E).

 

“Assignment
and Assumption”:  an Assignment and
Assumption, substantially in the form of Exhibit E.

 

“Available Commitment”:  as to any Lender at any time, an amount equal
to the excess, if any, of (a) such Lender’s Commitment then in effect over
(b) such Lender’s Extensions of Credit then outstanding; provided,
that in calculating any Lender’s Extensions of Credit for the purpose of
determining such Lender’s Available Commitment pursuant to Section 2.6(a),
the aggregate principal amount of Swingline Loans then outstanding shall be
deemed to be zero.

 

“BA Equivalent
Loan”:  an extension of credit made
by a Non BA Lender evidenced by a Discount Note.

 

2

 

“Bankers’
Acceptance” and “B/A”:  a bill
of exchange, including a depository bill issued in accordance with the Depository Bills and Notes Act (Canada), denominated in
Canadian Dollars, drawn by the Borrower and accepted by a Lender and includes a
Discount Note.

 

“Bankruptcy
Event”: with respect to any Person, such Person becomes the subject of a
bankruptcy or insolvency proceeding under any Insolvency Laws or otherwise, or
has had a receiver, conservator, trustee, administrator, custodian, assignee
for the benefit of creditors or similar Person charged with the reorganization
or liquidation of its business appointed for it, or, in the good faith
determination of the Administrative Agent, has taken any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any such
proceeding or appointment, provided that a Bankruptcy Event shall not
result solely by virtue of any ownership interest, or the acquisition of any
ownership interest, in such Person by a Governmental Authority or
instrumentality thereof, provided, further, that such ownership
interest does not result in or provide such Person with immunity from the
jurisdiction of courts within the United States or Canada or from the enforcement
of judgments or writs of attachment on its assets or permit such Person (or
such Governmental Authority or instrumentality) to reject, repudiate, disavow
or disaffirm any contracts or agreements made by such Person.

 

“BC
Hydro Guaranty”: the guaranty dated as of December 9, 2009, between
the Borrower and British Columbia Hydro and Power Authority.

 

“Benefitted
Lender”:  as defined in Section 10.7(a).

 

“Berg
Project”: the Borrower’s early-stage copper and molybdenum deposit located
near Houston, British Columbia.

 

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

 

“Borrower”:
as defined in the preamble hereto.

 

“Borrowing
Date”:  any Business Day specified by
the Borrower as a date on which the Borrower requests the relevant Lenders to
make Loans hereunder.

 

“Budget”:  as defined in Section 6.2(c).

 

“Business”:  as defined in Section 4.18(b).

 

“Business
Day”:  a day other than a Saturday,
Sunday or other day (i) on which commercial banks in New York City, New
York or Toronto, Ontario are authorized or required by law to close, or (ii) that
is a statutory holiday under the laws of the province of British Columbia on
which commercial banks are authorized or required by law to close, provided,
that with respect to notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, such day is also a day
for trading by and between banks in Dollar deposits in the interbank eurodollar
market.

 

“Canadian Benefit Plans” means any
material plan, fund, program, or policy, whether oral or written, formal or
informal, funded or unfunded, insured or uninsured, providing employee
benefits, including medical, hospital care, dental, sickness, accident,
disability or life insurance benefits, under which any Loan Party or any
Subsidiary of any Loan Party has any liability with respect to any Canadian
employee or former employee, but excluding (i) any Canadian Pension Plans
and (ii) the Canada Pension Plan or the Quebec Pension Plan as maintained
by the Government of Canada or the Province of Quebec, respectively.

 

3

 

“Canadian
Dollars” and “C$”:  dollars in
the lawful currency of Canada.

 

“Canadian
Guarantee and Collateral Agreement”: 
the Canadian Guarantee and Collateral Agreement to be executed by the
Borrower and each Canadian Subsidiary Guarantor, substantially in the form of Exhibit A-2.

 

“Canadian
Loan Party”: any Loan Party organized under the laws of Canada or any
province or territory thereof.

 

“Canadian
Mortgaged Properties”:  the real
properties listed on Part 2 of Schedule 1.1B, as to which the
Administrative Agent for the benefit of the Lenders shall be granted a Lien
pursuant to the Mortgages.

 

“Canadian
Mortgage”:  each of the
charge/mortgage of land and/or the fixed and floating charge debenture, deed of
hypothec on immoveable property and the related documents, in each case made by
the Borrower and/or the Canadian Subsidiary Guarantors in favor of, or for the
benefit of, the Administrative Agent for the benefit of the Lenders,
substantially in the form of Exhibit D-2 (with such changes thereto as
shall be advisable under the law of the jurisdiction in which such mortgage is
to be recorded) as the same may be amended, supplemented or otherwise modified
from time to time.

 

“Canadian Pension Plans”: each pension
or retirement savings plan whether registered or unregistered that is
maintained, contributed to or required to be contributed to by a Loan Party or
any Subsidiary of any Loan Party for its Canadian employees or former
employees, but does not include the Canada Pension Plan or the Quebec Pension
Plan as maintained by the Government of Canada or the Province of Quebec,
respectively.

 

“Canadian Prime
Rate”: for any date, a rate per annum equal to the greater of (i) the
Canadian Reference Rate in effect on such date and (ii) the 30-day CDOR
Rate in effect on such date plus 1.00%.

 

“Canadian
Prime Rate Loans”: Loans denominated in Canadian Dollars the rate of
interest applicable to which is based upon the Canadian Prime Rate.

 

“Canadian
Reference Rate”: the rate of interest most recently publicly announced or
established by JPMorgan Chase Bank N.A., Toronto branch as its reference rate
in effect for determining interest rates on Canadian Dollar denominated
commercial loans made in Canada and commonly known as “prime rate”; such rate
not being intended to be the lowest rate of interest charged by JPMorgan Chase
Bank, N.A., Toronto branch each change in the Canadian Reference Rate shall be
effective from and including the date such change is publicly announced as
being effective.

 

“Canadian
Revolving Loan”:  as defined in Section 2.1.

 

“Canadian
Swingline Loan”:  as defined in Section 2.4.

 

“Canadian
Subsidiary Guarantor”: any Subsidiary Guarantor that is organized under the
laws of Canada or any province or territory thereof.

 

“Capital
Expenditures”:  for any period, with
respect to any Person, the aggregate of all expenditures by such Person and its
Subsidiaries for the acquisition or leasing (including pursuant to a Capital
Lease Obligation) of fixed or capital assets or additions to equipment
(including replacements, 

 

4

 

capitalized
repairs and improvements during such period) that should be capitalized under
GAAP on a consolidated balance sheet of such Person and its Subsidiaries.

 

“Capital
Lease Obligations”:  as to any
Person, the obligations of such Person to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such
Person under GAAP and, for the purposes of this Agreement, the amount of such
obligations at any time shall be the capitalized amount thereof at such time
determined in accordance with GAAP.

 

“Capital
Stock”:  any and all shares,
interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants, rights or options to
purchase any of the foregoing.

 

“Cash
Balance”:  as of any date of
determination, the aggregate amount of unrestricted cash and Cash Equivalents
held by the Borrower and its Subsidiaries (other than Excluded Subsidiaries) at
such date as determined by adding the actual closing balances in the bank and
investment accounts maintained by the Borrower and its Subsidiaries (other than
Excluded Subsidiaries) on the date immediately preceding such date of
determination.

 

“Cash
Equivalents”:  (a) marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States or Canadian Federal Government or issued by any agency thereof and
backed by the full faith and credit of the United States or Canada, as the case
may be, in each case maturing within one year from the date of acquisition; (b) certificates
of deposit, time deposits, eurodollar time deposits or overnight bank deposits
having maturities of 12 months or less from the date of acquisition issued by
any Lender or by any commercial bank organized under the laws of the United
States or Canada or any state thereof having combined capital and surplus of
not less than $500,000,000; (c) commercial paper of an issuer rated at
least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of commercial paper issuers generally, and maturing
within 12 months from the date of acquisition; (d) repurchase obligations
of any Lender or of any commercial bank satisfying the requirements of clause (b) of
this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States or
Canadian Federal Government; (e) securities with maturities of one year or
less from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States, or any province or territory in
Canada, by any political subdivision or taxing authority of any such state,
commonwealth or territory or by any foreign government, the securities of which
state, commonwealth, province, territory, political subdivision, taxing
authority or foreign government (as the case may be) are rated at least A by
S&P or A2 by Moody’s; (f) securities with maturities of 12 months or
less from the date of acquisition backed by standby letters of credit issued by
any Lender or any commercial bank satisfying the requirements of clause (b) of
this definition; (g) money market mutual or similar funds that invest
exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition; or (h) money market funds that (i) comply with the
criteria set forth in SEC Rule 2a-7 under the Investment Company Act of
1940, as amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have
portfolio assets of at least $5,000,000,000.

 

“CDOR
Rate”: with respect to each day during each Interest Period pertaining to a
CDOR Loan, the Canadian deposit offered rate which, in turn means on any day
the sum of (a) the annual rate of interest (in the case of a CDOR Loan) or
discount rate (in the case of the Discount Rate determination in respect of
BAs) determined with reference to the arithmetic average of the discount rate
quotations of all institutions listed in respect of the relevant interest
period for Canadian Dollar-

 

5

 

denominated
bankers’ acceptances displayed and identified as such on the “Reuters Screen
CDOR Page” as defined in the International Swap Dealer Association, Inc.
definitions, as modified and amended from time to time, as of 10:00 a.m.
Toronto local time on such day and, if such day is not a business day, then on
the immediately preceding business day (as adjusted by the Administrative Agent
after 10:00 a.m. Toronto local time to reflect any error in the posted
rate of interest or in the posted average annual rate of interest) plus (b) 0.10%
per annum; provided that if such rates are not available on the Reuters Screen
CDOR Page on any particular day, then the Canadian deposit offered rate
component of such rate on that day shall be calculated as the cost of funds
quoted by the Administrative Agent to raise Canadian dollars for the applicable
interest period as of 10:00 a.m. Toronto local time on such day for
commercial loans or other extensions of credit to businesses of comparable
credit risk; or if such day is not a business day, then as quoted by the
Administrative Agent on the immediately preceding business day.

 

“CDOR
Loans”:  Loans denominated in
Canadian Dollars the rate of interest applicable to which is based upon the
CDOR Rate.

 

“Change
of Control”: (i) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any “person” or “group” of persons acting
jointly or in concert (as such terms are used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) or Part XX of the Securities Act (Ontario) and the rules of the
Ontario Securities Commission, as applicable), shall become, or obtain rights
(whether by means or warrants, options or otherwise) to become, the “beneficial
owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act) or
Part XX of the Securities Act (Ontario) and the rules of the Ontario
Securities Commission, as applicable, directly or indirectly, of more than 35%
of the outstanding common stock of the Borrower (or, following the consummation
of the Permitted Reorganization, the New Parent); (ii) the board of
directors of the Borrower shall cease to consist of a majority of Continuing
Directors; and (iii) the New Parent shall cease to own and control, of
record and beneficially, directly, 100% of each class of outstanding Capital
Stock of the Borrower free and clear of all Liens (except Liens created by the
Guarantee and Collateral Agreement) following the consummation of the Permitted
Reorganization.

 

“Closing
Date”:  the date on which the
conditions precedent set forth in Section 5.1 shall have been satisfied,
which date is December 10, 2010.

 

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

 

“Collateral”:  all property of the Loan Parties, now owned
or hereafter acquired, upon which a Lien is purported to be created by any
Security Document.

 

“Commitment”:
with respect to each Lender, the obligation of such Lender, if any, to make
Revolving Loans and participate in Swingline Loans and Letters of Credit in an
aggregate principal amount and/or face amount not to exceed the amount set
forth under the heading “Commitment” opposite such Lender’s name on Schedule
1.1A or in the Assignment and Assumption pursuant to which such Lender became a
party hereto, as the same may be changed from time to time pursuant to the
terms hereof.  The amount of the original
Total Commitments is $290,000,000.

 

“Commitment
Fee Rate”:  0.75% per annum; provided,
that on and after the earlier of (x) the first date financial statements
are delivered pursuant to Section 6.1 after the Closing Date and (y) the
first date financial statements are required to be delivered pursuant to Section 6.1
after the Closing Date, the Commitment Fee Rate will be determined pursuant to
the Applicable Pricing Grid.

 

“Commitment
Period”:  the period from and
including the Closing Date to the Termination Date.

 

6

 

“Compliance
Certificate”:  a certificate duly
executed by a Responsible Officer substantially in the form of Exhibit B.

 

“Conduit
Lender”:  any special purpose
corporation organized and administered by any Lender for the purpose of making
Loans otherwise required to be made by such Lender and designated by such
Lender in a written instrument; provided, that the designation by any
Lender of a Conduit Lender shall not relieve the designating Lender of any of
its obligations to fund a Loan under this Agreement if, for any reason, its
Conduit Lender fails to fund any such Loan, and the designating Lender (and not
the Conduit Lender) shall have the sole right and responsibility to deliver all
consents and waivers required or requested under this Agreement with respect to
its Conduit Lender, and provided, further, that no Conduit Lender
shall (a) be entitled to receive any greater amount pursuant to Section 2.16,
2.17, 2.18 or 10.5 than the designating Lender would have been entitled to
receive in respect of the extensions of credit made by such Conduit Lender or (b) be
deemed to have any Commitment.

 

“Consolidated
EBITDA”:  for any period,
Consolidated Net Income for such period plus, without duplication and to
the extent reflected as a charge in the statement of such Consolidated Net
Income for such period, the sum of (a) income tax expense, (b) interest
expense (including imputed interest expense related to the obligations of the
Borrower and Terrane Metals Corp. under the Royal Gold Purchase Agreement),
amortization or writeoff of debt discount and debt issuance costs and
commissions, discounts and other fees and charges associated with Indebtedness
(including the Loans), (c) depreciation, amortization and accretion
expense, (d) amortization or write-off of intangibles (including, but not
limited to, goodwill) and organization costs, (e) any extraordinary or
non-recurring non-cash expenses or losses or non-cash losses related to
Existing Warrants (including, whether or not otherwise includable as a separate
item in the statement of such Consolidated Net Income for such period, non-cash
losses on sales of assets outside of the ordinary course of business), (f) any
non-cash expenses or charges incurred pursuant to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement
or any stock subscription or shareholder agreement, (g) Transaction
Expenses not to exceed $7,000,000, (h) any transaction-related expenses or
charges (to the extent not capitalized) incurred by the Loan Parties in
connection with the consummation of any Permitted Acquisition subsequent to the
date hereof in an aggregate amount not to exceed $5,000,000
for any such period; provided that, to the extent that the amount
added-back pursuant to this clause (h) for any annual period after the
Closing Date (with the first such annual period being the first period of four
consecutive fiscal quarters ended after the Closing Date and each successive
annual period being the periods of four consecutive fiscal quarters commencing
immediately after the prior period ends) is less than $5,000,000, such amount may
be carried forward to subsequent annual periods and added-back pursuant to this
clause in such subsequent period; provided  further that the
amount added back pursuant to this clause (h) shall not exceed $15,000,000
in any annual period and (i) any transaction-related expenses or charges
(to the extent not capitalized) incurred on or prior to the Closing Date by the
Loan Parties in connection with the consummation of the acquisition of Terrane
Metals Corp. in an aggregate amount not to exceed $16,000,000, and minus,
(a) to the extent included in the statement of such Consolidated Net
Income for such period, the sum of (i) interest income, (ii) any
extraordinary, unusual or non-recurring income or gains (including, whether or
not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, gains on the sales of assets outside
of the ordinary course of business), (iii) income tax credits (to the
extent not netted from income tax expense) and (iv) any other non-cash
income and (b) any cash payments made during such period in respect of
items described in clause (e) above subsequent to the fiscal quarter in
which the relevant non-cash expenses or losses were reflected as a charge in
the statement of Consolidated Net Income, all as determined on a consolidated
basis.  For the purposes of calculating
Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a
“Reference Period”) pursuant to any determination of the Consolidated
Leverage Ratio, (i) if at any time during such Reference Period the
Borrower or any Subsidiary (other than any Excluded Subsidiary) shall have made
any Material Disposition, the Consolidated EBITDA for such Reference 

 

7

 

Period
shall be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the Consolidated
EBITDA (if negative) attributable thereto for such Reference Period and (ii) if
during such Reference Period the Borrower or any Subsidiary (other than any
Excluded Subsidiary) shall have made a Material Acquisition, Consolidated
EBITDA for such Reference Period shall be calculated on a Pro Forma Basis.  As used in this definition, “Material
Acquisition” means any acquisition of property or series of related
acquisitions of property after the Closing Date that (a) constitutes
assets comprising all or substantially all of an operating unit of a business
or constitutes all or substantially all of the common stock of a Person and (b) involves
the payment of consideration by the Borrower and its Subsidiaries (other than
Excluded Subsidiaries) in excess of $25,000,000; and “Material Disposition”
means any Disposition of property or series of related Dispositions of property
after the Closing Date that yields gross proceeds to the Borrower or any of its
Subsidiaries (other than Excluded Subsidiaries) in excess of $25,000,000.

 

“Consolidated
Interest Coverage Ratio”:  for any
period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated
Interest Expense for such period.

 

“Consolidated
Interest Expense”:  for any period,
net interest expense (including that attributable to Capital Lease Obligations
and imputed interest expense related to the obligations of the Borrower and
Terrane Metals Corp. under the Royal Gold Purchase Agreement but net of
interest income) of the Borrower and its Subsidiaries (other than Non-Core
Subsidiaries) for such period with respect to all outstanding Indebtedness of
the Borrower and its Subsidiaries (other than Non-Core Subsidiaries)(including
all commissions, discounts and other fees and charges owed with respect to
letters of credit and bankers’ acceptance financing and net costs under Swap
Agreements in respect of interest rates to the extent such net costs are
allocable to such period in accordance with GAAP) but excluding the
amortization of deferred financing costs associated with this Agreement.

 

“Consolidated
Leverage Ratio”:  as at the last day
of any period, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated
EBITDA for such period.

 

“Consolidated
Liquidity”:  as of any date of
determination, the sum of (a) the aggregate amount of the Available
Commitments as of such date plus (b) the Cash Balance as of such date.

 

“Consolidated
Net Income”:  for any period, the
consolidated net income (or loss) of the Borrower and its Subsidiaries (other
than Non-Core Subsidiaries), determined on a consolidated basis in accordance
with GAAP; provided that there shall be excluded (a) the income (or
deficit) of any Person accrued prior to the date it becomes a Subsidiary of the
Borrower or is merged into or consolidated with the Borrower or any of its
Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries
has an ownership interest, except to the extent that any such income is
actually received by the Borrower or such Subsidiary in the form of dividends
or similar distributions and (c) the undistributed earnings of any
Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any Contractual Obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary.

 

“Consolidated
Total Debt”:  at any date, the
aggregate principal amount of all Indebtedness listed on the balance sheet of
the Borrower most recently delivered pursuant to Section 6.1, determined
on a consolidated basis in accordance with GAAP (it being understood and agreed
for the purposes of this definition of Consolidated Total Debt, that the obligations
of the Borrower and Terrane Metals Corp. under the Royal Gold Purchase
Agreement in respect of the Payment Deposit (as defined in the Royal Gold
Purchase Agreement) and all trade payables of the Borrower and its Subsidiaries
(other 

 

8

 

than
Non-Core Subsidiaries) incurred in the ordinary course of business shall not be
considered Indebtedness).

 

“Continuing
Directors”: (a) the directors of the Borrower on the Closing Date, and
(b) each other director, if, in each case, such other director’s
nomination for election to the board of directors of the Borrower (or,
following the consummation of the Permitted Reorganization, the New Parent) is
recommended by a majority of the then Continuing Directors, but excluding, any
such other director, originally proposed for election in opposition to the
board of directors in office on the Closing Date in an actual or threatened
election contest relating to the election of the directors of the Borrower (or,
following the consummation of the Permitted Reorganization, the New Parent) and
whose initial assumption of office resulted from such contest or the settlement
thereof.

 

“Contract
Period”:  the term selected by the
Borrower applicable to Bankers’ Acceptances in accordance with Section 2.3(a).

 

“Contractual
Obligation”:  as to any Person, any
provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of
its property is bound.

 

“Core
Businesses”: (i) operations and activities of the Loan Parties in
connection with the Endako Project, the Endako Mine, the Thompson Creek Mine,
the Langeloth Facility and the Mount Milligan Project, (ii) operations and
activities of any Loan Party related to any deposit of metals, and commercial
production and processing in connection therewith, after (x) the
completion of any feasibility study required for such operations and activities
and (y) the receipt of any permits required for such operations and
activities and (iii) any division, line of business or other business unit
of any Person acquired pursuant to a Permitted Acquisition (excluding any such
division, line of business or other business unit that does not satisfy the
requirements of clause (ii) above).

 

“Core
Subsidiary”: any Subsidiary engaged in any Core Business, and for the
avoidance of doubt, shall not include any Excluded Subsidiary.

 

“Credit
Party”: the Administrative Agent, the Issuing Lender, the Swingline Lender
or any other Lender.

 

“Davidson
Project”: Borrower’s early-stage molybdenum deposit located near Smithers,
British Columbia.

 

“Default”:  any of the events specified in
Section 8, whether or not any requirement for the giving of notice, the
lapse of time, or both, has been satisfied.

 

“Defaulting
Lender”: any Lender that (a) has failed, within three Business Days of
the date required to be funded or paid, to (i) fund any portion of its
Loans, (ii) fund any portion of its participations in Letters of Credit or
Swingline Loans or (iii) pay over to any Credit Party any other amount
(other than an amount less than $25,000) required to be paid by it hereunder,
unless, in the case of clause (i) above, such Lender notifies the
Administrative Agent in writing that such failure is the result of such Lender’s
good faith determination that a condition precedent to funding (specifically
identified and including the particular default, if any) has not been
satisfied, (b) has notified the Borrower or any Credit Party in writing,
or has made a public statement to the effect, that it does not intend or expect
to comply with any of its funding obligations under this Agreement (unless such
writing or public statement indicates that such position is based on such
Lender’s good faith determination that a condition precedent (specifically
identified and including the particular default, if any) to funding a loan
under this Agreement 

 

9

 

cannot
be satisfied) or generally under other agreements in which it commits to extend
credit, (c) has failed, within three Business Days after written request
by the Administrative Agent or the Borrower, acting in good faith, to provide a
certification in writing from an authorized officer of such Lender that it will
comply with its obligations (and is financially able to meet such obligations)
to fund prospective Loans and participations in then outstanding Letters of
Credit and Swingline Loans under this Agreement, provided that such
Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon
the Administrative Agent’s and the Borrower’s receipt of such certification in
form and substance satisfactory to the Administrative Agent and the Borrower,
or (d) has become the subject of a Bankruptcy Event.

 

“Discount
Note”:  a non-interest bearing
promissory note denominated in Canadian Dollars, substantially in the form of Exhibit G,
issued by the Borrower to a Non BA Lender to evidence a BA Equivalent Loan.

 

“Discount
Proceeds”:  for any Bankers’
Acceptance issued hereunder, an amount calculated on the applicable Borrowing
Date or date of conversion or continuation by multiplying (a) the face
amount of the Bankers’ Acceptance by (b) the quotient obtained by dividing
(i) one by (ii) the sum of one plus the product of (A) the
Discount Rate applicable to the Bankers’ Acceptance and (B) a fraction,
the numerator of which is the applicable Contract Period and the denominator of
which is 365, with the quotient being rounded up or down to the fifth decimal
place and .00005 being rounded up.

 

“Discount
Rate”:  with respect to an issue of
Bankers’ Acceptances with the same maturity date, (a) for a Lender which
is a Schedule I Lender, (i) the average annual discount rate determined with reference to the arithmetic average
of the discount rate quotations of all institutions listed in respect of the
relevant interest period for Canadian Dollar-denominated bankers’ acceptances
displayed and identified as such on the “Reuters Screen CDOR Page” as defined
in the International Swap Dealer Association, Inc. definitions, as
modified and amended from time to time, as of 10:00 a.m. Toronto local
time on such day and, if such day is not a business day, then on the
immediately preceding business day (as adjusted by the Administrative Agent
after 10:00 a.m. Toronto local time to reflect any error in the posted
rate of interest or in the posted average annual rate of interest) for the
appropriate term and (b) for a Lender which is not a Schedule I Lender,
the CDOR Rate.

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof.  The terms “Dispose”
and “Disposed of” shall have correlative meanings.

 

“Documentation
Agents”: as defined in the preamble to this Agreement.

 

“Dollars”
and “$”:  dollars in lawful
currency of the United States.

 

“Dollar
Equivalent”: (a) with respect to any amount expressed in Canadian
Dollars, the amount of Dollars that would be required to purchase the amount of
such Canadian Dollars of such extension of credit on the date two Business Days
prior to the date of such extension of credit, based upon the Spot Selling Rate
and (b) with respect to any amount expressed in Dollars, such amount.

 

“Eligible
Assignee” shall mean any Person (other than a Natural Person) that is (a) a
Lender, an Affiliate of any Lender or an Approved Fund 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) and which extends credit or buys loans in the ordinary course of
business; provided that notwithstanding the foregoing, “Eligible Assignee”
shall not include the Borrower or any of the Borrower’s Affiliates.

 

10

 

“Endako
Joint Venture”: shall mean the joint venture between Thompson Creek Mining
Ltd. and Sojitz Moly Resources, Inc. (formerly, Nissho Iwai Moly Resources, Inc.)
pursuant to the Endako Joint Venture Agreement.

 

“Endako
Joint Venture Agreement”: the Exploration, Development and Mine Operating
Agreement between Thompson Creek Mining Ltd. and Sojitz Moly Resources, Inc.
(formerly, Nissho Iwai Moly Resources, Inc.) dated as of June 12,
1997.

 

“Endako
Mine”: Borrower’s molybdenum mine located in British Columbia.

 

“Endako
Project”: Borrower’s mill expansion project at its Endako molybdenum mine
located in British Columbia.

 

“Environmental
Laws”:  any and all foreign, Federal,
state, provincial, territorial, local or municipal laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, requirements of any
Governmental Authority or other Requirements of Law (including common law)
regulating, relating to or imposing liability or standards of conduct concerning
protection of human health or the environment, as now or may at any time
hereafter be in effect.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“ERISA
Affiliate”: any trade or business (whether or not incorporated) that,
together with any Group Member, is treated as a single employer under Section 414
of the Code.

 

“ERISA
Event”:  (a) any Reportable Event; (b) the existence with respect to any Plan
of any non exempt Prohibited Transaction; (c) any failure by any Pension
Plan to satisfy the minimum funding standards (within the meaning of Sections
412 and 430 of the Code or Section 302 of ERISA) applicable to such
Pension Plan, whether or not waived; (d) the filing pursuant to Section 412
of the Code or Section 302 of ERISA of an application for a waiver of the
minimum funding standard with respect to any Pension Plan; (e) the
incurrence by any Group Member or any 
ERISA Affiliate of any liability under Title IV of ERISA with respect to
the termination of any Pension Plan, including but not limited to the
imposition of any Lien in favor of the PBGC or any Pension Plan; (f) a
determination that any Pension Plan is, or is expected to be, in “at risk”
status  (as defined in Section 430(i)(4) of
the Code) or Section 303(i)(4) of ERISA; (g) the receipt by any
Group Member or any ERISA Affiliate from the PBGC or a plan administrator of
any notice relating to an intention to terminate any Pension Plan or to appoint
a trustee to administer any Pension Plan under Section 4042 of ERISA; (h) the
incurrence of any Group Member or any ERISA Affiliate of Withdrawal Liability
or any liability under Sections 4062 or 4063 of ERISA or (i) the receipt
by any Group Member or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from a Group Member or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, Insolvent, in
Reorganization,  or in “endangered” or “critical”
status (within the meaning of Section 432 of the Code or Section 305
of ERISA).

 

“Eurocurrency
Reserve Requirements”:  for any day
as applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

 

11

 

“Eurodollar
Base Rate”:  with respect to each day
during each Interest Period pertaining to a Eurodollar Loan, the rate per annum
determined on the basis of the rate for deposits in Dollars for a period equal
to such Interest Period commencing on the first day of such Interest Period
appearing on the Reuters Screen LIBOR01 Page as of 11:00 A.M., London
time, two Business Days prior to the beginning of such Interest Period.  In the event that such rate does not appear
on such page (or otherwise on such screen), the “Eurodollar Base Rate”
shall be determined by reference to such other comparable publicly available
service for displaying eurodollar rates as may be selected by the
Administrative Agent or, in the absence of such availability, by reference to
the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., New York City time, two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where its
eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar
Loans”:  Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar
Rate”:  with respect to each day
during each Interest Period pertaining to a Eurodollar Loan, a rate per annum
determined for such day in accordance with the following formula:

 

	
   

  	
   

  	
  Eurodollar Base Rate

  	
   

  	
   

  
	
   

  	
   

  	
  1.00 - Eurocurrency Reserve Requirements

  	
   

  	
   

  

 

“Event
of Default”:  any of the events
specified in Section 8, provided that any requirement for the
giving of notice, the lapse of time, or both, has been satisfied.

 

“Excluded
Subsidiaries”: Non-Core Subsidiaries and Immaterial Subsidiaries.

 

“Excluded
Taxes”: with respect to any payment made by any Loan Party under any Loan
Document, any of the following Taxes imposed on or with respect to a Recipient:
(a) income or franchise Taxes imposed on (or measured by) net income by (x) Canada
or (y) by the jurisdiction under the laws of which such Recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located or in which the
Lender is doing business (other than a business arising from or deemed to arise
as a result of this Agreement or any Loan Document) and (b) any branch
profits Taxes imposed by Canada or any similar Taxes imposed by any other
jurisdiction in which the Borrower is located.

 

“Existing
Warrants” means (a) common share purchase warrants issued by the
Borrower in October 2006 in connection with the acquisition of Thompson
Creek Metals Company USA and common share purchase warrants issued by the
Borrower (the “TC Warrants”) to a former shareholder of Thompson Creek
Metals Company USA, each entitling the holder to purchase common shares of the
Borrower at a price of C$9.00 per share until October 23, 2011, and (b) common
share purchase warrants previously issued by Terrane Metals Corp. and assumed
by the Borrower (the “Terrane Warrants”), of which 45.4 million warrants
expire on April 16, 2011, and the remaining 17.8 million warrants expire
on June 21, 2012, each entitling the holder to purchase common shares of
the Borrower at a price of C$0.90 per 0.052 share.

 

“Extensions
of Credit”:  as to any Lender at any
time, an amount equal to the sum of (a) the aggregate principal amount of
all US Revolving Loans and the Dollar Equivalent of all Canadian Revolving
Loans held by such Lender then outstanding, (b) such Lender’s Applicable
Percentage of the 

 

12

 

L/C
Obligations then outstanding and (c) such Lender’s Applicable Percentage
of the aggregate principal amount of Swingline Loans then outstanding.

 

“Facility”:  the Commitments and the extensions of credit
made thereunder.

 

“Federal
Funds Effective Rate”:  for any day,
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for the day of such transactions
received by JPMorgan Chase Bank, N.A. from three federal funds brokers of
recognized standing selected by it.

 

“Fee
Payment Date”:  (a) the third
Business Day following the last day of each March, June, September and December and
(b) the last day of the Commitment Period.

 

“Foreign
Benefit Arrangement”:  any employee benefit arrangement mandated by non-US law that is
maintained or contributed to by any Group Member, other than any Canadian
Benefit Plan

 

“Foreign
Plan”:  each employee benefit plan
(within the meaning of Section 3(3) of ERISA, whether or not subject
to ERISA) that is not subject to US law and is maintained or contributed to by
any Group Member, but excluding any Canadian Pension Plan or Canadian Benefit
Plan.

 

“Foreign
Plan Event”: with respect to any Foreign Plan, (A) the failure to make
or, if applicable, accrue in accordance with normal accounting practices, any
employer or employee contributions required by applicable law or by the terms
of such Foreign Plan; (B) the failure to register or loss of good standing
with applicable regulatory authorities of any such Foreign Plan required to be
registered; or (C) the failure of any Foreign Plan to comply with any
material provisions of applicable law and regulations or with the material
terms of such Foreign Plan.

 

“Funding
Office”:  the office of the Administrative
Agent specified in Section 10.2 or such other office as may be specified
from time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

 

“GAAP”:
generally accepted accounting principles in the United States of America.

 

“Governmental
Authority”:  the government of the
United States of America, Canada, any other nation or government, any state or
other political subdivision thereof, whether provincial territorial, state,
provisional, territorial or local and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Group
Members”:  the collective reference
to the Borrower and its Subsidiaries.

 

“Guarantee
and Collateral Agreements”: each of the U.S. Guarantee and Collateral
Agreement and the Canadian Guarantee and Collateral Agreement.

 

“Guarantee
Obligation”:  as to any Person (the “guaranteeing
person”), any obligation, including a reimbursement, counterindemnity or
similar obligation, of the guaranteeing Person that guarantees or in effect
guarantees, or which is given to induce the creation of a separate obligation
by another Person (including any bank under any letter of credit) that
guarantees or in effect guarantees, any 

 

13

 

Indebtedness,
leases, dividends or other obligations (the “primary obligations”) of
any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or
any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (1) for the purchase or payment of any such
primary obligation or (2) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any
such primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation
and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

 

“Guarantors”:  the collective reference to the Borrower and
the Subsidiary Guarantors.

 

“Immaterial
Subsidiary”: (a) Thompson Creek UK Ltd.; provided that,
Thompson Creek UK Ltd. shall be an “Immaterial Subsidiary” for so long as, as
of any date of determination, it does not have (i) assets with a value in
excess of $5,000,000 (determined pursuant to book value) or (ii) revenues
(for the most recently completed period of four consecutive fiscal quarters) in
excess of $5,000,000, and (b) Patent Enforcement and Royalties of New
Jersey, Ltd.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than trade payables not overdue for a period of more than 30
days and that are being contested in good faith by appropriate proceedings)
incurred in the ordinary course of such Person’s business), (c) all obligations
of such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all indebtedness created or arising under any conditional
sale or other title retention agreement with respect to property acquired by
such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default are limited to repossession or sale of
such property), (e) all Capital Lease Obligations of such Person, (f) all
obligations of such Person, contingent or otherwise, as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds
or similar arrangements, (g) the liquidation value of all redeemable
preferred Capital Stock of such Person, (h) all Guarantee Obligations of
such Person in respect of obligations of the kind referred to in clauses (a) through
(g) above, (i) all obligations of the kind referred to in clauses (a) through
(h) above secured by (or for which the holder of such obligation has an
existing right, contingent or otherwise, to be secured by) any Lien on property
(including accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation,
and (j) for the purposes of Section 8(e) only, all obligations
of such Person in respect of Swap Agreements. 
The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness expressly provide that such Person is not
liable therefor.

 

“Indemnified
Taxes”: (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by any Loan Party under any Loan Document and (b) Other
Taxes.

 

14

 

“Insolvent”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Intellectual
Property”:  the collective reference
to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, Canadian, multinational or foreign laws or
otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all
rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

 

“Interest
Payment Date”:  (a) as to any
ABR Loan or any Canadian Prime Rate Loan (other than any Swingline Loan), the
last Business Day of each March, June, September and December (or, if
an Event of Default is then existing, the last Business Day of each calendar
month) to occur while such Loan is outstanding and the final maturity date of
such Loan, (b) as to any Eurodollar Loan or CDOR Loan having an Interest
Period of three months or less, the last day of such Interest Period, (c) as
to any Eurodollar Loan or CDOR Loan having an Interest Period longer than three
months, each day that is three months, or a whole multiple thereof, after the
first day of such Interest Period and the last day of such Interest Period, (d) as
to any Loan (other than any Revolving Loan that is an ABR Loan or a Canadian
Prime Rate Loan and any Swingline Loan), the date of any repayment or
prepayment made in respect thereof and (e) as to any Swingline Loan, the
day that such Loan is required to be repaid.

 

“Interest
Period”:  as to any Eurodollar Loan
or CDOR Loan, (a) initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such Eurodollar Loan or
CDOR Loan, as applicable, and ending one, two, three or six months thereafter,
as selected by the Borrower in its notice of borrowing or notice of conversion,
as the case may be, given with respect thereto; and (b) thereafter, each
period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan or CDOR Loan and ending one, two, three or
six months thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, on the
date that is three Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

(i)            if any Interest
Period would otherwise end on a day that is not a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless the result
of such extension would be to carry such Interest Period into another calendar
month in which event such Interest Period shall end on the immediately
preceding Business Day;

 

(ii)           the Borrower may
not select an Interest Period that would extend beyond the Termination Date;

 

(iii)          any Interest Period
that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of a calendar month;
and

 

(iv)          the Borrower shall
select Interest Periods so as not to require a payment or prepayment of any
Eurodollar Loan during an Interest Period for such Loan.

 

“Investments”:  as defined in Section 7.8.

 

“Issuing
Lender”:  each of JPMorgan Chase Bank
and each other Lender approved by the Administrative Agent and the Borrower
that has agreed in its sole discretion to act as an “Issuing

 

15

 

Lender”
hereunder, or any of their respective affiliates, in each case in its capacity
as issuer of any Letter of Credit.  Each
reference herein to “the Issuing Lender” shall be deemed to be a reference to
the relevant Issuing Lender.

 

“Joint
Bookrunners”: as defined in the preamble to this Agreement.

 

“Joint
Lead Arrangers”: as defined in the preamble to this Agreement.

 

“L/C
Commitment”:  $100,000,000.

 

“L/C
Obligations”:  at any time, an amount
equal to the sum of (a) the aggregate then undrawn and unexpired amount of
the then outstanding Letters of Credit denominated in Dollars and the Dollar
Equivalent of the then undrawn and unexpired amount of the then outstanding
Letters of Credit denominated in Canadian Dollars, if any, and (b) the
aggregate amount of drawings under Letters of Credit that have not then been
reimbursed pursuant to Section 3.5 (including the Dollar Equivalent of any
such drawings denominated in Canadian Dollars).

 

“L/C
Participants”:  the collective
reference to all Lenders other than the Issuing Lender.

 

“Langeloth
Facility”: Borrower’s metallurgical facility located in Langeloth,
Pennsylvania.

 

“Lenders”:  as defined in the preamble hereto; provided,
that unless the context otherwise requires, each reference herein to the
Lenders shall be deemed to include any Conduit Lender or any applicable lending
office thereof.

 

“Lenders Presentation”:  the Lenders
Presentation dated October 6, 2010 and furnished to the Lenders.

 

“Letters
of Credit”:  as defined in Section 3.1.

 

“Lien”:  any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever (including
any conditional sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the foregoing).

 

“Loan”:  any loan or acceptance and purchase of
Bankers’ Acceptances made by any Lender pursuant to this Agreement.  For greater certainty, reference to the
principal amount of any Loan or borrowing under this Agreement shall be deemed
to include reference to the Borrower’s reimbursement obligations with respect
to the full face amount of each Bankers’ Acceptance.

 

“Loan
Documents”:  this Agreement, the
Security Documents, the Notes and any amendment, waiver, supplement or other
modification to any of the foregoing.

 

“Loan
Parties”:  each Group Member that is
a party to a Loan Document, and for the avoidance of doubt, shall not include
any Excluded Subsidiary.

 

“Material
Adverse Effect”:  a material adverse
effect on (a) the business, operations, property or financial condition of
the Borrower and its Subsidiaries (other than Excluded Subsidiaries), taken as
a whole or (b) the validity or enforceability of this Agreement or any of
the other Loan 

 

16

 

Documents
or the rights or remedies of the Administrative Agent or the Lenders hereunder
or thereunder; provided that any change or effect resulting from or
arising out of ordinary course fluctuations in the prices of molybdenum, gold
or copper, in and of itself, shall not be deemed to constitute a Material
Adverse Effect.

 

“Materials
of Environmental Concern”:  any
gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes,
defined or regulated as such in or under any Environmental Law, including
asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

 

“Moody’s”:
Moody’s Investors Services Inc.

 

“Mortgaged
Properties”: the collective reference to the Canadian Mortgaged Properties
and the US Mortgaged Properties.

 

“Mortgages”:
the collective reference to the Canadian Mortgages and the US Mortgages (each,
a Mortgage).

 

“Mount
Milligan Project”: the Borrower’s construction and development stage
copper-gold project located in British Columbia.

 

“Mt.
Emmons Project”: the undeveloped molybdenum deposit located near Crested
Butte, Colorado.

 

“Multiemployer
Plan”:  a
“multiemployer plan” (as defined in Section 4001(a)(3) of ERISA)
subject to the provisions of Title IV of ERISA.

 

“Natural Person”: (a) a natural
person or (ii) any holding company, trust or investment vehicle for the
primary benefit of a natural person (including relatives of such person), other
than any such entity that (w) has not been formed for the primary purpose
of acquiring Loans or Commitments under this Agreement, (x) is managed by
a professional adviser (other than such natural person or any such relatives)
having significant experience in the business of making or purchasing
commercial loans, (y) has assets of greater than $25,000,000 and (z) has
significant business activities that consist of making or purchasing (by
assignment as principal) commercial loans and similar extensions of credit

 

“Non
BA Lender”:  a Lender that cannot or
does not as a matter of policy accept bankers’ acceptances.

 

“New
Parent”: as defined in the definition of Permitted Reorganization.

 

“Non-
Core Subsidiaries”: (a) Maze Lake General Partnership
Corporation,  Maze Lake Metals Limited
Partnership, Howards Pass General Partnership Corporation, Howards Pass Metals
Limited Partnership and Highlands Ranch LLC, and (b) any other Subsidiary
that is not a Core Subsidiary or that does not have (i) assets with a
value in excess of $5,000,000 (determined pursuant to book value) and (ii) revenues
(for the most recently completed period of four consecutive fiscal quarters) in
excess of $5,000,000; provided that the Non-Core Subsidiaries on a
combined basis shall not at any time have (i) assets with a value in
excess of $10,000,000 or (ii) revenues (for the most recently completed
period of four consecutive fiscal quarters) in excess of $10,000,000.

 

“Non-U.S.
Lender”:  a Lender that is not a U.S.
Person.

 

17

 

“Notes”:  the collective reference to any promissory
note evidencing Loans, including any Discount Notes.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans and Reimbursement
Obligations and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans and all other
obligations and liabilities of the Borrower to the Administrative Agent or to
any Lender (or, in the case of Specified Swap Agreements and Specified Cash
Management Agreements, any affiliate of any Lender), whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, any other Loan Document, the Letters of Credit, any Specified Swap
Agreement, any Specified Cash Management Agreement or any other document made,
delivered or given in connection herewith or therewith, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to the
Administrative Agent or to any Lender that are required to be paid by the
Borrower pursuant hereto) or otherwise.

 

“Other
Connection Taxes”: with respect to any Recipient, Taxes imposed as a result
of a present or former connection between such Recipient and the jurisdiction
imposing such Taxes (other than a connection arising from such Recipient having
executed, delivered, enforced, become a party to, performed its obligations
under, received payments under, received or perfected a security interest
under, or engaged in any other transaction pursuant to, any Loan Document).

 

“Other
Taxes”: any present or future stamp, court, documentary, intangible,
recording, filing or similar excise or property Taxes that arise from any
payment made under, from the execution, delivery, performance, enforcement or
registration of, or from the registration, receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document, except any
such Taxes that are Other Connection Taxes imposed with respect to an
assignment (other than an assignment under Section 2.20).

 

“Parent”:
with respect to any Lender, any Person as to which such Lender is, directly or
indirectly, a subsidiary.

 

“Participant”:  as defined in Section 10.6(c).

 

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 

“Pension
Plan”:  any Plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412
of the Code or Section 302 of ERISA, and in respect of which any Group
Member or any ERISA Affiliate is (or, if such Plan were terminated, would under
Section 4062 or 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 

“Permitted
Acquisition”: an acquisition or any series of related acquisitions by a
Loan Party (including any merger where such Loan Party (or a Subsidiary that becomes a Loan Party) is the surviving entity) of (a) all
or substantially all of the assets or the outstanding Capital Stock of any
Person or (b) any division, line of business or other business unit of any
Person (such Person or such division, line of business or other business unit
of such Person shall be referred to herein as the “Target”), in each
case that is a type of business (or assets used in a type of business)
permitted to be engaged in by the Borrower and its Subsidiaries pursuant to Section 7.16
so long as (i) no Default or Event of Default shall 

 

18

 

then
exist or would exist after giving effect thereto, (ii) the Borrower shall
demonstrate to the reasonable satisfaction of the Administrative Agent that, after giving effect to the acquisition (x) on a Pro Forma Basis,
the Borrower is in compliance with the financial covenants set forth in clauses
(a) and (b) of Section 7.1 as
of the most recently ended fiscal quarter for which financial statements have
been delivered hereunder and (y) the Borrower is in compliance with the
liquidity covenant set forth in Section 7.1(c) as of the date of such
acquisition, (iii) the Administrative Agent, on behalf of the Lenders, shall
have received (or shall receive in connection with the closing of such
acquisition) a first priority perfected security interest, subject only to
permitted Liens, in Collateral described in the Guarantee and Collateral
Agreements (including, without limitation, Capital Stock) acquired with respect
to the Target to the extent required by Section 6.9 and the Target, if a
Person that has not merged with any Loan Party, shall have taken such actions
as are required of it under Section 6.9, (iv) such acquisition shall
not be initiated or consummated as a “hostile” acquisition and shall have been
approved by the Board of Directors and/or shareholders of the applicable Loan
Party and the Target and (v) Consolidated Liquidity at the time of the
acquisition (including the cash and Cash Equivalents of the Target), and after
giving effect to the payment of all cash consideration for such acquisition and
the related fees and expenses on a Pro Forma Basis, is at least $50,000,000.

 

“Permitted
Priority Liens” shall mean Liens (other than Liens on Pledged Stock)
permitted by Section 7.2(n) which by operation of law or contract
would have priority over the Liens created pursuant to the Security Documents.

 

“Permitted
Reorganization”: a transaction or series or transactions pursuant to which
all of the issued and outstanding Capital Stock of the Borrower is exchanged
for Capital Stock of a newly-formed Person (the “New Parent”), organized
under the laws of Switzerland or any other jurisdiction reasonably acceptable
to the Administrative Agent, whose business is otherwise permitted to be
engaged in by the Group Members pursuant to Section 7.16, so long as (i) no
Default or Event of Default shall then exist or would exist after giving effect
thereto, (ii) the Borrower shall demonstrate to the reasonable
satisfaction of the Administrative Agent that, after giving effect to the
recapitalization (x) on a Pro Forma Basis, the New Parent is in compliance
with the financial covenants set forth in clauses (a) and (b) of Section 7.1
as of the most recently ended fiscal quarter for which financial statements
have been delivered hereunder (calculated, solely for purposes of this
definition, by treating the New Parent as the “Borrower” for purposes of such
financial covenants) and (y) the Borrower is
in compliance with the liquidity covenant set forth in Section 7.1(c) as
of the date of such recapitalization and (iii) the Administrative
Agent, on behalf of the Lenders, shall have received (or shall receive in
connection with the consummation of such recapitalization) a first priority
perfected security interest, subject only to Permitted Priority Liens, in
Collateral described in the Guarantee and Collateral Agreements (including,
without limitation, Capital Stock) owned by the New Parent to the extent required
by the terms of Section 6.9, and the New Parent and the Borrower shall
have taken such actions required under Section 6.9.

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.

 

“Plan”:  any
employee benefit plan as defined in Section 3(3) of ERISA, including
any employee welfare benefit plan (as defined in Section 3(1) of
ERISA), any employee pension benefit plan (as defined in Section 3(2) of
ERISA), and any plan which is both an employee welfare benefit plan and an
employee pension benefit plan, and in respect of which any Group Member or any
ERISA Affiliate is (or, if such Plan were terminated, would under Section 4062
or 4069 of ERISA be deemed to be) an “employer” (as defined in Section 3(5) of
ERISA).

 

19

 

“PPSA”: the Personal
Property Security Act (Ontario), including the regulations thereto,
provided that, if perfection or the effect of perfection or non-perfection or
the priority of any Lien created hereunder on the Collateral is governed by the
personal property security legislation or other applicable legislation with respect
to personal property security in effect in a jurisdiction other than Ontario, “PPSA”
means the Personal Property Security Act or such
other applicable legislation in effect from time to time in such other
jurisdiction for purposes of the provisions hereof relating to such perfection,
effect of perfection or non-perfection or priority.

 

“Prime
Rate”:  the rate of interest per
annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its
prime rate in effect at its principal office in New York City (the Prime Rate
not being intended to be the lowest rate of interest charged by JPMorgan Chase
Bank, N.A. in connection with extensions of credit to debtors).

 

“Pro
Forma Basis”: on a basis in accordance with GAAP and otherwise reasonably
satisfactory to the Administrative Agent.

 

“Prohibited
Transaction”:  as defined in Section 406
of ERISA and Section 4975(f)(3) of the Code.

 

“Properties”:  as defined in Section 4.18(a).

 

“Recipient”:
as applicable, (a) the Administrative Agent, (b) any Lender and (c) the
Issuing Lender.

 

“Refunded
Swingline Loans”:  as defined in Section 2.5.

 

“Register”:  as defined in Section 10.6(b).

 

“Regulation
U”:  Regulation U of the Board as in
effect from time to time.

 

“Reimbursement
Date”:  as defined in Section 3.5.

 

“Reimbursement
Obligation”:  the obligation of the
Borrower to reimburse the Issuing Lender pursuant to Section 3.5 for
amounts drawn under Letters of Credit.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

 

“Reportable
Event”:  any of the events set forth
in Section 4043(c) of ERISA with respect to a Pension Plan, other
than those events as to which notice is waived pursuant to PBGC Reg. § 4043 as
in effect on the date hereof (without regard to any future changes to such
notice requirement).

 

“Required
Lenders”:  at any time, the holders
of more than 66 2/3% of (a) until the Closing Date, the Commitments then
in effect and (b) thereafter, the Commitments then in effect or, if the
Commitments have been terminated, the Total Extensions of Credit then
outstanding.

 

“Requirement
of Law”:  as to any Person, the
charter, articles or certificate of organization or incorporation and by-laws
or other organizational or governing documents of such Person, and any law,
treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

 

20

 

“Responsible
Officer”:  the chief executive
officer, president or chief financial officer of the Borrower, but in any
event, with respect to financial matters, the chief financial officer of the
Borrower.

 

“Restricted
Payments”:  as defined in Section 7.6.

 

“Revolving
Loans”:  as defined in Section 2.1(a).

 

“Royal
Gold Intercreditor Agreement”: the Intercreditor Agreement to be entered
into among the Administrative Agent, the Borrower, Terrane Metals Corp. and RGL
Royalty AG, substantially in the form of Exhibit H.

 

“Royal
Gold Purchase Agreement”: the Purchase and Sale agreement dated as of October 20,
2010 among the Borrower, Terrane Metals Corp., RGL Royalty AG and Royal Gold, Inc.

 

“S&P”:
Standard and Poor’s Ratings Services LLC.

 

“Schedule
I Lender” means any Lender named on Schedule I to the Bank Act (Canada).

 

“Security
Documents”:  the collective reference
to the Guarantee and Collateral Agreements, the Mortgages and all other
security documents hereafter delivered to the Administrative Agent granting a
Lien on any property of any Person to secure the obligations and liabilities of
any Loan Party under any Loan Document.

 

“Sojitz
Consent Agreement”: the Consent Agreement to be entered into among the
Administrative Agent, Thompson Creek Mining Ltd. and Sojitz Moly Resources, Inc.
in connection with certain Exploration, Development and Mine Operating
Agreement with respect to the Endako Joint Venture.

 

“Solvent”:  when used with respect to (A) any Person
that is subject to the Insolvency Laws of the United States, means that, as of
any date of determination, (a) the amount of the “present fair saleable
value” of the assets of such Person will, as of such date, exceed the amount of
all “liabilities of such Person, contingent or otherwise”, as of such date, as
such quoted terms are determined in accordance with applicable federal and
state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such
Person will not have, as of such date, an unreasonably small amount of capital
with which to conduct its business, and (d) such Person will be able to
pay its debts as they mature and (B) any Person that is subject to the
Insolvency Laws of Canada, means (i) the
property of such Person, at a fair valuation, is greater than the total amount
of its debts and liabilities, subordinated, contingent or otherwise; (ii) such
Person’s property is sufficient, if disposed of at a fairly conducted sale
under legal process, to enable payment of all its obligations, due and accruing
due; (iii) such Person will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities generally
become due; and (iv) such Person has not ceased paying its current
obligations in the ordinary course of business as they generally become due.  For purposes of Part (A) of this
definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right
to an equitable remedy for breach of performance if such breach gives rise to a
right to payment, whether or not such right to an equitable remedy is reduced
to judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured.

 

21

 

“Specified
Cash Management Agreement”:  any
agreement providing for treasury, depositary, purchasing card or cash
management services, including in connection with any automated clearing house
transfers of funds or any similar transactions between the Borrower or any
Subsidiary Guarantor and any Lender or affiliate thereof, which has been
designated by such Lender and the Borrower or Subsidiary Guarantor, by notice
to the Administrative Agent not later than 90 days after the execution and
delivery by the Borrower or such Subsidiary Guarantor, as a “Specified Cash
Management Agreement”.

 

“Specified
Swap Agreement”:  any Swap Agreement
in respect of interest rates, currency exchange rates or commodity prices
entered into by the Borrower or any Subsidiary Guarantor and any Person that is
a Lender or an affiliate of a Lender at the time such Swap Agreement is entered
into.

 

“Spot
Selling Rate”: on any date, as determined by the Administrative Agent, the
spot selling rate posted by Reuters on its website for the sale of the
applicable currency for Dollars at approximately 11:00 a.m., London time,
two Business Days prior to such date (the “Applicable Quotation Date”); provided
that if, for any reason, no such spot rate is being quoted, the spot selling
rate shall be determined by reference to such publicly available service for displaying
exchange rates as may be selected by the Administrative Agent, or, in the event
no such service is selected, such spot selling rate shall instead be the rate
determined by the Administrative Agent as the spot rate of exchange in the
market where its foreign currency exchange operations in respect of the
applicable currency are then being conducted, at or about 11.00 a.m.
London time, on the Applicable Quotation Date for the purchase of the relevant
currency for delivery two Business Days later.

 

“Subsidiary”:  as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower (or, following the consummation of
the Permitted Reorganization, the New Parent).

 

“Sustaining
Capital Expenditures”: Capital Expenditures for the replacement,
substitution, maintenance, repair, restoration or refurbishment of fixed assets
which are owned by the Borrower or any of its Subsidiaries and are necessary
for the ongoing operations of existing mines and roasting facilities, but
excluding any Capital Expenditures which significantly add to or improve any
such property beyond its original state.

 

“Subsidiary
Guarantor”: each of the Borrower’s direct and indirect, existing and
future, Subsidiaries (other than any Excluded Subsidiary).

 

“Swap
Agreement”:  any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any combination
of these transactions; provided that no phantom stock or similar
plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or any of
its Subsidiaries shall be a “Swap Agreement”.

 

22

 

“Swingline
Commitment”:  the obligation of the
Swingline Lender to make Swingline Loans pursuant to Section 2.4 in an
aggregate principal amount at any one time outstanding not to exceed $30,000,000.

 

“Swingline
Exposure”:  at any time, the sum of (a) the
aggregate principal amount of all US Swingline Loans and (b) the Dollar
Equivalent of the aggregate principal amount of all Canadian Swingline Loans
outstanding at such time.

 

“Swingline
Lender”:  JPMorgan Chase Bank, N.A.,
in its capacity as the lender of Swingline Loans or such other financial
institution that, after the date hereof, shall agree to act in the capacity of
lender of Swingline Loans hereunder with the consent of the Administrative
Agent and the Borrower.

 

“Swingline
Loans”:  as defined in Section 2.4

 

“Swingline
Participation Amount”:  as defined in
Section 2.5.

 

“Syndication
Agent”: as defined in the preamble to this Agreement.

 

“Taxes”:
any present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority,
including any interest, additions to tax or penalties applicable thereto.

 

“TC
Warrants” as defined in the definition of Existing Warrants.

 

“Termination
Date”:  December 10, 2014.

 

“Terrane
Warrants” as defined in the definition of Existing Warrants.

 

“Thompson
Creek Mine”: Borrower’s molybdenum mine in Custer County, Idaho.

 

“Total
Commitments”:  at any time, the
aggregate amount of the Commitments then in effect.

 

“Total
Extensions of Credit”:  at any time,
the aggregate amount of the Extensions of Credit of the Lenders outstanding at
such time.

 

“Transaction
Expenses”: any fees or expenses (to the extent not capitalized) incurred
and paid by the Loan Parties prior to the Closing Date in connection with the
Agreement, the other Loan Documents, and the transactions contemplated hereby
and thereby to be consummated on the Closing Date.

 

“Transferee”:  any
Eligible Assignee or Participant.

 

“Type”:  as to any Loan, its nature as an ABR Loan, a
Eurodollar Loan, a Canadian Prime Rate Loan, a CDOR Loan or a Bankers’
Acceptance.

 

“United
States”:  the United States of
America.

 

“US
Guarantee and Collateral Agreement”: the US Guarantee and Collateral
Agreement to be executed by the Borrower and each US Subsidiary Guarantor,
substantially in the form of Exhibit A-1.

 

23

 

“US
Loan Party”: any Loan Party organized under the laws of any jurisdiction
within the United States.

 

“US
Mortgaged Properties”:  the real
properties listed on Part A of Schedule 1.1B, as to which the
Administrative Agent for the benefit of the Lenders shall be granted a Lien
pursuant to the Mortgages.

 

“US
Mortgages”:  each of the mortgages
and deeds of trust made by any US Subsidiary Guarantor in favor of, or for the
benefit of, the Administrative Agent for the benefit of the Lenders,
substantially in the form of Exhibit D-1 (with such changes thereto as
shall be advisable under the law of the jurisdiction in which such mortgage or
deed of trust is to be recorded).

 

“US
Revolving Loan”:  as defined in Section 2.1.

 

“US
Swingline Loan”:  as defined in Section 2.4.

 

“US
Subsidiary”:  any Subsidiary of the
Borrower organized under the laws of any jurisdiction within the United States.

 

“US Subsidiary
Guarantor”: any Subsidiary Guarantor that is organized under the laws of
any jurisdiction within the United States.

 

“U.S.
Person”: a “United States person” within the meaning of Section 7701(a)(30)
of the Code.

 

“Wholly
Owned Subsidiary”:  as to any Person,
any other Person all of the Capital Stock of which (other than directors’
qualifying shares required by law) is owned by such Person directly and/or
through other Wholly Owned Subsidiaries.

 

“Wholly
Owned Subsidiary Guarantor”:  any
Subsidiary Guarantor that is a Wholly Owned Subsidiary of the Borrower.

 

“Withdrawal
Liability”: any liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined
in Title IV of ERISA.

 

“Withholding
Agent”: any Loan Party and the Administrative Agent.

 

1.2           Other Definitional Provisions.  (a)Unless otherwise specified therein, all
terms defined in this Agreement shall have the defined meanings when used in
the other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 

(b)     As used herein and in the other Loan Documents, and any
certificate or other document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to any Group Member not defined in Section 1.1 and
accounting terms partly defined in Section 1.1, to the extent not defined,
shall have the respective meanings given to them under GAAP (provided that,
notwithstanding anything to the contrary herein, all accounting or financial
terms used herein shall be construed, and all financial computations pursuant
hereto shall be made, without giving effect to any election under Statement of
Financial Accounting Standards 159 (or any other Financial Accounting Standard
having a similar effect) to value any Indebtedness or other liabilities of any
Group Member at “fair value”, as defined therein), (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (iii) the word “incur” shall be construed to mean incur,
create, issue, 

 

24

 

assume, become liable in respect of or suffer to
exist (and the words “incurred” and “incurrence” shall have correlative
meanings), (iv) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise
specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time.

 

(c)     The words “hereof”, “herein” and “hereunder” and words of
similar import, when used in this Agreement, shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section, Schedule
and Exhibit references are to this Agreement unless otherwise specified.

 

(d)     The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

 

1.3           Accounting Terms; GAAP.

 

Except
as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided that if the Borrower notifies the Administrative Agent that the
Borrower requests an amendment to any provision hereof to eliminate the effect
of any change occurring after the date hereof in GAAP or in the application
thereof on the operation of such provision (or if the Administrative Agent
notifies the Borrower that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance
herewith (it being understood that, in the event that the Borrower delivers any
such notice in respect of any change in the treatment of operating leases under
GAAP as in effect on the Closing Date, the Borrower may elect not to pursue an
amendment to this Agreement, and such change shall not affect the financial
reporting, financial covenant compliance requirements or calculation of the
Applicable Margin provisions contained in this Agreement as of the Closing
Date).

 

1.4           Currency Translations.

 

(a) For
purposes of this Agreement and the other Loan Documents, where the
permissibility of a transaction or determinations of required actions or
circumstances depend upon compliance with or are determined by reference to
amounts stated in Dollars, such amounts shall be deemed to refer to Dollars or
Dollar Equivalents. For purposes of any determination under Section 7.6 or
7.8, the amount of each Investment, disposition or other applicable transaction
denominated in a currency other than Dollars shall be translated into Dollars
at the Spot Selling Rate on the date such Investment, disposition or other
transaction is consummated. Principal, interest, reimbursement obligations,
fees and all other amounts payable under this Agreement or any Loan Document to
the Administrative Agent or any Lender shall be payable in the currency in
which such Obligations are denominated, unless expressly stated otherwise.

 

(b)           The Administrative Agent shall
determine the Dollar Equivalent of (x) the Extensions of Credit (i) as
of the end of each fiscal quarter of the Borrower, (ii) on or about the
date of the related notice requesting any Extension of Credit and (iii) on
any other date, in its reasonable discretion and (y) any other amount to
be converted into Dollars in accordance with the provisions hereof at the time
of such conversion.

 

25

 

 

SECTION 2.           AMOUNT AND TERMS OF COMMITMENTS

 

2.1           Commitments

 

(a)         Subject to the terms and conditions
hereof, (x) each Lender severally agrees to make revolving credit loans
denominated in Dollars to the Borrower (such loans, the “US Revolving Loans”)
and (y) each Lender severally agrees to make revolving credit loans
denominated in Canadian Dollars, and extend credit in Canadian Dollars by way
of Bankers’ Acceptances, to the Borrower (such loans and acceptance of Bankers’
Acceptances, the “Canadian Revolving Loans” and, together with the US
Revolving Loans, the “Revolving Loans”) from time to time during the
Commitment Period in an aggregate principal amount at any one time outstanding
which, when added to such Lender’s Applicable Percentage of the sum of (i) the
L/C Obligations then outstanding and (ii) the aggregate principal amount
of the Swingline Loans then outstanding, does not exceed the amount of such
Lender’s Commitment. During the Commitment Period, the Borrower may use the
Commitments by borrowing, prepaying the Revolving Loans in whole or in part,
and reborrowing, all in accordance with the terms and conditions hereof.  The Revolving Loans shall from time to time
be available (i) in the case of the Revolving Loans denominated in
Dollars, as Eurodollar Loans or ABR Loans or (ii) in the case of the
Revolving Loans denominated in Canadian Dollars, Canadian Prime Rate Loans,
CDOR Loans or Bankers’ Acceptances, in each case, as determined by the Borrower
and notified to the Administrative Agent in accordance with Sections 2.2 and
2.9.

 

(b)     Notwithstanding anything herein to the contrary, after the
Closing Date (i) any Eligible Assignee may become a Lender pursuant to
documentation reasonably satisfactory to the Administrative Agent and commit to
provide commitments hereunder, at which such time (x) it shall become a
Lender for all purposes under the Loan Documents, (y) its commitments
shall be considered Commitments and (z) any loans it makes under this
Agreement shall be considered Revolving Loans or (ii) any Lender may
commit to provide additional commitments hereunder and its Commitment shall be
increased by such amount of additional commitments; provided that the
aggregate amount of additional commitments provided pursuant to clauses (i) and
(ii) of this Section 2.1(b) shall not exceed $10,000,000.  For the avoidance of doubt, any additional
commitments under this Section 2.1(b) shall not constitute an
increase of the Commitments for the purposes of clause (vi) of Section 10.1.

 

(c)     The Borrower shall repay all outstanding Revolving Loans in
Dollars or Canadian Dollars, as the case may be, on the Termination Date.

 

2.2           Procedure for Revolving Loan Borrowing.  The Borrower may borrow under the Commitments
during the Commitment Period on any Business Day, provided that (a) with
respect to US Revolving Loans, the Borrower shall give the Administrative Agent
irrevocable notice (which notice must be received by the Administrative Agent
prior to 1:00 P.M. New York City time, three Business Days prior to the
requested Borrowing Date, in the case of Eurodollar Loans or prior to 10:00 A.M.
New York City time, one Business Day prior to the requested Borrowing Date, in
the case of ABR Loans, specifying (i) the amount and Type of US Revolving
Loans to be borrowed, (ii) the requested Borrowing Date, and (iii) in
the case of Eurodollar Loans, the length of the initial Interest Period and (b) with
respect to Canadian Revolving Loans, the Borrower shall give the Administrative
Agent irrevocable notice (which notice must be received by the Administrative
Agent prior to 10:00 A.M., New York City time, three Business Days prior
to the requested Borrowing Date in the case of CDOR Loans or Bankers’
Acceptances and one Business Day prior to the requested Borrowing Date in the
case of Canadian Prime Rate Loans), specifying (i) the amount and Type of
Canadian Revolving Loans to be borrowed, (ii) the requested Borrowing
Date, (iii) in the case of CDOR Loans and Bankers’ Acceptances, the length
of the initial Interest Period or Contract Period therefor. Each borrowing
under the Commitments under this 

 

26

 

Section 2.2 shall be in an amount equal to
$1,000,000 or C$1,000,000 or a whole multiple of $1,000,000 or C$1,000,000 in
excess thereof or, if the then aggregate Available Commitments are less than
$1,000,000 or C$1,000,000, as applicable, such lesser amount; provided, that
each Swingline Lender may request, on behalf of the Borrower, borrowings under
the Commitments that are ABR Loans or Canadian Prime Rate Loans in other
amounts pursuant to Section 2.5. Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the
amount of its pro  rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the applicable Funding
Office prior to 12:00 Noon, New York City time, on the Borrowing Date requested
by the Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of such office with the aggregate of the amounts made available to
the Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent. Each Lender shall make available to the Borrower Bankers’
Acceptance borrowings during the Commitment Period in accordance with and
pursuant to the procedures set forth in Section 2.3.

 

2.3           Bankers’ Acceptances.  (a)  Term.  Each Bankers’ Acceptance shall have a
Contract Period of approximately thirty days, sixty days, ninety days or one
hundred and eighty days, subject to availability. No Contract Period shall
extend beyond the Termination Date.  If such
Contract Period would otherwise end on a day that is not a Business Day, such
Contract Period shall end on the immediately preceding day that is a Business
Day.

 

(b)     Discount Rate.  On
each Borrowing Date on which Bankers’ Acceptances are to be accepted, the
Administrative Agent shall advise the Borrower as to the Administrative Agent’s
determination of the applicable Discount Rate for the Bankers’ Acceptances
which any of the Lenders have agreed to purchase.

 

(c)     Purchase.  Each Lender
agrees to purchase a Bankers’ Acceptance accepted by it.  The Borrower shall sell, and such Lender
shall purchase, the Bankers’ Acceptance at the applicable Discount Rate.  Such Lender shall provide to the applicable
Funding Office the Discount Proceeds less the Acceptance Fee payable by the
Borrower with respect to such Bankers’ Acceptance.  Such proceeds will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of the Administrative Agent with the aggregate of the amounts made
available to the Administrative Agent by such Lenders and in like funds as
received by the Administrative Agent.

 

(d)     Sale.  Each Lender may
from time to time hold, sell, rediscount or otherwise dispose of any or all
Bankers’ Acceptances accepted and purchased by it.

 

(e)     Power of Attorney for the Execution of Bankers’ Acceptances.  To facilitate borrowings under the
Commitments by way of B/As, the Borrower hereby appoints each Lender as its
attorney to sign and endorse on its behalf, in handwriting or by facsimile or
mechanical signature as and when deemed necessary by such Lender, blank forms
of B/As.  In this respect, it is each
Lender’s responsibility to maintain an adequate supply of blank forms of B/As
for acceptance under this Agreement.  The
Borrower recognizes and agrees that all B/As required to be accepted and
purchased by any Lender and which are signed and/or endorsed on its behalf by a
Lender shall bind the Borrower as fully and effectually as if signed in the
handwriting of and duly issued by the proper signing officers of the
Borrower.  Each Lender is hereby
authorized to issue such B/As endorsed in blank in such face amounts as may be
determined by such Lender; provided that the aggregate amount thereof is
equal to the aggregate amount of B/As required to be accepted and purchased by
such Lender.  No Lender shall be liable
for any damage, loss or other claim arising by reason of any loss or improper
use of any such instrument except to the extent arising from the gross negligence
or willful misconduct of such Lender or its officers, employees, agents or
representatives.  On request by the
Borrower, a Lender shall cancel all 

 

27

 

forms of B/As which have been pre-signed or pre-endorsed
by or on behalf of the Borrower and which are held by such Lender and have not
yet been issued in accordance herewith. 
Each Lender shall maintain a record with respect to B/As held by it in
blank hereunder, voided by it for any reason, accepted and purchased by it
hereunder, and cancelled at their respective maturities.  Each Lender agrees to provide such records to
the Borrower at the Borrower’s expense upon request.

 

(f)      Execution.  Drafts
drawn by the Borrower to be accepted as Bankers’ Acceptances shall be signed by
a duly authorized officer or officers of the Borrower or by its attorneys
including attorneys appointed pursuant to Section 2.3(e) above.  Notwithstanding that any Person whose
signature appears on any Bankers’ Acceptance may no longer be an authorized
signatory for the Borrower at the time of issuance of a Bankers’ Acceptance,
that signature shall nevertheless be valid and sufficient for all purposes as
if the authority had remained in force at the time of issuance and any Bankers’
Acceptance so signed shall be binding on the Borrower.

 

(g)     Issuance.   The Administrative Agent, promptly
following receipt of a notice of borrowing, continuation or conversion by way
of Bankers’ Acceptances, shall advise the applicable Lenders of the notice and
shall advise each such Lender of the face amount of Bankers’ Acceptances to be
accepted by it and the applicable Contract Period (which shall be identical for
all Lenders).  The aggregate face amount
of Bankers’ Acceptances to be accepted by a Lender shall be determined by the
Administrative Agent by reference to such Lender’s Applicable Percentage of the
issue of Bankers’ Acceptances, except that, if the face amount of a Bankers’
Acceptance which would otherwise be accepted by a Lender would not be C$100,000,
or a whole multiple thereof, the face amount shall be increased or reduced by
the Administrative Agent in its sole discretion to C$100,000, or the nearest
whole multiple of that amount, as appropriate; provided that after such
issuance, no Lender shall have outstanding Extensions of Credit in excess of
its Commitment.

 

(h)     Waiver of Presentment and Other Conditions.  The Borrower waives presentment for payment and any other
defense to payment of any amounts due to a Lender in respect of a Bankers’
Acceptance accepted and purchased by it pursuant to this Agreement which might
exist solely by reason of the Bankers’ Acceptance being held, at the maturity
thereof, by such Lender  in its own
right and the Borrower agrees not to claim any days of grace if such Lender as
holder sues the Borrower on the Bankers’ Acceptance for payment of the amount
payable by the Borrower thereunder.  On
the specified maturity date of a B/A, or the date of any prepayment thereof in
accordance with this Agreement, if earlier, the Borrower shall pay to such
Lender that has accepted such B/A the full face amount of such B/A (or shall
make provision for payment by way of conversion or continuation in accordance
with Sections 2.10(d) or (f)) in full and absolute satisfaction of its
obligations with respect to such B/A, and after such payment, the Borrower
shall have no further liability in respect of such B/A (except to the extent
that any such payment is rescinded or reclaimed by operation of law or
otherwise) and such Lender shall be entitled to all benefits of, and will make
and otherwise be responsible for all payments due to the redeeming holder or
any third parties under, such B/A.  The
Borrower shall not enter into any agreement or arrangement of any kind with any
Person to whom B/As have been delivered by which the Borrower undertakes to
replace B/As on a continuing basis with other B/As, nor shall the Borrower
directly or indirectly take, use or provide B/As as security for loans or
advances from any other Person.

 

(i)      BA Equivalent Loans by Non BA Lenders.  Whenever the Borrower requests a borrowing by
way of Bankers’ Acceptances, each Non BA Lender shall, in lieu of accepting a
Bankers’ Acceptance, make a BA Equivalent Loan in an amount equal to such Non
BA Lender’s Applicable Percentage of such borrowing. On the relevant Borrowing
Date, the Administrative Agent shall credit the relevant account of the
Borrower on the books of the Administrative Agent with the aggregate of the
amounts made available to the Administrative Agent by such Lenders and in like
funds as received by the Administrative Agent.

 

28

 

(j)      Terms Applicable to BA Equivalent Loans.  As set out in the definition of “Bankers’ Acceptances”, that term
includes Discount Notes and all terms of this Agreement applicable to Bankers’
Acceptances (including the provisions of Section 2.3(e) relating to
their execution by the Lenders under power of attorney) shall apply equally to
Discount Notes evidencing BA Equivalent Loans with such changes as may in the
context be necessary.  For greater
certainty:

 

(i)  the term of a
Discount Note shall be the same as the Contract Period for Bankers’ Acceptances
accepted and purchased on the same Borrowing Date in respect of the same borrowing;

 

(ii)  an acceptance fee
will be payable in respect of a Discount Note and shall be calculated at the
same rate and in the same manner as the Acceptance Fee in respect of a Bankers’
Acceptance; and

 

(iii)  the Discount
Rate applicable to a Discount Note shall be the Discount Rate applicable to
Bankers’ Acceptances accepted by a Lender that is not a Schedule I Lender in
accordance with the definition of “Discount Rate” on the same Borrowing Date or
date of continuation or conversion, as the case may be, in respect of the same
borrowing for the relevant Contract Period.

 

Each
Non BA Lender may agree, in lieu of receiving any Discount Notes, that such
Discount Notes may be uncertificated and the applicable BA Equivalent Loan
shall be evidenced by a loan account, which such Non BA Lender shall maintain
in its name, and in such event such loan account shall be entitled to all the
benefits of Discount Notes in respect of BA Equivalent Loans.

 

(k)     Depository Bills and Notes Act.  At the option of the Borrower and
any Lender, Bankers’ Acceptances under this Agreement to be accepted by such
Lender may be issued in the form of depository bills for deposit with The
Canadian Depository for Securities Limited pursuant to the Depository
Bills and Notes Act (Canada). 
All depository bills so issued shall be governed by the provisions of
this Section 2.3.

 

2.4           Swingline Commitment.  (a)  Subject
to the terms and conditions hereof, (x) the Swingline Lender, in reliance
on the agreements of the other Lenders set forth in Section 2.5, agrees to
make a portion of the credit otherwise available to the Borrower in Dollars
under the Commitments from time to time during the Commitment Period by making
swing line loans (such loans, “US Swingline Loans”) to the Borrower in
Dollars and (y) the Swingline Lender, in reliance on the agreements of the
other Lenders set forth in Section 2.5, agrees to make a portion of the
credit otherwise available to the Borrower under the Commitments from time to
time during the Commitment Period by making swing line loans to the Borrower in
Canadian Dollars (such loans, “Canadian Swingline Loans” ; and, together
with the US Swingline Loans, the “Swingline Loans”); provided
that (i) the aggregate principal amount of Swingline Loans outstanding at
any time shall not exceed the Swingline Commitment then in effect
(notwithstanding that the Swingline Loans outstanding at any time, when
aggregated with the Swingline Lender’s other outstanding Revolving Loans, may
exceed the Swingline Commitment then in effect) and (ii) the Borrower
shall not request, and the Swingline Lender shall not make, any Swingline Loan
if, after giving effect to the making of such Swingline Loan, the aggregate
amount of the Available Commitments would be less than zero. During the Commitment
Period, the Borrower may use the Swingline Commitment by borrowing, repaying
and reborrowing, all in accordance with the terms and conditions hereof.  Each Swingline Loan shall be an ABR Loan, in
the case of a US Swingline Loan, or a Canadian Prime Rate Loan, in the case of
a Canadian Swingline Loan.

 

29

 

(b)     The Borrower shall repay to each applicable Swingline Lender the
then unpaid principal amount of each applicable Swingline Loan on the earlier of
the Termination Date and the first date after such Swingline Loan is made that
is the 15th or last day of a calendar month and is at least two Business Days
after such Swingline Loan is made; provided that on each date that a
Revolving Loan is borrowed, the Borrower shall repay all Swingline Loans then
outstanding.

 

2.5           Procedure for Swingline Borrowing; Refunding of
Swingline Loans.  (a)  Whenever the Borrower desires that any
Swingline Lender make US Swingline Loans, it shall notify such Swingline Lender
and the Administrative Agent by telephone (and shall subsequently confirm and
deliver irrevocable written notice (which written notice must be received by
such Swingline Lender no later than 2:00 P.M., New York City time, on the
proposed Borrowing Date), specifying (A) the amount to be borrowed and (B) the
requested Borrowing Date (which shall be a Business Day during the Commitment
Period).  Whenever the Borrower desires
that any Swingline Lender make Canadian Swingline Loans, it shall give such
Swingline Lender and the Administrative Agent irrevocable notice (which notice
must be received by such Swingline Lender not later than 2:00 P.M., New
York City time, on the proposed Borrowing Date), specifying (A) the amount
to be borrowed and (B) the requested Borrowing Date (which shall be a
Business Day during the Commitment Period). Each borrowing under any Swingline
Commitment shall be in an amount equal to US$1,000,000 or C$1,000,000, as
applicable, or a whole multiple thereof. 
Not later than 3:00 P.M., on the Borrowing Date specified in a
notice in respect of any Swingline Loan, the relevant Swingline Lender shall
make such Swingline Loan available to the Borrower, in the manner and on such
terms as may be agreed by such Swingline Lender and the Borrower.

 

(b)     The Swingline Lender, at any time and from time to time in its
sole and absolute discretion may, on behalf of the Borrower requesting a
Swingline Loan (which hereby irrevocably directs the Swingline Lender to act on
its behalf), on one Business Day’s notice given by the Swingline Lender no
later than 12:00 Noon, New York City time, request each Lender to make, and
each Lender hereby agrees to make, a Revolving Loan, in an amount in the
applicable currency equal to such Revolving Lender’s Applicable Percentage of
the aggregate amount of the Swingline Loans in such currency (the “Refunded
Swingline Loans”) outstanding on the date of such notice, to repay the
Swingline Lender. Upon such request by the Administrative Agent for the
refunding of the Swingline Loan, each Lender shall make the amount of its ABR
Loan or Canadian Prime Rate Loan, as the case may be, available for value to
the Administrative Agent for the benefit of such Swingline Lender at the
applicable Funding Office of the Administrative Agent before 11:00 A.M.,
on the first Business Day following such request by the Administrative Agent
(or, if such request is made before 10:00 A.M. on any date, then the
amount of such ABR Loans or Canadian Prime Rate Loans shall instead be so made
available to the Administrative Agent before 2:00 P.M. on the date of such
request). The proceeds of such Loans shall be immediately made available by the
Administrative Agent to the Swingline Lender for application by the Swingline
Lender to the repayment of the Refunded Swingline Loans.  The Borrower irrevocably authorizes the
Swingline Lender to charge any of the Borrower’s accounts with the
Administrative Agent (up to the amount available in each such account) in order
to immediately pay the amount of such Refunded Swingline Loans to the extent
amounts received from the Revolving Lenders are not sufficient to repay in full
such Refunded Swingline Loans.

 

(c)     If prior to the time a Revolving Loan would have otherwise been
made pursuant to Section 2.5(b), one of the events described in Section 8(f) shall
have occurred and be continuing with respect to the Borrower or if for any
other reason, as determined by the Swingline Lender in its sole discretion,
Revolving Loans may not be made as contemplated by Section 2.5(b), each
Lender shall, on the date such Revolving Loan was to have been made pursuant to
the notice referred to in Section 2.5(b), purchase for cash an undivided
participating interest in the then outstanding Swingline Loans in a particular
currency by paying to the Swingline Lender an amount (the “Swingline
Participation Amount”) 

 

30

 

equal to (i) such Lender’s Applicable
Percentage times (ii) the sum of the aggregate principal amount of
Swingline Loans then outstanding in such currency that were to have been repaid
with such Revolving Loans.

 

(d)     Whenever, at any time after the Swingline Lender has received
from any Lender such Lender’s Swingline Participation Amount, the Swingline
Lender receives any payment on account of the Swingline Loans, the Swingline
Lender will distribute to such Lender its Swingline Participation Amount
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s participating interest was
outstanding and funded and, in the case of principal and interest payments, to
reflect such Lender’s pro  rata portion of such payment if such
payment is not sufficient to pay the principal of and interest on all Swingline
Loans then due); provided, however, that in the event that such
payment received by the Swingline Lender is required to be returned, such
Lender will return to the Swingline Lender any portion thereof previously
distributed to it by the Swingline Lender.

 

(e)     Each Lender’s obligation to make the Loans referred to in Section
2.5(b) and to purchase participating interests pursuant to Section 2.5(c) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (i) any setoff, counterclaim, recoupment, defense or other right
that such Lender or the Borrower may have against the Swingline Lender, the
Borrower or any other Person for any reason whatsoever, (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 5, (iii) any
adverse change in the condition (financial or otherwise) of the Borrower and
its Subsidiaries, (iv) any breach of this Agreement or any other Loan
Document by the Borrower, any other Loan Party or any other Lender or (v) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.

 

2.6           Commitment Fees, etc.(a)  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee in Dollars
for the period from and including the date hereof to the last day of the
Commitment Period, computed at the Commitment Fee Rate on the average daily
amount of the Available Commitment of such Lender during the period for which
payment is made, payable quarterly in arrears on each Fee Payment Date,
commencing on the first such date to occur after the date hereof.

 

(b)     The Borrower agrees to pay to the Administrative Agent the fees
in the amounts and on the dates as set forth in any fee agreements with the
Administrative Agent and to perform any other obligations contained therein.

 

2.7           Termination or Reduction of Commitments..  The Borrower shall have the right, upon not
less than three Business Days’ notice to the Administrative Agent, to terminate
the Commitments or, from time to time, to reduce the amount of the Commitments;
provided that no such termination or reduction of Commitments shall be
permitted if, after giving effect thereto and to any prepayments of the
Revolving Loans and Swingline Loans made on the effective date thereof, the
Total Extensions of Credit would exceed the Total Commitments.  Any such reduction shall be in an amount
equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently
the Commitments then in effect.

 

2.8           Optional Prepayment.  The Borrower may at any time and from time to
time prepay any Loans (other than Bankers’ Acceptances) made to it, in whole or
in part, without premium or penalty, upon irrevocable notice delivered to the
Administrative Agent, at least three Business Days prior thereto, which notice
shall specify the date and amount of prepayment, whether the prepayment is of
Swingline Loans or Revolving Loans and whether the prepayment is of Eurodollar
Loans, ABR Loans, CDOR Loans or Canadian Prime Rate Loans; provided,
that if a Eurodollar Loan or CDOR Loan is prepaid on any day other than the
last day of the Interest Period applicable thereto, the Borrower shall 

 

31

 

also pay any amounts owing pursuant to Section 2.18.  Upon receipt of any such notice, the
Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein,
together with (except in the case of Revolving Loans that are ABR Loans or
Canadian Prime Rate Loans and Swingline Loans) accrued interest to such date on
the amount prepaid.  Partial prepayments
of Loans shall be in an aggregate principal amount of $1,000,000 or
C$1,000,000, as the case may be, or a whole multiple of $100,000 or C$100,000
in excess thereof.  For the avoidance of
doubt, Bankers’ Acceptances may not be prepaid prior to the maturity thereof.

 

2.9           Mandatory Prepayments.

 

(a)           Subject to Section 2.9(b), in
the event that:

 

(i)             the
Extensions of Credit of any Lender at any time exceeds such Lender’s Commitment
at such time; or

 

(ii)            the
Total Extensions of Credit exceed the Total Commitments at such time;

 

the
Borrower shall promptly prepay the Revolving Loans and/or the Swingline Loans
(and/or provide cash collateral for L/C Obligations and Bankers’ Acceptances)
in an aggregate amount equal to such excess amount.

 

(b)           Notwithstanding the generality of the
foregoing, in the event that any mandatory prepayment required under
Section 2.9(a) results from the redetermination of the Dollar
Equivalent by the Administrative Agent in accordance with Section 1.4(b),
then the Borrower shall prepay the Revolving Loans and/or the Swingline Loans
(and/or provide cash collateral for L/C Obligations and Bankers’ Acceptances)
on the fifth Business Day following notice to the Borrower of such
redetermination in an aggregate amount equal to such excess amount.

 

(c)           If the Borrower is required to
provide (and has provided the required amount of) cash collateral pursuant to
this Section and such excess is subsequently reduced, cash collateral in
an amount equal to the lesser of (i) any such reduction and (ii) the
amount of such cash collateral shall be returned to the Borrower within three
Business Days after any such reduction.

 

2.10         Conversion and Continuation Options.  (a)  The Borrower may elect from time to
time to convert, in whole or in part, Eurodollar Loans to ABR Loans by giving
the Administrative Agent prior irrevocable notice of such election no later
than 11:00 A.M., New York City time, on the Business Day preceding the
proposed conversion date, provided that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto.  The Borrower may elect
from time to time to convert ABR Loans to Eurodollar Loans by giving the
Administrative Agent prior irrevocable notice of such election no later than
11:00 A.M., New York City time, on the third Business Day preceding the
proposed conversion date (which notice shall specify the length of the initial
Interest Period therefor), provided that no ABR Loan may be converted
into a Eurodollar Loan when any Default or Event of Default has occurred and is
continuing and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit any such
conversion.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

 

(b)     Any Eurodollar Loan may be continued as such upon the expiration
of the then current Interest Period with respect thereto by the Borrower giving
irrevocable notice to the Administrative Agent, in accordance with the
applicable provisions of the term “Interest Period” set forth in Section 1.1,
of the length of the next Interest Period to be applicable to such Loans, provided
that no 

 

32

 

Eurodollar Loan may be continued as such when any
Event of Default has occurred and is continuing and the Administrative Agent
has or the Required Lenders have determined in its or their sole discretion not
to permit such continuations, and provided, further, that if the
Borrower shall fail to give any required notice as described above in this
paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to ABR Loans on the last
day of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

 

(c)         The Borrower may elect from time to
time to convert, in whole or in part, CDOR Loans to Canadian Prime Rate Loans
by giving the Administrative Agent prior irrevocable notice of such election no
later than 11:00 A.M., New York City time, on the Business Day preceding
the proposed conversion date, provided that any such conversion of CDOR
Loans may only be made on the last day of an Interest Period with respect
thereto.  The Borrower may elect from
time to time to convert Canadian Prime Rate Loans (other than Swingline Loans)
to CDOR Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 11:00 A.M., New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
Canadian Prime Rate Loan may be converted into a CDOR Loan when any Default or
Event of Default has occurred and is continuing and the Administrative Agent
has or the Required Lenders have determined in its or their sole discretion not
to permit any such conversion.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.

 

(d)     Any CDOR Loan may be continued as such upon the expiration of
the then current Interest Period with respect thereto by the Borrower giving
irrevocable notice to the Administrative Agent, in accordance with the
applicable provisions of the term “Interest Period” set forth in Section 1.1,
of the length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such
continuations, and provided, further, that if the Borrower shall
fail to give any required notice as described above in this paragraph or if
such continuation is not permitted pursuant to the preceding proviso such Loans
shall be automatically converted to Canadian Prime Rate Loans on the last day
of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

 

(e)     The Borrower may elect from time to time to convert, in whole or
in part, Canadian Prime Rate Loans (other than Swingline Loans) into Bankers’
Acceptances or Bankers’ Acceptances into Canadian Prime Rate Loans by giving
the Administrative Agent prior irrevocable notice of such election no later
than 11:00 A.M., New York City time, on the third Business Day preceding
the proposed conversion date, provided that, (i) no Canadian Prime
Rate Loan may be converted into a Bankers’ Acceptance when any Default or Event
of Default has occurred and is continuing and the Administrative Agent has or
the Required Lenders have determined in its or their sole discretion not to
permit any such conversion, (ii) Bankers’ Acceptances may be converted only
on the maturity date of such Bankers’ Acceptances, and (iii) if less than
all Bankers’ Acceptances are converted, after such conversion not less than
C$1,000,000 shall remain as Bankers’ Acceptances.

 

(f)      At or before 10:00 A.M. two Business Days before the
maturity date of any Bankers’ Acceptances, the Borrower shall give to the
Administrative Agent prior irrevocable notice which notice shall specify either
that the Borrower intends to repay the maturing Bankers’ Acceptances on the
maturity date or that the Borrower intends to continue to issue Bankers’
Acceptances on the maturity date to provide for the payment of the maturing
Bankers’ Acceptances.  If (i) pursuant
to any other provision of this Agreement, Bankers’ Acceptances may not be
issued as contemplated in the preceding sentence to provide for the payment of
maturing Bankers’ Acceptances, (ii) the Borrower fails 

 

33

 

to repay the maturing Bankers’ Acceptances or notify
the Administrative Agent of its intention to continue the maturing Bankers’
Acceptances, or (iii) a Default or an Event of Default has occurred and is
continuing on such maturity date and the Administrative Agent has or the
Required Lenders have determined in its or their sole discretion not to permit
any issuance of new Bankers’ Acceptances to provide for the payment of maturing
Bankers’ Acceptances, then the Borrower’s obligations in respect of the
maturing Bankers’ Acceptances shall be deemed to have been converted on the
maturity date thereof into a Canadian Prime Rate Loan in an amount equal to the
face amount of the maturing Bankers’ Acceptances.

 

(g)     Without limitation of this Section, no Loans denominated in
Dollars may be converted into Loans denominated in Canadian Dollars, and no
Loans denominated in Canadian Dollars may be converted into Loans denominated
in Dollars.

 

(h)     To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election, in each case within the
notice period and in the form that would be required under Section 2.2 if
the Borrower were requesting a borrowing of Loans of the Type resulting from
such election to be made on the effective date of such election.

 

(i)      For the avoidance of doubt, the conversion or continuation of
Loans as herein provided shall not be deemed to constitute a repayment of
existing Loans hereunder or the making of new Loans hereunder.

 

2.11         Limitations on Interest Periods and Contract Periods.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be
made pursuant to such elections so that no more than an aggregate amount of ten
different Contract Periods in respect of B/A issuances and Interest Periods in
respect of CDOR Loans and ten different Interest Periods in respect of
Eurodollar Loans shall be outstanding at any one time under the Facility to the
Borrower.

 

2.12         Interest Rates and Payment Dates.  (a)  Each
Eurodollar Loan shall bear interest for each day during each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar Rate
determined for such day plus the Applicable Margin.

 

(b)     Each ABR Loan shall bear interest at a rate per annum equal to
the ABR plus the Applicable Margin.

 

(c)     Each CDOR Loan shall bear interest for each day during each
Interest Period with respect thereto at a rate per annum equal to the CDOR Rate
determined for such day plus the Applicable Margin.

 

(d)     Each Canadian Prime Rate Loan shall bear interest at a rate per
annum equal to the Canadian Prime Rate plus the Applicable Margin.

 

(e)     Upon acceptance of a Bankers’ Acceptance by a Lender, the
Borrower shall pay to the Administrative Agent on behalf of such Lender a fee
(the “Acceptance Fee”) calculated on the face amount of the Bankers’
Acceptance at a rate equal to the Applicable Margin on the basis of the number
of days in the Contract Period for such Bankers’ Acceptance.  Any adjustment to the Acceptance Fee as a
result of a change in the Applicable Margin shall be computed based on the
number of days remaining in the Contract Period of such Bankers’ Acceptances
from and including the effective date of any change in the Applicable
Margin.  Any increase in such Acceptance
Fee shall be paid by the Borrower to the Administrative Agent on behalf of the
Lenders on the last day of the Contract Period of the relevant 

 

34

 

Bankers’ Acceptance. 
Any decrease in such Acceptance Fee shall be paid by each Lender to the
Borrower, through the Administrative Agent, on the last day of the Contract
Period of the relevant Bankers’ Acceptance.

 

(f)      (i) If all or a portion of the principal amount of any
Loan or Reimbursement Obligation shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to (w) in the case of the Loans (other
than Bankers’ Acceptances), the rate that would otherwise be applicable thereto
pursuant to the foregoing provisions of this Section plus 2%, (x) in
the case of Reimbursement Obligations of the Borrower with respect to any
Dollar denominated Letter of Credit, the rate applicable to ABR Loans plus
2% or (y) in the case of Reimbursement Obligations of the Borrower with
respect to any Canadian Dollar denominated Letter of Credit and Bankers’
Acceptances, the rate applicable to Canadian Prime Rate Loans plus 2%,
and (ii) if all or a portion of any interest payable on any Loan or
Reimbursement Obligation or any Commitment Fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to ABR Loans or Canadian Prime Rate
Loans, as applicable, plus 2%, in each case, with respect to clauses (i) and
(ii) above, from the date of such non-payment until such amount is paid in
full (as well after as before judgment).

 

(g)     (i)   If any
provision of this Agreement would obligate the Borrower to make any payment of
interest or other amount payable to any Lender in an amount or calculated at a
rate which would be prohibited by law or would result in a receipt by such Lender
of interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)), then notwithstanding such
provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may
be, as would not be so prohibited by law or so result in a receipt by such
Lender of interest at a criminal rate, such adjustment to be effected, to the
extent necessary, as follows:

 

(x) 
first, by reducing the amount or rates of interest required to be paid under
this Section; and

 

(y) 
thereafter, by reducing any fees, commissions, premiums and other amounts which
would constitute interest for purposes of Section 347 of the Criminal Code (Canada).

 

(ii) 
If, notwithstanding the provisions of clause (i) of this paragraph (g),
and after giving effect to all adjustments contemplated thereby, any Lender
shall have received an amount in excess of the maximum permitted by such
clause, then the Borrower shall be entitled, by notice in writing to such
Lender, to obtain reimbursement from such Lender of an amount equal to such
excess, and, pending such reimbursement, such amount shall be deemed to be an
amount payable by such Lender to the Borrower.

 

(iii) Any
amount or rate of interest referred to in this paragraph (g) shall be
determined in accordance with generally accepted actuarial practices and
principles as an effective annual rate of interest over the term of any Loan on
the assumption that any charges, fees or expenses that fall within the meaning
of “interest” (as defined in the Criminal Code
(Canada)) shall, if they relate to a specific period of time, be prorated over
that period of time and otherwise be prorated over the period from the Closing
Date to the Termination Date and, in the event of dispute, a certificate of a
Fellow of the Canadian Institute of Actuaries appointed by the Administrative
Agent shall be conclusive for the purposes of such determination absent
manifest error.

 

(h)     Accrued interest on each Loan (for ABR Loans, accrued through
the last day of the prior calendar month) shall be payable in arrears on each
Interest Payment Date for such Loan and upon termination of the Commitments; provided
that (i) interest accruing pursuant to paragraph (f) of this Section shall
be payable from time to time on demand, (ii) in the event of any repayment
or prepayment

 

35

 

 

of any Loan, accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or
prepayment and (iii) in the event of any conversion of any Eurocurrency
Loan prior to the end of the current Interest Period therefor, accrued interest
on such Loan shall be payable on the effective date of such conversion.

 

(i)                  Accrued interest shall be
payable to the Administrative Agent for the account of each Lender, ratably,
with respect to interest on any Loan.

 

2.13                           Computation of
Interest and Fees.  (a) 
Interest and fees payable pursuant hereto shall be calculated on the basis of a
360-day year for the actual days elapsed, except that, with respect to the ABR
Loans the rate of interest on which is calculated on the basis of the Prime
Rate, the Canadian Prime Rate Loans, CDOR Loans and the Discount Rate and
Acceptance Fees, the rates thereof shall be calculated on the basis of a 365-
(or 366-, as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of each determination
of a Eurodollar Rate, CDOR Rate or Discount Rate, if applicable.  Any change in the interest rate on a Loan
resulting from a change in the ABR, the Canadian Prime Rate or the Eurocurrency
Reserve Requirements shall become effective as of the opening of business on
the day on which such change becomes effective. 
The Administrative Agent shall as soon as practicable notify the Borrower
and the relevant Lenders of the effective date and the amount of each such
change in interest rate.

 

(b)              Each determination of an
interest fee or discount rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. 
The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative
Agent in determining any interest rate pursuant to Section 2.12(a).

 

(c)               For the purposes of the Interest Act (Canada), in any case in which an interest rate
is stated in this Agreement to be calculated on the basis of a year of 360 days
or any other period of time that is less than a calendar year, the yearly rate
of interest to which the rate determined pursuant to such calculation is
equivalent is the rate so determined multiplied by the actual number of days in
the calendar year for which the calculation is made and divided by either 360
or such other period of time, as the case may be.  In addition, the principles of deemed
investment of interest do not apply to any interest calculations under this
Agreement and the rates of interest stipulated in this Agreement are intended to
be nominal rates and not effective rates or yields.

 

2.14                           Inability to
Determine Interest Rate.

 

(a)          If prior to the first day of
any Interest Period for a Eurodollar Loan:

 

(i)                                                 either
Administrative Agent shall have determined in good faith (which determination
shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, or

 

(ii)                                              either
Administrative Agent shall have received notice from the Required Lenders that
the Eurodollar Rate determined or to be determined for such Interest Period
will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders) of making or maintaining their affected
Loans during such Interest Period,

 

the
Administrative Agent shall give notice thereof to the Borrower and the relevant
Lenders as soon as practicable thereafter. 
If such notice is given (x) any Eurodollar Loans requested to be
made on the first 

 

36

 

day
of such Interest Period shall be made as ABR Loans, (y) any Loans that were to
have been converted on the first day of such Interest Period to Eurodollar
Loans shall be continued as ABR Loans and (z) any outstanding Eurodollar
Loans shall be converted, on the last day of the then-current Interest Period,
to ABR Loans.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Loans to Eurodollar Loans.

 

(b)         If prior to the first day of
any Interest Period for a CDOR Loan:

 

(i)                                                 either
Administrative Agent shall have determined in good faith (which determination
shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the CDOR Rate for such Interest Period, or

 

(ii)                                              either
Administrative Agent shall have received notice from the Required Lenders that
the CDOR Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively
certified by such Lenders) of making or maintaining their affected Loans during
such Interest Period,

 

the
Administrative Agent shall give notice thereof to the Borrower and the relevant
Lenders as soon as practicable thereafter. 
If such notice is given (x) any CDOR Loans requested to be made on
the first day of such Interest Period shall be made as Canadian Prime Rate
Loans, (y) any Loans that were to have been converted on the first day of
such Interest Period to Eurodollar Loans shall be continued as Canadian Prime
Loans and (z) any outstanding CDOR Loans shall be converted, on the last
day of the then-current Interest Period, to Canadian Prime Rate Loans.  Until such notice has been withdrawn by the
Administrative Agent, no further CDOR Loans shall be made or continued as such,
nor shall the Borrower have the right to convert Loans to CDOR Loans.

 

(c)          If prior to the first day of
any Contract Period for a Bankers’ Acceptance:

 

(i)                                                 either
Administrative Agent shall have determined in good faith (which determination
shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Discount Rate for such Contract Period, or

 

(ii)                                              either
Administrative Agent shall have received notice from the Required Lenders that
the Discount Rate determined or to be determined for such Contract Period will
not adequately and fairly reflect the cost to such Lenders (as conclusively
certified by such Lenders) of making or maintaining their affected loans by way
of Bankers’ Acceptances during such Contract Period,

 

the Administrative Agent shall give notice
thereof to the Borrower and the relevant Lenders as soon as practicable
thereafter.  If such notice is given (x) any
borrowing by way of Bankers’ Acceptances requested to be made on the first day
of such Contract Period shall be made as Canadian Prime Rate Loans,
(y) any Loans that were to have been converted on the first day of such
Contract Period to Bankers’ Acceptances shall be continued as Canadian Prime
Rate Loans and (z) any outstanding Bankers’ Acceptances shall be
converted, on the maturity date of the relevant Bankers’ Acceptance, to
Canadian Prime Rate Loans.  Until such
notice has been withdrawn by the Administrative Agent, no further borrowings by
way of Bankers’ Acceptances shall be made or continued as such, nor shall the
Borrower have the right to convert Canadian Prime Rate Loans to Bankers’
Acceptances.

 

37

 

2.15                           Pro Rata
Treatment and Payments.  (a) 
Each borrowing by the Borrower from the Lenders hereunder, each payment by the
Borrower on account of any commitment fee and any reduction of the Commitments
of the Lenders shall be made pro  rata according to the respective
Applicable Percentages, as the case may be, of the relevant Lenders.

 

(b)              Each payment (including each
prepayment) by the Borrower on account of principal of and interest and fees on
the Revolving Loans shall be made pro  rata according to the
respective outstanding principal amounts of the Revolving Loans then held by
the Lenders.

 

(c)               All payments (including
prepayments) to be made by the Borrower hereunder, whether on account of
principal, interest, fees or otherwise, shall be made without setoff or
counterclaim and shall be made prior to 3:00 P.M., New York City time, on
the due date thereof to the Administrative Agent, for the account of the
Lenders, at the applicable Funding Office, in Dollars or Canadian Dollars, as
applicable, and in immediately available funds. 
The Administrative Agent shall distribute such payments to each relevant
Lender promptly upon receipt in like funds as received, net of any amounts
owing by such Lender pursuant to Section 9.7.  If any payment hereunder (other than payments
on the Eurodollar Loans or CDOR Loans) becomes due and payable on a day other
than a Business Day, such payment shall be extended to the next succeeding
Business Day.  If any payment on a
Eurodollar Loan or CDOR Loan becomes due and payable on a day other than a
Business Day, the maturity thereof shall be extended to the next succeeding
Business Day unless the result of such extension would be to extend such
payment into another calendar month, in which event such payment shall be made
on the immediately preceding Business Day. 
In the case of any extension of any payment of principal pursuant to the
preceding two sentences, interest thereon shall be payable at the then
applicable rate during such extension.

 

(d)              Unless the Administrative
Agent shall have been notified in writing by any Lender prior to a borrowing
that such Lender will not make the amount that would constitute its share of
such borrowing available to the Administrative Agent, the Administrative Agent
may assume that such Lender is making such amount available to the
Administrative Agent, and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower a corresponding amount.  If such amount is not made available to the
Administrative Agent by the required time on the Borrowing Date therefor, such
Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, at a rate equal to the greater of (either (i) the
Federal Funds Effective Rate (in the case of Dollar-denominated amounts) and (ii) a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes
such amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days after such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to ABR Loans or Canadian Prime Rate Loans, as applicable, on demand,
from the Borrower.

 

(e)               Unless the Administrative
Agent shall have been notified in writing by the Borrower prior to the date of
any payment due to be made by the Borrower hereunder that the Borrower will not
make such payment to the Administrative Agent, the Administrative Agent may
assume that the Borrower is making such payment, and the Administrative Agent
may, but shall not be required to, in reliance upon such assumption, make
available to the Lenders their respective pro  rata shares of a
corresponding amount.  If such payment is
not made to the Administrative Agent by the Borrower within three Business Days
after such due date, the Administrative Agent shall be entitled to recover, on
demand, from each Lender to which any amount which was made available pursuant
to the preceding sentence, such amount with interest thereon at the rate per
annum equal to the daily average Federal Funds Effective Rate.  

 

38

 

Nothing herein shall be deemed to limit the rights
of the Administrative Agent or any Lender against the Borrower.

 

(f)                 If any Lender shall fail to
make any payment required to be made by it pursuant to Section 2.5(b),
2.5(c), 2.15(d), 2.15(e), 3.4(a) or 9.7, then the Administrative Agent
may, in its discretion (notwithstanding any contrary provision of this
Agreement), apply any amounts thereafter received by the Administrative Agent,
the Swingline Lender or the Issuing Lender for the account of such Lender to
satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

 

2.16                           Requirements of
Law.  (a)  If the adoption of
or any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

 

(i)  shall subject any
Recipient to any Taxes (other than (A) Indemnified Taxes and (B) Other
Connection Taxes on gross or net income, profits or receipts (including
value-added or similar Taxes)) on its loans, letters of credit, commitments, or
other obligations, or its deposits, reserves, other liabilities or capital
attributable thereto;

 

(ii)  shall impose,
modify or hold applicable any reserve, special deposit, compulsory loan or
similar requirement against assets held by, deposits or other liabilities in or
for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate, the CDOR Rate, the
Discount Rate or any other rate of interest or fees hereunder; or

 

(iii)    shall impose on such Lender any other
condition;

 

and the result of any of the foregoing is to
increase the cost to such Lender or such Recipient, by an amount that such
Lender or other Recipient determines (in its good faith and reasonable
discretion) to be material, of making, converting into, continuing or
maintaining Eurodollar Loans or CDOR Loans (or, in the case of (i), any Loan),
or issuing or participating in Letters of Credit, or purchasing or accepting
Bankers’ Acceptances, or to reduce any amount receivable hereunder in respect
thereof, then, the Borrower shall pay, within 10 Business Days following the
receipt by the Borrower of the certificate described in Section 2.16(c),
such Lender or such other Recipient any additional amounts necessary to
compensate such Lender or such other Recipient for such increased cost or
reduced amount receivable; provided that notwithstanding anything herein
to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, guidelines or directives thereunder or issued in
connection therewith shall be deemed to be a change in a Requirement of Law,
regardless of the date enacted, adopted or issued.  If any Lender or such other Recipient becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the
event by reason of which it has become so entitled.

 

(b)              If any Lender shall have
determined (in its good faith and reasonable discretion) that the adoption of
or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by 

 

39

 

such Lender to be material, then, from time to time,
after submission by such Lender to the Borrower (with a copy to the
Administrative Agent) of the certificate described in Section 2.16(c), the
Borrower shall pay to such Lender, within 10 Business Days of receipt of such
certificate, such additional amount or amounts as will compensate such Lender
or such corporation for such reduction; provided that notwithstanding
anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith shall be deemed to be a change in a Requirement
of Law, regardless of the date enacted, adopted or issued.

 

(c)               A certificate setting forth
in reasonable detail any additional amounts payable pursuant to this Section submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall
be conclusive in the absence of manifest error. 
Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for
any amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if the circumstances giving rise to such claim
have a retroactive effect, then such six-month period shall be extended to
include the period of such retroactive effect. 
The obligations of the Borrower pursuant to this Section shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

(d)              Notwithstanding any other
provision of this Agreement, if, after the date hereof, (x) any change in
any Requirement of Law shall make it unlawful for any Lender to make or
maintain any Loan or Bankers’ Acceptance or to give effect to its obligations
as contemplated hereby with respect to any Loan or Bankers’ Acceptance, or
(y) there shall have occurred any change in national or international
financial, political or economic conditions (including the imposition of or any
change in exchange controls, but excluding conditions otherwise covered by this
Section 2.16) or currency exchange rates which would make it impracticable
for the Lenders to make or maintain any Loan or Bankers’ Acceptance to, or for
the account of, the Borrower, then, by written notice to the Borrower and to
the Administrative Agent:

 

(i)                                     such Lender or
Lenders may declare that such Loan or Bankers’ Acceptance will not thereafter
(for the duration of such unlawfulness) be made by such Lender or Lenders
hereunder (or be continued for additional Interest Periods or Contract Periods,
as applicable), whereupon any request for a Loan or Bankers’ Acceptance or to
continue a Loan or Bankers’ Acceptance, as the case may be, for an additional
Interest Period or Contract Period, as applicable, shall, as to such Lender or
Lenders only, be of no force and effect, unless such declaration shall be
subsequently withdrawn; and

 

(ii)                                  such Lender may
require that any outstanding Loan or Bankers’ Acceptance made by it be
converted to a Canadian Prime Rate Loan or ABR Loan, as applicable (unless
repaid by the Borrower as described below), in which event any such Loan, shall
be converted to a Canadian Prime Rate Loan or ABR Loan, as applicable, as of
the effective date of such notice as provided in Section 2.16 (e) and,
at the option of the Borrower, repaid on the last day of the then current
Interest Period or Contract Period, as applicable, with respect thereto or, if
earlier, the date on which the applicable notice becomes effective.

 

If
any Lender shall exercise its rights under (i) or (ii) above,
all payments and prepayments that would otherwise have been applied to repay
such converted Loan or Bankers’ Acceptance shall instead be applied to repay
the Canadian Prime Rate Loans or ABR Loan, as applicable, made by such Lender
resulting from such conversion.

 

40

 

(e)               For purposes of Section 2.16(d),
a written notice to the Borrower by any Lender shall be effective as to each
Loan or made by such Lender, if lawful, on the last day of the Interest Period
or Contract Period, as applicable, if any, currently applicable to such Loan;
in all other cases such notice shall be effective on the date of receipt thereof
by the Borrower.

 

2.17                           Taxes.

 

(a)                                  Withholding of
Taxes; Gross-Up.  Each payment by any
Loan Party under any Loan Document shall be made without withholding for any
Taxes, unless such withholding is required by any law.  If any Withholding Agent determines, in its
sole discretion exercised in good faith, that it is so required to withhold
Taxes, then such Withholding Agent may so withhold and shall timely pay the
full amount of withheld Taxes to the relevant Governmental Authority in
accordance with applicable law.  If such
Taxes are Indemnified Taxes, then the amount payable by such Loan Party shall
be increased as necessary so that, net of such withholding (including such
withholding applicable to additional amounts payable under this Section), the
applicable Recipient receives the amount it would have received had no such
withholding been made.

 

(b)              Payment of Other Taxes by
the Borrower.  The Borrower shall timely
pay any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)               Evidence of Payments.  As soon as practicable after any payment of
Indemnified Taxes by any Loan Party to a Governmental Authority, such Loan
Party shall deliver to the Administrative Agent the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

 

(d)              Indemnification by the Loan
Parties.  The Loan Parties shall jointly
and severally indemnify each Recipient for any Indemnified Taxes that are paid
or payable by such Recipient in connection with any Loan Document (including
amounts paid or payable under this Section 2.17(d)) and any reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  The indemnity
under this Section 2.17(d) shall be paid within 10 days after the Recipient
delivers to any Loan Party a certificate stating the amount of any Indemnified
Taxes so paid or payable by such Recipient. 
Such certificate shall be conclusive of the amount so paid or payable
absent manifest error.  Such Recipient
shall deliver a copy of such certificate to the Administrative Agent.

 

(e)               Indemnification by the
Lenders.  Each Lender shall severally
indemnify the Administrative Agent for any Taxes (but, in the case of any
Indemnified Taxes, only to the extent that no Loan Party has already
indemnified the Administrative Agent for such Indemnified Taxes and without
limiting the obligation of the Loan Parties to do so) attributable to such
Lender that are paid or payable by the Administrative Agent in connection with
any Loan Document and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  The indemnity under this Section 2.17(e) shall
be paid within 10 days after the Administrative Agent delivers to the
applicable Lender a certificate stating the amount of Taxes so paid or payable
by the Administrative Agent.  Such
certificate shall be conclusive of the amount so paid or payable absent
manifest error.

 

(f)                 Status of Lenders.  (i)  Any Lender that is entitled to an
exemption from, or reduction of, any applicable withholding Tax with respect to
any payments under any Loan Document shall deliver to the Borrower and the
Administrative Agent, at the time or times reasonably requested by the Borrower
or the Administrative Agent, such properly completed and executed documentation
reasonably requested by the Borrower or the Administrative Agent as will permit
such payments to be made without, or at a reduced rate of, withholding.  In addition, any Lender, if requested by the
Borrower 

 

41

 

or the Administrative Agent, shall deliver such
other documentation prescribed by law or reasonably requested by the Borrower
or the Administrative Agent as will enable the Borrower or the Administrative
Agent to determine whether or not such Lender is subject to backup withholding
or information reporting requirements. 
Notwithstanding anything to the contrary in the preceding two sentences,
the completion, execution and submission of such documentation shall not be
required if in the Lender’s judgment such completion, execution or submission
would subject such Lender to any material unreimbursed cost or expense or would
materially prejudice the legal or commercial position of such Lender.  Upon the reasonable request of the Borrower
or the Administrative Agent, any Lender shall update any form or certification
previously delivered pursuant to this Section 2.17 (f).  If any form or certification previously
delivered pursuant to this Section expires or becomes obsolete or
inaccurate in any respect with respect to a Lender, such Lender shall promptly
(and in any event within 10 days after such expiration, obsolescence or
inaccuracy) notify the Borrower and the Administrative Agent in writing of such
expiration, obsolescence or inaccuracy and update the form or certification if
it is legally eligible to do so.

 

(g)              Treatment of Certain
Refunds.  If any party determines, in its
sole discretion exercised in good faith, that it has received a refund of any
Taxes as to which it has been indemnified pursuant to this Section 2.17
(including additional amounts paid pursuant to this Section 2.17), it
shall pay to the indemnifying party an amount equal to such refund (but only to
the extent of indemnity payments made under this Section 2.17 with respect
to the Taxes giving rise to such refund), net of all out-of-pocket expenses
(including any Taxes) of such indemnified party and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund).  Such indemnifying party,
upon the request of such indemnified party, shall repay to such indemnified
party the amount paid to such indemnified party pursuant to the previous
sentence (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event such indemnified party is required to
repay such refund to such Governmental Authority. Notwithstanding anything to
the contrary in this Section 2.17 (g), in no event will any indemnified
party be required to pay any amount to any indemnifying party pursuant to this Section 2.17
(g) if such payment would place such indemnified party in a less favorable
position (on a net after-Tax basis) than such indemnified party would have been
in if the indemnification payments or additional amounts giving rise to such
refund had never been paid.  This Section 2.17
(g) shall not be construed to require any indemnified party to make
available its Tax returns (or any other information relating to its Taxes which
it deems confidential) to the indemnifying party or any other Person.

 

(h)              Survival.  Each party’s obligations under this Section 2.17
shall survive any assignment of rights by, or the replacement of, a Lender, the
termination of the Commitments and the repayment, satisfaction or discharge of
all other obligations under any Loan Document.

 

2.18                           Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense that such
Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of
Eurodollar Loans or CDOR Loans, as applicable after the Borrower has given a
notice requesting the same in accordance with the provisions of this Agreement,
(b) default by the Borrower in making any prepayment of or conversion from
Eurodollar Loans or CDOR Loans after the Borrower has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of a
prepayment of Eurodollar Loans or CDOR Loans, as applicable on a day that is
not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Loans provided for herein (excluding, however, the Applicable
Margin included therein, if any) over (ii) the amount of interest
(as reasonably determined by such Lender) that would have accrued to such
Lender on 

 

42

 

such amount by placing such amount on deposit for a
comparable period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

 

2.19                           Change of
Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of Section 2.16
or 2.17(a) with respect to such Lender, it will, if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such
event with the object of avoiding the consequences of such event; provided,
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic,
legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of
the Borrower or the rights of any Lender pursuant to Section 2.16 or 2.17(a).

 

2.20                           Replacement of
Lenders.  The Borrower shall, at its
sole cost and expense, be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 2.16 or 2.17(a), (b) becomes
a Defaulting Lender, or (c) does not consent to any proposed amendment,
supplement, modification, consent or waiver of any provision of this Agreement
or any other Loan Document that requires the consent of each of the Lenders or
each of the Lenders affected thereby (so long as the consent of the Required
Lenders has been obtained), with a replacement financial institution; provided
that (i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) prior to any such replacement, such Lender shall have
taken no action under Section 2.19 so as to eliminate the continued need for
payment of amounts owing pursuant to Section 2.16 or 2.17(a), (iv) the
replacement financial institution shall purchase, at par, all Loans and other
amounts owing to such replaced Lender on or prior to the date of replacement, (v) the
Borrower shall be liable to such replaced Lender under Section 2.18 if any
Eurodollar Loan, CDOR Loan or Bankers’ Acceptance reimbursement obligation
owing to such replaced Lender shall be purchased other than on the last day of
the Interest Period or Contract Period, as applicable, relating thereto, (vi) the
replacement financial institution shall be reasonably satisfactory to the
Administrative Agent, (vii) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 10.6 (provided
that the Borrower shall be obligated to pay the registration and processing fee
referred to therein), (viii) until such time as such replacement shall be
consummated, the Borrower shall pay all additional amounts (if any) required
pursuant to Section 2.16 or 2.17(a), as the case may be, (ix) any such
replacement shall not be deemed to be a waiver of any rights that the Borrower,
the Administrative Agent or any other Lender shall have against the replaced
Lender and (x) in the case of clause (c) above, the replacement
financial institution consents to the proposed amendment, modification, consent
or waiver.

 

2.21                           Defaulting
Lender

 

Notwithstanding
any provision of this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as
such Lender is a Defaulting Lender:

 

(a)                                  fees shall
cease to accrue on the Commitment of such Defaulting Lender pursuant to Section 2.6;

 

(b)                                 the Commitment
and Extensions of Credit of such Defaulting Lender shall not be included in
determining whether the Required Lenders have taken or may take any action
hereunder (including any consent to any amendment, waiver or other modification
pursuant to Section 10.1); 

 

43

 

provided,
that this clause (b) shall not apply to the vote of a Defaulting Lender in
the case of an amendment, waiver or other modification requiring the consent of
such Lender or each Lender affected thereby;

 

(c)                                  if any
Swingline Exposure or any L/C Obligations exist at the time such Lender becomes
a Defaulting Lender then:

 

(i)                  all or any part of the
Swingline Exposure and L/C Obligations of such Defaulting Lender shall be
reallocated among the non-Defaulting Lenders in accordance with their
respective Applicable Percentages but only to the extent the sum of all
non-Defaulting Lenders’ Extensions of Credits plus such Defaulting Lender’s
Swingline Exposure and L/C Obligations does not exceed the total of all
non-Defaulting Lenders’ Commitments;

 

(ii)               if the reallocation
described in clause (i) above cannot, or can only partially, be effected,
the Borrower shall within one Business Day following notice by the
Administrative Agent (x) first, prepay such Swingline Exposure and (y) second,
cash collateralize (in the applicable currency) for the benefit of the Issuing
Bank only the Borrower’s obligations corresponding to such Defaulting Lender’s
L/C Obligations (after giving effect to any partial reallocation pursuant to
clause (i) above) for so long as such L/C Obligations are outstanding;

 

(iii)            if the Borrower cash
collateralizes any portion of such Defaulting Lender’s L/C Obligations pursuant
to clause (ii) above, the Borrower shall not be required to pay any fees to
such Defaulting Lender pursuant to Section 3.3 with respect to such
Defaulting Lender’s L/C Obligations during the period such Defaulting Lender’s
L/C Obligations are cash collateralized;

 

(iv)           if the L/C Obligations of
the non-Defaulting Lenders is reallocated pursuant to clause (i) above,
then the fees payable to the Lenders pursuant to Section 2.6 and Section 3.3
shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages; and

 

(v)              if all or any portion of
such Defaulting Lender’s L/C Obligations is neither reallocated nor cash
collateralized pursuant to clause (i) or (ii) above, then, without
prejudice to any rights or remedies of the Issuing Lender or any other Lender
hereunder, and letter of credit fees payable under Section 3.3 with
respect to such Defaulting Lender’s L/C Obligations shall be payable to the
Issuing Lender until and to the extent that such L/C Obligations are
reallocated and/or cash collateralized; and

 

(d)                                 so long as such
Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund
any Swingline Loan and the Issuing Lender shall not be required to issue, amend
or increase any Letter of Credit, unless it is satisfied that the related
exposure and the Defaulting Lender’s then outstanding L/C Obligations will be
100% covered by the Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by the Borrower in accordance with Section 2.21(c),
and participating interests in any newly made Swingline Loan or any newly
issued or increased Letter of Credit shall be allocated among non-Defaulting
Lenders in a manner consistent with Section 2.21(c)(i) (and such
Defaulting Lender shall not participate therein).

 

If
(i) a Bankruptcy Event with respect to a Parent of any Lender shall occur
following the date hereof and for so long as such event shall continue or (ii) the
Swingline Lender or the Issuing Lender has a good faith belief that any Lender
has defaulted in fulfilling its obligations under one or more other 

 

44

 

agreements in which such
Lender commits to extend credit, the Swingline Lender shall not be required to
fund any Swingline Loan and the Issuing Lender shall not be required to issue,
amend or increase any Letter of Credit, unless the Swingline Lender or the Issuing
Lender, as the case may be, shall have entered into arrangements with the
Borrower or such Lender, satisfactory to the Swingline Lender or the Issuing
Bank, as the case may be, to defease any risk to it in respect of such Lender
hereunder.

 

In
the event that the Administrative Agent, the Borrower, the Swingline Lender and
the Issuing Lender each agrees that a Defaulting Lender has adequately remedied
all matters that caused such Lender to be a Defaulting Lender, then the
Swingline Exposure and L/C Obligations of the Lenders shall be readjusted to
reflect the inclusion of such Lender’s Commitment as the Administrative Agent
shall determine may be necessary in order for such Lender to hold such Loans in
accordance with its Applicable Percentage.

 

SECTION 3.                                LETTERS OF
CREDIT

 

3.1                                 L/C Commitment.  (a)  Subject to the terms and conditions
hereof, the Issuing Lender, in reliance on the agreements of the other Lenders
set forth in Section 3.4(a), agrees to issue letters of credit (“Letters
of Credit”) for the account of the Borrower on any Business Day during the
Commitment Period in such form as may be approved from time to time by the
Issuing Lender; provided that the Issuing Lender shall have no
obligation to issue any Letter of Credit if, after giving effect to such
issuance, (i) the L/C Obligations would exceed the L/C Commitment or (ii) the
aggregate amount of the Available Commitments would be less than zero.  Each Letter of Credit shall (i) be
denominated, in Dollars or Canadian Dollars, and (ii) expire no later than
the earlier of (x) the first anniversary of its date of issuance and (y) the
date that is five Business Days prior to the Termination Date, provided that
any Letter of Credit with a one-year term may provide for the automatic renewal
thereof for additional one-year periods (which shall in no event extend beyond
the date referred to in clause (y) above). For the avoidance of doubt,
Letters of Credit issued hereunder, including the Dollar Equivalent of Letters
of Credit denominated in Canadian Dollars, shall constitute utilization under
the Commitment.

 

(b)              The Issuing Lender shall not
at any time be obligated to issue any Letter of Credit if such issuance would
conflict with, or cause the Issuing Lender or any L/C Participant to exceed any
limits imposed by, any applicable Requirement of Law.

 

3.2                                 Procedure for
Issuance of Letter of Credit.  The Borrower may from time to time request
that the Issuing Lender issue a Letter of Credit by delivering to the Issuing
Lender at its address for notices specified herein an Application therefor,
completed to the satisfaction of the Issuing Lender, and such other
certificates, documents and other papers and information as the Issuing Lender
may reasonably request.  Upon receipt of
any Application, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the Letter of Credit requested thereby (but in no event shall
the Issuing Lender be required to issue any Letter of Credit earlier than three
Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by issuing
the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by the Issuing Lender and the Borrower.  The Issuing Lender shall furnish a copy of
such Letter of Credit to the Borrower promptly following the issuance
thereof.  The Issuing Lender shall
promptly furnish to the Administrative Agent, which shall in turn promptly
furnish to the Lenders, notice of the issuance of each Letter of Credit
(including the amount thereof).

 

3.3                                 Fees and Other
Charges.  (a)  The Borrower will
pay a fee on all outstanding Letters of Credit at a per annum rate equal to the
Applicable Margin then in effect with respect to Eurodollar Loans, shared
ratably among the Lenders and payable quarterly in arrears on each Fee

 

45

 

 

Payment Date after the issuance date and in Dollars
or Canadian Dollars based on the currency in which each such Letter of Credit
is denominated.  In addition, the
Borrower shall pay to the Issuing Lender for its own account a fronting fee of
0.25% per annum on the undrawn and unexpired amount of each Letter of Credit,
payable quarterly in arrears on each Fee Payment Date after the issuance date.

 

(b)              In addition to the foregoing
fees, the Borrower shall pay or reimburse the Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by the Issuing Lender
in issuing, negotiating, effecting payment under, amending or otherwise
administering any Letter of Credit.

 

3.4                                 L/C
Participations.  (a) 
The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce the Issuing Lender to issue Letters of Credit, each
L/C Participant irrevocably agrees to accept and purchase and hereby accepts
and purchases from the Issuing Lender, on the terms and conditions set forth
below, for such L/C Participant’s own account and risk an undivided interest
equal to such L/C Participant’s Applicable Percentage in the Issuing Lender’s
obligations and rights under and in respect of each Letter of Credit and the
amount of each draft paid by the Issuing Lender thereunder.  Each L/C Participant agrees with the Issuing
Lender that, if a draft is paid under any Letter of Credit for which the
Issuing Lender is not reimbursed in full by the Borrower in accordance with the
terms of this Agreement (or in the event that any reimbursement received by the
Issuing Lender shall be required to be returned by it at any time), such L/C
Participant shall pay to the Issuing Lender upon demand at the Issuing Lender’s
address for notices specified herein an amount equal to such L/C Participant’s
Applicable Percentage of the amount that is not so reimbursed (or is so
returned).  Each L/C Participant’s
obligation to pay such amount shall be absolute and unconditional and shall not
be affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such L/C Participant may have against
the Issuing Lender, the Borrower or any other Person for any reason whatsoever,
(ii) the occurrence or continuance of a Default or an Event of Default or
the failure to satisfy any of the other conditions specified in Section 5, (iii) any
adverse change in the condition (financial or otherwise) of the Borrower, (iv) any
breach of this Agreement or any other Loan Document by the Borrower, any other
Loan Party or any other L/C Participant or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing

 

(b)              If any amount required to be
paid by any L/C Participant to the Issuing Lender pursuant to Section 3.4(a) in
respect of any unreimbursed portion of any payment made by the Issuing Lender
under any Letter of Credit is not paid to the Issuing Lender within three
Business Days after the date such payment is due, such L/C Participant shall
pay to the Issuing Lender on demand an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds
Effective Rate (in the case of Dollar-denominated Letters of Credit) or the
Issuing Lender’s cost of funds (in the case of Canadian Dollar-denominated
Letters of Credit) during the period from and including the date such payment
is required to the date on which such payment is immediately available to the
Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360 (in the case of Dollar-denominated
Letters of Credit) or 365 (in the case of Canadian Dollar-denominated Letters
of Credit).  If any such amount required
to be paid by any L/C Participant pursuant to Section 3.4(a) is not
made available to the Issuing Lender by such L/C Participant within three
Business Days after the date such payment is due, the Issuing Lender shall be
entitled to recover from such L/C Participant, on demand, such amount with
interest thereon calculated from such due date at the rate per annum applicable
to ABR Loans (in the case of Dollar-denominated Letters of Credit) or Canadian
Prime Rate Loans (in the case of Canadian Dollar-denominated Letters of Credit).  A certificate of the Issuing Lender submitted
to any L/C Participant with respect to any amounts owing under this Section shall
be conclusive in the absence of manifest error.

 

46

 

(c)               Whenever, at any time after
the Issuing Lender has made payment under any Letter of Credit and has received
from any L/C Participant its pro  rata share of such payment in
accordance with Section 3.4(a), the Issuing Lender receives any payment
related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of collateral applied thereto by the Issuing
Lender), or any payment of interest on account thereof, the Issuing Lender will
distribute to such L/C Participant its pro  rata share thereof; provided,
however, that in the event that any such payment received by the Issuing
Lender shall be required to be returned by the Issuing Lender, such L/C
Participant shall return to the Issuing Lender the portion thereof previously
distributed by the Issuing Lender to it.

 

3.5                                 Reimbursement
Obligation of the Borrower.  If any draft is paid under any Letter of
Credit, the Borrower shall reimburse the Issuing Lender for the amount of (a) the
draft so paid and (b) any taxes, fees, charges or other costs or expenses
incurred by the Issuing Lender in connection with such payment, not later than
12:00 Noon, New York City time, on (i) the Business Day that the Borrower
receives notice of such draft, if such notice is received on such day prior to
10:00 A.M., New York City time, or (ii) if clause (i) above does
not apply, the Business Day immediately following the day that the Borrower
receives such notice (such date, the “Reimbursement Date”).  Each such payment shall be made to the
Issuing Lender at its address for notices referred to herein in Dollars or
Canadian Dollars, as the case may be, and in immediately available funds.  Interest shall be payable on any such amounts
from the date on which the relevant draft is paid until payment in full at the
rate set forth in (x) until the Business Day next succeeding the date of
the relevant notice, Section 2.12(b) (in the case of
Dollar-denominated Letters of Credit) and Section 2.12(d) (in the
case of Canadian Dollar-denominated Letters of Credit) and (y) thereafter,
Section 2.12(f).  Notwithstanding
anything to the contrary herein, unless the Borrower otherwise notifies the
Administrative Agent, the Borrower shall be deemed to have requested that the
Lenders make an ABR Loan (in the case of a Dollar-denominated Letter of Credit)
or a Canadian Prime Rate Loan (in the case of a Canadian Dollar-denominated
Letter of Credit) on the Reimbursement Date in an aggregate principal amount
equal to the amount of the related Reimbursement Obligations, such ABR Loan or
Canadian Prime Rate Loan, as applicable, shall be made on such Reimbursement
Date. If an ABR Loan or Canadian Prime Rate Loan is deemed to have been
requested as aforesaid, such Reimbursement Obligation shall be paid with the
proceeds of such Loan, and the proceeds of such ABR Loan or Canadian Prime Rate
Loan shall be made available to the relevant Issuing Lender to the account
specified by such Issuing Lender, in like funds as received by the
Administrative Agent, and the Issuing Lender may credit its Applicable
Percentage of such ABR Loan or Canadian Prime Rate Loan to the relevant
Reimbursement Obligation in lieu of funding such amount to the Administrative
Agent.

 

3.6                                 Obligations
Absolute.  The
Borrower’s obligations under this Section 3 shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had
against the Issuing Lender, any beneficiary of a Letter of Credit or any other
Person.  The Borrower also agrees with
the Issuing Lender that the Issuing Lender shall not be responsible for, and
the Borrower’s Reimbursement Obligations under Section 3.5 shall not be
affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  The Issuing Lender shall not be liable for
any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any
Letter of Credit, except for errors or omissions found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of the Issuing Lender.  The Borrower agrees that any action taken or
omitted by the Issuing Lender under or in connection with any Letter of Credit
or the related drafts or documents, if done in the absence of gross negligence
or willful misconduct, shall be binding on the Borrower and shall not result in
any liability of the Issuing Lender to the Borrower.

 

47

 

3.7                                 Letter of
Credit Payments.  If any
draft shall be presented for payment under any Letter of Credit, the Issuing
Lender shall promptly notify the Borrower of the date and amount thereof.  The responsibility of the Issuing Lender to
the Borrower in connection with any draft presented for payment under any
Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit.

 

3.8                                 Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.                                REPRESENTATIONS
AND WARRANTIES

 

To
induce the Administrative Agent and the Lenders to enter into this Agreement
and to make the Loans and issue or participate in the Letters of Credit, the
Borrower hereby represents and warrants to the Administrative Agent and each
Lender that:

 

4.1                                 Financial
Condition. The audited consolidated balance sheets of the
Borrower and its consolidated Subsidiaries as at December 31, 2007, December 31,
2008 and December 31, 2009, and the related consolidated statements of
income and of cash flows for the fiscal years ended on such dates, reported on
by and accompanied by an unqualified report from KPMG LLP or
PricewaterhouseCoopers LLP, as applicable, present fairly in all material
respects the consolidated financial condition of the Borrower and its
consolidated Subsidiaries as at such date, and the consolidated results of its
operations and its consolidated cash flows for the respective fiscal years then
ended.  The unaudited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at September 30,
2010, and the related unaudited consolidated statements of income and cash
flows for the nine-month period ended on such date, present fairly in all
material respects the consolidated financial condition of the Borrower and its
consolidated Subsidiaries as at such date, and the consolidated results of its
operations and its consolidated cash flows for the nine-month period then ended
(subject to normal year-end audit adjustments). 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by the aforementioned firm
of accountants and disclosed therein). 
No Group Member has any material Guarantee Obligations, contingent
liabilities and liabilities for taxes, or any long-term leases or unusual
forward or long-term commitments, including any interest rate or foreign
currency swap or exchange transaction or other obligation in respect of
derivatives that are not reflected in the most recent financial statements and
the notes thereto referred to in this paragraph.  During the period from December 31, 2009 to
and including the date hereof there has been no Disposition by any Group Member
of any material part of its business or property.

 

4.2                                 No Change.  Since December 31, 2009, there has been
no development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

 

4.3                                 Existence;
Compliance with Law.  Each Group
Member (other than any Excluded Subsidiary) (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own
and operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly
qualified as a foreign corporation or other organization and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification, except in
jurisdictions where the failure to be duly qualified and in good standing would
not result in a Material Adverse Effect, and (d) is in compliance with all

 

48

 

Requirements of Law except to the extent that the
failure to comply therewith could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

4.4                                 Power;
Authorization; Enforceable Obligations.  Each Loan Party has the power and authority,
and the legal right, to make, deliver and perform the Loan Documents to which
it is a party and, in the case of the Borrower, to obtain extensions of credit
hereunder.  Each Loan Party has taken all
necessary organizational action to authorize the execution, delivery and
performance of the Loan Documents to which it is a party and, in the case of
the Borrower, to authorize the extensions of credit on the terms and conditions
of this Agreement.  No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the
extensions of credit hereunder or with the execution, delivery, performance,
validity or enforceability of this Agreement or any of the Loan Documents,
except (i) consents, authorizations, filings and notices described in
Schedule 4.4, which consents, authorizations, filings and notices have been
obtained or made and are in full force and effect and (ii) the filings
referred to in Section 4.20.  Each
Loan Document has been duly executed and delivered on behalf of each Loan Party
party thereto.  This Agreement
constitutes, and each other Loan Document upon execution will constitute, a
legal, valid and binding obligation of each Loan Party party thereto,
enforceable against each such Loan Party in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

4.5                                 No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
the borrowings hereunder and the use of the proceeds thereof will not violate
any Requirement of Law or any Contractual Obligation of any Group Member and
will not result in, or require, the creation or imposition of any Lien on any
of their respective properties or revenues pursuant to any Requirement of Law
or any such Contractual Obligation (other than the Liens created by the
Security Documents).  No Requirement of
Law or Contractual Obligation applicable to the Borrower or any of their
respective Subsidiaries could reasonably be expected to have a Material Adverse
Effect.

 

4.6                                 Litigation.  Except as set forth on Schedule 4.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of either Borrower,
threatened by or against any Group Member or against any of their respective
properties or revenues (a) with respect to any of the Loan Documents or
any of the transactions contemplated hereby or thereby, or (b) that could
reasonably be expected to have a Material Adverse Effect.

 

4.7                                 No Default.  No Group Member is in default under or with
respect to any of its Contractual Obligations in any respect that could
reasonably be expected to have a Material Adverse Effect.

 

4.8                                 Ownership of
Property; Liens.  Each Group
Member (other than any Excluded Subsidiary) has title in fee simple to, or a
valid leasehold interest in, all its real property, and good title to, or a
valid leasehold interest in, all its other property, and none of such property
is subject to any Lien except as permitted by Section 7.2(n).

 

4.9                                 Intellectual
Property.  Each Group
Member (other than any Excluded Subsidiary) 
owns, or is licensed to use, all Intellectual Property necessary for the
conduct of its business as currently conducted. 
No material claim has been asserted and is pending by any Person
challenging or questioning the use of any Intellectual Property or the validity
or effectiveness of any Intellectual Property, nor does either Borrower know of
any valid basis for any such claim.  The
use of Intellectual Property by each 

 

49

 

Group Member (other than any Non-Core Subsidiary)
does not infringe on the rights of any Person in any material respect.

 

4.10                           Taxes.  Each Group Member (other than any Excluded
Subsidiary) has filed or caused to be filed all Federal and all material state
and other Tax returns that are required to be filed and has paid all Taxes
shown to be due and payable on said returns or on any assessments made against
it or any of its property and all other Taxes, fees or other charges imposed on
it or any of its property by any Governmental Authority (other than any the
amount or validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the relevant Group Member); no Tax Lien has been
filed, and, to the knowledge of the Borrower, no claim is being asserted, with
respect to any such Tax, fee or other charge. 
Each of the Group Members has withheld all material employee
withholdings and has made all material employer contributions to be withheld
and made by it pursuant to applicable law on account of the Canada and Quebec
pension plans, employment insurance and employee income taxes.

 

4.11                           Federal
Regulations. 
No part of the proceeds of any Loans, and no other extensions of credit
hereunder, will be used (a) for “buying” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under Regulation U
as now and from time to time hereafter in effect for any purpose that violates
the provisions of the Regulations of the Board or (b) for any purpose that
violates the provisions of the Regulations of the Board.  No more than 25% of the assets of the Group
Members consist of “margin stock” as so defined.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable,
referred to in Regulation U.

 

4.12                           Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, or as disclosed on
Schedule 4.12:  (a) there are no
strikes or other labor disputes against any Group Member pending or, to the
knowledge of the Borrower, threatened; (b) hours worked by and payment
made to employees of each Group Member have not been in violation of the Fair
Labor Standards Act, the Employee Standards Act (Ontario), the Employment
Standards Act (British Columbia) or any other applicable federal, provincial,
territorial, state, local or foreign law or Requirement of Law dealing with
such matters; and (c) all payments due from any Group Member on account of
employee health and welfare insurance have been paid or accrued as a liability
on the books of the relevant Group Member.

 

4.13                           ERISA.  (a)  Except
as could not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect: (i) each Group Member and each ERISA Affiliate
is in compliance with the applicable provisions of ERISA and the provisions of
the Code relating to Plans and the regulations and published interpretations
thereunder; (ii) to the knowledge of the Borrower, no ERISA Event has
occurred or is reasonably expected to occur; (iii) all amounts required by
any Requirement of Law with respect to, or by the terms of, any retiree welfare
benefit arrangement maintained by any Group Member, or to which any Group
Member has an obligation to contribute, have been accrued in accordance with
GAAP; and (iv) based on the assumptions used for purposes of
Accounting Standards Codification No 742: Compensation Retirement Benefits, (x) the
present value of all accumulated benefit obligations under each Pension Plan
did not, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair market value of the assets of such Pension Plan
allocable to such accrued benefits, and (y) the present value of all
accumulated benefit obligations of all underfunded Pension Plans did not, as of
the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of all such underfunded Pension
Plans.

 

(b) 
Except as, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, (i) all employer and employee contributions
required by applicable law or by the terms of any Foreign Benefit Arrangement
or Foreign Plan, have been made or (as applicable), accrued in 

 

50

 

accordance
with normal accounting practices; (ii) the accrued benefit obligations of
each Foreign Plan (based on those assumptions used to fund such Foreign Plan)
with respect to all current and former participants do not exceed the assets of
such Foreign Plan; (iii) each Foreign Plan that is required to be
registered has been registered and has been maintained in good standing with
applicable regulatory authorities; and (iv) each such Foreign Benefit
Arrangement and Foreign Plan is in compliance (A) with all material
provisions of applicable law and all material applicable regulations and
published interpretations thereunder with respect to such Foreign Benefit
Arrangement or Foreign Plan and (B) with the terms of such plan or
arrangement.

 

4.14                           Canadian
Pension Plans and Benefit Plans.  Schedule 4.14
lists all Canadian Benefit Plans and Canadian Pension Plans currently
maintained or contributed to by the Group Members.  The Canadian Pension Plans are duly
registered under the ITA (where required) and all other applicable laws which
require registration.  Each Group Member
has complied with and performed all of its material obligations under and in
respect of the Canadian Pension Plans and Canadian Benefit Plans under the
terms thereof, any funding agreements and all applicable laws.  All material employer and employee payments,
contributions or premiums to be remitted, paid to or in respect of each
Canadian Pension Plan or Canadian Benefit Plan by the Group Members have been
paid in a timely fashion in accordance with the terms thereof, any funding
agreement and all applicable laws.  There
have been no improper withdrawals or applications of the assets of the Canadian
Pension Plans or the Canadian Benefit Plans. 
No promises of benefit improvements under the Canadian Pension Plans or
the Canadian Benefit Plans have been made except where such improvement could
not be reasonably expected to have a Material Adverse Effect and, in any event,
no such improvements will result in a solvency deficiency or going concern
unfunded liability in the affected Canadian Pension Plans.  All material reports and disclosures relating
to the Canadian Pension Plans required by such plans and any Requirement of Law
to be filed or distributed have been filed or distributed.  There has been no partial termination of any
Canadian Pension Plan and to the knowledge of the Loan Parties no facts or
circumstances have occurred or existed that could result, or be reasonably
anticipated to result, in the declaration of a partial termination of any
Canadian Pension Plan under Requirements of Law.  Except as set forth on Schedule 4.14,
there are no outstanding material disputes concerning the assets of the
Canadian Pension Plans (excluding disputes in the ordinary course) or the
Canadian Benefit Plans.  Except as set
forth on Schedule 4.14, each of the Canadian Pension Plans is a defined contribution
or money purchase plan and is fully funded in accordance with plan terms and
any Requirement of Law.

 

4.15                           Investment
Company Act; Other Regulations.  No Loan Party is an “investment company”, or
a company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. 
No Loan Party is subject to regulation under any Requirement of Law
(other than Regulation X of the Board) that limits its ability to incur
Indebtedness.

 

4.16                           Subsidiaries.  Except as disclosed to the Administrative
Agent by the Borrower in writing from time to time after the Closing Date, (a) Schedule 4.16(a) sets forth the
name and jurisdiction of incorporation of each Subsidiary and, as to each such
Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party
and (b) there are no outstanding
subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors under
long term management equity plan or incentive plan and directors’ qualifying
shares) of any nature relating to any Capital Stock of the Borrower or any
Subsidiary (other than any Excluded Subsidiary), except as created by the Loan
Documents or disclosed on Schedule 4.16(b).

 

4.17                           Use of Proceeds.  The proceeds of the Revolving Loans and the
Swingline Loans, and the Letters of Credit, shall be used for general corporate
purposes (including, for the avoidance of doubt, any transaction permitted
pursuant to Section 7.2(m) or 7.3(r)).

 

51

 

4.18                           Environmental
Matters.  Except as, in the aggregate,
could not reasonably be expected to have a Material Adverse Effect:

 

(a)               the facilities and
properties owned, leased or operated by any Group Member (the “Properties”)
do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that
constitute or constituted a violation of, or could give rise to liability
under, any Environmental Law;

 

(b)              no Group Member has received
or is aware of any notice of violation, alleged violation, non-compliance,
liability or potential liability regarding environmental matters or compliance
with Environmental Laws with regard to any of the Properties or the business
operated by any Group Member (the “Business”), nor does either Borrower
have knowledge or reason to believe that any such notice will be received or is
being threatened;

 

(c)               Materials of Environmental
Concern have not been transported or disposed of from the Properties in
violation of, or in a manner or to a location that could give rise to liability
under, any Environmental Law, nor have any Materials of Environmental Concern
been generated, treated, stored or disposed of at, on or under any of the
Properties in violation of, or in a manner that could give rise to liability
under, any applicable Environmental Law;

 

(d)              no judicial proceeding or
governmental or administrative action is pending or, to the knowledge of either
Borrower, threatened, under any Environmental Law to which any Group Member is
or will be named as a party with respect to the Properties or the Business, nor
are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to the Properties or the
Business;

 

(e)               there has been no release or
threat of release of Materials of Environmental Concern at or from the
Properties, or arising from or related to the operations of any Group Member in
connection with the Properties or otherwise in connection with the Business, in
violation of or in amounts or in a manner that could give rise to liability
under Environmental Laws;

 

(f)                 the Properties and all
operations at the Properties are in compliance, and have in the last five years
been in compliance, with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the Business; and

 

(g)              no Group Member has assumed
any liability of any other Person under Environmental Laws.

 

4.19                           Accuracy of
Information, etc.  No
statement or information contained in this Agreement, any other Loan Document,
the Lenders Presentation or any other document, certificate or statement
furnished by or on behalf of any Loan Party to the Administrative Agent or the
Lenders, or any of them, for use in connection with the transactions
contemplated by this Agreement or the other Loan Documents, contained as of the
date such statement, information, document or certificate was so furnished (or,
in the case of the Lenders Presentation, as of the date of this Agreement), any
untrue statement of a material fact or omitted to state a material fact necessary
to make the statements contained herein or therein, in light of the circumstances
under which they were made, not misleading. 
The projections and pro  forma financial information
contained in the materials referenced above are based upon good faith estimates
and assumptions believed by management of the Borrower to be reasonable at the
time made, it being recognized by the Lenders that such financial information
as it relates to future 

 

52

 

events is not to be viewed as fact and that actual
results during the period or periods covered by such financial information may
differ from the projected results set forth therein by a material amount.  There is no fact known to any Loan Party that
could reasonably be expected to have a Material Adverse Effect that has not
been expressly disclosed herein, in the other Loan Documents, in the Lenders
Presentation or in any other documents, certificates and statements furnished
to the Administrative Agent and the Lenders for use in connection with the
transactions contemplated hereby and by the other Loan Documents.

 

4.20                           Security
Documents.  (a) 
The Guarantee and Collateral Agreements are effective to create in favor of the
Administrative Agent, for the benefit of the Secured Parties (as defined in the
Guarantee and Collateral Agreement), a legal, valid and enforceable security
interest in the Collateral described therein and proceeds thereof.  In the case of the Pledged Stock described in
each Guarantee and Collateral Agreement, when stock certificates representing
such Pledged Stock are delivered to the Administrative Agent (together with a
properly completed and signed stock power or endorsement), and in the case of
the other Collateral described in each Guarantee and Collateral Agreement, when
financing statements and other filings specified on Schedule 4.20(a) in
appropriate form are filed in the offices specified on Schedule 4.20(a),
each Guarantee and Collateral Agreement shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the Loan Parties
in the Pledged Stock and in such Collateral and the proceeds thereof, as
security for the Obligations (as defined in the Guarantee and Collateral
Agreement), in each case prior and superior in right to any other Person
(except, in the case of Collateral other than Pledged Stock, Liens permitted by
Section 7.2(n) which by operation of law or contract would have priority
over the Liens securing the Obligations (as defined in the Guarantee and
Collateral Agreement).

 

(b)              Subject to the Liens
permitted by Section 7.3, each of the Mortgages is effective to create in
favor of the Administrative Agent, for the benefit of the Lenders, a legal,
valid and enforceable Lien on the Mortgaged Properties described therein and
proceeds thereof, and when the Mortgages are filed in the offices specified on
Schedule 4.20(b), each such Mortgage shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in the Mortgaged Properties and the proceeds thereof, as security for
the Obligations (as defined in the relevant Mortgage).  Schedule 1.1B lists, as of the Closing Date,
each parcel of owned real property and each leasehold interest in real property
and each mineral claim or lease located in the United States or Canada, and
held (including as to any joint venture interests therein) by the Borrower or
any of its Subsidiaries (other than any Excluded Subsidiary) that has a value,
in the reasonable opinion of the Borrower, in excess of $5,000,000.

 

4.21                           Solvency.  Each of the Loan Parties, when taken as a
whole, is, and after giving effect to the incurrence of all Indebtedness and
obligations being incurred in connection herewith and therewith will be and
will continue to be, Solvent.

 

4.22                           Regulation H.  No Mortgage encumbers improved real property
that is located in an area that has been identified by the Secretary of Housing
and Urban Development as an area having special flood hazards and in which flood
insurance has been made available under the National Flood Insurance Act
of 1968.

 

4.23                           Senior Debt.

 

The
Obligations constitute “Senior Debt” and “Designated Senior Debt”
(or any other terms of similar meaning and import) under any documentation
governing subordinated Indebtedness of the Borrower and its Subsidiaries (to
the extent the concept of Senior Debt or Designated Senior Debt (or similar
concept) exists therein).

 

53

 

SECTION 5.                                CONDITIONS
PRECEDENT

 

5.1                                 Conditions to
Initial Extension of Credit.  The agreement of each Lender to make the
initial extension of credit requested to be made by it is subject to the
satisfaction, prior to or concurrently with the making of such extension of
credit on the Closing Date, of the following conditions precedent:

 

(a)                                  Credit Agreement; Guarantee
and Collateral Agreements.  The
Administrative Agent shall have received (i) this Agreement executed and
delivered by the Administrative Agent, the Borrower and each Person listed on
Schedule 1.1A, (ii) the US Guarantee and Collateral Agreement, executed
and delivered by the Borrower and each US Loan Party and (iii) the
Canadian Guarantee and Collateral Agreement, executed and delivered by the
Borrower and each other Canadian Loan Party.

 

(b)                                 Royal Gold Intercreditor
Agreement; Sojitz Consent Agreement.  The Administrative Agent shall have received (i) the
Royal Gold Intercreditor Agreement executed by all parties thereto and
certified copies of the Royal Gold Purchase Agreement and the related security
and other agreements, each executed by the parties thereto and (ii) the
Sojitz Consent Agreement executed by the parties thereto.

 

(c)                                  Financial Statements.  The Lenders shall have received the
consolidated financial statements described in Section 4.1, and such
financial statements shall not, in the reasonable judgment of the Lenders,
reflect any material adverse change in the consolidated financial condition of
the Borrower and its consolidated Subsidiaries, as reflected in the financial
statements or projections delivered to the Lenders on October 6, 2010.

 

(d)                                 Projections.  The Lenders shall have received satisfactory
projections through 2014.

 

(e)                                  Approvals.  All governmental and third party approvals
(including landlords’ and other consents) necessary in connection with the
transactions contemplated hereby shall have been obtained and be in full force
and effect.

 

(f)                                    Lien Searches.  The Administrative Agent shall have received
the results of a recent Lien search with respect to each Loan Party, and such
search shall reveal no Liens on any of the assets of the Loan Parties except
for Liens permitted by Section 7.2(n) or discharged on or prior to
the Closing Date pursuant to documentation satisfactory to the Administrative
Agent.

 

(g)                                 Fees.  The Lenders and the Administrative Agent
shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of
legal counsel), on or before the Closing Date.

 

(h)                                 Closing Certificate;
Certified Certificate of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received (i) a
certificate of each Loan Party, dated the Closing Date, substantially in the
form of Exhibit C, with appropriate insertions and attachments, including
the certificate of incorporation of each Loan Party that is a corporation
certified by the relevant authority of the jurisdiction of organization of such
Loan Party, and (ii) a certificate of compliance/status/good standing as
applicable for each Loan Party from its jurisdiction of organization and each
jurisdiction in which it conducts business.

 

54

 

(i)                                     Legal Opinions.  The Administrative Agent shall have received
the following executed legal opinions:

 

1.               the legal opinion of
McDermott Will & Emery LLP, counsel to the Borrower and their
Subsidiaries; and

 

2.               the legal opinion of local
counsel in each of British Columbia, Yukon, Colorado and Nevada.

 

Each such legal opinion shall cover such other matters incident to the
transactions contemplated by this Agreement as the Administrative Agent may
reasonably require.

 

(j)                                     Pledged Stock; Stock Powers;
Pledged Notes.  The
Administrative Agent shall have received (i) the certificates representing the
shares of Capital Stock pledged pursuant to the Guarantee and Collateral
Agreements, together with an undated stock power for each such certificate
executed in blank by a duly authorized officer of the pledgor thereof and (ii) each
promissory note (if any) pledged to the Administrative Agent pursuant to the
Guarantee and Collateral Agreements endorsed (without recourse) in blank (or
accompanied by an executed transfer form in blank) by the pledgor thereof.

 

(k)                                  Filings, Registrations and
Recordings.  Each
document (including any Uniform Commercial Code and PPSA financing
statement) required by the Security Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in
order to create in favor of the Administrative Agent, for the benefit of the
Lenders, a perfected Lien on the Collateral described therein, prior and
superior in right to any other Person (other than with respect to Liens
expressly permitted by Section 7.2(n)), shall be in proper form for
filing, registration or recordation.

 

(l)                                     Solvency Certificate.  The Administrative Agent shall have received
a solvency certificate, substantially in the form of Exhibit F, from the
chief financial officer of the Borrower.

 

(m)                               Insurance.  The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 5.2 of each
of the US Guarantee and Collateral Agreement and the Canadian Guarantee and
Collateral Agreement.

 

For
the purpose of determining compliance with the conditions specified in this Section 5.1,
each Lender that has signed this Agreement shall be deemed to have accepted,
and to be satisfied with, each document or other matter required under this Section 5.1
unless the Administrative Agent shall have received written notice from such
Lender prior to the proposed Closing Date specifying its objection thereto.

 

5.2                                 Conditions to
Each Extension of Credit.  The
agreement of each Lender to make any extension of credit requested to be made
by it on any date (including its initial extension of credit) is subject to the
satisfaction of the following conditions precedent:

 

(a)               Representations and
Warranties.  Each of the
representations and warranties made by any Loan Party in or pursuant to the Loan
Documents shall be true and correct in all material respects on and as of such
date as if made on and as of such date.

 

55

 

 

(b)     No Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
extensions of credit requested to be made on such date.

 

Each
borrowing by and issuance of a Letter of Credit on behalf of the Borrower
hereunder shall constitute a representation and warranty by the Borrower as of
the date of such extension of credit that the conditions contained in this Section 5.2
have been satisfied.

 

SECTION 6.           AFFIRMATIVE COVENANTS

 

The
Borrower hereby agrees that, so long as the Commitments remain in effect, any
Letter of Credit remains outstanding (unless the outstanding amount of the L/C
Obligations related thereto has been cash collateralized in an amount and
manner satisfactory to the relevant Issuing Lender) or any Loan or other amount
is owing to any Lender or the Administrative Agent hereunder (other than
contingent indemnification and reimbursement obligations that survive repayment
of the Loans), the Borrower shall and shall cause each of its Subsidiaries to:

 

6.1           Financial Statements.  Furnish to the Administrative Agent:

 

(a)     as soon as available, but in
any event within 90 days after the end of each fiscal year of the
Borrower, a copy of the audited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such year and the related
audited consolidated statements of income and of cash flows for such year,
setting forth in each case in comparative form the figures for the previous
year, reported on without a “going concern” or like qualification or exception,
or qualification arising out of the scope of the audit, by KPMG LLP or other
independent certified public accountants of nationally recognized standing; and

 

(b)     as soon as available, but in
any event not later than 45 days after the end of each of the first three
quarterly periods of each fiscal year of the Borrower, the unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows for such quarter and the portion of the fiscal year
through the end of such quarter, setting forth in each case in comparative form
the figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit
adjustments);

 

All
such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied (except as approved by such accountants or officer, as the case may be,
and disclosed in reasonable detail therein) consistently throughout the periods
reflected therein and with prior periods.

 

6.2           Certificates; Other
Information.  Furnish to
the Administrative Agent (or, in the case of clause (h), to the relevant
Lender):

 

(a)     concurrently with the
delivery of the financial statements referred to in Section 6.1, a
certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default, except as
specified in such certificate;

 

(b)     concurrently with the
delivery of any financial statements pursuant to Section 6.1, (i) a
certificate of a Responsible Officer stating that, to the best of each such
Responsible Officer’s knowledge, each Loan Party during such period has
observed or performed all of its covenants and other agreements, and satisfied
every condition contained in this Agreement and the other Loan Documents to

 

56

 

which it is a party to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate and (ii) in
the case of quarterly or annual financial statements, (x) a Compliance
Certificate containing all calculations necessary for determining compliance by
the Borrower with the financial covenants on a consolidated basis with the
provisions of this Agreement referred to therein as of the last day of the
fiscal quarter or fiscal year of the Borrower, as the case may be, and (y) to
the extent not previously disclosed to the Administrative Agent, (1) a
description of any change in the jurisdiction of organization of any Loan
Party, (2) a list of any Intellectual Property acquired by any Loan Party
and (3) a description of any Person that has become a Group Member, in each
case since the date of the most recent report delivered pursuant to this clause
(y) (or, in the case of the first such report so delivered, since the
Closing Date);

 

(c)     as soon as available, and in
any event no later than 60 days after the end of each fiscal year of the Borrower
(or such later date as the Administrative Agent may agree to in its reasonable
discretion), a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow and projected income and a
description of the underlying assumptions applicable thereto), and, as soon as
available, significant revisions, if any, of such budget and projections with
respect to such fiscal year (collectively, the “Budget”), which Budget
shall in each case be accompanied by a certificate of a Responsible Officer
stating that such Budget is based on reasonable estimates, information and
assumptions and that such Responsible Officer has no reason to believe that
such Budget is incorrect or misleading in any material respect;

 

(d)     if the Borrower is not then
a reporting company under the Securities Exchange Act of 1934, as amended,
within 45 days after the end of each fiscal quarter of the Borrower, a
narrative discussion and analysis of the financial condition and results of
operations of the Borrower and its Subsidiaries for such fiscal quarter and for
the period from the beginning of the then current fiscal year to the end of
such fiscal quarter, as compared to the portion of the Budget covering such
periods and to the comparable periods of the previous year;

 

(e)     within five days after the
same are sent, copies of all financial statements and reports that the Borrower
sends to the holders of any class of its debt securities or public equity
securities and, within five days after the same are filed, copies of all
financial statements and reports that the Borrower may make to, or file with,
the SEC or TSX, as applicable;

 

(f)      upon
reasonable request of the Administrative Agent, each Group Member and ERISA
Affiliate shall promptly make a request for any documents or notices described
in Section 101(k) and/or Section 101(l) of ERISA with
respect to a Multiemployer Plan from the administrator or sponsor of such plan
and the Parent Borrower shall provide copies of such documents and notices to
the Administrative Agent promptly after receipt thereof;

 

(g)     promptly, such additional
financial and other information as any Lender may from time to time reasonably
request;

 

(h)     Canadian Pension Plans and
Benefit Plans.

 

The
Borrower shall deliver to Administrative Agent: (i) if requested by
Administrative Agent, copies of each annual and other return, report or
valuation with respect to each Canadian Pension Plan as filed with any
applicable Governmental Authority; (ii) promptly after receipt thereof, a copy
of any material direction, order, notice, ruling or opinion that any Group
Member may receive from any applicable Governmental Authority with respect to
any Canadian Pension Plan; (iii) notification within 30 days of adoption
of any amendment to any existing Canadian Pension Plan or Canadian Benefit Plan
that

 

57

 

increases
the cost to one or more of the Group Members in excess of $10,000,000 per annum
in the aggregate, excluding any amendment due to a Requirement of Law, or the
establishment of any new Canadian Pension Plan or Canadian Benefit Plan and (iv)
notification within 30 days of any voluntary or involuntary termination of a
Canadian Benefit Plan.

 

Information
required to be delivered pursuant to Sections 6.1(a), 6.1(b), 6.2(c), 6.2(d) and
6.2(e) shall be deemed to have been delivered to the Administrative Agent
or the Lenders, as applicable, on the date on which the Borrower provides
written notice to the Lenders that such information has been posted on the
Borrower’s website on the Internet at http://www.thompsoncreekmetals.com or is
available on the website of the SEC at http://www.sec.gov (to the extent such
information has been posted or is available as described in such notice).  Information required to be delivered pursuant
to Sections 6.1 and 6.2 may also be delivered by electronic communication
pursuant to procedures approved by the Administrative Agent pursuant to Section 10.2;
and

 

(i)      if requested by the
Administrative Agent or any Lender, the current life of mine plan for each of
the mines operated by the Borrower or any of its Subsidiaries.

 

6.3           Payment of Obligations.  Pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever nature, except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on
the books of the relevant Group Member.

 

6.4           Maintenance of Existence;
Compliance. (a)(i)  Preserve, renew and keep in full
force and effect its organizational existence and (ii) take all reasonable
action to maintain all rights, privileges and franchises necessary or desirable
in the normal conduct of its business, except, in each case, as otherwise
permitted by Section 7.4 and except, in the case of clause (ii) above,
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect, and (iii) comply with all Contractual Obligations
(including under the Royal Gold Purchase Agreement) and Requirements of Law
except to the extent that failure to comply therewith could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)     Each existing or hereafter
adopted Canadian Pension Plan and Canadian Benefit Plan will, in a timely
fashion, comply with and perform in all material respects all of its
obligations under and in respect of such Canadian Pension Plan or Canadian
Benefit Plan, including under any funding agreements and all applicable laws
(including any fiduciary, funding, investment and administration obligations).

 

6.5           Maintenance of Property;
Insurance.  (a)  Keep all property useful and necessary
in its business in good working order and condition, ordinary wear and tear
excepted and (b) maintain with financially sound and reputable insurance
companies insurance on all its property in at least such amounts and against at
least such risks (but including in any event public liability, product
liability and business interruption) as are usually insured against by
companies engaged in the same or a similar business.

 

6.6           Inspection of Property;
Books and Records; Discussions.  (a)  Keep proper books of records and
account in which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities and (b) permit representatives of the
Administrative Agent together with representatives of any Lender to visit and
inspect any of its properties and examine and make abstracts from any of its
books and records at any reasonable time and as often as may reasonably be
desired and to discuss the business,

 

58

 

operations, properties and financial and other
condition of the Group Members with officers and employees of the Group Members
and with their independent certified public accountants, provided that,
so as long as no Default or Event of Default exists, (x) the Borrower
shall only be obligated to reimburse the Administrative Agent for one such
inspection per fiscal year and (y) the Administrative Agent (together with
the Lenders) may only make two such inspections per fiscal year.

 

6.7           Notices.  Promptly give notice to the Administrative
Agent and each Lender of:

 

(a)     the occurrence of any Default
or Event of Default of which a Responsible Officer has knowledge;

 

(b)     any (i) default or
event of default under any Contractual Obligation of any Group Member or (ii) litigation,
investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have
a Material Adverse Effect;

 

(c)     any litigation or proceeding
affecting any Group Member (i) in which the amount involved is $10,000,000
or more and not covered by insurance, (ii) in which injunctive or similar
relief is sought or (iii) which relates to any Loan Document;

 

(d)     receipt
of any written notice of any governmental investigation or any litigation or
proceeding commenced or threatened against any Loan Party that is asserted or
instituted against any Plan, any Foreign Plan, any Canadian Benefit Plan, any
Canadian Pension Plan, or any of their fiduciaries or their  assets, but excluding claims in the ordinary
course for benefits from any Plan, any Foreign Plan, any Canadian Benefit Plan,
or any Canadian Pension Plan, and excluding any claims or litigation in which
the amount involved is $10,000,000 or less if not covered by insurance;

 

(e)     receipt of any material
notices under the Royal Gold Purchase Agreement;

 

(f)      the occurrence of any ERISA
Event or any Foreign Plan Event that, alone or together with any other ERISA
Events or Foreign Plan Events that have occurred, could reasonably be expected
to result in liability of any Group Member or any ERISA Affiliate in an
aggregate amount exceeding $10,000,000;

 

(g)     any development or event
that has had or could reasonably be expected to have a Material Adverse Effect;
and

 

(h)     any of the Group Members
shall fail to make a required contribution under any Canadian Pension Plan
which could reasonably be expected to result in the imposition of a Lien upon
the assets of any of the Group Members.

 

Each
notice pursuant to this Section 6.7 shall be accompanied by a statement of
a Responsible Officer setting forth details of the occurrence referred to
therein and stating what action the relevant Group Member proposes to take with
respect thereto.

 

6.8           Environmental Laws.  (a)  Comply in all material respects with,
and ensure compliance in all material respects by all tenants and subtenants,
if any, with, all applicable Environmental Laws, and obtain and comply in all
material respects with and maintain, and ensure that all tenants and subtenants
obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws.

 

59

 

(b)     Conduct and complete all
investigations, studies, sampling and testing, and all remedial, removal and
other actions required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws.

 

6.9           Additional Collateral, etc.

 

(a)     With respect to any property acquired after the Closing Date by
any Group Member (other than (x) any property described in paragraph (b), (c) or
(d) below, (y) any property subject to a Lien expressly permitted by Section 7.3(g) and
(z) any property acquired by any Excluded Subsidiary) as to which the
Administrative Agent, for the benefit of the Lenders, does not have a perfected
first priority Lien, subject only to Permitted Priority Liens, promptly (i) execute
and deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement or such other documents as the Administrative Agent deems
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in such property,
subject only to Permitted Priority Liens and (ii) take all actions
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in such property,
subject only to Permitted Priority Liens, including the filing of Uniform
Commercial Code or PPSA financing statements and other equivalent filings in
such jurisdictions as may be required by the Guarantee and Collateral
Agreements or by law or as may be requested by the Administrative Agent.

 

(b)     With respect to any fee
interest in any real property having a value (together with improvements
thereof) of at least $5,000,000 acquired after the Closing Date by any Group
Member (other than any such real property subject to a Lien expressly permitted
by Section 7.3), promptly (i) execute and deliver a first priority US
Mortgage or Canadian Mortgage, subject only to Permitted Priority Liens, in
favor of the Administrative Agent, for the benefit of the Lenders, covering
such real property, (ii) to the extent by requested by the Administrative
Agent, provide one or more of the title policies, surveys, flood hazard
determinations, fixture filings or other documents or instruments referred to
in Section 6.10, all in accordance with such Section 6.10.

 

(c)     With respect to any new
Subsidiary  created or acquired after the
Closing Date by any Group Member (other than any Excluded Subsidiary), promptly
(i) execute and deliver to the Administrative Agent such amendments to the
Guarantee and Collateral Agreements as the Administrative Agent deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority security interest, subject only to Permitted
Priority Liens, in the Capital Stock of such new Subsidiary that is owned by
any Group Member, (ii) deliver to the Administrative Agent the
certificates representing such Capital Stock, together with undated stock
powers, in blank, executed and delivered by a duly authorized officer of the
relevant Group Member, (iii) cause such new Subsidiary (A) to become
a party to the Guarantee and Collateral Agreements, (B) to take such
actions necessary or advisable to grant to the Administrative Agent for the
benefit of the Lenders a perfected first priority security interest, subject
only to Permitted Priority Liens, in the Collateral described in the Guarantee
and Collateral Agreements with respect to such new Subsidiary, including the
filing of Uniform Commercial Code (and PPSA) financing statements and other
equivalent filings in such jurisdictions as may be required by the Guarantee
and Collateral Agreements or by law or as may be requested by the
Administrative Agent and (C) to deliver to the Administrative Agent a
certificate of such Subsidiary, substantially in the form of Exhibit C,
with appropriate insertions and attachments, and (iv) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

 

(d)     With respect to any
Subsidiary that ceases to be an Immaterial Subsidiary after the Closing Date,
promptly (i) execute and deliver to the Administrative Agent such amendments to
the

 

60

 

Guarantee and Collateral Agreements as the
Administrative Agent deems necessary or advisable to grant to the
Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest, subject only to Permitted Priority Liens, in the
Capital Stock of such Subsidiary that is owned by any Group Member, (ii) deliver
to the Administrative Agent the certificates representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member, (iii) cause such
Subsidiary (A) to become a party to the Guarantee and Collateral
Agreements, (B) to take such actions necessary or advisable to grant to
the Administrative Agent for the benefit of the Lenders a perfected first
priority security interest in the Collateral, subject only to Permitted
Priority Liens, described in the Guarantee and Collateral Agreements with
respect to such Subsidiary, including the filing of Uniform Commercial Code
(and PPSA) financing statements and other equivalent filings in such
jurisdictions as may be required by the Guarantee and Collateral Agreements or
by law or as may be requested by the Administrative Agent and (C) to
deliver to the Administrative Agent a certificate of such Subsidiary,
substantially in the form of Exhibit C, with appropriate insertions and
attachments, and (iv) if requested by the Administrative Agent, deliver to
the Administrative Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

 

(e)     With respect to the
consummation of the Permitted Reorganization after the Closing Date, promptly (i) cause
the New Parent to execute and deliver to the Administrative Agent such
amendments to the Guarantee and Collateral Agreements as the Administrative
Agent deems necessary or advisable to grant to the Administrative Agent, for
the benefit of the Lenders, a perfected first priority security interest,
subject only to Permitted Priority Liens, in the Capital Stock of the Borrower
that is owned by the New Parent, (ii) cause the New Parent deliver to the
Administrative Agent the certificates representing such Capital Stock, together
with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the New Parent, (iii) cause the New Parent to become
a party to each Guarantee and Collateral Agreement as a Guarantor and to take
such actions necessary or advisable to grant to the Administrative Agent for
the benefit of the Lenders a perfected first priority security interest,
subject only to Permitted Priority Liens, in the Collateral described in the
Guarantee and Collateral Agreements with respect to the New Parent, including
the filing of Uniform Commercial Code (and PPSA) financing statements and other
equivalent filings in such jurisdictions as may be required by the Guarantee and
Collateral Agreements or by law or as may be requested by the Administrative
Agent, (iv) cause the New Parent to deliver to the Administrative Agent a
certificate substantially in the form of Exhibit C, with appropriate
insertions and attachments, and (v) if requested by the Administrative
Agent, deliver to the Administrative Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and
from counsel, reasonably satisfactory to the Administrative Agent.

 

6.10         Post-Closing Actions.

 

With
respect to each of the U.S. Mortgaged Properties that has a value, in the
reasonable opinion of the Borrower, in excess of $5,000,000, within 45 days
following the Closing Date (or such later date as the Administrative Agent may
agree in its reasonable discretion), the Administrative Agent shall have
received each of the following in form and substance reasonably satisfactory to
the Administrative Agent:

 

(a)           Mortgages. A fully
executed counterpart of the U.S. Mortgage on such parcel of U.S. Mortgaged
Property and evidence that a counterpart of the U.S. Mortgage has been either
recorded or delivered to the Title Company (and to Administrative Agent’s local
counsel, where applicable) for recording in all places to the extent necessary
or, in the reasonable opinion of the Administrative Agent, desirable to
effectively create a valid and enforceable mortgage or deed of trust lien on
each U.S. Mortgaged Property in favor of the Administrative Agent for the
benefit of itself and the Secured Parties, securing the Secured Obligations
(provided that in

 

61

 

jurisdictions that impose mortgage recording taxes, such U.S. Mortgage
shall not secure indebtedness in an amount exceeding 100% of the fair market
value of such U.S. Mortgaged Property, as reasonably determined in good faith
by the Borrowers and reasonably acceptable to the Administrative Agent),
subject to Liens and encumbrances described in Section 7.3;

 

(b)           Title Insurance.  An ALTA policy (or equivalent policies in any
province or territory of Canada) of title insurance (or commitment to issue
such a policy having the effect of a policy of title insurance) which shall (A) be
in an amount equal to 100% of the fair market value of each U.S. Mortgaged
Property covered thereby, (B) be issued at ordinary rates, (C) insure
or commit to insure that the U.S. Mortgage insured thereby creates a valid and
enforceable mortgage or deed of trust lien in the real property described
therein, free and clear of all defects and encumbrances, except Liens and
encumbrances described in Section 7.3, (D) name the Administrative
Agent as the insured thereunder, (E) be in the form of ALTA Loan Policy —
2006 (or equivalent policies), (F) contain such affirmative coverage and
title endorsements as the Administrative Agent shall reasonably request, and (G) be
issued by the a title insurance company reasonably acceptable to the
Administrative Agent (the “Title Company”), together with evidence
satisfactory to the Administrative Agent that all premiums in respect of such
policy or commitment, all charges for mortgage recording tax and all related
expenses, if any, have been paid;

 

(c)           Recorded Documents.  A copy of all recorded documents referred to,
or listed as exceptions to title in the title policies or policies referred to
in clause (b) above;

 

(d)           UCC Fixture Filings. If requested
by the Administrative Agent, proper fixture filings under the UCC on Form UCC-1
for filing under the UCC in the appropriate jurisdiction or under the PPSA on a
financing statement for filing under the PPSA in the appropriate province or
territory in which the parcel of U.S. Mortgaged Property is located, necessary
or desirable to perfect the security interests in fixtures purported to be created
by the U.S. Mortgages;

 

(e)           Counsel Opinions. An opinion of
counsel in the state, province or territory in which such parcel of U.S.
Mortgaged Property is located and an opinion of counsel in the jurisdiction of
formation of the Loan Party entering into the relevant U.S. Mortgage, in each
case, in form and substance and from counsel reasonably satisfactory to the
Administrative Agent;

 

(f)            Surveys. If requested
by the Administrative Agent, an ALTA survey (which may be an existing one), in
form and substance reasonably satisfactory to the Administrative Agent, as well
as any updates or affidavits that the Title Company may reasonably request in
connection with the issuance of the title insurance policies referred to in
clause (b) above;

 

(g)           Mortgaged Property
Indemnification. Such affidavits, certificates, instruments of
indemnification and other items (including a so-called “gap” indemnification)
as shall be reasonably required to induce the Title Company to issue the title
insurance policies and endorsements contemplated in clause (b) above;

 

(h)           Flood Insurance.  Flood insurance in such total amount as the
Administrative Agent may reasonably require, if the area in which any
improvements located on any U.S. Mortgaged Property is designated a “special
flood hazard area” in any Flood Insurance Rate Map published by the Federal
Emergency Management Agency (or any successor agency),

 

62

 

and otherwise comply with the National Flood Insurance Program as set forth
in the Flood Disaster Protection Act of 1973, as amended from time to
time.  Any such insurance policy shall
have a term ending not later than the maturity of the Loans.  With respect to any U.S. Mortgaged Property
that is located in such “special flood hazard area”, Administrative Agent shall
have received confirmation that the Borrowers have received the notice required
pursuant to Section 208.25(i) of Regulation H of the Board; and

 

(i)            Other Information.   Such other information, documentation, and
certifications as may be reasonably required by the Administrative Agent.

 

6.11         Canadian Real Estate
Post-Closing Actions.

 

With
respect to each of the Canadian Mortgaged Properties that has a value, in the
reasonable opinion of the Borrower, in excess of $5,000,000, within 45 days
following the Closing Date (or such later date as the Administrative Agent may
agree in its reasonable discretion), the Administrative Agent shall have
received each of the following in form and substance reasonably satisfactory to
the Administrative Agent:

 

(a)           Charges. A fully executed
counterpart of a mortgage, charge and security interest in respect of all
present and after acquired mineral tenures and real property for each Canadian
Mortgaged Property and evidence that a counterpart has been either recorded or
delivered to the Administrative Agent’s local counsel, where applicable for
recording in all places to the extent necessary or, in the reasonable opinion
of the Administrative Agent, desirable to effectively create a valid and
enforceable charge on each Canadian Mortgaged Property in favor of the
Administrative Agent for the benefit of itself and the Secured Parties,
securing the Secured, subject to Liens and encumbrances described in Section 7.3;

 

(b)           PPSA Fixture Filings. If requested by the
Administrative Agent, proper fixture filings under the PPSA on a financing
statement for filing under the PPSA in the appropriate province or territory in
which the parcel of Canadian Mortgaged Property is located, necessary or desirable
to perfect the security interests in fixtures purported to be created by the
Canadian Mortgages;

 

(c)           Evidence of insurance satisfactory to the
Administrative Agent in respect of each of the Canadian Mortgaged Properties,
with the Administrative Agent as first loss payee;

 

(d)           Counsel Opinions. Opinions of counsel in
British Columbia in relation to (i) the charging documents described
above, including existence, capacity and authority, execution and delivery,
enforceability and creation of valid charges, no contravention, no consents
required, registrations and recordings; and (ii) the real property and
mineral tenures in respect of the Canadian Mortgaged Properties, in each case
in form and substance and from counsel reasonably satisfactory to the Administrative
Agent;

 

(e)           Other Information.   Such other
information, documentation, and certifications as may be reasonably required by
the Administrative Agent.

 

6.12         Dissolution of New Jersey
Entity.  On or prior to the date that
is 210 days following the Closing Date (or such later date as the
Administrative Agent may approve in its sole discretion), the Borrower shall
cause Patent Enforcement and Royalties of New Jersey, Ltd. to be
dissolved, liquidated or otherwise wound-up; provided that prior to its
dissolution, liquidation or wind-up, Patent Enforcement & Royalties of
New Jersey, Ltd. shall not (x) incur any Indebtedness, (y) receive
any

 

63

 

Investment from the Borrower or any of its
Subsidiaries or (z) conduct any operations other than those directly in
connection with its dissolution, liquidation or wind-up.

 

SECTION 7.           NEGATIVE COVENANTS

 

The
Borrower hereby agrees that, so long as the Commitments remain in effect, any
Letter of Credit remains outstanding (unless the outstanding amount of the L/C
Obligations related thereto has been cash collateralized in an amount and
manner satisfactory to the relevant Issuing Lender) or any Loan or other amount
is owing to any Lender or the Administrative Agent hereunder (other than
contingent indemnification and reimbursement obligations that survive repayment
of the Loans), the Borrower shall not, and shall not permit any of its
Subsidiaries  to, directly or indirectly:

 

7.1           Financial Condition
Covenants.  

 

(a)     Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as at
the last day of any period of four consecutive fiscal quarters of the Borrower
to exceed 3.00:1.00.

 

(b)     Consolidated Interest
Coverage Ratio.  Permit the
Consolidated Interest Coverage Ratio as at the last day of any period of four
consecutive fiscal quarters of the Borrower to be less than 3.00:1.00.

 

(c)     Minimum Liquidity.

 

(i)  At the last day of
each fiscal quarter following the Closing Date and ending on the last day of
the quarter preceding the date on which the Endako Project has operated at an
average of 80% of production design capacity over a 75-day period (i.e.
(.80(52,000 tonnes/day)) x 75 = 3,120,000 tonnes) (the “Endako Completion
Date”), permit the Consolidated Liquidity to be less than $100,000,000.

 

(ii)  At the last day
of each fiscal quarter following the Endako Completion Date and ending on the
last day of the fiscal quarter preceding the date on which the Mt. Milligan
Project has operated at an average of 80% of production design capacity over a
75-day period (i.e. (.80(60,000 tonnes/day)) x 75 = 3,600,000 tonnes) (the “Mt.
Milligan Completion Date”), permit the Consolidated Liquidity to be less
than $75,000,000;

 

;provided,
that on each of the Endako Completion Date and the Mt. Milligan Completion
Date, the Borrower shall deliver to the Administrative Agent a certificate of a
Responsible Officer certifying that that Endako Completion Date or the Mt.
Milligan Completion Date, as applicable, has occurred and setting forth in
reasonable detail the tonnage information and calculations relating thereto.

 

7.2           Indebtedness.  Create, issue, incur, assume, become liable
in respect of or suffer to exist any Indebtedness, except:

 

(a)     Indebtedness of any Loan
Party pursuant to any Loan Document;

 

(b)     Indebtedness of (i) any
Group Member to any Loan Party, (ii) subject to Section 7.8(f) ,
any Loan Party to any Excluded Subsidiary, and (iii) any Excluded
Subsidiary to any other Excluded Subsidiary;

 

(c)     Guarantee Obligations incurred
by the Borrower or any of its Subsidiaries of obligations of any Loan Party if
the primary obligation is otherwise permitted under this Agreement and, subject
to Section 7.8(f), any Subsidiary that is not a Loan Party;

 

64

 

(d)     Indebtedness outstanding on
the date hereof and listed on Schedule 7.2(d) and any refinancings,
refundings, renewals or extensions thereof (without increasing, or shortening
the maturity of, the principal amount thereof);

 

(e)     Indebtedness (including,
without limitation, Capital Lease Obligations) secured by Liens permitted by Section 7.3(g) in
an aggregate principal amount not to exceed at any one time outstanding the
difference between (x) $150,000,000 and (y) the amount of Sale and
Leasebacks entered into pursuant to Section 7.11;

 

(f)      obligations of the Borrower
and Terrane Metals Corp. under the Royal Gold Purchase Agreement;

 

(g)     obligations of the Borrower
under the BC Hydro Guaranty;

 

(h)     Indebtedness of any Person
that becomes a Subsidiary after the date hereof or relating to assets which
were assumed in connection with such Person becoming a Subsidiary; provided
that such Indebtedness exists at the time such Person becomes a Subsidiary and
is not created in contemplation of or in connection with such Person becoming a
Subsidiary;

 

(i)      Indebtedness consisting of
unpaid insurance premiums owed to any Person providing property, casualty,
liability or other insurance to any Group Member in any fiscal year, pursuant
to reimbursement or indemnification obligations to such Person; provided that
such Indebtedness is incurred only to defer the cost of such unpaid insurance
premiums for such fiscal year and is outstanding only during such fiscal year;

 

(j)      Indebtedness in respect of
netting services, overdraft protections and similar arrangements in each case
in connection with the endorsement of instruments for deposit and deposit
accounts in the ordinary course of business;

 

(k)     Indebtedness arising from
Swap Agreements permitted under Section 7.12;

 

(l)      Indebtedness consisting of (i) unsecured
guarantees incurred in the ordinary course of business with respect to surety
and appeal bonds, reclamation bonds, performance bonds, bid bonds, appeal
bonds, completion guarantee and similar obligations, (ii) unsecured
guarantees arising with respect to customary indemnification obligations to
purchasers in connection with Dispositions permitted under Section 7.5 and
(iii) unsecured guarantees with respect to Indebtedness of any Group
Member, to the extent that the Person that is obligated under such guaranty
could have incurred such underlying Indebtedness;

 

(m)    Indebtedness in an aggregate
amount not to exceed $50,000,000 that arises from any transaction permitted
pursuant to Section 7.3(r); and

 

(n)     so long as no Default or
Event of Default shall then exist or would exist after giving effect thereto,
additional Indebtedness of the Borrower or any of its Subsidiaries (other than
Non-Core Subsidiaries, and the Endako Joint Venture and its Subsidiaries) in an
aggregate principal amount not to exceed $300,000,000 at any one time
outstanding; provided that (i) not more than $25,000,000 of
Indebtedness incurred pursuant to this clause (n) may have a maturity date
earlier than June 10, 2015 (it being understood and agreed that
$275,000,000 of the Indebtedness incurred pursuant to this clause (n) shall
have a maturity date of June 10, 2015 or later), (ii) such
Indebtedness is incurred on terms that are, in the aggregate, not materially
more onerous to the Group Members than the terms of this Agreement, other than
interest rates and fees payable by the obligors thereunder and (iii) any
Indebtedness in excess

 

65

 

of $200,000,000 incurred pursuant to this clause (n) shall
be subordinated in right of payment to the Obligations.

 

7.3           Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, whether now owned or hereafter acquired, except:

 

(a)     Liens for Taxes not yet due
or that are being contested in good faith by appropriate proceedings, provided
that adequate reserves with respect thereto are maintained on the books of the
Borrower or its Subsidiaries, as the case may be, in conformity with GAAP;

 

(b)     carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the
ordinary course of business that are not overdue for a period of more than 30
days or that are being contested in good faith by appropriate proceedings;

 

(c)     pledges or deposits in
connection with workers’ compensation, unemployment insurance and other social
security legislation;

 

(d)     deposits to secure the
performance of bids, trade contracts (other than for borrowed money), leases,
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

 

(e)     easements, rights-of-way,
restrictions and other similar encumbrances incurred in the ordinary course of
business that, in the aggregate, are not substantial in amount and that do not
in any case materially detract from the value of the property subject thereto
or materially interfere with the ordinary conduct of the business of the
Borrower or any of its Subsidiaries;

 

(f)      Liens in existence on the
date hereof listed on Schedule 7.3(f), securing Indebtedness permitted by Section 7.2(d),
provided that no such Lien is spread to cover any additional property
after the Closing Date and that the amount of Indebtedness secured thereby is
not increased;

 

(g)     Liens securing Indebtedness
of the Borrower or any Subsidiary incurred pursuant to Section 7.2(e) to
finance the acquisition of fixed or capital assets, provided that (i) such
Liens shall be created substantially simultaneously with the acquisition of
such fixed or capital assets, (ii) such Liens do not at any time encumber
any property other than the property financed by such Indebtedness and (iii) the
amount of Indebtedness secured thereby is not increased;

 

(h)     Liens created pursuant to
the Security Documents;

 

(i)      any interest or title of a
lessor under any lease entered into by the Borrower or any Subsidiary in the
ordinary course of its business (including any sale leaseback transactions
permitted under Section 7.11) and covering only the assets so leased;

 

(j)      subject to the Royal Gold
Intercreditor Agreement, Liens securing the obligations of the Borrower and
Terrane Metals Corp. under the Royal Gold Purchase Agreement;

 

(k)     Liens (i)  of a
collection bank arising under Section 4-210 of the Uniform Commercial Code
on items in the course of collection and (ii)  in favor of a banking or
other financial institution arising as a matter of law or under customary
general terms and conditions encumbering deposits, pooled deposits, sweep
accounts or other funds maintained with a financial institution (including the
right of set-off) and which are within the general parameters customary in the
banking industry or arising pursuant to such banking institutions general terms
and conditions;

 

66

 

(l)            Licenses of Intellectual Property granted to others by any Group Member
in the ordinary course of business and not interfering in any material respect
with the ordinary conduct of business of such Group Member;

 

(m)          Liens existing on any property or asset prior to the acquisition
thereof by the Borrower or any Subsidiary in connection with a Permitted
Acquisition, or existing on any property or asset of any Person that becomes a
Subsidiary or is merged, amalgamated or consolidated with the Borrower or any
Subsidiary after the date hereof prior to the time such person becomes a
Subsidiary or is so merged, amalgamated or consolidated, securing Indebtedness
permitted under section 7.2(h); provided, that such Liens (i) are not
created in contemplation of or in connection with such acquisition, merger or
consolidation or such Person becoming a Subsidiary as the case may be, (ii) do
not apply to any other property or asset of the Borrower or Subsidiary and (iii) shall
secure only those obligations that such Liens secure on the date of such
acquisition, merger or consolidation or the date such Person becomes a
Subsidiary, as the case may be;

 

(n)           Liens arising out of judgments for the payment of money
not constituting an Event of Default
so long as such Liens are non-consensual and junior to the extent they apply to
Collateral;

 

(o)           Liens arising
out of conditional sale, title retention, consignment or similar arrangements
for sale of goods entered into by any Loan Party in the ordinary course of
business permitted by this Agreement;

 

(p)           Liens arising
from precautionary Uniform Commercial Code financing statement filings or
similar filings in connection with
operating leases or consignment of goods;

 

(q)           Liens granted in the ordinary course of business on the unearned
portion of insurance premiums securing Indebtedness permitted pursuant to Section 7.2(i);

 

(r)            Liens on cash and Cash
Equivalents to secure reclamation bonds for the Thompson Creek Mine in the form
of letters of credit not issued under this Agreement, cash bonding or surety
bonds in an aggregate amount not to exceed $50,000,000; provided, that at the
time of the issuance of any such letter of credit, no Issuing Lender is able to
issue Letters of Credit that meet the requirements of the applicable
Governmental Authority; and

 

(s)           Liens not otherwise
permitted by this Section so long as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the
aggregate fair market value (determined as of the date such Lien is incurred)
of the assets subject thereto exceeds (as to the Borrower and all Subsidiaries)
$25,000,000 at any one time; provided that no Liens incurred pursuant
this clause (s) on existing Collateral may have priority over the Liens
created pursuant to the Security Documents.

 

7.4           Fundamental Changes.  Enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except that:

 

(a)     any Subsidiary of the
Borrower (other than a Non-Core Subsidiary) may be merged, amalgamated or
consolidated with or into the Borrower (provided that the Borrower shall be the
continuing or surviving corporation) or with or into any other Subsidiary of
the Borrower which is a Subsidiary Guarantor (provided that the Subsidiary
Guarantor shall be the continuing or surviving corporation);

 

67

 

(b)     any Subsidiary of the
Borrower (other than a Non-Core Subsidiary) may Dispose of any or all of its
assets (i) to the Borrower or any Subsidiary Guarantor (or, in the case of a
Subsidiary of the Borrower which is not a Loan Party, to any other Subsidiary
of the Borrower which is not a Loan Party (other than any Non-Core Subsidiary))
(upon voluntary liquidation or otherwise) or (ii) pursuant to a
Disposition permitted by Section 7.5;

 

(c)     any Subsidiary (other than
any Non-Core Subsidiary) of the Borrower which is not a Loan Party may be
merged or consolidated with any other Subsidiary of the Borrower which is not a
Loan Party (other than any Non-Core Subsidiary);

 

(d)     any Non-Core Subsidiary may
be merged or consolidated with any other Non-Core Subsidiary; and

 

(e)     any Investment expressly
permitted by Section 7.8 may be structured as a merger, consolidation or
amalgamation; provided that the Borrower shall be the continuing or surviving
corporation in the case of any merger, consolidation or amalgamation involving
the Borrower.

 

7.5           Disposition of Property.  Dispose of any of its property, whether now
owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell
any shares of such Subsidiary’s Capital Stock to any Person, except:

 

(a)           Dispositions of obsolete or
worn out property in the ordinary course of business;

 

(b)           Dispositions of real estate
no longer useful in the business of the Borrower and its Subsidiaries;

 

(c)           the sale of inventory in the
ordinary course of business;

 

(d)           Dispositions permitted by
clause (i) of Section 7.4(b);

 

(e)           Dispositions of inventory
and other property related to the Core Businesses in the ordinary course of
business and to the extent such inventory and property are no longer useful to
Borrower and its Subsidiaries;

 

(f)            Dispositions of the Capital
Stock or assets of Excluded Subsidiaries so long as (i) no Default or
Event of Default shall then exist or would exist after giving effect thereto
and (ii) the Borrower shall demonstrate to the reasonable satisfaction of
the Administrative Agent that, after giving effect to the Dispositions (x) on
a Pro Forma Basis, the Borrower is in compliance with the financial covenants
set forth in clauses (a) and (b) of Section 7.1 as of the most
recently ended fiscal quarter for which financial statements have been
delivered hereunder and (y) the Borrower is in compliance with the
liquidity covenant set forth in Section 7.1(c) as of the date of such
Disposition;

 

(g)           the sale or issuance in the
ordinary course of business of any Subsidiary’s Capital Stock to the Borrower
or any Wholly Owned Subsidiary Guarantor; and

 

(h)           so long as no Default or
Event of Default shall then exist or would exist after giving effect thereto,
the Disposition of other property having a fair market value not to exceed
$25,000,000 in the aggregate for any fiscal year of the Borrower; provided
that the

 

68

 

aggregate amount of Dispositions made pursuant to this clause (h) may
not exceed $75,000,000 over the term of this Agreement.

 

7.6           Restricted Payments.  Declare or pay any dividend (other than
dividends payable solely in common stock of the Person making such dividend)
on, or make any payment on account of, or set apart assets for a sinking or
other analogous fund for, the purchase, redemption, defeasance, retirement or
other acquisition of, any Capital Stock of any Group Member, whether now or
hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in obligations of
any Group Member (collectively, “Restricted Payments”), except that:

 

(a)           any Subsidiary may make
Restricted Payments to its respective direct parents or holders of its Capital
Stock on a ratable basis;

 

(b)           the Borrower may repurchase,
redeem or otherwise acquire or retire for value its Capital Stock held by any
current or former officer, director, consultant or employee of the Borrower or
any of its Subsidiaries to the extent necessary to satisfy the requirements of
any equity subscription agreement, stock option agreement or similar agreement
or benefit plan of any kind, in an aggregate amount not to exceed $10,000,000
per year;

 

(c)           the Borrower may (i) make
payments not to exceed $1,000,000 in connection with obligations under the
Terrane Warrants, and (ii) issue Capital Stock in respect of the exercise
of the Existing Warrants; provided that, nothing in this Section 7.6
shall restrict or prohibit (or be construed to restrict or prohibit) the Borrower
from repurchasing or making any payment or other distribution in connection
with the TC Warrants prior to October 23, 2011; and

 

(d)           so long as no Default or
Event of Default shall then exist or would exist after giving effect thereto,
the Borrower or any of its Subsidiaries may make Restricted Payments; provided
that, at the time such Restricted Payment is made, the aggregate amount of the
Restricted Payments made pursuant to this clause (d) shall not exceed an
amount equal to 50% of the amount of the Consolidated Net Income for the
previous fiscal year of the Borrower; provided that for the purposes of
calculating Consolidated Net Income for the purposes of this clause (d), no
gain or loss listed under the line item “Change in Fair Value of Common Stock
Warrants” in the financial statements delivered pursuant to Section 6.1(b) (or
any other line item having a similar effect) shall be incorporated into the
calculation of Consolidated Net Income.

 

7.7           Capital Expenditures.  Make or commit to make any Capital
Expenditure, except Capital Expenditures of the Borrower and their respective
Subsidiaries in the ordinary course of business not exceeding the aggregate
amount of $25,000,000 in any fiscal year, except:

 

(i)  Capital
Expenditures to develop the following projects to the extent the aggregate
amount of such Capital Expenditures does not exceed $10,000,000 during any
fiscal year: (1) Davidson Project, (2) Mt. Emmons Project and (3) Berg
Project;

 

(ii)  Capital
Expenditures related to the Endako Project or Mount Milligan Project; and

 

(iii)  any other
Sustaining Capital Expenditures;

 

provided, that (a) up to $10,000,000 of any such amount
referred to in clause (i) above, if not so expended in the fiscal year for
which it is permitted, may be carried over for expenditure in the next
succeeding

 

69

 

fiscal
year and (b) Capital Expenditures made pursuant to this Section during
any fiscal year shall be deemed made, first, in respect of amounts
permitted for such fiscal year as provided above and, second, in respect
of amounts carried over from the prior fiscal year pursuant to clause (i) above.

 

7.8           Investments.  Make any advance, loan, extension of credit
(by way of guaranty or otherwise) or capital contribution to, or purchase any
Capital Stock, bonds, notes, debentures or other debt securities of, or any
assets constituting a business unit of, or make any other investment in, any
Person (all of the foregoing, “Investments”), except:

 

(a)   Permitted Acquisitions;

 

(b)   extensions of trade credit
in the ordinary course of business;

 

(c)   investments in Cash
Equivalents;

 

(d)   (i) Guarantee
Obligations permitted by Section 7.2 and (ii) Investments permitted
by Section 7.6(c);

 

(e)   loans and advances to
employees of any Group Member in the ordinary course of business (including for
travel, entertainment and relocation expenses) in an aggregate amount for all
Group Members not to exceed $1,000,000 at any one time outstanding;

 

(f)    intercompany Investments by
any Group Member in any other Group Member that, prior to such investment, is a
Group Member (other than, in any Non-Core Subsidiary (except in the case of an
Investments by a Non-Core Subsidiary in another Non-Core Subsidiary)), provided
that (i) the aggregate amount of Investments by Loan Parties in Group
Members that are not Loan Parties shall not exceed $5,000,000 in any fiscal
year and (ii) Investments by Loan Parties in Group Members that are not
Loan Parties may only be made so long as no Default or Event of Default shall
then exist or would exist after giving effect thereto;

 

(g)   the Permitted
Reorganization;

 

(h)   Investments in the ordinary
course of business consisting of Article 3 of the Uniform Commercial Code
endorsements for collection or deposit and Article 4 of the Uniform
Commercial Code customary trade arrangements with customers consistent with
past practices;

 

(i)    Investments in the nature of
pledges or deposits with respect to the leases or utilities provided to third
parties in the ordinary course of business;

 

(j)    Investments (including debt
obligations and Capital Stock) received in connection with the bankruptcy or
reorganization of suppliers and customers or in settlement of delinquent
obligations of, or other disputes with, customers and suppliers arising in the
ordinary course of business or upon the foreclosure with respect to any secured
Investment or other transfer of title with respect to any secured Investment;

 

(k)   Investments set forth on
Schedule 7.8; and

 

(l)    so long as no Default or Event
of Default shall then exist or would exist after giving effect thereto, in
addition to Investments otherwise expressly permitted by this Section, Investments
at any time by the Borrower or any of its Subsidiaries in an aggregate
outstanding amount (valued at cost) not to exceed $25,000,000.

 

70

 

7.9           Optional Payments and
Modifications of Certain Debt Instruments.  Make or offer to
make any optional or voluntary payment, prepayment, repurchase or redemption of
or otherwise optionally or voluntarily defease or segregate funds with respect
to any Indebtedness incurred pursuant to Section 7.2(e) or 7.2(n), if
after giving effect thereto, the Consolidated Liquidity would be less than
$50,000,000, provided that any such payment, prepayment, repurchase,
redemption, defeasance or segregation shall only be permitted so long as no
Default or Event of Default shall then exist or would exist after giving effect
thereto.

 

7.10         Transactions with Affiliates; Transactions with
Excluded Subsidiaries

 

(a)          Except as
otherwise provided in Schedule 7.10, enter into any transaction, including any
purchase, sale, lease or exchange of property, the rendering of any service or
the payment of any management, advisory or similar fees, with any Affiliate
(other than the Borrower or any Wholly Owned Subsidiary Guarantor) unless such
transaction is (a) otherwise permitted under this Agreement, (b) in
the ordinary course of business of the relevant Group Member, and (c) upon
fair and reasonable terms no less favorable to the relevant Group Member than
it would obtain in a comparable arm’s length transaction with a Person that is
not an Affiliate.

 

(b)   Neither the Borrower (or, following the consummation
of the Permitted Reorganization, the New Parent) nor any Subsidiary shall at
any time (i) provide a Guarantee of any Indebtedness of any Excluded
Subsidiary, (ii) be directly or indirectly liable for any Indebtedness of
any Excluded Subsidiary or (iii) be directly or indirectly liable for any other
Indebtedness which provides that the holder thereof may (upon notice, lapse of
time or both) declare a default thereon (or cause such Indebtedness or the
payment thereof to be accelerated, payable or subject to repurchase prior to
its final scheduled maturity) upon the occurrence of a default with respect to
any other Indebtedness that is Indebtedness of an Excluded Subsidiary, except
in the case of clause (i) or (ii) to the extent permitted under
Section 7.2 and 7.8 hereof.

 

7.11         Sales and Leasebacks.  Enter into any arrangement with any Person
providing for the leasing by any Group Member of real or personal property that
has been or is to be sold or transferred by such Group Member to such Person or
to any other Person to whom funds have been or are to be advanced by such
Person on the security of such property or rental obligations of such Group
Member (any such arrangement, a “Sale and Leaseback”) except, so long as
no Default or Event of Default shall then exist or would exist after giving
effect thereto, for any such Sale and Leaseback that is consummated within 180
days after the acquisition of such real or personal property acquired by a
Group Member in an aggregate principal amount at any one time outstanding not
to exceed the difference between (x) $150,000,000 and (y) the amount
of Indebtedness incurred pursuant to Section 7.2(e).

 

7.12         Swap Agreements.  Enter
into any Swap Agreement, except (a) Swap Agreements entered into to hedge
or mitigate risks to which the Borrower or any Subsidiary has actual exposure
(including, for the avoidance of doubt, currency hedging) (other than those in
respect of Capital Stock), (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of the Borrower or any
Subsidiary, in each case in the ordinary course of business for non-speculative
purposes and (c) Swap Agreements entered into in the ordinary course of
business for non-speculative purposes with respect to sales and purchase
contracts for any type of metal (or byproduct) including, but not limited to,
molybdenum, gold and copper.

 

7.13         Changes in Fiscal Periods.  Permit the fiscal year of the Borrower to end
on a day other than December 31 or change the Borrower’s method of
determining fiscal quarters, except for changing the current year end of the
fiscal year for Terrane Metals Corp. to December 31.

 

71

 

7.14         Negative Pledge Clauses.  Enter into or suffer to exist or become
effective any agreement that prohibits or limits the ability of any Group
Member to create, incur, assume or suffer to exist any Lien upon any of its property
or revenues, whether now owned or hereafter acquired other than (a) this
Agreement and the other Loan Documents and (b) any agreements governing
any purchase money Liens or Capital Lease Obligations otherwise permitted
hereby (in which case, any prohibition or limitation shall only be effective
against the assets financed thereby).

 

7.15         Clauses Restricting
Subsidiary Distributions. 
Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary to (a) make
Restricted Payments in respect of any Capital Stock of such Subsidiary held by,
or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the
Borrower, except for any requirements to pay dividends ratably to the respective
direct parents or holders of such Subsidiary, (b) make loans or advances
to, or other Investments in, the Borrower or any other Subsidiary of the
Borrower or (c) transfer any of its assets to the Borrower or any other
Subsidiary of the Borrower, except for such encumbrances or restrictions
existing under or by reason of (i) any restrictions existing under the
Loan Documents and (ii) any restrictions with respect to a Subsidiary
imposed pursuant to an agreement that has been entered into in connection with
the Disposition of all or substantially all of the Capital Stock or assets of
such Subsidiary.

 

7.16         Lines of Business.  Enter into any business, either directly or
through any Subsidiary, except for those businesses in which the Borrower and
its Subsidiaries are engaged on the date of this Agreement or that are
reasonably related thereto.

 

7.17         Amendments to Material
Agreements.  Amend,
supplement or otherwise modify (pursuant to a waiver or otherwise) the terms
and conditions of (i) the Royal Gold Purchase Agreement and the related
security documents in any material respect, subject to the terms of the Royal
Gold Intercreditor Agreement, (ii) the Endako Joint Venture Agreement in
any material respect that is adverse to the Lenders and (iii) the BC Hydro
Guaranty in any material respect that is adverse to the Lenders; provided,
that an increase in the principal amount of the obligations that are the
subject of the BC Hydro Guaranty to $25,000,000 in the aggregate shall not be
deemed to be adverse to the Lenders.

 

SECTION 8.           EVENTS OF DEFAULT

 

If
any of the following events shall occur and be continuing:

 

(a)     the Borrower shall fail to
pay any principal of any Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or Reimbursement Obligation, or any other amount payable
hereunder or under any other Loan Document, within four Business Days after any
such interest or other amount becomes due in accordance with the terms hereof; or

 

(b)     any representation or
warranty made or deemed made by any Loan Party herein or in any other Loan
Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this Agreement
or any such other Loan Document shall prove to have been inaccurate in any
material respect on or as of the date made or deemed made; or

 

(c)     any Loan Party shall default
in the observance or performance of any agreement contained in clause (i) or
(ii) of Section 6.4(a) (with respect to the Borrower only), Section 6.7(a) or
Section 7 of this Agreement or Sections 4.4 and 4.6 of the Guarantee and
Collateral Agreements; or

 

72

 

(d)     any Loan Party shall default
in the observance or performance of any other agreement contained in this
Agreement or any other Loan Document (other than as provided in paragraphs (a) through
(c) of this Section), and such default shall continue unremedied for a
period of 30 days after notice to the Borrower from the Administrative Agent or
the Required Lenders; or

 

(e)     any Group Member shall (i) default
in making any payment of any principal of any Indebtedness (including any
Guarantee Obligation, but excluding the Loans) on the scheduled or original due
date with respect thereto; or (ii) default in making any payment of any
interest on any Indebtedness beyond the period of grace, if any, provided in
the instrument or agreement under which such Indebtedness was created; or (iii) default
in the observance or performance of any other agreement or condition relating
to any Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or beneficiary of such Indebtedness (or a trustee or agent
on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or (in
the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described in
clause (i), (ii) or (iii) of this paragraph (e) shall not at any
time constitute an Event of Default unless, at such time, one or more defaults,
events or conditions of the type described in clauses (i), (ii) and (iii) of
this paragraph (e) shall have occurred and be continuing with respect to
Indebtedness the aggregate outstanding principal amount of which is $20,000,000
or more; or

 

(f)      (i) any involuntary
case or proceeding (including the filing of any notice of intention in respect
thereof) is commenced against any Group Member (other than any Excluded
Subsidiary) under any Insolvency Law, any incorporation law or other applicable
law in any jurisdiction, and such case or proceeding shall remain undismissed
or unstayed for 60 days or more or such court shall enter a decree or order
granting the relief sought in such case or proceeding, in respect of:

 

(A)                              its bankruptcy, liquidation, winding-up,
dissolution or suspension of general operations,

 

(B)                                the composition, rescheduling, reorganization,
arrangement or readjustment of, or other relief from, or stay of proceedings to
enforce, some or all of its debts or obligations,

 

(C)                                the appointment of a trustee, interim
receiver, receiver, receiver and manager, liquidator, administrator, custodian,
sequestrator, agent or other similar official for a Group Member, or for all or
a substantial part of the assets of any Group Member,

 

(D)                               possession, foreclosure, seizure or retention,
sale or other disposition of, or other proceedings to enforce security over,
all or any substantial part of the assets, of such Group Member.

 

(ii)  any Group Member
(other than any Excluded Subsidiary) (A) files a petition or application
seeking relief under any Insolvency Law, or (B) commences on a voluntary
basis, or fails to contest in a timely and appropriate manner or consents to
the institution of any proceeding referred to in paragraph (i) above or to
the filing of any such petition or to the appointment of or taking possession
by a custodian, receiver, interim receiver, receiver and manager, liquidator,
assignee, trustee or sequestrator (or similar official) of such Group Member or
of all or any substantial part of such Group Member’s assets, or (C) makes
an assignment for the benefit of creditors, (D) takes any action in
furtherance of any of the foregoing or of any of the proceedings

 

73

 

referred to in paragraph
(i), or (E) admits in writing its inability to, or is generally unable to,
pay its debts as such debts become due or is otherwise insolvent.

 

(g)     (i) an ERISA Event or a Foreign Plan Event shall have occurred; (ii) a
trustee shall be appointed by a United States district court to administer any
Pension Plan; (iii) the PBGC shall institute proceedings to terminate any
Pension Plan; (iv) any Group Member or any of their respective ERISA Affiliates
shall have been notified by the sponsor of a Multiemployer Plan that it has
incurred or will be assessed Withdrawal Liability to such Multiemployer Plan
and such entity does not have reasonable grounds for contesting such Withdrawal
Liability or is not contesting such Withdrawal Liability in a timely and
appropriate manner; (v) any Group Member shall, directly or indirectly,
terminate or cause to terminate, in whole or in part, or initiate the
termination of, in whole or in part, any Canadian Pension Plan; (vi) any
event or condition exists in respect of any Canadian Pension Plan which is
reasonably likely to result in any Group Member incurring liability; (vii) any
Group Member shall fail to make minimum required contributions under a Canadian
Pension Plan within the time period set out in any Requirement of Law or fail
to make a required contribution under any Canadian Pension Plan or Canadian
Benefit Plan which could reasonably be expected to result in the imposition of
a Lien upon the assets of any Group Member; or (viii) any Group Member
shall make any improper withdrawals or applications of assets of a Canadian
Pension Plan or Canadian Benefit Plan; and in each case in clauses (i) through
(viii) above, such event or condition, together with all such other events
or conditions that have occurred, could reasonably be expected to result in a
Material Adverse Effect; or

 

(h)     one or more judgments or
decrees shall be entered against any Group Member (other than any Excluded
Subsidiary) involving in the aggregate a liability (not paid or fully covered
by insurance as to which the relevant insurance company has acknowledged
coverage) of $20,000,000 or more, and all such judgments or decrees shall not
have been vacated, discharged, stayed or bonded pending appeal within 30 days
from the entry thereof; or

 

(i)      any material provision of
the Security Documents or the Royal Gold Intercreditor Agreement shall cease,
for any reason, to be in full force and effect, or any Loan Party or any
Affiliate of any Loan Party shall so assert, or any Lien created by any of the
Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby or any Loan Party shall so assert, or
any material provision of the Royal Gold Intercreditor Agreement shall cease to
be enforceable or any party to the Royal Gold Intercreditor Agreement shall
commence a case or proceeding (including the filing of any notice of intention)
in respect thereof; or

 

(j)      the guarantee contained in Section 2
of the Guarantee and Collateral Agreement shall cease, for any reason, to be in
full force and effect or any Loan Party or any Affiliate of any Loan Party
shall so assert; or

 

(k)     a Change of Control shall
occur (other than a Change of Control resulting from the Permitted
Reorganization);

 

(l)      a Vendor Event of Default
(as defined in the Royal Gold Purchase Agreement) shall occur under the Royal
Gold Purchase Agreement; or

 

(m)  after the consummation of
the Permitted Reorganization, the New Parent shall (i) conduct, transact
or otherwise engage in, or commit to conduct, transact or otherwise engage in,
any business or operations other than those incidental to its ownership of the
Capital Stock of the Borrower, (ii) incur, create, assume or suffer to
exist any Indebtedness or other liabilities or financial obligations, except (x) nonconsensual
obligations imposed by operation of law, (y) obligations pursuant to the
Loan Documents to which it is a party and (z) obligations with respect to
its Capital Stock, or (iii) own, lease,

 

74

 

manage
or otherwise operate any properties or assets (including cash (other than cash
received in connection with dividends made by the Borrower in accordance with Section 7.6
pending application in the manner contemplated by said Section) and cash
equivalents) other than the ownership of shares of Capital Stock of the
Borrower; or

 

(n)   there is a cessation or
abandonment (other than a force majeure event, cessation or abandonment for
which substantially all of the losses or liabilities of any Group Member
resulting from such abandonment would be covered by insurance) of the Thompson
Creek Mine, Endako Mine, Langeloth Facility or Mount Milligan Project, in each
case, for a period of not less than 365 consecutive days

 

then,
and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) above with respect to the
Borrower, automatically the Commitments shall immediately terminate and the
Loans (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) shall
immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken:  (i) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the Required
Lenders, the Administrative Agent shall, by notice to the Borrower declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans (with
accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents (including all amounts of L/C Obligations, whether or
not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  With respect to (i) all Letters of
Credit with respect to which presentment for honor shall not have occurred and (ii) all
Bankers’ Acceptances at maturity, in each case, at the time of an acceleration
pursuant to this paragraph, the Borrower shall at such time deposit in a cash
collateral account opened by the Administrative Agent an amount equal to the
sum of (x) the aggregate then undrawn and unexpired amount of such Letters
of Credit and (y) the amount due under such Bankers’ Acceptances.  Amounts held in such cash collateral account
shall be applied by the Administrative Agent to the payment of drafts drawn
under such Letters of Credit and to the payment of amounts due under Bankers’
Acceptances on a pro rata basis, and the unused portion thereof after all such
Letters of Credit shall have expired or been fully drawn upon and Bankers’
Acceptances fully repaid, if any, shall be applied to repay other obligations
of the Borrower hereunder and under the other Loan Documents.  After all such Letters of Credit shall have
expired or been fully drawn upon, all Reimbursement Obligations shall have been
satisfied and all other obligations of the Borrower hereunder and under the
other Loan Documents shall have been paid in full, the balance, if any, in such
cash collateral account shall be returned to the Borrower (or such other Person
as may be lawfully entitled thereto). 
Except as expressly provided above in this Section, presentment, demand,
protest and all other notices of any kind are hereby expressly waived by the
Borrower.

 

SECTION 9.           THE AGENTS

 

9.1           Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably

 

75

 

incidental thereto. 
Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2           Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys in-fact selected by
it with reasonable care.

 

9.3           Exculpatory Provisions.  Neither any Agent nor any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or
affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except to the extent that any of the foregoing are found
by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from its or such Person’s own gross negligence or willful
misconduct) or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by any Loan Party or
any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided
for in, or received by the Agents under or in connection with, this Agreement
or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or for any failure of any Loan Party a party thereto to perform its
obligations hereunder or thereunder.  The
Agents shall not be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of any Loan Party other than to confirm
receipt of the items required to be delivered to the Administrative Agent
pursuant to Section 5.1.

 

9.4           Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy or email
message, statement, order or other document or conversation believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including
counsel to the Borrower), independent accountants and other experts selected by
the Administrative Agent.  The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Administrative Agent.  The Administrative Agent shall be fully justified
in failing or refusing to take any action under this Agreement or any other
Loan Document unless it shall first receive such advice or concurrence of the
Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Loans.

 

9.5           Notice of Default. 
The Administrative Agent shall not be deemed to have knowledge or notice
of the occurrence of any Default or Event of Default unless the Administrative
Agent has received notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”.  In the
event that the Administrative

 

76

 

Agent receives such a notice, the Administrative
Agent shall give notice thereof to the Lenders. 
The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders (or, if so specified by this Agreement, all Lenders); provided
that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
or Event of Default as it shall deem advisable in the best interests of the
Lenders.

 

9.6           Non-Reliance on Agents and Other Lenders.  Each Lender expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees,
agents, advisors, attorneys-in-fact or affiliates have made any representations
or warranties to it and that no act by any Agent hereafter taken, including any
review of the affairs of a Loan Party or any affiliate of a Loan Party, shall
be deemed to constitute any representation or warranty by any Agent to any
Lender.  Each Lender represents to the
Agents that it has, independently and without reliance upon any Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates and made its own decision to make its Loans
hereunder and enter into this Agreement. 
Each Lender also represents that it will, independently and without
reliance upon any Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigation as
it deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and
their affiliates.  Except for notices,
reports and other documents expressly required to be furnished to the Lenders by
the Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of any Loan Party or any affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, advisors,
attorneys-in-fact or affiliates.

 

9.7           Indemnification. 
The Lenders agree to indemnify each Agent and its officers, directors,
employees, affiliates, agents, advisors and controlling persons (each, an “Agent
Indemnitee”) (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Applicable Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Commitments shall have terminated and the Loans
shall have been paid in full, ratably in accordance with such Applicable
Percentages immediately prior to such date), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (whether before or after the payment of the Loans) be imposed on, incurred
by or asserted against such Agent Indemnitee in any way relating to or arising
out of, the Commitments, this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
Indemnitee under or in connection with any of the foregoing; provided
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from
such Agent Indemnitee’s gross negligence or willful misconduct.  The agreements in this Section shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

9.8           Agents in Their Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Loan Party as though such Agent were not an Agent.  With respect to its Loans made or renewed by
it and with respect

 

77

 

to any Letter of Credit issued or participated in by
it, each Agent shall have the same rights and powers under this Agreement and
the other Loan Documents as any Lender and may exercise the same as though it
were not an Agent, and the terms “Lender” and “Lenders” shall include each
Agent in its individual capacity.

 

9.9           Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 20 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under Section
8(a) or Section 8(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as Administrative
Agent shall be terminated, without any other or further act or deed on the part
of such former Administrative Agent or any of the parties to this Agreement or
any holders of the Loans.  If no
successor agent has accepted appointment as Administrative Agent by the date
that is 20 days following a retiring Administrative Agent’s notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless
thereupon become effective, and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 9 and of Section
10.5 shall continue to inure to its benefit.

 

9.10         Documentation Agent, Joint Lead Arrangers, Joint
Bookrunners and Syndication Agent. 
Neither the Documentation Agents, Joint Lead Arrangers, Joint
Bookrunners nor the Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.

 

SECTION 10. MISCELLANEOUS

 

10.1         Amendments and Waivers.  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and each Loan Party
party to the relevant Loan Document may, or, with the written consent of the
Required Lenders, the Administrative Agent and each Loan Party party to the relevant
Loan Document may, from time to time, (a) enter into written amendments,
supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents
or changing in any manner the rights of the Lenders or of the Loan Parties
hereunder or thereunder or (b) waive, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify
in such instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall (i) forgive the principal amount or extend the final
scheduled date of maturity of any Loan, reduce the stated rate of any interest
or fee payable hereunder (except (x) in connection with the waiver of
applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Required Lenders of each adversely
affected Facility) and (y) that any amendment or modification of defined terms
used in the financial covenants in this Agreement shall not constitute a
reduction in the rate of interest or fees for purposes of this clause (i)) or
extend the scheduled date of any payment thereof, or extend the expiration date
of any Lender’s Commitment, in each case without the written consent of each
Lender directly affected thereby; (ii) eliminate or reduce the voting rights of
any Lender under this Section 10.1 without the written consent of such Lender; (iii)
reduce any percentage specified in the definition of Required Lenders, consent
to the assignment or

 

78

 

transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, release all or
substantially all of the Collateral or release all or substantially all of the
Subsidiary Guarantors from their obligations under the Guarantee and Collateral
Agreement, in each case without the written consent of all Lenders; (iv) amend,
modify or waive any provision of Section 2.15 or the definition of “Applicable
Percentage” without the written consent of each Lender adversely affected
thereby; (v) reduce the percentage specified in the definition of Required
Lenders without the written consent of all Lenders; (vi) increase the
Commitments hereunder (except for any increase pursuant to Section 2.1(b))
without the written consent of each Lender, (vii) amend, modify or waive any
provision of Section 9 or any other provision of any Loan Document that affects
the Administrative Agent without the written consent of the Administrative
Agent; (viii) amend, modify or waive any provision of Section 2.4 or 2.5 without
the written consent of the Swingline Lender; or (ix) amend, modify or waive any
provision of Section 3 without the written consent of the Issuing Lender.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Loan Parties, the Lenders, the Administrative Agent, the
Swingline Lender, the Issuing Lender and all future holders of the Loans.  In the case of any waiver, the Loan Parties,
the Lenders and the Administrative Agent shall be restored to their former
position and rights hereunder and under the other Loan Documents, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

 

10.2         Notices. 
Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications
provided for herein, shall be in writing and shall be delivered by hand or
overnight courier services, or sent by telecopier (to be followed by a copy
sent via email) at the addresses set forth below, or to such other address as
may be hereafter notified by the respective parties hereto:

 

	
  Borrower:

  	
  Thompson Creek Metals Company Inc.

  
	
   

  	
  26 West Dry Creek Circle, Suite 810

  
	
   

  	
  Littleton, CO 80120

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
  Telecopy: (303) 762-3507

  
	
   

  	
  Telephone: (303) 761-8801

  
	
   

  
	
  Administrative
  Agent:

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  1111
  Fannin, 10th Floor

  
	
   

  	
  Houston,
  TX 77002-6925

  
	
   

  	
  Attention:
  Nina Guinchard

  
	
   

  	
  Telecopy:
  (713) 427-6307

  
	
   

  	
  Telephone:
  (713) 750-2367

  
	
  With
  a copy to:

  	
   

  
	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  1111
  Fannin, 10th Floor

  
	
   

  	
  Houston,
  TX 77002-6925

  
	
   

  	
  Attention:
  Siraz Maknojia

  
	
   

  	
  Telecopy:
  (713) 427-6416

  
	
   

  	
  Telephone:
  (713) 374-4312

  
			

 

79

 

provided that unless
otherwise expressly provided herein, each notice or other communication shall
be deemed to have been duly given or made when delivered, or, in the case of
telecopy notice, when received, provided  further that any notice,
request or demand to or upon the Administrative Agent or the Lenders shall not
be effective until received.

 

Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to
notices pursuant to Section 2 unless otherwise agreed by the Administrative
Agent and the applicable Lender.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications.

 

10.3         No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

10.4         Survival of Representations and Warranties.  All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the
execution and delivery of this Agreement and the making of the Loans and other
extensions of credit hereunder.

 

10.5         Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse
the Administrative Agent for all its reasonable and properly documented
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of
the transactions contemplated hereby and thereby, including the reasonable and
properly documented out-of-pocket fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to the Borrower prior
to the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the Administrative Agent shall deem appropriate, (b) to pay or reimburse each
Lender and the Administrative Agent for all its reasonable and properly
documented out-of-pocket costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan
Documents and any such other documents, including the reasonable and properly
documented out-of-pocket fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to each Lender and of counsel
to the Administrative Agent, (c) to pay, indemnify, and hold each Lender and
the Administrative Agent harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in
paying, stamp, excise and other Taxes (other than Excluded Taxes), if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender and
the Administrative Agent and their respective officers, directors, employees,
affiliates, agents, advisors and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever

 

80

 

with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Loans or the violation of, noncompliance with or
liability under, any Environmental Law applicable to the operations of any
Group Member or any of the Properties and the reasonable fees and expenses of
legal counsel in connection with claims, actions or proceedings by any
Indemnitee against any Loan Party under any Loan Document (all the foregoing in
this clause (d), collectively, the “Indemnified Liabilities”), provided,
that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities
are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct
of such Indemnitee.  Without limiting the
foregoing, and to the extent permitted by applicable law, the Borrower agrees
not to assert and to cause its Subsidiaries not to assert, and hereby waives
and agrees to cause its Subsidiaries to waive, all rights for contribution or
any other rights of recovery with respect to all claims, demands, penalties,
fines, liabilities, settlements, damages, costs and expenses of whatever kind
or nature, under or related to Environmental Laws, that any of them might have
by statute or otherwise against any Indemnitee. All amounts due under this Section
10.5 shall be payable not later than 10 days after written demand
therefor.  Statements payable by the
Borrower pursuant to this Section 10.5 shall be submitted to the Borrower at
the telecopier number or address set forth in Section 10.2, or to such other
Person or address as may be hereafter designated by the Borrower in a written
notice to the Administrative Agent.  The
agreements in this Section 10.5 shall survive the termination of this Agreement
and the repayment of the Loans and all other amounts payable hereunder.

 

10.6         Successors and Assigns; Participations and Assignments.  (a)  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any affiliate of
the Issuing Lender that issues any Letter of Credit), except that (i) the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.

 

(b)     (i)   Subject to the
conditions set forth in paragraph (b)(ii) below, any Lender may assign to one
or more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitments and the Loans at the
time owing to it) with the prior written consent of:

 

(A)                              the Borrower (such consent not to be
unreasonably withheld); provided that no consent of the Borrower shall
be required for an assignment to a Lender, an affiliate of a Lender, an
Approved Fund (as defined below) or, if an Event of Default has occurred and is
continuing, any other Person; provided, further, that the
Borrower shall be deemed to have consented to any such assignment unless it
shall object thereto by written notice to the Administrative Agent within five
Business Days after having received notice thereof; and

 

(B)                                the Administrative Agent (such consent not to
be unreasonably withheld or delayed); provided that no consent of the
Administrative Agent shall be required for an assignment to a Lender or an
Affiliate of a Lender.

 

(ii)                   Assignments shall be subject to the following
additional conditions:

 

81

 

(A)                              except in the case of an assignment to a
Lender, an affiliate of a Lender or an Approved Fund or an assignment of the
entire remaining amount of the assigning Lender’s Commitments or Loans, the
amount of the Commitments or Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $5,000,000 unless the Borrower and the Administrative Agent
otherwise consent, provided that (1) no such consent of the Borrower
shall be required if an Event of Default has occurred and is continuing and (2)
such amounts shall be aggregated in respect of each Lender and its affiliates
or Approved Funds, if any;

 

(B)                                (1)  the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500 and (2) the assigning Lender shall have paid in full any amounts
owing by it to the Administrative Agent; and

 

(C)                                the Eligible Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an administrative
questionnaire in which the Eligible Assignee designates one or more credit
contacts to whom all syndicate-level information (which may contain material
non-public information about the Borrower and its Affiliates and their related
parties or their respective securities) will be made available and who may
receive such information in accordance with the assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

 

(D)                               without the prior written consent of the
Administrative Agent, no assignment shall be made to a prospective Eligible
Assignee that bears a relationship to the Borrower described in Section 108(e)(4)
of the Code.

 

(E)                                 For the purposes of this Section 10.6, “Approved
Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions
of credit in the ordinary course of its business and that is administered or
managed by (a) a Lender, (b) an affiliate of a Lender or (c) an entity or an
affiliate of an entity that administers or manages a Lender.

 

(iii)
 Subject to acceptance and recording
thereof pursuant to paragraph (b)(iv) below, from and after the effective date
specified in each Assignment and Assumption the Eligible Assignee thereunder
shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and

 

82

 

obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 2.16, 2.17, 2.18 and 10.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section
10.6 shall be treated for purposes of this Agreement as a sale by such Lender
of a participation in such rights and obligations in accordance with paragraph (c)
of this Section.

 

(iv)
 The Administrative Agent, acting for
this purpose as an agent of the Borrower, shall maintain at one of its offices
a copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lender and
the Lenders shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.

 

(v)
 Upon its receipt of a duly completed
Assignment and Assumption executed by an assigning Lender and an Eligible
Assignee, the Eligible Assignee’s completed administrative questionnaire
(unless the Eligible Assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption
and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

 

(c)     (i)   Any
Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans owing to
it); provided that (A) such Lender’s obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (C) the Borrower,
the Administrative Agent, the Issuing Lender and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement and (D) without the prior
written consent of the Administrative Agent, no participation shall be sold to
a prospective Participant that bears a relationship to the Borrower described
in Section 108(e)(4) of the Code.  Any
agreement pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver that (1) requires the consent of each Lender directly affected thereby
pursuant to the proviso to the second sentence of Section 10.1 and (2) directly
affects such Participant.  The Borrower
agrees that each Participant shall be entitled to the benefits of Sections
2.16, 2.17 and 2.18 (subject to the requirements and limitations therein,
including the requirements under Section 2.17 (f) (it being understood that the
documentation required under Section 2.17 (f) shall be delivered to the
participating Lender)) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section;
provided that such Participant (A) agrees to be subject to the provisions of
Sections 2.17 and 2.18 as if it were an assignee under paragraph (b) of this
Section; and (B) shall not be entitled to receive any greater payment under
Sections 2.17 or 2.18, with respect to any participation, than its
participating Lender would have been entitled to receive, except to the extent
such entitlement to receive a greater payment results from an adoption of or
any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof that occurs after the

 

83

 

Participant acquired the
applicable participation. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 10.7(b) as though it were a
Lender, provided such Participant shall be subject to Section 10.7(a) as though
it were a Lender.

 

(d)     Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Eligible Assignee for
such Lender as a party hereto.

 

(e)     The Borrower, upon receipt of written notice from the relevant
Lender, agrees to issue Notes to any Lender requiring Notes to facilitate
transactions of the type described in paragraph (d) above.

 

(f)      Notwithstanding the foregoing, any Conduit Lender may assign
any or all of the Loans it may have funded hereunder to its designating Lender
without the consent of the Borrower or the Administrative Agent and without
regard to the limitations set forth in Section 10.6(b).  The Borrower, each Lender and the
Administrative Agent hereby confirms that it will not institute against a
Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless each
other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during
such period of forbearance.

 

10.7         Adjustments; Set-off. 
(a) Except to the extent that this Agreement or a court order expressly
provides for payments to be allocated to a particular Lender or to the Lenders
under a particular Facility, if any Lender (a “Benefitted Lender”) shall
receive any payment of all or part of the Obligations owing to it (other than
in connection with an assignment made pursuant to Section 10.6), or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in Section
8(f), or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of the Obligations
owing to such other Lender, such Benefitted Lender shall purchase for cash from
the other Lenders a participating interest in such portion of the Obligations
owing to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b)     In addition to any rights and remedies of the Lenders provided
by law, each Lender shall have the right, without notice to the Borrower, any
such notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any Obligations becoming due and payable by the Borrower
(whether at the stated maturity, by acceleration or otherwise), to apply to the
payment of such Obligations, by setoff or otherwise, any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Lender, any affiliate thereof or any of their
respective branches or agencies to or for the credit or the account of the
Borrower.  Each Lender agrees promptly to
notify the Borrower and the

 

84

 

Administrative Agent after any such application made
by such Lender, provided that the failure to give such notice shall not
affect the validity of such application.

 

10.8         Counterparts. 
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of
this Agreement by email or facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

10.9         Severability. 
Any provision of this Agreement that is prohibited or 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.

 

10.10       Integration. 
This Agreement and the other Loan Documents represent the entire
agreement of the Borrower, the Administrative Agent and the Lenders with
respect to the subject matter hereof and thereof, and supersede all prior
agreements and understandings, oral or written, if any (for the avoidance of
doubt, it is agreed and understood that, notwithstanding anything to the
contrary, the Fee Letter dated as of October 6, 2010, among the Administrative
Agent and the Borrower shall survive and not be so superseded), and there are
no promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents. Except as otherwise
provided in this Agreement or any other Loan Document by specific reference to
the applicable provisions of this Agreement, if any provision contained in this
Agreement conflicts with any provision in such other Loan Document, then the
provisions contained in this Agreement shall govern and control.

 

10.11       GOVERNING
LAW.  THIS AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

 

10.12       Submission To Jurisdiction; Waivers.  The Borrower hereby irrevocably and
unconditionally:

 

(a)     submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State
of New York, the courts of the United States for the Southern District of New York,
and appellate courts from any thereof;

 

(b)     consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or
claim the same;

 

(c)     agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to the Borrower at
its address set forth in Section 10.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

 

85

 

 

(d)     agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction; and

 

(e)     waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred to
in this Section any special, exemplary, punitive or consequential damages.

 

10.13       Acknowledgements. 
The Borrower hereby acknowledges that:

 

(a)     it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;

 

(b)     neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to the Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between Administrative Agent and Lenders, on one hand, and the
Borrower, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

 

(c)     no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Lenders or among the Borrower and the Lenders.

 

10.14       Releases of Guarantees and Liens.  (a) Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Administrative Agent is
hereby irrevocably authorized by each Lender (without requirement of notice to
or consent of any Lender except as expressly required by Section 10.1) to take
any action requested by the Borrower having the effect of releasing any
Collateral or guarantee obligations (i) to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document or that has
been consented to in accordance with Section 10.1 or (ii) under the
circumstances described in paragraph (b) below.

 

(b)     At such time as the Loans, the Reimbursement Obligations and the
other obligations under the Loan Documents (other than obligations under or in
respect of Specified Swap Agreements or Specified Cash Management Agreements)
shall have been paid in full, the Commitments have been terminated and no
Letters of Credit shall be outstanding (unless the outstanding amount of the
L/C Obligations related thereto has been cash collateralized), the Collateral
shall be released from the Liens created by the Security Documents, and the
Security Documents and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Loan Party under
the Security Documents shall terminate, all without delivery of any instrument
or performance of any act by any Person.

 

10.15       Confidentiality. 
Each of the Administrative Agent and each Lender agrees to keep
confidential all non-public information provided to it by any Loan Party, the
Administrative Agent or any Lender pursuant to or in connection with this
Agreement that is designated by the provider thereof as confidential; provided
that nothing herein shall prevent the Administrative Agent or any Lender from
disclosing any such information (a) to the Administrative Agent, any other
Lender or any affiliate thereof, (b) subject to an agreement to comply with the
provisions of this Section, to any actual or prospective Transferee or any
direct or indirect counterparty to any Swap Agreement (or any professional
advisor to such counterparty), (c) to its employees, directors, agents,
attorneys, accountants and other professional advisors or those of any of its
affiliates (it being understood that the persons to whom such disclosure is
made will be informed of the confidential nature of such information and
instructed to keep such information confidential pursuant to the terms hereof),
(d) upon the request or demand of any Governmental Authority, (e) in response
to any order of any court or other Governmental Authority or as

 

86

 

may otherwise be required pursuant to any
Requirement of Law, (f) if requested or required to do so in connection with
any litigation or similar proceeding, (g) that has been publicly disclosed, (h)
to the National Association of Insurance Commissioners, insurers, reinsurers or
any similar organization or any nationally recognized rating agency that
requires access to information about a Lender’s investment portfolio in
connection with ratings issued with respect to such Lender, or (i) in
connection with the exercise of any remedy hereunder or under any other Loan
Document, or (j) if agreed by the Borrower in their sole discretion, to any
other Person.

 

Each
Lender acknowledges that information furnished to it pursuant to this Agreement
or the other Loan Documents may include material non-public information
concerning the Borrower and its Affiliates and their related parties or their
respective securities, and confirms that it has developed compliance procedures
regarding the use of material non-public information and that it will handle
such material non-public information in accordance with those procedures and
applicable law, including Federal and state securities laws.

 

All
information, including requests for waivers and amendments, furnished by the
Borrower or the Administrative Agent pursuant to, or in the course of
administering, this Agreement or the other Loan Documents will be
syndicate-level information, which may contain material non-public information
about the Borrower and its Affiliates and their related parties or their
respective securities.  Accordingly, each
Lender represents to the Borrower and the Administrative Agent that it has
identified in its administrative questionnaire a credit contact who may receive
information that may contain material non-public information in accordance with
its compliance procedures and applicable law, including Federal and state
securities laws.

 

10.16       WAIVERS
OF JURY TRIAL.  THE BORROWER,
THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

10.17       USA Patriot Act. 
Each Lender hereby notifies each Loan Party that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Patriot Act”), it is required to obtain,
verify and record information that identifies any Loan Party, which information
includes the name and address of each Loan Party and other information that
will allow such Lender to identify the Loan Parties in accordance with the
Patriot Act.

 

10.18       Judgment Currency.  If for the purpose of obtaining judgment in
any court it is necessary to convert a sum due hereunder in one currency into
another currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent could
purchase the first currency with such other currency in the city in which it
normally conducts its foreign exchange operation for the first currency on the
Business Day preceding the day on which final judgment is given.

 

The
obligation of the Borrower in respect of any sum due from it to any Lender
hereunder shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance
with the applicable provisions of this Agreement (the “Agreement Currency”),
be discharged only to the extent that on the Business Day following receipt by
such Lender of any sum adjudged to be so due in the Judgment Currency such Lender
may in accordance with normal banking procedures purchase the Agreement
Currency with the Judgment Currency; if the amount of Agreement Currency so
purchased is less than the sum originally due to such Lender in the Agreement
Currency, the Borrower agrees notwithstanding any such judgment to indemnify
such Lender

 

87

 

against
such loss, and if the amount of the Agreement Currency so purchased exceeds the
sum originally due to any Lender, such Lender agrees to remit to the Borrower
such excess.

 

88

 

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

 

 

	
   

  	
  THOMPSON
  CREEK METALS COMPANY INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name:
   Pamela Saxton

  
	
   

  	
   

  	
  Title:  Chief Financial Officer

  

 

89

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A., 

  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brian Knapp

  
	
   

  	
   

  	
  Name:  Brian Knapp

  
	
   

  	
   

  	
  Title:  Vice President

  

 

 

	
   

  	
  J.P.
  MORGAN SECURITIES LLC, 

  as a Joint Lead Arranger and as a Joint Bookrunner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David A. Dwyer

  
	
   

  	
   

  	
  Name:  David A. Dwyer

  
	
   

  	
   

  	
  Title:  Executive Director

  

 

2

 

	
   

  	
  ROYAL BANK OF CANADA

  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stam Fountoulakis

  
	
   

  	
   

  	
  Name:  Stam Fountoulakis

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  

 

3

 

	
   

  	
  COMPASS BANK, an Alabama Banking Corporation

  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark Sunderland

  
	
   

  	
   

  	
  Name:  Mark Sunderland

  
	
   

  	
   

  	
  Title:  Senior Vice President

  

 

4

 

	
   

  	
  DEUTSCHE BANK AG CANADA BRANCH

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Rod O’Hara

  
	
   

  	
   

  	
  Name:  Rod O’Hara

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcellus Leung

  
	
   

  	
   

  	
  Name:  Marcellus Leung

  
	
   

  	
   

  	
  Title:  Assistant Vice President

  

 

5

 

	
   

  	
  STANDARD BANK PLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert Anastasio

  
	
   

  	
   

  	
  Name:  Robert Anastasio

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ AF Stark

  
	
   

  	
   

  	
  Name:  AF Stark

  
	
   

  	
   

  	
  Title:  Director: 
  Structured Commodity Solutions

  

 

6

 

	
   

  	
  SOCIÉTÉ GÉNÉRALE (CANADA BRANCH)

  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Chris Henstock

  
	
   

  	
   

  	
  Name:  Chris Henstock

  
	
   

  	
   

  	
  Title:  Managing Director

             Mining & Commodities Finance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Forster

  
	
   

  	
   

  	
  Name:  Paul Forster

  
	
   

  	
   

  	
  Title:  Director

  

 

7

 

	
   

  	
  UBS Loan Finance LLC

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Irja R. Otsa

  
	
   

  	
   

  	
  Name:  Irja R. Otsa

  
	
   

  	
   

  	
  Title:  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary E. Evans

  
	
   

  	
   

  	
  Name:  Mary E. Evans

  
	
   

  	
   

  	
  Title:  Associate Director

  

 

8Exhibit 10.2

 

EXECUTION VERSION

	
   

  

 

 

GUARANTEE AND COLLATERAL AGREEMENT

 

 

made by

 

 

THOMPSON CREEK METALS COMPANY INC.

 

 

and certain of its Subsidiaries

 

 

in favor of

 

 

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 

 

Dated as of December 10, 2010

 

	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINED TERMS

  	
  3

  
	
  1.1

  	
  Definitions

  	
  3

  
	
  1.2

  	
  Other Definitional Provisions

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GUARANTEE

  	
  7

  
	
  2.1

  	
  Guarantee

  	
  7

  
	
  2.2

  	
  Right of Contribution

  	
  8

  
	
  2.3

  	
  No Subrogation

  	
  8

  
	
  2.4

  	
  Amendments, etc. with respect to the Borrower
  Obligations

  	
  8

  
	
  2.5

  	
  Guarantee Absolute and Unconditional

  	
  9

  
	
  2.6

  	
  Reinstatement

  	
  9

  
	
  2.7

  	
  Payments

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  GRANT OF SECURITY INTEREST

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  11

  
	
  4.1

  	
  Title; No Other Liens

  	
  11

  
	
  4.2

  	
  Perfection Certificate

  	
  11

  
	
  4.3

  	
  Perfected First Priority Liens

  	
  11

  
	
  4.4

  	
  Jurisdiction of Organization; Chief Executive Office

  	
  12

  
	
  4.5

  	
  Inventory and Equipment

  	
  12

  
	
  4.6

  	
  Investment Property

  	
  12

  
	
  4.7

  	
  Receivables

  	
  12

  
	
  4.8

  	
  Contracts

  	
  12

  
	
  4.9

  	
  Intellectual Property

  	
  13

  
	
  4.10

  	
  Vehicles

  	
  13

  
	
  4.11

  	
  Commercial Tort Claims

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  COVENANTS

  	
  14

  
	
  5.1

  	
  Delivery of Instruments, Certificated Securities and
  Chattel Paper

  	
  14

  
	
  5.2

  	
  Maintenance of Insurance

  	
  14

  
	
  5.3

  	
  INTENTIONALLY OMITTED

  	
  14

  
	
  5.4

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
  14

  
	
  5.5

  	
  Changes in Name, etc.

  	
  15

  
	
  5.6

  	
  Notices

  	
  15

  
	
  5.7

  	
  Investment Property

  	
  15

  
	
  5.8

  	
  Receivables

  	
  16

  
	
  5.9

  	
  Contracts

  	
  16

  
	
  5.10

  	
  Intellectual Property

  	
  17

  
	
  5.11

  	
  Commercial Tort Claims

  	
  18

  
	
  5.12

  	
  Vehicles

  	
  18

  
	
  5.13

  	
  Intercompany Notes

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REMEDIAL PROVISIONS

  	
  18

  
	
  6.1

  	
  Certain Matters Relating to Receivables

  	
  18

  
	
  6.2

  	
  Communications with Obligors; Grantors Remain Liable

  	
  19

  
	
  6.3

  	
  Pledged Stock

  	
  19

  

 

 

	
  6.4

  	
  Proceeds to be Turned Over To Administrative Agent

  	
  20

  
	
  6.5

  	
  Application of Proceeds

  	
  20

  
	
  6.6

  	
  Code and Other Remedies

  	
  21

  
	
  6.7

  	
  Registration Rights

  	
  22

  
	
  6.8

  	
  Subordination

  	
  22

  
	
  6.9

  	
  Deficiency

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  THE ADMINISTRATIVE AGENT

  	
  23

  
	
  7.1

  	
  Administrative Agent’s Appointment as Attorney-in-Fact, etc.

  	
  23

  
	
  7.2

  	
  Duty of Administrative Agent

  	
  24

  
	
  7.3

  	
  Execution of Financing Statements

  	
  24

  
	
  7.4

  	
  Authority of Administrative Agent

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  MISCELLANEOUS

  	
  25

  
	
  8.1

  	
  Amendments in Writing

  	
  25

  
	
  8.2

  	
  Notices

  	
  25

  
	
  8.3

  	
  No Waiver by Course of Conduct; Cumulative Remedies

  	
  25

  
	
  8.4

  	
  Enforcement Expenses; Indemnification

  	
  25

  
	
  8.5

  	
  Successors and Assigns

  	
  26

  
	
  8.6

  	
  Set-Off

  	
  26

  
	
  8.7

  	
  Counterparts

  	
  26

  
	
  8.8

  	
  Severability

  	
  26

  
	
  8.9

  	
  Section Headings

  	
  26

  
	
  8.10

  	
  Integration

  	
  26

  
	
  8.11

  	
  GOVERNING LAW

  	
  26

  
	
  8.12

  	
  Submission To Jurisdiction; Waivers

  	
  26

  
	
  8.13

  	
  Acknowledgements

  	
  27

  
	
  8.14

  	
  Additional Grantors

  	
  27

  
	
  8.15

  	
  Releases

  	
  27

  
	
  8.16

  	
  WAIVER OF JURY TRIAL

  	
  28

  

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  Form of
  Perfection Certificate

  	
   

  
	
  Exhibit II

  	
  Form of
  Copyright Security Agreement

  	
   

  
	
  Exhibit III

  	
  Form of
  Patent Security Agreement

  	
   

  
	
  Exhibit IV

  	
  Form of
  Trademark Security Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  Notice
  Addresses

  	
   

  
	
  Schedule 2

  	
  Investment
  Property

  	
   

  
	
  Schedule 3

  	
  Perfection
  Matters

  	
   

  
	
  Schedule 4

  	
  Jurisdictions
  of Organization and Chief Executive Offices

  	
   

  
	
  Schedule 5

  	
  Inventory
  and Equipment Locations

  	
   

  
	
  Schedule 6

  	
  Intellectual
  Property

  	
   

  
	
  Schedule 7

  	
  Material
  Contracts

  	
   

  
	
  Schedule 8

  	
  Material
  Vehicles

  	
   

  

 

2

 

GUARANTEE AND COLLATERAL AGREEMENT

 

GUARANTEE
AND COLLATERAL AGREEMENT, dated as of December 10, 2010, made by each of
the signatories hereto (other than the Borrower (as defined below), and
together with any other entity that may become a party hereto as provided
herein, the “Grantors”), in favor of JPMorgan Chase Bank, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”) for
the banks and other financial institutions or entities (the “Lenders”)
from time to time parties to the Credit Agreement, dated as of December 10,
2010 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Thompson Creek Metals Company Inc. (the “Borrower”),
the Lenders and the Administrative Agent.

 

W  I  T  N  E  S  S
E  T  H:

 

WHEREAS,
pursuant to the Credit Agreement, the Lenders have severally agreed to make
Extensions of Credit to the Borrower upon the terms and subject to the
conditions set forth therein;

 

WHEREAS,
the Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS,
the proceeds of the Extensions of Credit under the Credit Agreement will be
used in part to enable the Borrower to make valuable transfers to one or more
of the other Grantors in connection with the operation of their respective
businesses;

 

WHEREAS,
the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of
the Extensions of Credit under the Credit Agreement; and

 

WHEREAS,
it is a condition precedent to the obligation of the Lenders to make their
respective Extensions of Credit to the Borrower under the Credit Agreement that
the Grantors shall have executed and delivered this Agreement to the
Administrative Agent for the ratable benefit of the Secured Parties;

 

NOW,
THEREFORE, in consideration of the premises and to induce the Administrative
Agent and the Lenders to enter into the Credit Agreement and to induce the
Lenders to make their respective Extensions of Credit to the Borrower
thereunder, each Grantor hereby agrees with the Administrative Agent, for the
ratable benefit of the Secured Parties, as follows:

 

SECTION 1.           DEFINED TERMS

 

1.1           Definitions.  (a)   Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement, and the following terms are
used herein as defined in the New York UCC: 
Accounts, As-extracted Collateral, Certificated Security, Chattel Paper,
Commercial Tort Claims, Documents, Equipment, Fixtures, General Intangibles, Instruments, Inventory,
Letter-of-Credit Rights and Supporting Obligations.

 

(b)           The following terms shall have the following meanings:

 

“Agreement”:  this Guarantee and Collateral Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

 

3

 

“Borrower
Obligations”:  the collective
reference to the unpaid principal of and interest on the Loans and
Reimbursement Obligations and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the
Loans and Reimbursement Obligations and interest accruing at the then
applicable rate provided in the Credit Agreement after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to the
Administrative Agent or any Lender or, in the case of any Specified Swap
Agreement or Specified Cash Management Agreement, any (i) Affiliate of any
Lender or (ii) Person who was a Lender at the time such Person entered
into such Specified Swap Agreement or Specified Cash Management Agreement (but
only with respect to obligations and liabilities arising under any Specified
Swap Agreement or any Specified Cash Management Agreement that is in effect as
of the date on which such Person ceased to be a Lender), whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the
Credit Agreement, this Agreement, the other Loan Documents, any Letter of
Credit, any Specified Swap Agreement, any Specified Cash Management Agreement or
any other document made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all reasonable fees and disbursements of
counsel to the Administrative Agent or to the Lenders that are required to be
paid by the Borrower pursuant to the terms of any of the foregoing agreements).

 

“Collateral”:  as defined in Section 3.

 

“Collateral
Account”:  any collateral account
established by the Administrative Agent as provided in Section 6.1 or 6.4.

 

“Contracts”:  with respect to any Grantor, any contracts or
other written agreements of such Grantor, as the same may be amended,
supplemented or otherwise modified from time to time, including, without
limitation, (i) all rights of any Grantor to receive moneys due and to
become due to it thereunder or in connection therewith, (ii) all rights of
any Grantor to damages arising thereunder and (iii) all rights of any
Grantor to perform and to exercise all remedies thereunder.

 

“Control
Agreement” means a securities account control agreement or commodity
account control agreement, as applicable, in form and substance reasonably
satisfactory to the Administrative Agent.

 

“Copyrights”:  (i) all copyrights arising under the
laws of the United States, any other country or any political subdivision
thereof, whether registered or unregistered and whether published or
unpublished (including, without limitation, those listed in Schedule 6), all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to
obtain all renewals thereof.

 

“Copyright
Licenses”:  any written agreement
naming any Grantor as licensor or licensee (including, without limitation,
those listed in Schedule 6), granting any right under any Copyright, including,
without limitation, the grant of rights to manufacture, distribute, exploit and
sell materials derived from any Copyright.

 

“Deposit
Account”:  as defined in the Uniform
Commercial Code of any applicable jurisdiction and, in any event, including,
without limitation, any demand, time, savings, passbook or like account
maintained with a depositary institution.

 

4

 

“Guarantor
Obligations”:  with respect to any
Guarantor, all obligations and liabilities of such Guarantor to the
Administrative Agent or any Lender (or, in the case of any Specified Swap
Agreement or Specified Cash Management Agreement, any (i) Affiliate of any
Lender or (ii) Person who was a Lender at the time such Person entered
into such Specified Swap Agreement or Specified Cash Management Agreement but
only with respect to obligations and liabilities arising under any Specified
Swap Agreement or any Specified Cash Management Agreement that is in effect as
of the date on which such Person ceased to be a Lender) which may arise under
or in connection with this Agreement (including, without limitation, Section 2)
or any other Loan Document, any Specified Swap Agreement or any Specified Cash
Management Agreement to which such Guarantor is a party, in each case whether
on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
reasonable fees and disbursements of counsel to the Administrative Agent or to
the Lenders that are required to be paid by such Guarantor pursuant to the
terms of this Agreement or any other Loan Document).

 

“Guarantors”:  the collective reference to (i) each
Grantor (other than the Borrower) and (ii) the Borrower (only with respect
to all obligations and liabilities of the other Loan Parties which may arise
under or in connection with any Specified Swap Agreement or any Specified Cash
Management Agreement, in each case, to the extent constituting Obligations).

 

“Intellectual
Property”:  the collective reference
to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or
otherwise, including, without limitation, the Copyrights, the Copyright
Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark
Licenses, and all rights to sue at law or in equity for any infringement or
other impairment thereof, including the right to receive all proceeds and
damages therefrom.

 

“Intercompany
Note”:  any promissory note
evidencing loans made by any Grantor to the Borrower or any of its
Subsidiaries.

 

“Investment
Property”:  the collective reference
to (i) all “investment property” as such term is defined in Section 9-102(a)(49)
of the New York UCC and (ii) whether or not constituting “investment
property” as so defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”:  the collective reference to each issuer of
any Investment Property.

 

“Material
Contracts”: with respect to any Grantor, any contract or other written
agreement listed in Schedule 7.

 

“Material
Vehicles”: each Vehicle with an individual book value in excess of
$100,000.

 

“New
York UCC”:  the Uniform Commercial
Code as from time to time in effect in the State of New York.

 

“Obligations”:  (i) in the case of the Borrower, the Borrower
Obligations, and (ii) in the case of each Guarantor, its Guarantor
Obligations.

 

“Patents”:  (i) all letters patent of the United
States, any other country or any political subdivision thereof, all reissues
and extensions thereof and all goodwill associated therewith, including,
without limitation, any of the foregoing referred to in Schedule 6, (ii) all
applications for letters patent of the United States or any other country and
all divisions, continuations and continuations-in-part thereof, 

 

5

 

including,
without limitation, any of the foregoing referred to in Schedule 6, and (iii) all
rights to obtain any reissues or extensions of the foregoing.

 

“Patent
License”:  all rights under any
written agreements providing for the grant by or to any Grantor of any right to
manufacture, use or sell any invention covered in whole or in part by a Patent,
including, without limitation, any of the foregoing referred to in Schedule
6.

 

“Perfection
Certificate”: a certificate substantially in the form of Exhibit I
hereto, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by a Responsible Officer of the
Borrower.

 

“Pledged
Notes”:  all promissory notes listed
on Schedule 2 and all other promissory notes issued to or held by any
Grantor (other than promissory notes having an original principal balance of
less than $1,000,000, promissory notes issued in connection with extensions of
trade credit by any Grantor in the ordinary course of business and Intercompany
Notes).

 

“Pledged
Stock”:  the shares of Capital Stock
listed on Schedule 2, together with any other shares, stock
certificates, options, interests or rights of any nature whatsoever in respect
of the Capital Stock of any Person that may be issued or granted to, or held
by, any Grantor while this Agreement is in effect.

 

“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64)
of the New York UCC and, in any event, shall include, without limitation, all
dividends or other income from the Investment Property, collections thereon or
distributions or payments with respect thereto.

 

“Receivable”:  any right to payment for goods sold or leased
or for services rendered, whether or not such right is evidenced by an
Instrument or Chattel Paper and whether or not it has been earned by
performance (including, without limitation, any Account).

 

“Secured
Parties”:  the collective reference
to the Administrative Agent, the Lenders and any affiliate of any Lender to
which Borrower Obligations or Guarantor Obligations, as applicable, are owed.

 

“Securities
Act”:  the Securities Act of 1933, as
amended.

 

“Trademarks”:  (i) all trademarks, trade names,
corporate names, company names, business names, fictitious business names,
trade styles, service marks, logos and other source or business identifiers,
and all goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office
or in any similar office or agency of the United States, any State thereof or
any other country or any political subdivision thereof, or otherwise, and all
common-law rights related thereto, including, without limitation, any of the
foregoing referred to in Schedule 6, and (ii) the right to obtain
all renewals thereof.

 

“Trademark
License”:  any rights under any
written agreement providing for the grant by or to any Grantor of any right to
use any Trademark, including, without limitation, any of the foregoing referred
to in Schedule 6.

 

“Vehicles”:  all cars, trucks, trailers, construction and
earth moving equipment and other vehicles covered by a certificate of title of
any state and, in any event including, without limitation, the Material
Vehicles listed on Schedule 8 and all tires and other appurtenances to
any of the foregoing.

 

6

 

1.2           Other Definitional Provisions.  (a)  The words “hereof,” “herein”, “hereto”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and Schedule references are to this Agreement
unless otherwise specified.

 

(b)           The meanings given to terms defined herein shall be equally applicable to
both the singular and plural forms of such terms.

 

(c)           Where the context
requires, terms relating to the Collateral or any part thereof, when used in
relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant
part thereof.

 

SECTION 2.           GUARANTEE

 

2.1           Guarantee.  (a)  Each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably, guarantees to the
Administrative Agent, for the ratable benefit of the Secured Parties and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the
stated maturity, by acceleration or otherwise) of the Borrower Obligations.

 

(b)           Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under
the other Loan Documents shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating
to the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

 

(c)           Each Guarantor agrees that the Borrower Obligations (other than such
obligations under Sections 2.17, 2.18, 2.19 and 10.5 of the Credit Agreement
that are not then due and payable and demanded) may at any time and from time
to time exceed the amount of the liability of such Guarantor hereunder without
impairing the guarantee contained in this Section 2 or affecting the
rights and remedies of the Administrative Agent or any Lender hereunder.

 

(d)           The guarantee contained in this Section 2 shall remain in full force
and effect until all the Borrower Obligations and the obligations of each Guarantor
under the guarantee contained in this Section 2 shall have been satisfied
by payment in full, no Letter of Credit shall be outstanding (unless the
outstanding amount of the L/C Obligations related thereto has been cash
collateralized in an amount and manner satisfactory to the relevant Issuing
Lender) and the Commitments shall be terminated, notwithstanding that from time
to time during the term of the Credit Agreement the Borrower may be free from
any Borrower Obligations.

 

(e)           No payment made by the Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by the Administrative
Agent or any Lender from the Borrower, any of the Guarantors, any other
guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment
received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid
in full (other than such obligations under Sections 2.17, 2.18, 2.19 and 10.5
of the Credit Agreement that are not then due and payable and demanded), no
Letter of Credit shall be outstanding (unless the outstanding amount of 

 

7

 

the L/C Obligations
related thereto has been cash collateralized in an amount and manner
satisfactory to the relevant Issuing Lender) and the Commitments are
terminated.

 

2.2           Right of Contribution.  Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of
any payment made hereunder, such Guarantor shall be entitled to seek and
receive contribution from and against any other Guarantor hereunder which has
not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall
be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall
in no respect limit the obligations and liabilities of any Guarantor to the
Administrative Agent and the Lenders, and each Guarantor shall remain liable to
the Administrative Agent and the Lenders for the full amount guaranteed by such
Guarantor hereunder.

 

2.3           No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Administrative Agent or any Lender, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any Lender
against the Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Administrative Agent or any Lender for
the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Administrative Agent and the Lenders by the Borrower
on account of the Borrower Obligations are paid in full (other than such
obligations under Sections 2.17, 2.18, 2.19 and 10.5 of the Credit Agreement
that are not then due and payable and demanded), no Letter of Credit shall be
outstanding (unless the outstanding amount of the L/C Obligations related
thereto has been cash collateralized in an amount and manner satisfactory to
the relevant Issuing Lender) and the Commitments are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full (other than such obligations under
Sections 2.17, 2.18, 2.19 and 10.5 of the Credit Agreement that are not then
due and payable and demanded), such amount shall be held by such Guarantor in
trust for the Administrative Agent and the Lenders, segregated from other funds
of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the Administrative Agent in the form received by such Guarantor
(duly indorsed by such Guarantor to the Administrative Agent, if required), to
be applied against the Borrower Obligations, whether matured or unmatured, in
such order as the Administrative Agent may determine.

 

2.4           Amendments, etc. with respect to the
Borrower Obligations.  Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Administrative Agent or any Lender may be rescinded by
the Administrative Agent or such Lender and any of the Borrower Obligations
continued, and the Borrower Obligations, or the liability of any other Person
upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Administrative Agent or any Lender, and
the Credit Agreement and the other Loan Documents and any other documents
executed and delivered in connection therewith may be amended, modified,
supplemented or terminated, in whole or in part, in accordance with their
respective terms, and any collateral security, guarantee or right of offset at
any time held by the Administrative Agent or any Lender for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any Lien
at any time held by it as security for the Borrower Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

 

8

 

2.5           Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Borrower Obligations
and notice of or proof of reliance by the Administrative Agent or any Lender
upon the guarantee contained in this Section 2 or acceptance of the
guarantee contained in this Section 2; the Borrower Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee contained in this Section 2; and all dealings between the
Borrower and any of the Guarantors, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2.  To the
extent permitted by applicable law, Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or any of the Guarantors with respect to the Borrower
Obligations.  Each Guarantor understands
and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (a) the validity or enforceability of the Credit Agreement or
any other Loan Document, any of the Borrower Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or
any Lender, (b) any defense, set-off or counterclaim (other than a defense
of payment or performance) which may at any time be available to or be asserted
by the Borrower or any other Person against the Administrative Agent or any
Lender, or (c) any other circumstance whatsoever (with or without notice to or
knowledge of the Borrower or such Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Borrower for
the Borrower Obligations, or of such Guarantor under the guarantee contained in
this Section 2, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise
pursuing its rights and remedies hereunder against any Guarantor, the
Administrative Agent or any Lender may, but shall be under no obligation to,
make a similar demand on or otherwise pursue such rights and remedies as it may
have against the Borrower, any other Guarantor or any other Person or against
any collateral security or guarantee for the Borrower Obligations or any right
of offset with respect thereto, and any failure by the Administrative Agent or
any Lender to make any such demand, to pursue such other rights or remedies or
to collect any payments from the Borrower, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to
exercise any such right of offset, or any release of the Borrower, any other
Guarantor or any other Person or any such collateral security, guarantee or
right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Administrative Agent
or any Lender against any Guarantor.  For
the purposes hereof “demand” shall include the commencement and continuance of
any legal proceedings.

 

2.6           Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

 

2.7           Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the Funding Office.

 

SECTION 3.           GRANT OF SECURITY INTEREST

 

Each
Grantor hereby assigns and transfers to the Administrative Agent, and hereby
grants to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in, all of the following property now owned or at
any time hereafter acquired by such Grantor or in which such

 

9

 

 

Grantor
now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)           all Accounts;

 

(b)           all Chattel Paper;

 

(c)           all Contracts;

 

(d)           all Deposit Accounts;

 

(e)           all Documents (other than title documents with respect to Vehicles);

 

(f)            all Equipment;

 

(g)           all Fixtures;

 

(h)           all General Intangibles;

 

(i)            all Instruments;

 

(j)            all Intellectual Property;

 

(k)           all Inventory;

 

(l)            all Investment Property;

 

(m)          all Letter-of-Credit Rights;

 

(n)           all  As-Extracted Collateral;

 

(o)           upon the making of a request by the Administrative Agent pursuant to Section 5.12
hereof, all Vehicles and title documents with respect to Vehicles;

 

(p)           all Commercial Tort Claims with a potential value in excess of
$1,000,000;

 

(q)           all other property not otherwise described above (except for any property
specifically excluded from any clause in this section above, and any property
specifically excluded from any defined term used in any clause of this section
above);

 

(r)            all books and records pertaining to the Collateral; and

 

(s)            to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing;

 

provided,
however, that notwithstanding any of the other provisions set forth in this Section 3,
this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest (i) is
prohibited by any Requirements of Law of a Governmental Authority, (ii) requires
a consent not obtained of any Governmental Authority pursuant to such
Requirement of Law, (iii) is prohibited by, or constitutes a breach or
default under or results in the termination of or requires any 

 

10

 

consent
not obtained under, any contract, license, agreement, instrument or other
document evidencing or giving rise to such property or, in the case of any
Investment Property, Pledged Stock or Pledged Note, any applicable shareholder
or similar agreement, except to the extent that the term in such contract,
license, agreement, instrument, or other document or shareholder or similar
agreement providing for such prohibition, breach, default or termination or
requiring such consent is ineffective under applicable law, (iv) relates
to Equipment owned by any Grantor that is subject to a purchase money Lien or a
capital lease which is permitted by the Credit Agreement if the contract or
other agreement in which such Lien is granted (or in the documentation
providing for such capital lease) prohibits or requires the consent of any
Person as a condition to the creation of any other Lien on such Equipment, or (v) is
in proceeds and products of any and all of the assets described in clauses (i) through
(iv) above only to the extent that such proceeds and products would
constitute property or assets of the type described in clauses (i) through
(iv).

 

SECTION 4.         REPRESENTATIONS
AND WARRANTIES

 

To
induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective Extensions of
Credit to the Borrower thereunder, each Grantor hereby represents and warrants
to the Administrative Agent and each Lender that:

 

4.1          Title; No Other Liens.  Except for the security interest granted to
the Administrative Agent for the ratable benefit of the Secured Parties
pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Credit Agreement, such Grantor owns each item of the
Collateral free and clear of any and all Liens or claims of others.  No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in
any public office, except such as have been filed in favor of the Administrative
Agent, for the ratable benefit of the Secured Parties, pursuant to this
Agreement or as are permitted by the Credit Agreement.  For the avoidance of doubt, it is understood
and agreed that any Grantor may, as part of its business, grant licenses to
third parties to use Intellectual Property owned or developed by a
Grantor.  For purposes of this Agreement
and the other Loan Documents, such licensing activity shall not constitute a “Lien”
on such Intellectual Property.  Each of
the Administrative Agent and each Lender understands that any such licenses may
be exclusive to the applicable licensees, and such exclusivity provisions may
limit the ability of the Administrative Agent to utilize, sell, lease or
transfer the related Intellectual Property or otherwise realize value from such
Intellectual Property pursuant hereto.

 

4.2          Perfection Certificate.  The Perfection Certificate has been duly
prepared, completed and executed and the information set forth therein,
including the exact legal name of each Grantor, is correct and complete as of
the Closing Date.

 

4.3          Perfected First Priority Liens.  The security interests granted pursuant to
this Agreement (a) constitute valid
perfected security interests in all of the Collateral in favor of the
Administrative Agent, for the ratable benefit of the Secured Parties, as
collateral security for such Grantor’s Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons
purporting to purchase any Collateral from such Grantor subject, for the
following Collateral, to the occurrence of the following:  (i) in the case of all Collateral in
which a security interest may be perfected by filing a financing statement
under the Uniform Commercial Code, the completion of the filings and other
actions specified on Schedule 3, (ii) with respect to any deposit
account, completion of actions necessary to enable the Administrative Agent to
obtain “control” (within the meaning of the applicable Uniform Commercial Code)
with respect thereto, (iii) in the case of all Copyrights, Trademarks and
Patents for which Uniform Commercial Code 
filings are insufficient, all appropriate filings having been made with
the United States Copyright Office or the United States Patent and Trademark
Office, as applicable, (iv) in the case of letter-of-credit rights that
are not supporting obligations of Collateral, the execution of a contractual
obligation granting control to Administrative Agent over such letter-of-credit 

 

11

 

rights, (v) in the case of electronic chattel
paper, the completion of all steps necessary to grant control to Administrative
Agent over such electronic chattel paper and (vi) in the case of Vehicles,
the actions required under Section 5.12(b) and are prior to all other
Liens on the Collateral in existence on the date hereof except for Permitted
Priority Liens.

 

4.4          Jurisdiction of Organization; Chief Executive
Office.  On the date hereof, such
Grantor’s jurisdiction of organization, identification number from the
jurisdiction of organization (if any), and the location of such Grantor’s chief
executive office or sole place of business or principal residence, as the case
may be, are specified on Schedule 4. 
Such Grantor has furnished to the Administrative Agent a certified
charter, certificate of incorporation or other organization document and
long-form good standing certificate as of a date which is recent to the date
hereof.

 

4.5          Inventory and Equipment.  On the date hereof, the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on
Schedule 5.

 

4.6          Investment Property.  (a)  shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor.

 

(b)           All the shares of the Pledged Stock have been duly and validly issued and
are fully paid and nonassessable.

 

(c)           To the knowledge of each Grantor, each of the Pledged Notes constitutes
the legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

 

(d)           Such Grantor is the record and beneficial owner of the Investment
Property pledged by it hereunder, free of any and all Liens or options in favor
of, or claims of, any other Person, except the security interest created by
this Agreement and any Liens permitted under Section 7.3 of the Credit
Agreement.

 

4.7          Receivables.  (a)  No amount payable to such Grantor
under or in connection with any Receivable is evidenced by any Instrument or
Chattel Paper in excess of $1,000,000 which has not been delivered to the
Administrative Agent.

 

(b)           None of the obligors on any Receivable with an invoice amount in excess
of $5,000,000 is a Governmental Authority.

 

(c)           The amounts represented by such Grantor to the Lenders from time to time
as owing to such Grantor in respect of the Receivables will at such times be
accurate in all material respects as of the date presented.

 

4.8          Contracts.  (a)  Except as provided in Schedule
7, no consent of any party (other than such Grantor) to any Material Contract
is required, or purports to be required on the date hereof, in connection with
the execution, delivery and performance of this Agreement, except as has been
obtained.

 

(b)           Each Material Contract is in full force and effect and constitutes a
valid and legally enforceable obligation of the parties thereto, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

 

12

 

(c)           No consent or authorization of, filing with or other act by or in respect
of any Governmental Authority is required in connection with the execution,
delivery, performance, validity or enforceability of any of the Material
Contracts by any party thereto other than those which have been duly obtained,
made or performed, are in full force and effect and do not subject the scope of
any such Material Contract to any material adverse limitation, either specific
or general in nature.

 

(d)           Neither such Grantor nor (to such Grantor’s knowledge) any of the other
parties to the Material Contracts is in default in the performance or
observance of any of the terms thereof in any manner that, in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

 

(e)           The right, title and interest of such Grantor in, to and under the
Material Contracts are not subject to any defenses, offsets, counterclaims or
claims that, in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

 

(f)            Such Grantor has delivered to the Administrative Agent a complete and
correct copy of each Material Contract, including all amendments, supplements
and other modifications thereto.

 

(g)           No amount payable to such Grantor under or in connection with any
Material Contract is evidenced by any Instrument or Chattel Paper which has not
been delivered to the Administrative Agent.

 

(h)           None of the parties to any Contract involving an amount in excess of $5,000,000
is a Governmental Authority.

 

4.9          Intellectual Property.  (a)  Schedule 6 lists all registered
Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)           On the date hereof, all material Intellectual Property is valid, subsisting,
unexpired and enforceable, and has not been abandoned and, to the knowledge of
such Grantor, its material Intellectual Property does not infringe the
intellectual property rights of any other Person.

 

(c)           Except as set forth in Schedule 6, on the date hereof, none of the
Intellectual Property is the subject of any licensing or franchise agreement
pursuant to which such Grantor is the licensor or franchisor.

 

(d)           No holding, decision or judgment has been rendered by any Governmental
Authority which would limit, cancel or question the validity of, or such
Grantor’s rights in, any material Intellectual Property in any respect that
could reasonably be expected to have a Material Adverse Effect.

 

(e)           No action or proceeding is pending, or, to the knowledge of such Grantor,
threatened, on the date hereof (i) seeking to limit, cancel or question
the validity of any material Intellectual Property or such Grantor’s ownership
interest therein, or (ii) which, if adversely determined, would have a
material adverse effect on the value of any material Intellectual Property.

 

4.10        Vehicles.  Schedule 8 is a complete and correct list of
all Material Vehicles owned by such Grantor on the date hereof.

 

4.11        Commercial Tort Claims.

 

(a)           On the date hereof, except to the extent listed in Section 3 above,
no Grantor has rights in any Commercial Tort Claim with potential value in
excess of $1,000,000.

 

13

 

(b)           Upon the filing of a financing statement describing in reasonable detail
any Commercial Tort Claim referred to in Section 5.11 hereof against such
Grantor in the jurisdiction specified in Schedule 3 hereto, the security
interest granted in such Commercial Tort Claim will constitute a valid
perfected security interest in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, as collateral security for such Grantor’s
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase such
Collateral from Grantor, which security interest shall be prior to all other
Liens on such Collateral except for unrecorded liens permitted by the Credit
Agreement which have priority over the Liens on such Collateral by operation of
law.

 

SECTION 5.         COVENANTS

 

Each
Grantor covenants and agrees with the Administrative Agent and the Lenders
that, from and after the date of this Agreement until the Obligations shall
have been paid in full (other than such obligations under Sections 2.17, 2.18,
2.19 and 10.5 of the Credit Agreement that are not then due and payable and
demanded), no Letter of Credit shall be outstanding (unless the outstanding
amount of the L/C Obligations related thereto has been cash collateralized in
an amount and manner satisfactory to the relevant Issuing Lender) and the
Commitments shall have terminated:

 

5.1          Delivery of Instruments, Certificated
Securities and Chattel Paper.  If any amount payable under or in connection
with any of the Collateral shall be or become evidenced by any Instrument,
Certificated Security or Chattel Paper, such Instrument, Certificated Security
or Chattel Paper shall be delivered to the Administrative Agent within 4
Business Days, duly indorsed in a manner satisfactory to the Administrative
Agent, to be held as Collateral pursuant to this Agreement.

 

5.2          Maintenance of Insurance.  (a)  Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring
the Inventory and Equipment and Vehicles against loss by fire, explosion, theft
and such other casualties  as are usually
insured against in the same general area by companies engaged in the same or a
similar business and owning similar properties, or as may otherwise be reasonably
satisfactory to the Administrative Agent and (ii) to the extent requested
by the Administrative Agent, insuring such Grantor, the Administrative Agent
and the Lenders against liability for personal injury and property damage
relating to such Inventory and Equipment and Vehicles such policies to be in
such form and amounts and having such coverage as may be usual and customary
for companies in the same general area engaged in the same or a similar
business and owning similar properties, or as may otherwise be reasonably
satisfactory to the Administrative Agent.

 

(b)           All such insurance shall (i) provide that no cancellation, material
reduction in amount or material change in coverage thereof shall be effective
until at least 30 days after receipt by the Administrative Agent of written
notice thereof, (ii) name the Administrative Agent as insured party or
loss payee and (iii) if reasonably requested by the Administrative Agent,
include a breach of warranty clause.

 

(c)           The Borrower shall deliver to the Administrative Agent a report of a
reputable insurance broker with respect to such insurance substantially
concurrently with each delivery of the Borrower’s audited annual financial
statements and such supplemental reports with respect thereto as the
Administrative Agent may from time to time reasonably request.

 

5.3          INTENTIONALLY OMITTED

 

5.4          Maintenance of Perfected Security Interest;
Further Documentation.  (a) 
Such Grantor shall maintain the security interest created by this Agreement as
a perfected security interest having at 

 

14

 

least the priority described in Section 4.3 and
shall defend such security interest against the claims and demands of all
Persons whomsoever (except as otherwise permitted under the Loan Documents).

 

(b)           Such Grantor will, if reasonably requested by the Administrative Agent,
furnish to the Administrative Agent from time to time statements and schedules
further identifying and describing the assets and property of such Grantor and
such other reports in connection therewith as the Administrative Agent may
reasonably request, all in reasonable detail.

 

(c)           At any time and from time to time, upon the written request of the
Administrative Agent, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) filing any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and (ii) in
the case of Investment Property, Deposit Accounts, Letter-of-Credit Rights and
any other relevant Collateral, taking any actions necessary to enable the
Administrative Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

 

5.5          Changes in Name, etc.  Such Grantor will not, except upon 15 days’
prior written notice to the Administrative Agent and delivery to the
Administrative Agent of all additional authorized financing statements and
other documents reasonably requested by the Administrative Agent to maintain
the validity, perfection and priority of the security interests provided for
herein, (i) change its jurisdiction of organization or the location of its
chief executive office or sole place of business or principal residence from
that referred to in Section 4.4 or (ii) change its name.

 

5.6          Notices.  Such Grantor will advise the Administrative
Agent promptly, in reasonable detail, of:

 

(a)           any Lien (other than security interests created hereby or Liens permitted
under the Credit Agreement) on any of the Collateral which would adversely
affect the ability of the Administrative Agent to exercise any of its remedies
hereunder; and

 

(b)           of the occurrence of any other event which could reasonably be expected
to have a material adverse effect on the aggregate value of the Collateral or
on the security interests created hereby.

 

5.7          Investment Property.  (a)  If such Grantor shall become
entitled to receive or shall receive any certificate (including, without
limitation, any certificate representing a dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Administrative Agent and the Lenders, hold the same in
trust for the Administrative Agent and the Lenders and deliver the same
forthwith to the Administrative Agent in the form received, duly indorsed by
such Grantor to the Administrative Agent, if required, together with an undated
stock power covering such certificate duly executed in blank by such Grantor,
to be held by the Administrative Agent, subject to the terms hereof, as
additional collateral security for the Obligations.  Any sums paid upon or in respect of the
Investment Property upon the liquidation or dissolution of any Issuer shall be
paid over to the Administrative Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of
capital shall be made on or in respect of the Investment Property or any
property shall be distributed upon or with respect to the Investment Property
pursuant to the 

 

15

 

recapitalization or reclassification of the capital
of any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Administrative Agent, be delivered to the Administrative Agent to
be held by it hereunder as additional collateral security for the
Obligations.  If any sums of money or
property so paid or distributed in respect of the Investment Property shall be
received by such Grantor, such Grantor shall, until such money or property is
paid or delivered to the Administrative Agent, hold such money or property in
trust for the Administrative Agent and the Lenders, segregated from other funds
of such Grantor, as additional collateral security for the Obligations.

 

(b)           Without the prior written consent of the Administrative Agent or except
as otherwise permitted under the Credit Agreement, such Grantor will not (i) vote
to enable, or take any other action to permit, any Issuer to issue any Capital
Stock of any nature or to issue any other securities convertible into or
granting the right to purchase or exchange for any Capital Stock of any nature
of any Issuer, (ii) except to the extent permitted by the terms of the
Credit Agreement sell, assign, transfer, exchange, or otherwise dispose of, or
grant any option with respect to, the Investment Property or Proceeds thereof
(except pursuant to a transaction expressly permitted by the Credit Agreement),
(iii) create, incur or permit to exist any Lien or option in favor of, or
any claim of any Person with respect to, any of the Investment Property or
Proceeds thereof, or any interest therein, except for the security interests
created by this Agreement or (iv) except to the extent permitted by the
terms of the Credit Agreement enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to
sell, assign or transfer any of the Investment Property or Proceeds thereof.

 

(c)           In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it
will be bound by the terms of this Agreement relating to the Investment
Property issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.7(a) with
respect to the Investment Property issued by it and (iii) the terms of
Sections 6.3(c) and 6.7 shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to Section 6.3(c) or
6.7 with respect to the Investment Property issued by it.

 

5.8          Receivables.  (a)  Other than in the ordinary course
of business or otherwise pursuant to sound business judgment, such Grantor will
not (i) grant any extension of the time of payment of any Receivable, (ii) compromise
or settle any Receivable for less than the full amount thereof, (iii) release,
wholly or partially, any Person liable for the payment of any Receivable, (iv) allow
any credit or discount whatsoever on any Receivable or (v) amend,
supplement or modify any Receivable in any manner that could adversely affect
the value thereof.

 

(b)           Such Grantor will deliver to the Administrative Agent a copy of each
material demand, notice or document received by it that questions or calls into
doubt the validity or enforceability of more than 10% of the aggregate amount
of the then outstanding Receivables.

 

5.9          Contracts.  Other than in the ordinary course of business
or otherwise pursuant to sound business judgment that is consistent with
actions of companies engaged in businesses similar
to those engaged in by the Borrower and its Subsidiaries, such Grantor:

 

(a) will
perform and comply in all material respects with all its obligations under the
Material Contracts;

 

(b)           will not amend, modify, terminate or waive any provision of any Material
Contract in any manner which could reasonably be expected to materially
adversely affect the value of such Material Contract as Collateral;

 

16

 

(c)           will exercise promptly and diligently each and every material right which
it may have under each Material Contract (other than any right of termination);
and

 

(d)           will deliver to the Administrative Agent a copy of each material demand,
notice or document received by it relating in any way to any Material Contract
that questions the validity or enforceability of such Material Contract.

 

5.10        Intellectual Property.  (a)  Such Grantor (either itself or
through licensees) will (i) continue to use each material Trademark in
order to maintain such Trademark in full force free from any claim of
abandonment for non-use, (ii) maintain the quality of products and
services offered under such Trademark at least in a manner substantially
consistent with past business practices, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required
by applicable Requirements of Law, (iv) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall
obtain a perfected security interest in such mark pursuant to this Agreement,
and (v) not (and not permit any licensee or sublicensee thereof to) do any
act or knowingly omit to do any act whereby such Trademark may become
invalidated or impaired in any way.

 

(b)           Such Grantor (either itself or through licensees) will not do any act, or
omit to do any act, whereby any material Patent may become forfeited, abandoned
or dedicated to the public.

 

(c)           Such Grantor (either itself or through licensees) (i) will employ
each material Copyright and (ii) will not (and will not permit any
licensee or sublicensee thereof to) do any act or knowingly omit to do any act
whereby any material portion of the Copyrights may become invalidated or
otherwise impaired.  Such Grantor will
not (either itself or through
licensees) do any act whereby any material portion of the Copyrights may fall
into the public domain.

 

(d)           Such Grantor (either itself or through licensees) will not do any act
that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person.

 

(e)           Such Grantor will notify the Administrative Agent immediately if it knows
that any application or registration relating to any material Intellectual
Property may become forfeited, abandoned or dedicated to the public, or of any
adverse determination or development (including, without limitation, the
institution of, or any such determination or development in, any proceeding in the
United States Patent and Trademark Office, the United States Copyright Office
or any court or tribunal in any country) regarding such Grantor’s ownership of,
or the validity of, any material Intellectual Property or such Grantor’s right
to register the same or to own and maintain the same.

 

(f)            Whenever such Grantor, either by itself or through any agent, employee,
licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the
United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within five Business Days after the last day
of the fiscal quarter in which such filing occurs.  Upon request of the Administrative Agent,
such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Administrative Agent may
reasonably request to evidence the Administrative Agent’s and the Lenders’
security interest in any Copyright, Patent or Trademark and the goodwill and
general intangibles of such Grantor relating thereto or represented thereby.

 

(g)           Such Grantor will take all reasonable (taking into account the economic
value) and necessary steps, including, without limitation, in any proceeding
before the United States Patent and 

 

17

 

Trademark Office, the
United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, to maintain and pursue each
application (and to obtain the relevant registration) and to maintain each
registration of the material Intellectual Property, including, without
limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

 

(h)           In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take
such actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the
Administrative Agent after it learns thereof and, to the extent it determines
it to be reasonable to do so, sue for infringement, misappropriation or
dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution.

 

5.11        Commercial Tort Claims.  (a)  If such Grantor shall obtain
an interest in any Commercial Tort Claim with a potential value in excess of
$1,000,000, such Grantor shall within 30 days of obtaining such interest sign
and deliver documentation reasonably acceptable to the Administrative Agent
granting a security interest under the terms and provisions of this Agreement
in and to such Commercial Tort Claim.

 

5.12        Vehicles.  (a)  No Vehicle shall be removed from
the state which has issued the certificate of title/ownership therefor for a
period in excess of four months.

 

(b)           Within 30 days after the date hereof, and, with respect to any Material
Vehicles acquired by such Grantor subsequent to the date hereof, within 30 days
after the date of acquisition thereof, all applications for certificates of
title/ownership indicating the Administrative Agent’s first priority security
interest in the Material Vehicle covered by such certificate, and any other
necessary documentation, shall be filed in each office in each jurisdiction
which the Administrative Agent shall deem advisable to perfect its security
interests in the Material Vehicles.

 

5.13        Intercompany Notes.  (a)  At any time after the occurrence
and during the continuance of a Default or Event of Default, the Borrower shall
deliver to the Administrative Agent each Intercompany Note.

 

(b)           No Grantor shall transfer, deliver or otherwise provide any Intercompany
Note to any Person other than a Grantor or the Administrative Agent.

 

SECTION 6.         REMEDIAL
PROVISIONS

 

6.1          Certain Matters Relating to Receivables.  (a)  The Administrative Agent shall have
the right, no more than one time in any 12 month period but at any time or
times as Administrative Agent deems reasonably necessary after the occurrence
and during the continuance of a Default or an Event of Default, to make test
verifications of the Receivables in any manner and through any medium that it
reasonably considers advisable, and each Grantor shall furnish all such
assistance and information as the Administrative Agent may reasonably require
in connection with such test verifications. 
No more than one time in any 12 month period but more frequently as the
Administrative Agent may reasonably required after the occurrence and during the
continuance of a Default or an Event of Default, upon the Administrative Agent’s
reasonable request and at the expense of the relevant Grantor, such Grantor
shall cause independent public accountants or others satisfactory to the
Administrative Agent to furnish to the Administrative Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Receivables.

 

18

 

(b)           The Administrative Agent hereby authorizes each Grantor to collect such
Grantor’s Receivables; provided, that the Administrative Agent may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default. 
If required by the Administrative Agent at any time after the occurrence
and during the continuance of an Event of Default, any payments of Receivables,
when collected by any Grantor, (i) shall be forthwith (and, in any event,
within three Business Days) deposited by such Grantor in the form received,
duly indorsed by such Grantor to the Administrative Agent if required, in a
Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until
so turned over, shall be held by such Grantor in trust for the Administrative
Agent and the Lenders, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature
and source of the payments included in the deposit.

 

(c)           At the Administrative Agent’s request at any time after the occurrence
and during the continuance of a Default or Event of Default, each Grantor shall
deliver to the Administrative Agent all original and other documents
evidencing, and relating to, the agreements and transactions which gave rise to
the Receivables, including, without limitation, all original orders, invoices
and shipping receipts.

 

6.2          Communications with Obligors; Grantors Remain
Liable.  (a)  The Administrative
Agent in its own name or in the name of others may at any time after the
occurrence and during the continuance of an Event of Default communicate with
obligors under the Receivables and parties to the Contracts to verify with them
to the Administrative Agent’s satisfaction the existence, amount and terms of
any Receivables or Contracts.

 

(b)           Upon the request of the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor
shall notify obligors on the Receivables and parties to the Contracts that the
Receivables and the Contracts have been assigned to the Administrative Agent
for the ratable benefit of the Secured Parties and that payments in respect
thereof shall be made directly to the Administrative Agent.

 

(c)           Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of the Receivables and Contracts to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto.  Neither the Administrative
Agent nor any Lender shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) or Contract by reason of or
arising out of this Agreement or the receipt by the Administrative Agent or any
Lender of any payment relating thereto, nor shall the Administrative Agent or
any Lender be obligated in any manner to perform any of the obligations of any
Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto) or Contract, to make any payment, to make any inquiry as to the nature
or the sufficiency of any payment received by it or as to the sufficiency of
any performance by any party thereunder, to present or file any claim, to take
any action to enforce any performance or to collect the payment of any amounts
which may have been assigned to it or to which it may be entitled at any time
or times.

 

6.3          Pledged Stock.  (a)  Unless an Event of Default shall
have occurred and be continuing and the Administrative Agent shall have given
notice to the relevant Grantor of the Administrative Agent’s intent to exercise
its corresponding rights pursuant to Section 6.3(b), each Grantor shall be
permitted to receive all cash dividends paid in respect of the Pledged Stock
and all payments made in respect of the Pledged Notes, in each case paid in the
normal course of business of the relevant Issuer and consistent with past
practice, to the extent not prohibited in the Credit Agreement, and to exercise
all voting and corporate or other organizational rights with respect to the
Investment Property; provided, however, that no vote shall be cast or corporate
or other organizational right exercised or other action

 

19

 

 

taken which would be inconsistent with or result in
any violation of any provision of the Credit Agreement, this Agreement or any
other Loan Document.

 

(b)           If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have
the right to receive any and all cash dividends, payments or other Proceeds
paid in respect of the Investment Property and make application thereof to the
Obligations in the order set forth in Section 6.5, and (ii) any or
all of the Investment Property shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its
nominee may thereafter exercise (x) all voting, corporate and other rights
pertaining to such Investment Property at any meeting of shareholders of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
or other organizational structure of any Issuer, or upon the exercise by any
Grantor or the Administrative Agent of any right, privilege or option
pertaining to such Investment Property, and in connection therewith, the right
to deposit and deliver any and all of the Investment Property with any
committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it, but
the Administrative Agent shall have no duty to any Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do
so or delay in so doing.

 

(c)           Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with
any instruction received by it from the Administrative Agent in writing that (x) states
that an Event of Default has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that each
Issuer shall be fully protected in so complying, and (ii) unless otherwise
expressly permitted hereby, pay any dividends or other payments with respect to
the Investment Property directly to the Administrative Agent.

 

6.4           Proceeds to be Turned Over To Administrative
Agent.  In addition to the rights of
the Administrative Agent and the Lenders specified in Section 6.1 with
respect to payments of Receivables, if an Event of Default shall occur and be
continuing, all Proceeds received by any Grantor consisting of cash, checks and
other near-cash items shall be held by such Grantor in trust for the
Administrative Agent and the Lenders, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Administrative Agent in the form received by such Grantor (duly indorsed by
such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative
Agent hereunder shall be held by the Administrative Agent in a Collateral
Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative
Agent in a Collateral Account (or by such Grantor in trust for the
Administrative Agent and the Lenders) shall continue to be held as collateral
security for all the Obligations and shall not constitute payment thereof until
applied as provided in Section 6.5.

 

6.5           Application of Proceeds.  At such intervals as may be agreed upon by
the Borrower and the Administrative Agent, or, if an Event of Default shall
have occurred and be continuing, at any time at the Administrative Agent’s
election, the Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the
Obligations in the following order:

 

20

 

First, to pay incurred and unpaid fees and expenses of
the Administrative Agent under the Loan Documents;

 

Second, to the Administrative Agent, for application by it
towards payment of amounts then due and owing and remaining unpaid in respect
of the Obligations, pro  rata among the Secured Parties according
to the amounts of the Obligations then due and owing and remaining unpaid to
the Secured Parties;

 

Third, to the Administrative Agent, for application by it
towards prepayment of the Obligations, pro  rata among the Secured
Parties according to the amounts of the Obligations then held by the Secured
Parties; and

 

Fourth, any balance remaining after the Obligations shall
have been paid in full (other than such obligations under Sections 2.17, 2.18,
2.19 and 10.5 of the Credit Agreement that are not then due and payable and
demanded), no Letters of Credit shall be outstanding (unless the outstanding
amount of the L/C Obligations related thereto has been cash collateralized in
an amount and manner satisfactory to the relevant Issuing Lender) and the
Commitments shall have terminated shall be paid over to the Borrower or to
whomsoever may be lawfully entitled to receive the same.

 

6.6           Code and Other Remedies.  If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Lenders, may exercise,
in addition to all other rights and remedies granted to them in this Agreement
and in any other instrument or agreement securing, evidencing or relating to
the Obligations, all rights and remedies of a secured party under the New York
UCC or any other applicable law.  Without
limiting the generality of the foregoing, the Administrative Agent, without
demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law referred to below) to or
upon any Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived to the fullest extent permitted by
a Requirement of Law), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do
any of the foregoing), in one or more parcels at public or private sale or
sales, at any exchange, broker’s board or office of the Administrative Agent or
any Lender or elsewhere upon such terms and conditions as it may deem advisable
and at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. 
The Administrative Agent or any Lender shall have the right upon any
such public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or
equity is hereby waived and released. 
Each Grantor further agrees, at the Administrative Agent’s request, to
assemble the Collateral and make it available to the Administrative Agent at
places which the Administrative Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere.  The
Administrative Agent shall apply the net proceeds of any action taken by it
pursuant to this Section 6.6, after deducting all reasonable costs and
expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Administrative Agent and the Lenders hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations, in such order as the
Administrative Agent may elect, and only after such application and after the
payment by the Administrative Agent of any other amount required by any
provision of law, including, without limitation, Section 9-615(a)(3) of
the New York UCC, need the Administrative Agent account for the surplus, if
any, to any Grantor.  To the extent
permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Administrative Agent or any Lender arising
out of the exercise by them of any rights hereunder.  If any 

 

21

 

notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed reasonable and
proper if given at least 10 days before such sale or other disposition.

 

6.7           Registration Rights.  (a)  If the Administrative Agent shall
determine to exercise its right to sell any or all of the Pledged Stock
pursuant to Section 6.6, and if in the opinion of the Administrative Agent
it is necessary or advisable to have the Pledged Stock, or that portion thereof
to be sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and
cause the directors and officers of such Issuer to execute and deliver, all
such instruments and documents, and do or cause to be done all such other acts
as may be, in the opinion of the Administrative Agent, necessary or advisable
to register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering
of the Pledged Stock, or that portion thereof to be sold, and (iii) make
all amendments thereto and/or to the related prospectus which, in the opinion
of the Administrative Agent, are necessary or advisable, all in conformity with
the requirements of the Securities Act and the rules and regulations of
the Securities and Exchange Commission applicable thereto.  Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Administrative Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) which will satisfy the provisions of Section 11(a) of
the Securities Act.

 

(b)           Each Grantor recognizes that the Administrative Agent may be unable to
effect a public sale of any or all the Pledged Stock, by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers which will be obliged to agree,
among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that any
such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner.  The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

 

Each
Grantor agrees to use its best efforts to do or cause to be done all such other
acts as may be necessary to make such sale or sales of all or any portion of
the Pledged Stock pursuant to this Section 6.7 valid and binding and in
compliance with any and all other applicable Requirements of Law.  Each Grantor further agrees that a breach of
any of the covenants contained in this Section 6.7 will cause irreparable
injury to the Administrative Agent and the Lenders, that the Administrative
Agent and the Lenders have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 6.7
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred under the Credit Agreement.

 

6.8           Subordination.  Each Grantor hereby agrees that, upon the
occurrence and during the continuance of an Event of Default, unless otherwise
agreed by the Administrative Agent, all Indebtedness owing by it to any Subsidiary
of the Borrower shall be fully subordinated to the final payment in full in
cash of such Grantor’s Obligations

 

6.9           Deficiency.  Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and the fees and 

 

22

 

disbursements of any attorneys employed by the
Administrative Agent or any Lender to collect such deficiency.

 

SECTION 7.           THE ADMINISTRATIVE AGENT

 

7.1           Administrative Agent’s Appointment as
Attorney-in-Fact, etc.  (a)  Each Grantor hereby irrevocably
constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such
Grantor and in the name of such Grantor or in its own name, for the purpose of
carrying out the terms of this Agreement, to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Administrative Agent the power and right, on behalf of such Grantor, without
notice to or assent by such Grantor, to do any or all of the following:

 

(i)            in the name of such Grantor or its own name, or otherwise, take
possession of and indorse and collect any checks, drafts, notes, acceptances or
other instruments for the payment of moneys due under any Receivable or
Contract or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Administrative Agent for the purpose of collecting any and
all such moneys due under any Receivable or Contract or with respect to any
other Collateral whenever payable;

 

(ii)           in the case of any Intellectual Property, execute and deliver, and have
recorded, any and all agreements, instruments, documents and papers as the
Administrative Agent may request to evidence the Administrative Agent’s and the
Lenders’ security interest in such Intellectual Property and the goodwill and
general intangibles of such Grantor relating thereto or represented thereby;

 

(iii)          pay or discharge taxes and Liens levied or placed on or threatened
against the Collateral, effect any repairs or any insurance called for by the
terms of this Agreement and pay all or any part of the premiums therefor and
the costs thereof;

 

(iv)          execute, in connection with any sale provided for in Section 6.6 or
6.7, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral; and

 

(v)           (1)  direct any party liable for any payment under any of the
Collateral to make payment of any and all moneys due or to become due
thereunder directly to the Administrative Agent or as the Administrative Agent
shall direct;  (2)   ask or
demand for, collect, and receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral; 
(3)   sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any
of the Collateral;  (4) commence and
prosecute any suits, actions or proceedings at law or in equity in any court of
competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral; (5) defend any suit,
action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as
the Administrative Agent may reasonably deem appropriate; (7) assign any
Copyright, Patent or Trademark (along with the goodwill of the business to
which any such Copyright, Patent or Trademark pertains), throughout the world
for such term or terms, on such conditions, and in such manner, as the
Administrative Agent shall in its sole discretion determine; and (8) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with 

 

23

 

any
of the Collateral as fully and completely as though the Administrative Agent
were the absolute owner thereof for all purposes, and do, at the Administrative
Agent’s option and such Grantor’s reasonable expense, at any time, or from time
to time, all acts and things which the Administrative Agent deems necessary to
protect, preserve or realize upon the Collateral and the Administrative Agent’s
and the Lenders’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do.

 

Anything
in this Section 7.1(a)  to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the
power of attorney provided for in this Section 7.1(a) unless an Event
of Default shall have occurred and be continuing.

 

(b)           If any Grantor fails to perform or comply with any of its agreements
contained herein, the Administrative Agent, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

 

(c)           The reasonable expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per annum equal to the highest rate per annum
at which interest would then be payable on any category of past due ABR Loans
under the Credit Agreement, from the date of payment by the Administrative
Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.

 

(d)           Each Grantor hereby ratifies all that said attorneys shall lawfully do or
cause to be done by virtue hereof.  All
powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

 

7.2           Duty of Administrative Agent.  The Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the New York UCC or otherwise,
shall be to deal with it in the same manner as the Administrative Agent deals
with similar property for its own account. 
Neither the Administrative Agent, any Lender nor any of their respective
officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the Lenders hereunder are solely to protect the Administrative Agent’s
and the Lenders’ interests in the Collateral and shall not impose any duty upon
the Administrative Agent or any Lender to exercise any such powers.  The Administrative Agent and the Lenders
shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder, except for their own gross negligence or willful
misconduct.

 

7.3           Execution of Financing Statements.  Pursuant to any applicable law, each Grantor
authorizes the Administrative Agent to file or record financing statements and
other filings (including fixture filings and As-Extracted Collateral filings)
or recording documents or instruments with respect to the Collateral without
the signature of such Grantor in such form and in such offices as the
Administrative Agent determines appropriate to perfect the security interests
of the Administrative Agent under this Agreement.  Each Grantor authorizes the Administrative
Agent to use the collateral description “all personal property” in any such
financing statements.  Each Grantor
hereby ratifies and authorizes the filing by the Administrative Agent of any
financing statement with respect to the Collateral made prior to the date
hereof.

 

24

 

7.4           Authority of Administrative Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the Lenders, be
governed by the Credit Agreement and by such other agreements with respect
thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Lenders with full and valid
authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority.

 

SECTION 8.           MISCELLANEOUS

 

8.1           Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 10.1 of the Credit Agreement.

 

8.2           Notices.  All notices, requests and demands to or upon
the Administrative Agent or any Grantor hereunder shall be effected in the
manner provided for in Section 10.2 of the Credit Agreement; provided that
any such notice, request or demand to or upon any Guarantor shall be addressed
to such Guarantor at its notice address set forth on Schedule 1.

 

8.3           No Waiver by Course of Conduct; Cumulative
Remedies.  Neither the
Administrative Agent nor any Lender shall by any act (except by a written
instrument pursuant to Section 8.1), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. 
No failure to exercise, nor any delay in exercising, on the part of the
Administrative Agent or any Lender, any right, power or privilege hereunder
shall operate as a waiver thereof.  No
single or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  A waiver by the
Administrative Agent or any Lender of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the
Administrative Agent or such Lender would otherwise have on any future
occasion.  The rights and remedies herein
provided are cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by law.

 

8.4           Enforcement Expenses; Indemnification.  (a)  Each Guarantor agrees to pay or
reimburse each Lender and the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in collecting against such Guarantor
under the guarantee contained in Section 2, and each Guarantor agrees to
pay, or reimburse Administrative Agent and each Lender for all its reasonable
out-of-pocket costs and expenses incurred in connection with enforcing or
preserving any rights under this Agreement and the other Loan Documents to
which such Guarantor is a party, including, without limitation, the reasonable
fees and disbursements of counsel (including the allocated reasonable fees and
expenses of in-house counsel) to each Lender and of counsel to the
Administrative Agent.

 

(b)           Each Guarantor agrees to pay, and to save the Administrative Agent and
the Lenders harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other
taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by
this Agreement.

 

(c)           Each Guarantor agrees to pay, and to save the Administrative Agent and
the Lenders harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery, 

 

25

 

enforcement, performance
and administration of this Agreement to the extent the Borrower would be
required to do so pursuant to Section 10.5 of the Credit Agreement.

 

(d)           The agreements in this Section 8.4 shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreement and the
other Loan Documents.

 

8.5           Successors and Assigns.  This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Administrative Agent and the Lenders and their successors and assigns; provided
that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.

 

8.6           Set-Off.  During the continuance of an Event of
Default, in addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without notice to any Grantor, any such
notice being expressly waived by each Grantor to the extent permitted by applicable
law, upon any Obligations becoming due and payable by any Grantor (whether at
the stated maturity, by acceleration or otherwise), to apply to the payment of
such Obligations, by setoff or otherwise, any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender, any affiliate thereof or any of their respective branches
or agencies to or for the credit or the account of such Grantor.  Each Lender agrees promptly to notify the
relevant Grantor and the Administrative Agent after any such application made
by such Lender, provided that the failure to give such notice shall not
affect the validity of such application.

 

8.7           Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

8.8           Severability.  Any provision of this Agreement which is
prohibited or 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.

 

8.9           Section Headings.  The Section headings used in this
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation
hereof.

 

8.10         Integration.  This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to subject matter hereof and thereof not expressly
set forth or referred to herein or in the other Loan Documents.

 

8.11        GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12         Submission To Jurisdiction; Waivers.  Each Grantor hereby irrevocably and
unconditionally:

 

26

 

(a)           submits for itself and its property in any legal action or proceeding
relating to this Agreement and the other Loan Documents to which it is a party,
or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States of America for the Southern District of
New York, and appellate courts from any thereof;

 

(b)           consents that any such action or proceeding may be brought in such courts
and waives any objection that it may now or hereafter have to the venue of any
such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

 

(d)           agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction; and

 

(e)           waives, to the maximum extent not prohibited by law, any right it may
have to claim or recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

 

8.13         Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other Loan Documents to which it is a party;

 

(b)           neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between
the Grantors, on the one hand, and the Administrative Agent and Lenders, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

 

(c)           no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Grantors and the Lenders.

 

8.14         Additional Grantors.  Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 6.9 of
the Credit Agreement shall become a Grantor for all purposes of this Agreement
upon execution and delivery by such Subsidiary of an Assumption Agreement in
the form of Annex 1 hereto.

 

8.15         Releases.  (a)  At such time as the Loans, the
Reimbursement Obligations and the other Obligations (other than Obligations in
respect of Specified Swap Agreements) shall have been paid in full (other than
such obligations under Sections 2.17, 2.18, 2.19 and 10.5 of the Credit
Agreement that are not then due and payable and demanded), the Commitments have
been terminated and no Letters of Credit shall be outstanding (unless the
outstanding amount of the L/C Obligations related thereto has been cash
collateralized in an amount and manner satisfactory to the relevant Issuing
Lender), the Collateral shall be released from the Liens created hereby, and
this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Grantor
hereunder shall 

 

27

 

terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall
revert to the Grantors.  At the request
and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such
termination.

 

(b)           If any of the Collateral shall be sold, transferred or otherwise disposed
of by any Grantor in a transaction permitted by the Credit Agreement, then the
Administrative Agent, at the request and sole expense of such Grantor, shall
execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such
Collateral.  At the request and sole
expense of the Borrower, a Subsidiary Guarantor shall be released from its
obligations hereunder in the event that all the Capital Stock of such
Subsidiary Guarantor shall be sold, transferred or otherwise disposed of in a
transaction permitted by the Credit Agreement; provided that the
Borrower shall have delivered to the Administrative Agent, at least ten
Business Days prior to the date of the proposed release, a written request for
release identifying the relevant Subsidiary Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof and any
expenses in connection therewith, together with a certification by the Borrower
stating that such transaction is in compliance with the Credit Agreement and
the other Loan Documents.

 

8.16        WAIVER OF JURY TRIAL.  EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

28

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Collateral Agreement to be duly executed and delivered as of the date first
above written.

 

	
   

  	
  THOMPSON
  CREEK METALS COMPANY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  THOMPSON
  CREEK METALS COMPANY USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  MT.
  EMMONS MOLY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  LANGELOTH
  METALLURGICAL COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  THOMPSON
  CREEK MINING CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  CYRPUS
  THOMPSON CREEK MINING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  LONG
  CREEK MINING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela Saxton

  
	
   

  	
   

  	
  Name: Pamela
  Saxton

  
	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  

 

29

 

	
  JPMORGAN
  CHASE BANK, N.A.,

  	
   

  
	
  as
  Administrative Agent,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/
  Brian Knapp

  	
   

  
	
   

  	
  Name:

  	
  Brian
  Knapp

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

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