Contract
Exhibit 10.2
FIRST AMENDMENT TO THE INTERCREDITOR AGREEMENT (this “Amendment”), dated as of December 14, 2011, among JPMorgan Chase Bank, N.A., as administrative agent for the lenders under the Senior Debt Agreement (as defined in the Intercreditor Agreement, as defined below) (in such capacity, with its successors and assigns, the “Senior Debt Representative”) for and on behalf of the Senior Debt Secured Parties (as defined below), RGLD Xxxx XX (fka RGL Royalty AG), a Swiss corporation (with its successors and assigns, the “Purchaser”), as purchaser of certain refined gold from Terrane Metals Corp., a company incorporated under the laws of British Columbia (the “Vendor”), and the Vendor.
W I T N E S S E T H :
WHEREAS, the parties hereto are parties to that certain Intercreditor Agreement, dated as of December 10, 2010 (the “Intercreditor Agreement”);
WHEREAS, the Vendor and the Purchaser have agreed to amend and restate the Royal Gold Purchase Agreement (as defined in the Intercreditor Agreement) on terms and conditions that have been approved by the Senior Debt Representative and the other Senior Debt Secured Parties (as defined in the Intercreditor Agreement) pursuant to that certain Third Amendment to the Credit Agreement among Xxxxxxxx Creek Metals Company Inc. (the “Borrower”), and the Senior Debt Representative on behalf of the Senior Debt Secured Parties (the “Senior Debt Agreement Amendment”); and
WHEREAS, the Purchaser, the Senior Debt Representative, on behalf of the Senior Debt Secured Parties, and the Vendor have agreed to make certain amendments to the Intercreditor Agreement in connection with the amendment and restatement of the Royal Gold Purchase Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises herein contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:
SECTION 1. DEFINITIONS.
1.1 Unless otherwise defined herein, capitalized terms which are defined in the Intercreditor Agreement are used herein as therein defined.
SECTION 2. AMENDMENTS.
(a) The first WHEREAS clause of the Intercreditor Agreement is hereby amended by replacing such clause in its entirety with the following:
“WHEREAS, Xxxxxxxx Creek Metals Company, Inc., a company incorporated under the laws of British Columbia (“Borrower”), the subsidiary guarantors, including the Vendor, the Senior Debt Representative and certain financial institutions and other entities are parties to the Credit Agreement, dated as December 10, 2010, as amended, amended and restated or otherwise modified through the Effective Date (the “Existing Senior Debt Agreement”), pursuant to which such financial institutions and other entities have agreed to make loans and extend other financial accommodations to the loan parties party thereto;”
(b) The second WHEREAS clause of the Intercreditor Agreement is hereby amended by replacing such clause in its entirety with the following:
“WHEREAS, Borrower, the Vendor, Royal Gold, Inc., a Delaware corporation (“Royal Gold”), and the Purchaser are parties to the Amended and Restated Purchase and Sale Agreement, dated as of December 14, 2011, (the “Royal Gold Purchase Agreement”), pursuant to which, among other things, (i) the Purchaser has agreed to pay the Payment Deposit (as defined below), a portion of which (A) was used by the Borrower to acquire, directly or indirectly, certain ownership interests in the Xxxxxxxx Project (as defined below) and (B) has been and will be used by the Vendor in connection with the development of the Xxxxxxxx Project and (ii) upon completion of the Xxxxxxxx Project, the Vendor has agreed to sell to the Purchaser and the Purchaser has agreed to purchase from the Vendor, an amount of Refined Gold (as defined below) equal to the Designated Percentage of Produced Gold (as defined below).
(c) Section 1 of the Intercreditor Agreement is amended by adding the following definition in its correct alphabetical order:
“Effective Date” means the date of the Royal Gold Purchase Agreement, as set forth in the second WHEREAS clause of this Agreement, giving effect to the amendment and restatement thereof on such date.
(d) Section 1 of the Intercreditor Agreement is amended by replacing the defined term “Royal Gold Security Documents” in its entirety with the following:
“Royal Gold Security Documents” means collectively, (i) the Security Agreement entered into as of October 20, 2010, as amended and restated on the Effective Date, by and between the Vendor and the Purchaser for the mining claims and leases with respect to the Xxxxxxxx Project, (ii) the Security Agreement entered into as of October 20, 2010, as amended and restated on the Effective Date, by and between the Vendor and the Purchaser for all personal property of the Vendor relating to or arising out of the Xxxxxxxx Project and (iii) the Security Agreement entered into as of October 20, 2010, as amended and restated on the Effective Date, by and between the Vendor and the Purchaser creating a floating charge over the real property relating to or comprising the Xxxxxxxx Property.
(e) The Intercreditor Agreement is hereby amended by replacing each occurrence of the clause “as in effect as of the date hereof” and the clause “as in effect on the date hereof” with the clause “as in effect as of the Effective Date”.
SECTION 3. CONDITIONS PRECEDENT. This Amendment shall become effective on the date (the “Effective Date”) on which all of the following conditions have been satisfied or waived:
(a) The Vendor, the Purchaser, Royal Gold and the Borrower shall have executed and delivered the Royal Gold Purchase Agreement and the Senior Debt Representative shall have received a true and correct copy thereof.
(b) The Senior Debt Representative and the Required Lenders (as defined in the Existing Senior Debt Agreement), on behalf of the Senior Debt Secured Parties, and Borrower shall have executed and delivered the Senior Debt Agreement Amendment and the Purchaser shall have received a true and correct copy thereof.
SECTION 4. CONTINUING EFFECT. Except as expressly amended, waived or modified hereby, the Intercreditor Agreement shall continue to be and shall remain in full force and effect in accordance with its terms. Except as expressly modified by this Amendment, the Intercreditor Agreement
is ratified and confirmed in all respects. Any reference to the “Intercreditor Agreement” in any related documents shall be deemed to be a reference to the Intercreditor Agreement as amended by this Amendment.
SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, EXCEPT AS OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK ARE GOVERNED BY THE LAWS OF SUCH JURISDICTION.
SECTION 6. SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and each of the Senior Debt Secured Parties, the Purchaser, the Vendor and their respective successors and assigns, and nothing herein is intended, or shall be construed to give, any other Person any right, remedy or claim under, to or in respect of this Amendment.
SECTION 7. ENTIRE AGREEMENT. The Intercreditor Agreement, as amended by this Amendment, represents the entire agreement between the Senior Debt Representative, the Senior Debt Secured Parties, the Purchaser and the Vendor with respect to the subject matter of the Intercreditor Agreement, as amended by this Amendment, and there are no promises, undertakings, representations or warranties by any of them relative to the subject matter hereof not expressly set forth or referred to herein or in Intercreditor Agreement.
SECTION 8. COUNTERPARTS. This Amendment may be executed by the parties hereto in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. An executed signature page of this Amendment may be delivered by facsimile transmission or electronic PDF of the relevant signature page hereof.
SECTION 9. HEADINGS. Section headings used in this Amendment are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their duly authorized officers as of the date first written above.
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JPMORGAN CHASE BANK, N.A., as the | |
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Senior Debt Representative | |
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By: |
/s/ Xxxxx Xxxxx |
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Name: Xxxxx Xxxxx |
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Title: Vice President |
[SIGNATURE PAGE – INTERCREDITOR AMENDMENT]
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RGLD XXXX XX | |
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By: |
/s/ Xxxxxx Xxxxxx |
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Name: Xxxxxx Xxxxxx | |
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Title: Vice Chairman | |
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By: |
/s/ Xxxxxx Xxxxx |
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Name: Xxxxxx Xxxxx | |
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Title: Board Member | |
[SIGNATURE PAGE – INTERCREDITOR AMENDMENT]
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TERRANE METALS CORP. | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Name: Xxxxxx X. Xxxxxx |
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Title: Executive Vice President and Chief Financial Officer |
[SIGNATURE PAGE – INTERCREDITOR AMENDMENT]
