EXHIBIT E PROCEEDS AGREEMENT [HSBC Bank USA Letterhead] December 14, 2005
Exhibit 10.3
EXHIBIT E
[HSBC Bank USA Letterhead]
December 14, 2005
Xxxxxxx Xxxxxxx Inc.
0000 Xxxx 00000 Xxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
0000 Xxxx 00000 Xxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Royal Gold, Inc. – Confirmation of Collateral
Security Arrangements and Agreement
Security Arrangements and Agreement
Gentlemen:
This is to advise you that HSBC Bank USA (“HSBC”) has continued a credit facility in favor of
Royal Gold, Inc. (“Royal Gold”) pursuant to the Amended and Restated Loan Agreement dated as of
December 14, 2005 between HSBC and Royal Gold (the “Loan Agreement”), which amends and restates in
its entirety the Loan Agreement dated as of December 18, 2000 between HSBC and Royal Gold. The
Loan Agreement is secured by various collateral security arrangements, including: (1) a lien and
security interest in favor of HSBC on Royal Gold’s share of all mineral production (“Production”)
from the GSR#1 Royalty, the GSR#3 Royalty and the NVR#1 Royalty, each on the Pipeline/South
Pipeline Mining Complex in Lander County, Nevada (the “Project”), (2) a security interest in all
proceeds of such Production (“Proceeds”), and (3) a security interest in all accounts of Royal
Gold, whether metals or monetary, and credit balances therein, with Xxxxxxx Xxxxxxx Inc.
(“Accounts”).
Please execute and return a copy of this letter: (a) acknowledging and confirming that you
have been advised of the existence of a lien and security interest in favor of HSBC in Royal Gold’s
share of Production, and in the Proceeds and the Accounts and (b) expressing your agreement, (i) to
credit to the account of HSBC at Xxxxxxx Matthey any Production received at Xxxxxxx Xxxxxxx, and
(ii) upon a written request from HSBC, without confirmation, countersignature or additional
direction from Royal Gold, to transfer to the account of HSBC at Xxxxxxx Matthey any credit
balances in Account of Royal Gold at Xxxxxxx Xxxxxxx.
Xxxxxxx Matthey Inc.
December 14, 2005
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December 14, 2005
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By execution hereof Royal Gold has indicated its acceptance of the foregoing agreements and
its irrevocable instructions to Xxxxxxx Xxxxxxx to act in accordance with the terms hereof until
such time as Royal Gold and HSBC jointly advise Xxxxxxx Matthey to the contrary.
Yours sincerely, | |||||||
HSBC BANK USA | |||||||
By: | |||||||
Name: | |||||||
Title: | |||||||
Agreed as of December 14, 2005 | Notice acknowledged and agreement confirmed as of December 14, 2005 | ||||||
ROYAL GOLD, INC. | XXXXXXX XXXXXXX INC. | ||||||
By:
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By: | ||||||
Name:
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Name: | ||||||
Title:
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Title: | ||||||