Document:

Unassociated Document

    INTELLECTUAL
PROPERTY SECURITY AGREEMENT

     

    This
Intellectual Property Security Agreement is entered into as of the Effective
Date by and between SILICON VALLEY BANK ("Bank") and POOLS PRESS, INC.
("Grantor").

     

    RECITALS

     

    A.           Bank
has agreed to make certain advances of money and to extend certain financial
accommodation to Grantor (the "Loans") in the amounts and manner set forth in
that certain Loan and Security Agreement by and between Bank, Grantor and the
other Borrowers party thereto dated the Effective Date (as the same may be
amended, modified or supplemented from time to time, the "Loan Agreement";
capitalized terms used herein are used as defined in the Loan
Agreement).  Bank is willing to make the Loans to Grantor, but only
upon the condition, among others, that Grantor shall grant to Bank a security
interest in certain Copyrights, Trademarks, Patents, and Mask Works to secure
the obligations of Grantor under the Loan Agreement.

     

    B.           Pursuant
to the terms of the Loan Agreement, Grantor has granted to Bank a security
interest in all of Grantor's right, title and interest, whether presently
existing or hereafter acquired, in, to and under all of the
Collateral.

     

    NOW,
THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, and intending to be legally bound, as collateral security for the
prompt and complete payment when due of its obligations under the Loan
Agreement, Grantor hereby represents, warrants, covenants and agrees as
follows:

     

    AGREEMENT

     

    To secure
its obligations under the Loan Agreement, Grantor grants and pledges to Bank a
security interest in all of Grantor's right, title and interest in, to and under
its Intellectual Property Collateral (including without limitation those
Copyrights, Patents, Trademarks and Mask Works listed on Schedules A, B, C, and
D hereto), and including without limitation all proceeds thereof (such as, by
way of example but not by way of limitation, license royalties and proceeds of
infringement suits), the right to sue for past, present and future
infringements, all rights corresponding thereto throughout the world and all
re-issues, divisions continuations, renewals, extensions and
continuations-in-part thereof.

     

    This
security interest is granted in conjunction with the security interest granted
to Bank under the Loan Agreement.  The rights and remedies of Bank
with respect to the security interest granted hereby are in addition to those
set forth in the Loan Agreement and the other Loan Documents, and those which
are now or hereafter available to Bank as a matter of law or
equity.  Each right, power and remedy of Bank provided for herein or
in the Loan Agreement or any of the Loan Documents, or now or hereafter existing
at law or in equity shall be cumulative and concurrent and shall be in addition
to every right, power or remedy provided for herein and the exercise by Bank of
any one or more of the rights, powers or remedies provided for in this
Intellectual Property Security Agreement, the Loan Agreement or any of the other
Loan Documents, or now or hereafter existing at law or in equity, shall not
preclude the simultaneous or later exercise by any person, including Bank, of
any or all other rights, powers or remedies.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties have caused this Intellectual Property Security
Agreement to be duly executed by its officers thereunto duly authorized as of
the first date written above.

     

    
      	 	 GRANTOR:
	 	 
	 Address of
      Grantor:	 POOLS PRESS,
      INC.
	 	 
	 1524
      Cloverfield Blvd., Suite E	 By: /s/
      Richard McKilligan_______________
	 Santa Monica,
      CA 90404	 
	 	 Title:  Secretary________________________
	 Attn:   Secretary____________________	 
	 	 
	 	 BANK:
	 	 
	 Address of
      Bank:  	 SILICON VALLEY
      BANK
	 	 
	 3003 Tasman
      Drive	 By: /s/ Dean
      Hoyt______________________
	 Santa Clara,
      CA 95054-1191	 
	 	 Title:  Deal
      Team Leader__________________
	 Attn:____________________________	 

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    EXHIBIT A

     

    Copyrights

     

    
      	
              Description

            	
              Registration
      Number

            	
              Registration
      Date

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    EXHIBIT B

     

    Patents

     

    
      	
              Description

            	
              Patent/App.
      No.

            	
              File
      Date

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    EXHIBIT C

     

    Trademarks

     

    
      	
              Description

            	
              Serial/Registration
      No.

            	
              File
      DateExhibit 10.1
    

    
      SECOND AMENDMENT TO SECOND
AMENDED AND RESTATED CREDIT AGREEMENT
    

    
      THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
      (this “Second Amendment”), dated as of July 14, 2010, is by
      and among (i) HECLA ALASKA LLC, a Delaware limited liability company,
      HECLA GREENS CREEK MINING COMPANY, a Delaware corporation and HECLA
      JUNEAU MINING COMPANY, a Delaware corporation (collectively, the “Borrowers”),
      (ii) each of the other obligors identified as “Other Obligors” on the
      signature pages hereto and (iii) each of the banks and other financial
      institutions identified as “Lenders” on the signature pages hereto (the “Lenders”).
    

    
      W I T N E S S E T H:
    

    
      WHEREAS, pursuant to the Second Amended and Restated Credit Agreement,
      dated as of October 14, 2009, as amended by that certain First Amendment
      to Second Amended and Restated Credit Agreement dated as of March 12,
      2010 (as amended, supplemented, amended and restated or otherwise
      modified prior to the date hereof, the “Existing Credit
      Agreement” and, as amended by this Second Amendment and as the same
      may be further amended, supplemented, amended or restated or otherwise
      modified from time to time, the “Credit Agreement”), among
      the Borrowers, the Obligors party thereto, the Lenders party thereto,
      and The Bank of Nova Scotia, as administrative agent for the Lenders (in
      such capacity, the “Administrative Agent”), the Lenders
      have made commitments to extend certain credit facilities to the
      Borrowers; and
    

    
      WHEREAS, the Borrowers have requested that the Lenders agree to amend
      certain provisions of the Existing Credit Agreement as more specifically
      set forth herein, in each case upon the terms and conditions contained
      in this Second Amendment.
    

    
      NOW, THEREFORE, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, and in consideration of
      the agreements herein contained, the parties hereby agree as follows:
    

    
      PART I  
DEFINITIONS
    

    
      SUBPART 1.1    Certain Definitions.  Unless
      otherwise defined herein or the context otherwise requires, the
      following terms used in this Second Amendment, including its preamble
      and recitals, have the following meanings:
    

    
      “Administrative Agent” is defined in the recitals.
    

    
      “Borrowers” is defined in the preamble.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Credit Agreement” is defined in the recitals.
    

    
      “Existing Credit Agreement” is defined in the recitals.
    

    
      “Lenders” is defined in the preamble.
    

    
      “Second Amendment” is defined in the preamble.
    

    
      “Second Amendment Effective Date” is defined in Subpart
      4.1.
    

    
      SUBPART 1.2    Other Definitions.  Unless
      otherwise defined herein or the context otherwise requires, terms used
      in this Second Amendment, including its preamble and recitals, have the
      meanings provided in the Credit Agreement.
    

    
      PART II  
AMENDMENTS TO EXISTING CREDIT AGREEMENT
    

    
      Effective on (and subject to the occurrence of) the Second Amendment
      Effective Date, the Existing Credit Agreement is hereby amended in
      accordance with this Part II.  Except as so amended, the Existing
      Credit Agreement and the other Loan Documents shall continue in full
      force and effect.
    

    

    

    
      SUBPART 2.1    Amendments to Section 1.1.  Section
      1.1 of the Existing Credit Agreement is hereby amended as follows:
    

    
      (a)       by amending and restating the definition of “Hecla Mine Plan”
      to read as follows:
    

    
      “Hecla Mine Plan” means, with respect to all operating
      mines controlled by the Parent (including any of its Subsidiaries), a
      life of mine plan prepared by the Parent setting forth on a consolidated
      basis and separately with respect to each mine, inter alia, annual
      operating, capital and exploration budgets; proposed construction,
      development, operation and closing of such mines and any rehabilitation
      or reclamation work related thereto; exploitation, treatment,
      production, marketing and sale of all metals recovered from such mines;
      and all administrative, technical, financial and commercial activities
      related thereto, which life of mine plan shall be in the form of an
      interactive electronic model and otherwise in form and substance
      reasonably satisfactory to the Administrative Agent.  The Hecla Mine
      Plan shall be updated annually and delivered to the Administrative
      Agent, in each case in accordance with clause (l) of Section
      7.1.1.
    

    
      (b)       by amending and restating the definition of “Excess Cash Flow”
      to read as follows:
    

    
      “Excess Cash Flow” means, for any Fiscal Quarter, the
      excess (if any), of
    

    
      (x)  EBITDA for such Fiscal Quarter;
    

    
      minus
    

    
      (y) the sum (for such Fiscal Quarter) of (A) Interest Expense actually
      paid in cash by the Parent and Subsidiaries, plus (B) the
      aggregate principal amount of all regularly scheduled principal payments
      or redemptions or similar acquisitions for value of outstanding debt for
      borrowed money, but excluding (x) any such payments to the extent
      financed through the incurrence of additional Indebtedness otherwise
      expressly permitted under Section 7.2.2 or financed through the
      issuance of Capital Securities otherwise permitted under this Agreement
      and (y) Indebtedness that has been paid but may be reborrowed on a
      revolving credit basis plus (C) all income Taxes actually paid in
      cash by the Parent and Subsidiaries plus (D) Capital Expenditures
      paid in cash (excluding, however, Capital Expenditures
      financed with the proceeds of Indebtedness (other than the Obligations),
      equity issuances, casualty proceeds or other proceeds which are not
      included in EBITDA) plus (E) reclamation expenses actually paid
      in cash by the Parent and its Subsidiaries (excluding, however,
      reclamation expenses financed with the proceeds of insurance).
    

    
      
        

        

      

      
        
          2
        

        
          

        

      

      
        

        

      

    

    
      (c)       by amending and restating the definition of “Funds Available
      for Specified Investments” to read as follows:
    

    
      “Funds Available for Specified Investments” means, for any
      date of determination, the result of
    

    
      (a)       the sum of (x) the aggregate of the Excess Cash Flow for each
      Fiscal Quarter ended prior to such date of determination but after
      January 1, 2010 plus (y) $104,678,000 (such sum is referred to as
      “Accumulated Excess Cash Flow”);
    

    
      minus
    

    
      (b)       the amount of Accumulated Excess Cash Flow applied to
      Specified Investments on or after January 1, 2010;
    

    
      minus
    

    
      (c)       the amount of Accumulated Excess Cash Flow applied to
      Restricted Payments (other than Restricted Payments under Section
      7.2.6(h)) on or after January 1, 2010;
    

    
      plus
    

    
      (d)       (i) the aggregate amount of Net Equity/Debt Proceeds to be
      applied to fund Specified Investments and not otherwise applied and (ii)
      any Commitments available under this Agreement
    

    
      plus
    

    
      (e)       the aggregate amount of Net Casualty Proceeds not used to
      prepay the Loans pursuant to Section 3.1.1(c) and not otherwise
      applied.  
    

    
      (d)       by amending and restating the definition of “Funds Available
      for Restricted Payments” to read as follows:
    

    
      
        

        

      

      
        
          3
        

        
          

        

      

      
        

        

      

    

    
      “Funds Available for Restricted Payments” means, for any
      date of determination, the result of
    

    
      (a)       Accumulated Excess Cash Flow;
    

    
      minus
    

    
      (b)       the amount of Accumulated Excess Cash Flow applied to
      Specified Investments on or after January 1, 2010;
    

    
      minus
    

    
      (c)       the amount of Accumulated Excess Cash Flow applied to
      Restricted Payments on or after January 1, 2010 (other than Restricted
      Payments under Section 7.2.6(h));
    

    
      plus
    

    
      (d)       the aggregate amount of Net Equity/Debt Proceeds to be applied
      to fund Restricted Payments and not otherwise applied.
    

    
      (e)       by inserting the following defined terms in the appropriate
      alphabetical sequence:
    

    
      “Second Amendment” means the Second Amendment to Credit
      Agreement, dated as of July 14, 2010, among the Borrowers and the
      Lenders party thereto.  
    

    
      “Second Amendment Effective Date” has the meaning set forth
      in the Second Amendment.
    

    

    

    
      SUBPART 2.2    Amendment to Section 7.1.1.  Section
      7.1.1 of the Existing Credit Agreement is hereby amended by amending and
      restating clause (c) in its entirety as follows:
    

    
                (c)       concurrently with the delivery of the financial
      information pursuant to clauses (a) and (b), a
      Compliance Certificate, executed by the chief financial or accounting
      Authorized Officer of the Parent, (i) showing compliance with the
      financial covenants set forth in Section 7.2.4, (ii) stating that
      no Default has occurred and is continuing (or, if a Default has
      occurred, specifying the details of such Default and the action that the
      Parent or an Obligor has taken or proposes to take with respect
      thereto), (iii) designating one or more of the Parent’s Subsidiaries as
      Material Subsidiaries if, in the absence of such designation, the
      aggregate assets or revenues of all Immaterial Subsidiaries of the
      Parent would exceed the aggregate amounts set forth in clauses (iii)
      and (iv) of the first proviso to the definition of “Immaterial
      Subsidiary”, (iv) certifying that the Subsidiaries of the Parent
      previously designated as Immaterial Subsidiaries remain Immaterial
      Subsidiaries as of the date thereof and (v) in the case of a Compliance
      Certificate delivered concurrently with the financial information
      pursuant to clauses (a) and (b), the amount of Excess Cash Flow
      for such Fiscal Quarter (together with a detailed calculation thereof);
    

    
      
        

        

      

      
        
          4
        

        
          

        

      

      
        

        

      

    

    
      PART III  
    

    
      AFFIRMATION AND CONSENT
    

    
      SUBPART 3.1    Affirmation and Consent.  Each
      of the Obligors confirms that it has received a copy of this Second
      Amendment and restates, ratifies and reaffirms each and every term and
      condition set forth in the Credit Agreement and the other Loan Documents
      to which it is a party, effective as of the date hereof, after giving
      effect to this Second Amendment.  
    

    
      PART IV  
CONDITIONS TO EFFECTIVENESS
    

    
      SUBPART 4.1    Amendment Effective Date.  This
      Second Amendment shall be and become effective as of the date hereof
      (the “Second Amendment Effective Date”) when all of the
      conditions set forth in this Part IV shall have been satisfied.
    

    
      SUBPART 4.2    Execution of Counterparts of
      Second Amendment.  The Administrative Agent shall have received
      counterparts satisfactory to the Administrative Agent of this Second
      Amendment, which collectively shall have been duly executed on behalf of
      each Borrower, each of the other Obligors and each Lender.
    

    
      SUBPART 4.3    Representations and Warranties.  The
      representations and warranties contained in Subpart 5.4 shall be
      true and correct in all material respects on and as of the Second
      Amendment Effective Date.
    

    
      PART V  
MISCELLANEOUS
    

    
      SUBPART 5.1    Cross-References.  References
      in this Second Amendment to any Part or Subpart are, unless otherwise
      specified, to such Part or Subpart of this Second Amendment.
    

    
      SUBPART 5.2    Instrument Pursuant to Existing
      Credit Agreement.  This Second Amendment is a Loan Document executed
      pursuant to the Existing Credit Agreement and shall (unless otherwise
      expressly indicated therein) be construed, administered and applied in
      accordance with the terms and provisions of the Existing Credit
      Agreement.
    

    
      SUBPART 5.3    References in Other Loan Documents.  At
      such time as this Second Amendment shall become effective pursuant to
      the terms of Part IV, all references in the Loan Documents to the
      “Credit Agreement” shall be deemed to refer to the Credit Agreement as
      amended by this Second Amendment.
    

    
      SUBPART 5.4    Representations and Warranties of
      the Obligors.  Each Obligor hereby represents and warrants that (a)
      it has the requisite power and authority to execute, deliver and perform
      this Second Amendment, (b) it is duly authorized to, and has been
      authorized by all necessary action, to execute, deliver and perform this
      Second Amendment, (c) the representations and warranties contained in
      Article VI of the Credit Agreement and applicable to such Obligor are
      true and correct in all material respects on and as of the date hereof
      as though made on and as of such date (except for those which expressly
      relate to an earlier date) and after giving effect to the amendments
      contained herein and (d) no Default or Event of Default exists under the
      Credit Agreement on and as of the date hereof after giving effect to the
      amendments contained herein.
    

    
      
        

        

      

      
        
          5
        

        
          

        

      

      
        

        

      

    

    
      SUBPART 5.5    Counterparts.  This Second
      Amendment may be executed by the parties hereto in several counterparts,
      each of which shall be deemed to be an original and all of which shall
      constitute together but one and the same agreement.  Delivery of
      executed counterparts of this Second Amendment by telecopy or other
      electronic transmission shall be effective as an original and shall
      constitute a representation that an original will be delivered.
    

    
      SUBPART 5.6    Full Force and Effect; Limited
      Amendment.  Except as expressly amended or waived hereby, all of the
      representations, warranties, terms, covenants, conditions and other
      provisions of the Existing Credit Agreement and the Loan Documents shall
      remain unchanged and shall continue to be, and shall remain, in full
      force and effect in accordance with their respective terms.  The
      amendments set forth herein shall be limited precisely as provided for
      herein to the provisions expressly amended herein and shall not be
      deemed to be an amendment to, waiver of, consent to or modification of
      any other term or provision of the Existing Credit Agreement or any
      other Loan Document or of any transaction or further or future action on
      the part of any Obligor which would require the consent of the Lenders
      under the Existing Credit Agreement or any of the Loan Documents.
    

    
      SUBPART 5.7    Limited Waiver.  The Lenders
      hereby waive any and all Events of Default that have occurred and are
      continuing because of any breach of Section 7.2.6(c) between January 1,
      2010 until the Second Amendment Effective Date, but only to the extent
      that no such breach would have occurred if the amendments set forth in
      clauses (b), (c) and (d) of Subpart 2.1 were effective during such
      period.
    

    
      SUBPART 5.8    Governing Law. THIS SECOND
      AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
      ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
    

    
      SUBPART 5.9    Successors and Assigns.  This
      Second Amendment shall be binding upon and inure to the benefit of the
      parties hereto and their respective successors and assigns.
    

    
      Each of the parties hereto has caused a counterpart of this Second
      Amendment to be duly executed and delivered as of the date first above
      written.
    

    
    	
          
            BORROWERS
          

        	
          HECLA ALASKA LLC,
        
	

        	
          a Delaware limited liability company
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            Hecla Limited,
          

        
	

        	

        	
          
            its Managing Member
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	

        	
          Name: James A. Sabala
        
	

        	

        	
          
            Title: Manager
          

        

    

    
      
        

        

      

      
        
          6
        

        
          

        

      

      
        

        

      

    

    
    	

        	
          
            HECLA GREENS CREEK MINING
          

        
	

        	
          
            COMPANY, a Delaware corporation
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	

        	
          Name: James A. Sabala
        
	

        	

        	
          Title: Vice President & Treasurer
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          HECLA JUNEAU MINING COMPANY,
        
	

        	
          a Delaware corporation
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	

        	
          Name: James A. Sabala
        
	

        	

        	
          Title: Vice President & Treasurer
        
	

        	

        	
           
        
	
          OTHER OBLIGORS:
        	
          HECLA MINING COMPANY,
        
	

        	
          a Delaware corporation
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	

        	
          Name: James A. Sabala
        
	

        	

        	
          Title: Senior Vice President & CFO
        
	

        	

        	
           
        
	

        	
          BURKE TRADING INC.,
        
	

        	
          a Delaware corporation
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	
          Name: James A. Sabala
        
	

        	
          Title: Vice President & Treasurer
        
	

        	

        	
           
        
	

        	
          HECLA ADMIRALTY COMPANY,
        
	

        	
          a Delaware corporation
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	
          Name: James A. Sabala
        
	

        	
          Title: Vice President & Treasurer
        

    

    
      
        

        

      

      
        
          7
        

        
          

        

      

      
        

        

      

    

    
    	
           
        	
          
            HECLA LIMITED,
          

        
	

        	
          
            a Delaware corporation
          

        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ James A. Sabala
          

        
	

        	

        	
          
            Name: James A. Sabala
          

        
	

        	

        	
          
            Title: Vice President & Treasurer
          

        
	

        	

        	
           
        
	

        	
          
            THE BANK OF NOVA SCOTIA, as a Lender
          

        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Ray Clarke
          

        
	

        	

        	
          Name: Ray Clarke
        
	

        	

        	
          Title: Managing Director
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Elizabeth Daponte
          

        
	

        	

        	
          Name: Elizabeth Daponte
        
	

        	

        	
          Title: Associate Director
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          ING CAPITAL LLC, as a Lender
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Remko van de Water
          

        
	

        	

        	
          Name: Remko van de Water
        
	

        	

        	
          Title: Director
        

    

    
      8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]