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EXHIBIT 10.1  

 
 

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT    
    

        THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Second Amendment") is made and entered into as of
November 17, 2004, by and between Overstock.com, Inc., a Delaware corporation, as Borrower ("Borrower"), and Wells Fargo
Foothill, Inc., a California corporation, as Lender ("Lender"). 

        WHEREAS,
Borrower and Lender have entered into a Loan and Security Agreement, dated as of May 6, 2004, as amended by the First Amendment to Loan and Security Agreement dated as of
November 12, 2004 (as so amended, the "Loan Agreement"); and 

        WHEREAS,
Borrower and Lender wish to further amend the Loan Agreement as herein provided; 

        NOW,
THEREFORE, in consideration of the agreements and provisions herein contained, the parties hereto do hereby agree as follows: 

        SECTION 1. Definitions.    Any capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such
terms in the Loan Agreement. 

        SECTION 2. Amendments to Loan Agreement.    The Loan Agreement is hereby amended, effective as of the date this Second Amendment
becomes effective in accordance with Section 4 hereof, as follows: 

        2.01.     Amendment to Section 7.1(g).  Section 7.1(g) of the Loan Agreement is hereby amended by
(i) replacing "$75,000,000" with "$100,000,000"; and (ii) replacing
"$25,000,000" with "$35,000,000." 

        SECTION 3. Representations and Warranties.    In order to induce Lender to enter into this Second Amendment, Borrower hereby
represents and warrants that: 

        3.01.     No Default. At and as of the date of this Second
Amendment and at and as of the Effective Date (as defined below), and both prior to and after giving effect to this Second Amendment, no Default or Event of Default exists. 

        3.02.     Representations and Warranties True and Correct. At and
as of the date of this Second Amendment and at and as of the Effective Date and both prior to and after giving effect to this Second Amendment, each of the representations and warranties contained in
the Loan Agreement and the other Loan Documents is true and correct in all material respects (except to the extent that such representations and warranties relate solely to an earlier date, in which
case such representations and warranties are true and correct in all material respects as of such earlier date). 

        3.03.     Corporate Power, Etc. Borrower (a) has all
requisite corporate power and authority to execute and deliver this Second Amendment and to consummate the transactions contemplated hereby and (b) has taken all action, corporate or otherwise,
necessary to authorize the execution and delivery of this Second Amendment and the consummation of the transactions contemplated hereby. Borrower is entering into this Second Amendment in accordance
with Section 15.1 of the Loan Agreement. 

        3.04.     No Conflict. The execution, delivery and performance by
Borrower of this Second Amendment will not (a) violate any provision of federal, state, or local law or regulation applicable to Borrower, the Governing Documents of Borrower, or any order,
judgment, or decree of any court or other Governmental Authority binding on Borrower, (b) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a
default under any material contractual obligation of Borrower, (c) result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of any
Borrower, other than Permitted Liens, or (d) require any unobtained approval of Borrower's shareholders or any unobtained approval or consent of any Person under any material contractual
obligation of Borrower. 

 

        3.05.     Binding Effect. This Second Amendment has been duly
executed and delivered by Borrower and constitutes the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be
limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter in effect, relating to or affecting the enforcement of creditors' rights
generally, and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

        SECTION 4. Conditions.    This Second Amendment shall be effective as of November 17, 2004 (the
"Effective Date") upon the fulfillment by Borrower, in a manner satisfactory to Lender, of all of the following conditions precedent set forth in this  Section 4: 

        4.01.     Execution of the Second Amendment. Each of the parties
hereto shall have executed and delivered an original counterpart of this Second Amendment by facsimile or other means of electronic transmission. 

SECTION 5. Miscellaneous.  

        5.01.     Continuing Effect. Except as specifically provided
herein, the Loan Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects. Lender's
execution and delivery of, or acceptance of, this Second Amendment and any other documents and instruments in connection herewith shall not be deemed to create a course of dealing or otherwise create
any express or implied duty by it to provide any other or further amendments, consents or waivers in the future. 

        5.02.     No Waiver. This Second Amendment is limited as specified
and the execution, delivery and effectiveness of this Second Amendment shall not operate as a modification, acceptance or waiver of any provision of the Loan Agreement or any other Loan Document,
except as specifically set forth herein. 

        5.03.     References. 

        (a)   From
and after the Effective Date, the Loan Agreement, the other Loan Documents and all agreements, instruments and documents executed and delivered in connection with
any of the foregoing shall each be deemed amended hereby to the extent necessary, if any, to give effect to the provisions of this Second Amendment. 

        (b)   From
and after the Effective Date, (i) all references in the Loan Agreement to "this Agreement", "hereto", "hereof", "hereunder" or words of like import referring
to the Loan Agreement shall mean the Loan Agreement as amended hereby and (ii) all references in the Loan Agreement, the other Loan Documents or any other agreement, instrument or document
executed and delivered in connection therewith to "Loan Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Loan Agreement shall mean the Loan Agreement as amended
hereby. 

        5.04.     Governing Law. THIS SECOND AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA. 

        5.05.     Severability. The provisions of this Second Amendment are
severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or
provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this Second Amendment in any
jurisdiction. 

        5.06.     Counterparts. This Second Amendment may be executed in
any number of counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall 

2

 

together
constitute one and the same instrument. A complete set of counterparts shall be lodged with Borrower and Lender. 

        5.07.     Headings. Section headings in this Second
Amendment are included herein for convenience of reference only and shall not constitute a part of this Second Amendment for any other purpose. 

        5.08.     Binding Effect; Assignment. This Second Amendment shall
be binding upon and inure to the benefit of the Borrower and Lender and their respective successors and assigns; provided,  however, that the rights and
obligations of Borrower under this Second Amendment shall not be assigned or delegated without the prior written consent of
Lender. 

        5.09.     Expenses. Borrower agrees to pay Lender upon demand for
all Lender Expenses incurred in connection with the preparation, negotiation and execution of this Second Amendment and any document required to be furnished herewith. 

[Signature
pages to follow] 

        IN
WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written. 

	

 	
 	
OVERSTOCK.COM, INC.,

as Borrower
	

 	
 	

By:	
 	

/s/  JONATHAN E. JOHNSON III      

	 	 	Name:	 	Jonathan E. Johnson III
	 	 	Title:	 	Vice President, Corporate Affairs and Legal
	

 	
 	
WELLS FARGO FOOTHILL, INC.,

as Lender
	

 	
 	

By:	
 	

/s/  JEFF ROYSTON      

	 	 	Name:	 	Jeff Royston
	 	 	Title:	 	Vice President

3

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SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENTFiled by Automated Filing Services Inc. (604) 609-0244 - Lincoln Gold Corporation - Exhibit 10.6

 LINCOLN GOLD 

  Corporation 

  325 Tahoe Drive

  Carson City, NV 89703 

  Telephone: 775-885-7301 

	 Mr. Larry L. McIntosh  	 September 28, 2004  
	 P.O. Box 1388  	  
	 Gardnerville, NV 89410  	  

	 RE:  	 Letter Agreement – Lease w/ Option to Purchase 
    
	  	 Jenny Hill Property, Mineral & Nye Counties,
      NV  

 Dear Mr. McIntosh, 

 Pursuant to our recent discussions on September 15, 2004 relating
  to the above captioned property, Lincoln Gold Corporation (LGC) wishes to make
  the following proposal for your consideration.

	TYPE OF AGREEMENT:	 Mining Lease with Option to Purchase (Agreement) 
	 	 
	PROPERTY OWNER: 	Larry L. McIntosh and Susan K. McIntosh (Owner)

      P.O. Box 1388 

      Gardnerville, NV 89410 
	 	 
	PROPERTY: 	All of that mineral interest of Owner located in Sections
        24, 25, 26, 35 and 36, T12N, R33E and Sections 19 and 30, T12, R34E, Mt.
        Diablo Base and Meridian, Mineral County, Nevada including, but not limited
        to thirty-six (36) unpatented lode mining claims known as Black Hills
        #1 through Black Hills #36 (Exhibit A), 

       and, 

       All of that mineral interest of Owner located in Sections
        17 and 18, T12N, R34E, Mt. Diablo Base and Meridian, Mineral and Nye Counties,
        Nevada including, but not limited to eighteen (18) unpatented lode mining
        claims known as Jenny #1 through Jenny #18 (Exhibit A), 

       and, 

       Any additional mineral interest that is contiguous or
        within one (1) mile of the aforementioned mining claims that is acquired
        or controlled by Owner upon execution of the Agreement (New Claims). 

 

	 AREA OF INTEREST:  	  An Area of Interest (AOI) shall consist
        of all lands lying within the perimeter of the map shown in Exhibit B.
        The Owner shall be eligible to receive production royalty payments from
        all production within the AOI. LGC and Owner agree that the AOI perimeter
        is fixed and shall not expand beyond that shown in Exhibit B.  

	  	

	 TERM :  	  The Option to Purchase may be exercised
        by the SEVENTH ANNIVERSARY of the Effective Date of the Agreement. 
      

	 	

	 PURCHASE OPTION:  	  LGC shall have the exclusive and unlimited
        Option to Purchase Owner's entire interest (100%) in the Property for
        the total sum of  

      ONE MILLION FIVE HUNDRED THOUSAND US DOLLARS (US$1,500,000.00). The Option
      may be exercised at the discretion of LGC on or before the Seventh
      Anniversary of the Effective Date of the Agreement.  
	  	

	 PRODUCTION

          ROYALTY  	 Upon commencement of mineral production and continuing thereafter,
      LGC shall pay to Owner a Production Royalty equal to  
        TWO PERCENT (2%) of Net Smelter Returns (NSR) for all  locatable
        ores and minerals mined or otherwise removed from the  Property.
        The definition of Net Smelter Returns shall be agreed to  by LGC
        and Owner in the final Agreement document.  

	  	

	 RIGHT OF FIRST

         REFUSAL:  	 Should Owner offer to sell all or any portion of the Production 
      Royalty (NSR), LGC shall have the Right of First Refusal to buy  that
      interest.  
	  	

	 ADVANCEP ROYALTY

            PAYMENTS	 All Advance Royalty Payments paid to Owner may be credited
      by  LGC towards the Purchase Option.  

	   •  Upon Signing of
        Binding Letter Agreement 
	US$ 	 7,000  	 (non-refundable)
	   •  Upon Execution
        of Agreement by Nov. 15, 2004
	 	 13,000  	 
	   •  1st
        Anniversary of Effective Date
	 	 25,000  	 
	   •  2nd
        Anniversary of Effective Date
	 	 30,000  	 
	   •  3rd
        Anniversary of Effective Date
	 	 60,000  	 
	   •  4th
        Anniversary of Effective Date
	 	 70,000  	 
	   •  5th
        Anniversary of Effective Date
	 	 80,000  	 
	   •  6th
        Anniversary of Effective Date
	 	 90,000  	 
	   •  7th
        Anniversary of Effective Date – Purchase
	$	1,125,000  	 
	  	US$	 1,500,000  	 

 

	WORK REQUIREMENT: 	As additional consideration for the Agreement and the
        exclusive right to conduct exploration on the Property, LGC shall expend
        the following amounts on or for the direct benefit of the Property. LGC
        may elect to credit excess expenditures to future years' work requirements.
        Payments to Owner and annual claim maintenance fees shall not be a credit
        towards the Work Requirement. 

      

	 	• Year 1

      • Year 2 and thereafter 	  US$ 50,000 

        US$100,000  

	CONSULTING WORK: 	At its sole discretion, LGC may elect to employ Owner
        as a Consulting Geologist to work on the Property at a pay rate of THREE
        HUNDRED AND FIFTY US DOLLARS (US$350) per day. Owner shall maintain his
        own insurance and hold LGC harmless in the event of personal injury. 

	 	

	ATTORNEY FEES: 	Regarding the drafting of the final Agreement, LGC
        agrees to pay one-half (50%) of reasonable and customary Attorney fees
        and Owner shall pay the remaining one-half (50%). It is LGC's understanding
        that Tom Irwin, Reno Attorney, will draft the Agreement. 

	 	

	MAINTENANCE FEES:	 LGC agrees to pay all annual Federal and County
        claim maintenance fees in a timely manner to keep all claims in good standing.
        Should LGC terminate the property after June 1 of any year, LGC shall
        be obligated to pay all Federal and County claim maintenance fees due
        by September 1 of that year. 

	 	

	ASSIGNMENT: 	The rights of either party may be freely assigned,
        in whole or in part, upon written notice to the other party. 

	 	 
	TERMINATION: 	LGC may surrender all or any potion of the Property
        to Owner at any time and terminate the Agreement in full upon written
        notice.In the event of termination, Owner shall retain all payments and
        royalties paid pursuant to the Agreement as consideration for LGC's possession
        of the Property. 

      Upon termination, Owner shall be entitled to copies of
        all non-interpretative data developed by LGC on the Property, including,
        but not limited to, drill logs, metallurgical reports, assay reports,
        geophysical, geochemical, geologic and engineering maps and data. 

	 	 
	RECLAMATION:	 LGC shall hold Owner harmless from any required
        land reclamation that is attributable to the activities of LGC. 

 These are the basic terms and conditions that LGC proposes
  for inclusion in the Mining Lease with Option to Purchase. Additional terms
  and conditions standard to agreements of this nature will be added as appropriate.
  Should Owner accept the terms in this Letter Agreement, please execute both
  copies of this letter and return one (1) copy to me at the above letterhead
  address. Promptly after your execution of this letter, a check for US$7000.00
  shall be mailed to you and the Letter Agreement shall become binding on both
  parties. Owner shall then retain Tom Irwin, Attorney, to draft the final Mining
  Lease with Option to Purchase Agreement with execution planned for Monday, November
  15, 2004. In the meantime, please feel free to call me at 885-7301 should you
  have any questions. 

	 Sincerely,  	 The above terms and conditions are accepted: 
    
	 LINCOLN GOLD CORP.  	 OWNER  
	 	 
	___________________________	_______________________________________
	 Jeffrey L. Wilson, V.P. - Exploration  	          Larry
      L. McIntosh  
	 	 
	  	 DATE: _________________________________

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