Document:

8-K2013024AmendmentNo2toCreditAgreement

EXHIBIT 10.1

AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT  
 
June 20, 2013

Reference is made to that certain Second Amended and Restated Credit Agreement (as the same has been, and may hereafter be, amended, restated and supplemented from time to time, the “Credit Agreement”) dated as of November 24, 2010, among Heartland Payment Systems, Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, Swingline Lender and Issuing Bank (the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings given to such terms in the Credit Agreement.
W I T N E S S E T H :
WHEREAS, the Borrower has requested that the Lenders, the Administrative Agent, the Swingline Lender and the Issuing Bank amend certain provisions of the Credit Agreement, and such parties are willing to so amend such provisions on the terms and conditions set forth herein;
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1.    Amendments to Section 1.01.    
(a)    The following definition in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“Permitted Basket Repurchases” shall mean repurchases of Equity Interests by Borrower in an amount not to exceed (i) $50,000,000 in the aggregate during the period commencing on the Second Amendment Effective Date and ending on the Maturity Date and (ii) in addition to such $50,000,000, if positive, the sum of (a) 50% of Aggregate Positive Net Income minus (b) 100% of Aggregate Net Loss, in each case as of the most recently ended fiscal quarter for which Borrower has delivered financial statements pursuant to clause (a) or (b) of Section 5.01; provided that no repurchase of Equity Interests shall be deemed to be a Permitted Basket Repurchase at any time unless (x) no Default or Event of Default shall exist both before and immediately after giving effect to such Permitted Basket Repurchase and (y) after giving effect to such Permitted Basket Repurchase, the Total Leverage Ratio shall be less than or equal to 2.25 to 1.00 at such time.
(b)    Section 1.01 of the Credit Agreement is hereby amended to add the following definition in appropriate alphabetical order:
“Second Amendment Effective Date” shall mean June 20, 2013.

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	SECTION 2.
	Representations and Warranties.

To induce the undersigned Lenders to enter into this Amendment, each Loan Party hereby represents and warrants that at the time of and immediately after the occurrence of the Effective Date:
the representations and warranties of such Loan Party contained in each Loan Document are true and correct on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date;
no Default or Event of Default has occurred and is continuing; and
this Amendment constitutes the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles of general applicability.

		
	SECTION 3.
	Effectiveness.  

This Amendment shall become effective (the “Effective Date”) when, and only when, the Administrative Agent shall have received the following:
(a)    counterparts of this Amendment duly executed and delivered by (i) the Borrower, (ii) the Guarantors, (iii) the Required Lenders and (iv) the Administrative Agent; 
(b)    payment of an amendment fee in the amount of (x) 0.05% multiplied by (y) the sum of (A) the aggregate Revolving Credit Commitments of the Lenders signatory hereto plus (B) the aggregate outstanding principal amount of the Term Loans held by the Lenders signatory hereto as of the Effective Date, for distribution to the Lenders signatory hereto;
(c)    payment of all costs and expenses described Section 8 below for which invoices have been presented on or before the Effective Date; 
(d)    each of the representations and warranties set forth in Section 2 above shall be true and correct on and as of the date hereof; and    
(e)    such other certificates, documents and other instruments as the Administrative Agent may reasonably request, all in form and substance reasonably acceptable to the Administrative Agent.

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	SECTION 4.
	Effect of Amendment.  

From and after the effectiveness of this Amendment, each reference to “hereof’, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall refer to the Credit Agreement as amended by this Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders under the Credit Agreement or under any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.
		
	SECTION 5.
	Confirmation of Loan Documents.  

The terms, provisions, conditions and covenants of the Credit Agreement, as amended by this Amendment, and the other Loan Documents remain in full force and effect and are hereby ratified and confirmed, and the execution, delivery and performance of this Amendment shall not, except as expressly set forth in this Amendment, operate as a waiver of, consent to or amendment of any term, provision, condition or covenant thereof.  Without limiting the generality of the foregoing, nothing contained herein shall be deemed (a) except as expressly set forth herein, to constitute a waiver of compliance or consent to noncompliance by the Borrower or any Subsidiary with respect to any term, provision, condition or covenant of the Credit Agreement or any other Loan Document; (b) to prejudice any right or remedy that the Administrative Agent or any Lender may now have or may have in the future under or in connection with the Credit Agreement or any other Loan Document; or (c) except as expressly set forth herein, to constitute a waiver of compliance or consent to noncompliance by the Borrower or any Subsidiary with respect to the terms, provisions, conditions and covenants of the Credit Agreement and the other Loan Documents made the subject hereof.  The Borrower represents and acknowledges that it has no claims, counterclaims, offsets, credits or defenses to the Loan Documents or the performance of its obligations thereunder.
		
	SECTION 6.
	Ratification of Guaranty.

Each Guarantor hereby ratifies and confirms its Guaranty and each Guarantor hereby represents and acknowledges that it has no claims, counterclaims, offsets, credits or defenses to the Loan Documents or the performance of its obligations thereunder.  Furthermore, each Guarantor agrees that nothing contained in this Amendment shall adversely affect any right or remedy of the Administrative Agent or the Lenders under its respective Guaranty.  Each Guarantor agrees that all references in such Guaranty to either the “Guaranteed Obligations” or the “Guarantied Obligations”, as applicable, shall include, without limitation, all of the obligations of the Borrower to the Administrative Agent and the Lenders under the Credit Agreement, as amended by this Amendment.  Finally, each Guarantor hereby represents and warrants that the execution and delivery of this Amendment and the other Loan Documents executed in connection herewith shall in no way change or modify its obligations as a guarantor, debtor, pledgor, assignor, obligor and/or grantor under its 

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respective Guaranty and shall not constitute a waiver by the Administrative Agent or the Lenders of any of their rights against such Guarantor.
		
	SECTION 7.
	Governing Law. 

This Amendment shall be governed by and construed in accordance with the laws of the State of New York.
		
	SECTION 8.
	Fees and Expenses. 

The Borrower agrees to pay on demand all reasonable out-of-pocket costs and reasonable expenses of the Administrative Agent in connection with the negotiation, preparation, execution, and delivery of this Amendment and the other documents prepared in connection herewith, including, without limitation, the reasonable and invoiced fees and out-of-pocket expenses of external counsel for the Administrative Agent.
		
	SECTION 9.
	Counterparts. 

This Amendment may be executed in any number of counterparts and by any combination of the parties hereto in separate counterparts, each of which counterparts shall be an original and all of which taken together shall constitute one and the same Amendment.  Delivery of this Amendment may be made by telecopy or electronic transmission of a duly executed counterpart copy hereof; provided that any such delivery by electronic transmission shall be effective only if transmitted in .pdf format, .tif format or other format in which the text is not readily modifiable by any recipient thereof.
		
	SECTION 10.
	Headings. 

Section and subsection headings in this Amendment are for convenience of reference only, and are not part of, and are not to be taken into consideration in interpreting, this Amendment.
		
	SECTION 11.
	FINAL AGREEMENT. 

THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
 [Remainder of Page Intentionally Left Blank; Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
HEARTLAND PAYMENT SYSTEMS, INC., 
a Delaware corporation, as Borrower 
 
 
By:          /s/ Maria Rueda                                      
Name:    Maria Rueda 
Title:    Chief Financial Officer

Signature Page to Amendment No. 2

JPMORGAN CHASE BANK, N.A., 
  as Administrative Agent and a Lender 
 
 
By:         /s/ Goh Siew Tan                     
Name:       Goh Siew Tan
Title:      Vice President

Signature Page to Amendment No. 2

KEYBANK NATIONAL ASSOCIATION, 
  as a Lender 
 
 
By:        /s/ Robert W. Boswell                    
Name:       Robert W. Boswell
Title:      Senior Vice President

Signature Page to Amendment No. 2

BANK OF AMERICA, N.A., 
  as a Lender 
 
 
By:        /s/ Laura H. McAulay               
Name:       Laura H. McAulay
Title:    Senior Vice President

Signature Page to Amendment No. 2

WELLS FARGO BANK, N.A., 
  as a Lender 
 
 
By:        /s/ James T. King               
Name:       James T. King
Title:    Senior Vice President

Signature Page to Amendment No. 2

SUNTRUST BANK, 
  as a Lender 
 
 
By:     /s/ David Bennett                    
Name:       David Bennett
Title:    Director

Signature Page to Amendment No. 2

THE BANK OF EAST ASIA, NEW YORK BRANCH, 
  as a Lender 
 
 
By:        /s/ James Hua                                        
Name:       James Hua
Title:    Senior Vice President

By:        /s/ Kitty Sin                                      
Name:    Kitty Sin
Title:    Senior Vice President

Signature Page to Amendment No. 2

Each of the undersigned, as Guarantors, hereby (a) acknowledges this Amendment, and (b) makes the representations, warranties, confirmations and agreements set forth in Sections 2, 5 and 6 of this Amendment.

THE HEARTLAND PAYROLL COMPANY, L.L.C.

By:            /s/ David Gilbert                                             
Name: David Gilbert
Title:   President

 
DEBITEK, INC. 

By:          /s/ Robert H. B. Baldwin, Jr.                         
Name: Robert H. B. Baldwin, Jr.
Title:   Vice Chairman

 
HEARTLAND ACQUISITION, LLC

By:          /s/ Robert H. B. Baldwin, Jr.                         
Name: Robert H. B. Baldwin, Jr.
Title:   Vice Chairman

Signature Page to Amendment No. 2ex10-1.htm

Exhibit 10.1

 

JOINT VENTURE AGREEMENT

 

 

THIS JOINT VENTURE AGREEMENT (the "Agreement") made and entered into this 24th day of June, 2013 (the "Execution Date")

 

BETWEEN

 

North Bay Resources Inc. (“North Bay”), a US corporation domiciled in Delaware and located at 2120 Bethel Road, Lansdale, PA 19446 USA

OF THE FIRST PART

and

Solid Holdings Ltd. (“Solid”), a Canadian corporation domiciled in British Columbia and located at PO Box 100, Houston, BC, V0J 1Z0  CANADA

OF THE SECOND PART

 

(individually the "Member" and collectively the "Members").

 

BACKGROUND:

 

	
A.  

	
The Members wish to enter into an association of mutual benefit and agree to jointly invest and set up a joint venture enterprise.

 

	
B.  

	
The terms and conditions of this Agreement sets out the terms and conditions governing this association.

 

IN CONSIDERATION OF and as a condition of the Members entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the parties to this Agreement agree as follows:

 

Formation

	
1.  

	
By this Agreement the Members enter into a joint venture (the "Venture", the "Joint Venture", or the “JV”) in accordance with the laws of the Province of British Columbia. The rights and obligations of the Members will be as stated in the applicable legislation of the Province of British Columbia (the 'Act') except as otherwise provided here.

	
  

	
Name

	
2.  

	
The business name of the Venture will be Fraser River Project JV.

 

	
  

	
Purpose

	
3.  

	
The exclusive purpose of the Venture will be: Mining operations at North Bay’s 100% owned Fraser River Property near Lytton BC, consisting of and registered as MTO Tenure numbers 545980, 572387, 575009, 941069, 955697, 1014530, 1014531, 1018498, 1018500, 1018502, 1018503, and 1018504 (the “JV Property”), and including any new tenures to be registered as a result of subdivision of portions of the JV Property.

 

  

  

  

 

Term

	
4.  

	
The Venture will begin as of the Execution Date of this Agreement and will continue to be effective and in full force for one (1) year or until terminated as provided in this Agreement or extended by mutual written agreement.  The Term shall automatically renew upon each anniversary of the Execution Date unless terminated by Solid upon sixty (60) days written notice.  North Bay shall have the right to termination upon sixty (60) days written notice in the event that no mining operations are conducted during any full calendar year in which valid mining permits have been issued and continue to be in effect, and during which time Force Majeure has not been declared.

	
  

	
Place of Business

	
5.  

	
The principal office and legal address of the business of the Venture will be located at 2120 Bethel Road, Lansdale, PA 19446 or such other place as the Members may from time to time designate.

 

	
  

	
Business Management

	
6.  

	
The Venture will be directed, controlled and managed by a management committee (the "Management Committee"). Within the limits of the Purpose of the Venture and the terms of this Agreement, the Management Committee will have full authority to bind the Members in all matters relating to the direction, control and management of the Venture. Authority to bind the Venture in contract or in any third party business relation lies exclusively with Management Committee, or its delegate.

 

	
7.  

	
Each Member will have a vote in the Management Committee as defined in the Voting section of this Agreement. The Management Committee will consist of one representative (the "Representative") of each Member unless otherwise agreed by all the Members. Each Representative will have the authority to bind their respective Member in decisions relating to the Venture. Each Member may replace its Representative or appoint a temporary alternate at its own discretion on reasonable notice to the remaining Members.

 

	
8.  

	
All actions and decisions respecting the appointment of an accounting firm for the Venture require the consent and agreement of not less than 100 percent of the Management Committee.

 

	
9.  

	
A General Manager may be appointed where necessary or desirable. The duties and responsibilities of the General Manager will be determined by the Management Committee.

 

	
  

	
Capital Contributions

	
10.  

	
Each of the Members has contributed to the capital of the Venture, in cash, stock, or property in agreed upon value, as follows (the "Capital Contribution"):

 

	
Member

	
Contribution Description

	
Agreed Value

	
North Bay Resources Inc.

	
JV Property for mining purposes, maintained in good standing, with all related and applicable mining rights and permits

	
TBD

	
Solid Holdings Ltd.

	
All equipment, processing and recovery facilities, labor, project management, reclamation, and all other activities and expenditures required to conduct mining operations on the JV Properties

	
TBD

 

  

  

  

 

	
11.  

	
JV Property (i.e. mining claims) contributed by North Bay shall remain the property of North Bay.  Mining equipment (i.e. Mining, Production and Refining equipment, etc.) contributed by Solid shall remain the property of Solid.  Any equipment purchased from Venture funds shall become the property of the Venture.

 

Joint Venture Interests

 

	
12.  

	
As of the Execution Date of this Agreement, North Bay and Solid are deemed to have the following Joint Venture Interests

 

	
Member

	
Joint Venture Interests

	
North Bay Resources Inc.

	
20% Net Smelter Royalty (“NSR”) as defined in Schedule A

	
Solid Holdings Ltd.

	
100% of all net profits after deduction for the NSR

  

  

  

Duties of Members

 

	
13.  

	
Each Member will be responsible for its respective duties as follows:

 

	
Member

	
Duties Description

	
North Bay Resources Inc.

	
No specific day-to-day duties   North Bay will have the right to have one or more representatives on-site, at its own expense.

	
Solid Holdings Ltd.

	
As the designated project operator, Solid shall be responsible for all operations on the JV Property, and for processing all material produced into saleable precious metal products.  All revenue from metal sales will be deposited into a designated bank account determined by the Management Committee for audit purposes. A chain of custody will be established to audit and verify metal shipments and payments.

	
14.  

	
Duties of Members may be amended, from time to time, by decision of the Management Committee, provided that the Members' Interests are not affected except with the unanimous consent of the Members.

Distributions

	
15.  

	
Distributions to North Bay for its NSR shall be made on a monthly basis.  Distributions to Solid on all net profits after the NSR is paid shall be made as Solid deems appropriate.

Withdrawal of Capital

	
16.  

	
The Members will not be personally liable for the return of all or part of the capital contributions of a Member, except as otherwise provided in this Agreement.

Capital Accounts/Bank Accounts

	
17.  

	
An individual capital account for each Member shall not be required, nor shall a joint bank account for JV expenditures will be required. Solid is solely responsible for all operations and expenditures, and accordingly Solid shall be free to manage JV operational cash flow as it deems appropriate, in its sole discretion.

Fiscal Year

	
18.  

	
The fiscal year will end on December 31st of each year.

	
  

	
Management Duties

 

	
19.  

	
Duties and obligations of the Management Committee in relation to the Venture will include the following:

 

	
a.  

	
Establishing policy with regard to achieving the purpose and objectives of the Venture.

	
b.  

	
Managing the day to day business of the Venture.

	
c.  

	
Monitoring, controlling and directing the financial, business and operational affairs of the Venture.

 

  

  

  

 

	
d.  

	
Proper maintenance of books of account and financial records according to accepted accounting practices.

	
e.  

	
Monitoring, analyzing and acting on all issues over which it would have express or implied authority according to this Agreement.

	
f.  

	
All responsibilities attached to hiring of production and administration staff including any required labor negotiations. All responsibilities attached to hiring of third party contractors.

 

The Operator

	
20.  

	
Upon the formation of the Venture, Solid Holdings Ltd. shall be the designated Operator.

Operator Powers and Obligations

	
21.  

	
Subject to the approval by the Management Committee, the powers and obligations of the Operator shall be as follows:

 

	
a)  

	
to manage the Venture and conduct, or cause to be conducted, all work performed in a good and workmanlike manner in accordance with good exploration, engineering, mining and accounting practice and in accordance with the terms of this Agreement;

 

	
b)  

	
to provide, purchase, lease or rent all plant, buildings, machinery, equipment, tools, appliances, materials, supplies and services required for the Venture and to dispose of the same when no longer required or useful for the purposes of the Venture;

 

	
c)  

	
to maintain and keep the Venture Assets, or to cause the Venture Assets to be maintained and kept, in good operating condition and repair in accordance with good exploration and mining practice;

 

	
d)  

	
to comply with all applicable statutes, regulations, by-laws, laws, orders and judgements and all directives, rules, consents, permits, orders, guidelines, approvals and policies of any applicable governmental authority affecting the Venture;

 

	
e)  

	
to obtain and maintain such types and levels of property and liability insurance with respect to the Venture as the Operator shall consider necessary from time to time, such coverage to include North Bay as a named insured to the extent of North Bay’s undivided interest in the Venture;

 

	
f)  

	
to require the Operator’s contractors and subcontractors to take out and maintain such types and levels of property and liability insurance as the Operator shall consider necessary or advisable from time to time;

 

	
g)  

	
to comply with the requirements of all applicable unemployment insurance and workers’ compensation legislation with respect to work or services to be provided, including any contractors or subcontractors;

 

  

  

  

 

	
h)  

	
to remain in compliance with all applicable Mine Health and Safety regulations, and to advise North Bay of any accident or occurrence resulting in any material damage to or destruction of any Venture Assets or material harm or injury to any individual;

 

	
i)  

	
to keep adequate data, information and records of the Operator’s management of the Venture and to keep suitable accounts which reflect all financial aspects of the Venture, and once per year to make such available to North Bay within 10 days of receipt of a written request for disclosure by North Bay, and to permit North Bay at reasonable times and upon notice in writing to the Operator to audit the Operator’s accounts and records relating exclusively to the operations of the Venture for any calendar year within 12 months following the end of such calendar year, at North Bay’s expense;

 

	
j)  

	
to provide North Bay with monthly reports on activities on the Venture during periods of active field work or when mine operations are active, quarterly reports and a detailed annual report on the Operator’s management of the Venture, including an accounting of all Expenditures made by the Operator on behalf of the Venture;

 

	
k)  

	
to have all powers necessary to carry out, or cause to be carried out, all of the Operator’s obligations set out in this Agreement and to otherwise carry out, or cause to be carried out, all activities approved by the Management Committee.

 

Emergencies

	
22.  

	
In an emergency, the Operator may take such immediate actions and make such immediate Expenditures as the Operator deems necessary to keep the Property in good standing or for the protection of individuals and/or property and/or the environment.  The Operator shall promptly report such emergency actions to North Bay.

 

Closure Fund

	
23.  

	
The Operator may establish and administer a closure fund to be applied by the Operator to satisfy any legal obligations of the Parties respecting a mine maintenance plan or mine closure plan, including obligations for severance pay, pensions, rehabilitation and reclamation work.  The Operator shall invest any unused portion of such fund and all income thereon shall accrue in such fund. If the Operator determines that such fund, or any portion thereof, is no longer necessary, the Operator shall make payments to the Parties in proportion to their contribution to such closure fund and their Joint Venture Interest.  Any reclamation bonds on deposit with the Province of British Columbia shall be refunded to the party who advanced the funds upon the release of the bonds should any surplus remain.

 

Meetings

	
24.  

	
Regular management meetings will be held as needed. Minutes of the meeting will be maintained on file.

 

  

  

  

 

	
25.  

	
Any Member can call a special meeting to resolve issues that require a vote, as indicated by this Agreement, by providing all Members with reasonable notice. Where a special meeting has been called, the meeting will be restricted to the specific purpose for which the meeting was held.

	
26.  

	
All meetings will be held at a time and in a location that is reasonable, convenient and practical considering the situation of all Members.

	
  

	
Amendments

	
27.  

	
This Agreement may not be amended in whole or in part without the unanimous written consent of the Members.

 

	
  

	
Admitting a New Member

	
28.  

	
New Members may be admitted into the Venture only with the unanimous consent of the existing Members. The new Member agrees to be bound by all the covenants, terms, and conditions of this Agreement, inclusive of all current and future amendments. Further, a new Member will execute such documents as are needed or required for this admission. Any new Member will receive a business interest in the Venture as determined by all other Members.

 

	
  

	
Dissociation of a Member

	
29.  

	
Where a Member is in breach of this Agreement and said Member has not remedied the breach on notice from the Venture and after a reasonable period then the remaining Members will have the right to terminate this Agreement with regard to the individual defaulting Member (an "Involuntary Withdrawal") and take whatever action necessary to protect the interests of the Venture.

 

	
30.  

	
If the Venture is harmed as the result of an act or failure to act of an individual Member then the said Member alone will be liable for said harm. If more than one Member is at fault then they will be jointly and severally liable for said harm.

 

	
31.  

	
Each Member will indemnify the other Members against all losses, costs and claims that may arise against them in the event of the Venture being terminated as a result of breach of the Agreement by the said Member.

 

	
32.  

	
If a Member is placed in bankruptcy, or withdraws voluntarily from the Venture, or if there is an Operation of Law against a Member, the other Members will be entitled to proceed as if the Member had breached this Agreement.

 

	
33.  

	
Distribution of any amount owing to a dissociated Member will be made according to the percentage of ownership as described in the Valuation of Interest or as otherwise may be agreed in writing.

 

	
  

	
Dissolution of the Joint Venture

	
34.  

	
The Venture will be dissolved and its assets liquidated in the event of any of the following:

 

  

  

  

 

	
a.  

	
The Term of the Venture expires and is not extended.

	
b.  

	
A 100 percent vote by the Members to dissolve the Venture.

	
c.  

	
On satisfaction of the exclusive purpose of the Venture.

	
d.  

	
Loss or incapacity through any means of substantially all of the Venture's assets.

	
e.  

	
Where, on the dissociation of a Member, only one Member remains in the Venture.

	
f.  

	
On the liquidation of the Venture assets, distribution of any amounts to Members will be made according to the percentage of ownership as described in the Valuation of Interest or as otherwise may be agreed in writing.

 

Liquidation

 

	
35.  

	
The Venture will be liquidated promptly and within a reasonable time on dissolution of the Venture.

 

	
  

	
Valuation of Interest

	
36.  

	
In the absence of a written agreement setting a value, the value of the Venture will be determined based on the fair market value appraisal of all Venture assets (less liabilities) in accordance with generally accepted accounting procedures by an independent accounting firm agreed to by all Members. An appraiser will be appointed within a reasonable period of the date of withdrawal or dissolution. The results of the appraisal will be binding on all Members. A withdrawing Member's interest will be based on the proportion of their respective Profit and Loss sharing ratios less any outstanding liabilities a Member may have to the Venture. The intent of this section is to ensure the survival of the Venture despite the withdrawal of any individual Member.

 

	
37.  

	
No allowance will be made for goodwill, trade name, patents or other intangible assets, except where those assets have been reflected on the Venture books immediately prior to valuation.

 

	
  

	
Transfer of Venture Interest

	
38.  

	
A Member will not in any way alienate their interest in the Venture or its assets. Any such prohibited transfer, if attempted, will be void and without force or effect.

 

	
  

	
Voting

	
39.  

	
Any vote required by the Members will be determined such that each Member, through their Representative, receives one vote carrying equal weight.

 

	
  

	
Force Majeure

	
40.  

	
A Member will be free of liability to the Venture where the Member is prevented from executing their obligations under this Agreement in whole or in part due to force majeure where the Member has communicated the circumstance of said event to any and all other Members and taken any and all appropriate action to mitigate said event. Force majeure will include, but not be limited to, earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event.

 

  

  

  

 

	
  

	
Duty of Loyalty

	
41.  

	
It is agreed that the Members to this Agreement and their respective affiliates may have interests in businesses other than the Joint Venture business. Neither the Venture nor any other Member will have any rights to the assets, income or profits of any such business, venture or transaction. Any and all businesses, ventures or transactions with any appearance of conflict of interest must be fully disclosed to all other Members. Failure to disclose any potential conflicts of interest will be deemed an Involuntary Withdrawal by the offending Member and may be treated accordingly by the remaining Members.

Right of First Refusal

	
42.  

	
It is agreed that North Bay shall extend to Solid the first right of refusal on any prospective mining project in British Columbia in which North Bay has a 100% undivided interest, where mining rights have not been assigned or optioned and thus 100% controlled by North Bay, where no previous obligation exists, and where new commercial metal recovery operations are under consideration by North Bay.

	
  

	
Language

	
43.  

	
This Agreement and all other notices and agreements required by the Venture will be written and interpreted exclusively in English.

 

	
  

	
Insurance

	
44.  

	
The Venture will insure all its assets against loss where reasonable and standard practice in the industry.

 

	
  

	
Indemnification

	
45.  

	
Each Member will be indemnified and held harmless by the Venture from any and all harm or damages of any nature relating to the Member's participation in Venture affairs except where the said harm or damages results from gross negligence or willful misconduct on the part of the Member.

 

	
  

	
Liability

	
46.  

	
The Member will not be liable to the Venture or to any other Member for any error in judgment or any act or failure to act where made in good faith. The Member will be liable only for any and all acts or failures to act resulting from gross negligence or willful misconduct.

 

	
  

	
Liability Insurance

	
47.  

	
The Venture may acquire insurance on behalf of any Member, employee, agent or other person engaged in the business interest of the Venture against any liability asserted against them or incurred by them while acting in good faith on behalf of the Venture.

 

	
  

	
Covenant of Good Faith

	
48.  

	
Members will use their best efforts, fairly and in good faith to facilitate the success of the Venture.

 

  

  

  

 

	
  

	
Full Disclosure

	
49.  

	
It is acknowledged that each Member is a distinct business entity and may from time to time have financial and business interests outside the Venture. Each Member will fully disclose to the Venture the extent of all its financial and business interests prior to the formation of this Joint Venture and for the duration of the Term of the Venture.

 

	
  

	
Joint Venture Property

	
50.  

	
Where allowed by statute, title to all Joint Venture property subsequently acquired pursuant to Section 11 of this agreement, will remain in the name of the Joint Venture. Where joint ventures are not recognized by statute as separate legal entities, Joint Venture property, including intellectual property, will be held in the name of one or more Members. In all cases Joint Venture property will be applied by the Members exclusively for the benefit and purposes of the Joint Venture and in accordance with this Agreement.

 

	
  

	
Jurisdiction

	
51.  

	
The Members submit to the jurisdiction of the courts of the Province of British Columbia for the enforcement of this Agreement or any arbitration award or decision arising from this Agreement.

 

	
  

	
Assignment of Interest

	
52.  

	
The rights and obligations of a Member are unique to the Joint Venture and may not be assigned without the expressed written consent of all remaining Members.

 

	
  

	
Mediation and Arbitration

	
53.  

	
In the event a dispute arises out of or in connection with this Agreement the parties will attempt to resolve the dispute through friendly consultation.

 

	
54.  

	
If the dispute is not resolved within a reasonable period, then any or all outstanding issues may be submitted to mediation in accordance with any statutory rules of mediation. If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration in accordance with the laws of the Province of British Columbia. The arbitrator's award will be final, and judgment may be entered upon it by any court having jurisdiction within the Province of British Columbia.

 

	
  

	
Warranties

	
55.  

	
All Members represent and warrant that they have all authority, licenses and permits to execute and perform this Agreement and their obligations under this Agreement and that the representative of each Member has been fully authorized to execute this Agreement.

 

	
56.  

	
Each Member represents and warrants that this Agreement is not in violation of any and all agreements and constitutional documents of the individual Member.

 

	
  

	
Definitions

	
57.  

	
For the purpose of this Agreement, the following terms are defined as follows:

	
a.  

	
"Capital Contributions" The capital contribution to the Joint Venture actually made by the parties, including property, stock, cash and any additional capital contributions made.

 

  

  

  

 

	
b.  

	
"Majority Vote" A Majority Vote is any amount greater than one-half of the authorized votes.

	
c.  

	
"Operation of Law" The Operation of Law means rights or duties that are cast upon a party by the law, without any act or agreement on the part of the individual including but not limited to an assignment for the benefit of creditors, a divorce, or a bankruptcy.

 

Miscellaneous

 

 

	
58.  

	
This Venture is termed a contractual joint venture and will not constitute a Partnership. Members will provide services to one another on an arms' length basis while remaining independent business entities. There will be no pooling of profits and losses. Each Member is responsible only for its own actions and will not be jointly or severally liable for the actions of the other Members.

 

	
59.  

	
Time is of the essence in this Agreement.

 

	
60.  

	
This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.

 

	
61.  

	
Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa. Words in the neuter gender include the masculine gender and the feminine gender and vice versa.

 

	
62.  

	
Each term, covenant, condition, and provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable law but if any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.

 

	
63.  

	
This Agreement contains the entire agreement between the parties. All negotiations and understandings have been included in this Agreement. Statements or representations which may have been made by any party to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value in this Agreement. Only the written terms of this Agreement will bind the parties.

 

	
64.  

	
This Agreement and the terms and conditions contained in this Agreement apply to and are binding upon the Member's successors, assigns, executors, administrators, beneficiaries, and representatives.

 

	
65.  

	
Any notices or delivery required here will be deemed completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the parties at the addresses contained in this Agreement or as the parties may later designate in writing.

 

  

  

  

 

	
66.  

	
Unless expressly provided to the contrary in this Agreement, each and every one of the rights, remedies and benefits provided by this Agreement will be cumulative and will not be exclusive of any other such rights, remedies and benefits allowed by law.

 

 

 

IN WITNESS WHEREOF the Members have duly affixed their signatures on this 24th day of June, 2013.

	  	
North Bay Resources Inc.

 

	
Per: /s/ Perry Leopold                                                    

	  	  
	
Perry Leopold, CEO

 

	  	
Solid Holdings Ltd.

 

	
Per: /s/ Stan Spletzer                                                      

	  	  

Stan Spletzer, President

  

  

  

 

SCHEDULE "A"

 

NET SMELTER RETURNS

 

For the purposes of this agreement, "net smelter returns" means the net amount shown due by the smelter or other place of sale, from the sale of mineral products, as indicated by its returns or settlement sheets, after payment of:

	
(a)  

	
all freight charges from the shipping point to the smelter or other place of sale;

	
(b)  

	
all other proper treatment or other charges at such smelter or other place of sale; and

	
(c)  

	
provincial or federal royalties due and payable on production, if any;

and the term "smelter" shall mean conventional smelters as well as any other type of production plant used in lieu of a conventional smelter to reduce ores or concentrates.

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