Exhibit 10.1

 

THIRD AMENDMENT TO THIRD
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Third
Amendment”), dated as of November 18, 2014, is by and among (i) HECLA MINING
COMPANY, a Delaware corporation, HECLA LIMITED, a Delaware corporation, 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 parties
identified as “Other Loan Parties” 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 Third Amended and Restated Credit Agreement, dated as
of February 14, 2014 (as amended, supplemented, amended and restated or
otherwise modified prior to the date hereof, the “Existing Credit Agreement”
and, as amended by this 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 Loan Parties 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 parties hereto desire to further amend the Existing Credit
Agreement in accordance with the terms hereof.

 

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 Third 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.

 

 
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“Third Amendment” is defined in the preamble.

 

“Third 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 Third 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 Third 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.

 

(a)     Amendment to Definition of Maturity Date. The definition of “Maturity
Date” in Section 1.1 of the Existing Credit Agreement is hereby amended and
restated in its entirety as follows:

 

“’Maturity Date’ means November 18, 2018.”

 

(b)     Amendment Adding Definition of Acceptable Credit Rating. Section 1.1 of
the Existing Credit Agreement is amended by adding the following definition, in
alphabetical order:

 

“’Acceptable Credit Rating’ means, in the case of Moody’s, a rating of A3 or
better; in the case of S&P, a rating of A- or better; or in the case of Fitch, a
rating of A- or better.”

 

(c)     Amendment to Section 6.7(b)(ii). Section 6.7(b)(ii) of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(ii) enter into any Hedging Agreement (A) which is margined or cash
collateralized, (B) with respect to which the obligations of such party are
secured by a Lien (other than a Lien securing Hedging Obligations (I) in favor
of a Lender, the Administrative Agent or an Affiliate of a Lender or the
Administrative Agent or (II) as permitted by Section 6.3(j)) on the property,
revenues or assets of such party, (C) with a counterparty (other than a Lender
or an Affiliate of a Lender) that has a combined capital and surplus of less
than $250,000,000, (D) with a counterparty (other than a Lender or an Affiliate
of a Lender) if such counterparty has a credit rating and, at the time such
Hedging Agreement is entered into, none of such ratings is an Acceptable Credit
Rating; or (E) for speculative purposes.”

 

 
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PART III

AFFIRMATION AND CONSENT

 

SUBPART 3.1 Affirmation and Consent. Each of the Loan Parties confirms that it
has received a copy of this Third 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 Third Amendment.

 

PART IV
CONDITIONS TO EFFECTIVENESS

 

 

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

 

SUBPART 4.2 Execution of Counterparts of Third Amendment. The Administrative
Agent shall have received counterparts satisfactory to the Administrative Agent
of this Third Amendment, which collectively shall have been duly executed on
behalf of each Borrower, each of the other Loan Parties 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
(and, to the extent any of such representations and warranties are qualified by
materiality in their own right, such representations and warranties shall be
true and correct in all respects) on and as of the Third Amendment Effective
Date.

 

SUBPART 4.4 Costs and Expenses, etc. The Administrative Agent shall have
received for its account and the account of each Lender, an amendment fee in the
amount of 20 bps for each Lender, and all fees, costs and expenses due and
payable pursuant to Section 9.3 of the Credit Agreement, if then invoiced, and
any and all other Loan Documents.

 

PART V
MISCELLANEOUS

 

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

 

SUBPART 5.2 Instrument Pursuant to Existing Credit Agreement. This Third
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 Third
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 Third Amendment.

 

 
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SUBPART 5.4 Representations and Warranties of the Loan Parties. Each Loan Party
hereby represents and warrants that (a) it has the requisite power and authority
to execute, deliver and perform this Third Amendment, (b) it is duly authorized
to, and has been authorized by all necessary action, to execute, deliver and
perform this Third Amendment, (c) the representations and warranties contained
in Article III of the Credit Agreement and applicable to such Loan Party are
true and correct in all material respects (and, to the extent any of such
representations and warranties are qualified by materiality in their own right,
such representations and warranties shall be true and correct in all 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 (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.

 

SUBPART 5.5 Counterparts. This Third 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 Third 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 Loan Party which
would require the consent of the Lenders under the Existing Credit Agreement or
any of the Loan Documents.

 

SUBPART 5.7 Governing Law. THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SUBPART 5.8 Successors and Assigns. This Third Amendment shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

* * * * *

 

 
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Each of the parties hereto has caused a counterpart of this Third 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:______________________________

      Name: James A. Sabala

      Title: Vice President & Treasurer

 

 

HECLA GREENS CREEK MINING COMPANY, a Delaware corporation

By:______________________________

      Name: James A. Sabala
      Title:   Vice President & Treasurer

 

  

HECLA JUNEAU MINING COMPANY,

a Delaware corporation

By:______________________________

      Name: James A. Sabala
      Title:   Vice President & Treasurer

 

HECLA MINING COMPANY,

a Delaware corporation

 

By:                                                                      
      Name: David C. Sienko

      Title: Vice President & General Counsel

    OTHER LOAN PARTIES: 

BURKE TRADING INC.,

a Delaware corporation

 

By:______________________________

Name: James A. Sabala
Title:   Vice President & Treasurer

 

 

 
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HECLA ADMIRALTY COMPANY,

a Delaware corporation

By:______________________________

Name: James A. Sabala
Title:   Vice President & Treasurer

 

HECLA LIMITED,

a Delaware corporation

By:______________________________

      Name: James A. Sabala
      Title: Vice President & Treasurer

 

Silver Hunter Mining Company,
a Delaware corporation

By:______________________________

      Name: James A. Sabala
      Title:   Vice President & Treasurer

 

 

RIO GRANDE SILVER, INC., a Delaware corporation

 

 

 

By:______________________________

      Name: James A. Sabala
      Title:   Vice President & Treasurer

 

 

RHL Holdings, Inc., a Delaware corporation

 

 

 

By:______________________________

      Name: Alan MacPhee
      Title: Vice President & Treasurer

 

 
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HECLA SILVER VALLEY, INC., a Delaware corporation

 

 

 

By:______________________________

      Name: James A. Sabala
      Title: Vice President & Treasurer

 

HECLA MC SUBSIDIARY, LLC,

a Delaware limited liability company

 

By:______________________________

      Name: Alan MacPhee

      Title: President

 

 
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THE BANK OF NOVA SCOTIA, as a Lender

 

 

 

By:______________________________
      Name: Ray Clarke

      Title:  Managing Director

 

 

By:______________________________
      Name: Bhiravi Ravichandran

      Title:   Associate Director

 

 
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ING CAPITAL LLC, as a Lender

 

By:______________________________
      Name: Remko van de Water

      Title: Director

 

By:______________________________
      Name: Richard Ennis

      Title: Managing Director