EXHIBIT 10.1

 

Amendment No. 12

to

Credit Agreement

dated as of March 1, 1998

between

MK RESOURCES COMPANY, as Borrower

and

LEUCADIA NATIONAL CORPORATION, as Lender

 

This Amendment No. 12 (this “Amendment”) dated as of March 4, 2005 hereby amends
the Credit Agreement (as defined below), between MK RESOURCES COMPANY (formerly
MK Gold Company), a Delaware corporation (“Borrower”), and LEUCADIA NATIONAL
CORPORATION, a New York corporation (“Lender”).

 

W I T N E S S E T H

 

WHEREAS, Borrower and Lender are parties to a Credit Agreement dated as of March
1, 1998 (as amended by Amendment Nos. 1 through 11 thereto and as further
amended by this Amendment, the “Credit Agreement”), which provides for loans
from Lender to Borrower of up to an aggregate principal amount of $75,000,000;

 

WHEREAS, Borrower requests that Lender increase the principal amount of the
Loans under the Credit Agreement by $5,000,000 to an aggregate principal amount
of up to $80,000,000;

 

WHEREAS, Borrower requests that Lender extend the Termination Date of the Credit
Agreement from January 3, 2006 to January 3, 2007;

 

WHEREAS, as a condition to this Amendment, Lender has requested certain
modifications to the debt to equity conversion provisions of the Credit
Agreement and requested that Borrower grant Lender a security interest in 65% of
the outstanding voting stock of MK Gold Exploration B.V., a Netherlands private
company with limited liability; and

 

WHEREAS, the parties desire to amend the Credit Agreement to, among other
things, increase the principal amount of the Loan, extend the Termination Date,
modify the debt to equity conversion provisions and provide for the grant of a
security interest to Lender.

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NOW, THEREFORE, for good and valuable consideration, the receipt of which is
hereby acknowledged, and subject to the fulfillment of the conditions set forth
below, Borrower and Lender agree as follows:

 

1. Amendments.

 

(a) As of the Effective Date, the definition of “Commitment” is hereby amended
in its entirety to read as follows:

 

“Commitment” means the aggregate commitment of Lender to make Loans, which
aggregate commitment shall be $80,000,000 until the Termination Date, as such
amount may be reduced from time to time in accordance with the Agreement.”

 

(b) As of the Effective Date, the definition of “Termination Date” is hereby
amended in its entirety to read as follows:

 

“Termination Date” shall mean January 3, 2007, or such earlier date as may be
determined in accordance with subsection 2.1(e).”

 

(c) As of the Effective Date, the following definition is inserted in the
appropriate alphabetical order:

 

“Amendment No. 12” means the Amendment No. 12 dated as of March 4, 2005 to the
Agreement.

 

(d) As of the Effective Date, the definition of “Underwriting Agreement” is
hereby amended in its entirety to read as follows:

 

“Underwriting Agreement” means an underwriting agreement to be entered into
among Borrower and CIBC World Markets Corp (or any other Managing Underwriter or
Underwriters selected by Borrower) and the other underwriters to be named in a
schedule thereto with respect to a public offering of shares of Common Stock.

 

(e) As of the Effective Date, Subsection 2.1(d) “Note” is hereby amended in its
entirety to read as follows:

 

“Loans made by Lender shall be evidenced by a promissory note to be executed and
delivered by Borrower. In connection with Amendment No. 12, Borrower shall
deliver to Lender an executed promissory note in the form of Exhibit A to
Amendment No. 12, and Lender shall return to Borrower the executed promissory
note dated as of October 13, 2004. From and after the effective date of
Amendment No. 12, the promissory note delivered by Borrower in connection with
Amendment No. 12 shall constitute the “Note” for purposes of the Agreement. The
Note shall be payable to the order of Lender and shall represent the obligation
of Borrower to pay the amount of the Commitment or, if less, the aggregate
unpaid principal amount of all Loans made by Lender to Borrower with interest
thereon as provided in subsection 2.2. The date and amount of each Loan and each
payment of principal with respect thereto shall be recorded on the books and
records of Lender, which books and records shall constitute prima facie evidence
of the accuracy of the information therein recorded. The entire unpaid balance
of the Loans shall be due and payable on the Termination Date.”

 

(f) As of the Effective Date, Section 2.6(b) “Optional Conversion” is hereby
amended in its entirety to read as follows:

 

“Optional Conversion. In the event that Borrower withdraws the filing of its
registration statement no. 333-116344 with the SEC, Lender shall have the option
to convert the outstanding Loans into shares of Common Stock at a conversion
price equal to $1.30 per share (the “Conversion Price”).”

 

2

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(g) As of the Effective Date, the following is added after Section 2.6 “Debt to
Equity Conversion”:

 

“2.7 Dutch Agreement and Deed of Pledge. All outstanding Loans by Lender shall
be secured by a perfected first priority security interest in 65% of the issued
and outstanding stock of MK Gold Exploration B.V. In connection with Amendment
No. 12, Borrower and Lender shall enter into an executed Dutch Agreement and
Deed of Pledge in the form of Exhibit B to Amendment No. 12, and shall take all
actions necessary to grant and perfect the security interest contemplated by
this Section 2.7.”

 

2. No Other Amendments. Except as otherwise provided in this Amendment No. 12,
the Credit Agreement is not amended, changed or modified and the Credit
Agreement remains in full force and effect.

 

3. Effective Date. The effective date of this Amendment No. 12 shall be as of
March 4, 2005 (the “Effective Date”).

 

4. Counterparts. This Amendment No. 12 may be executed in two or more
counterparts, each of which when so executed and delivered shall be deemed an
original and all of which taken together shall constitute one and the same
instrument.

 

3

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 12 to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

 

Borrower:

MK RESOURCES COMPANY

By:

 

/s/ John Farmer

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Name:

 

John Farmer

Title:

 

CFO

 

Lender:

LEUCADIA NATIONAL CORPORATION

By:

 

/s/ Joseph A. Orlando

--------------------------------------------------------------------------------

Name:

 

Joseph A. Orlando

Title:

 

Vice President

 

4

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Exhibit A

 

MK RESOURCES COMPANY

 

PROMISSORY NOTE

 

U.S. $80,000,000

  New York, New York     March 4, 2005

 

FOR VALUE RECEIVED, MK RESOURCES COMPANY, a Delaware corporation (“Borrower”),
promises to pay to the order of LEUCADIA NATIONAL CORPORATION, a New York
corporation (“Payee”), on or before the Termination Date (as defined in the
Credit Agreement referred to below) the lesser of (x) EIGHTY MILLION DOLLARS
($80,000,000) and (y) the unpaid principal amount of all Loans made by Payee to
Borrower under the Credit Agreement referred to below.

 

Borrower also promises to pay interest on the unpaid principal amount hereof,
from the date hereof until paid in full, at the rates and at the times provided
by that certain Credit Agreement, dated as of March 1, 1998, between Borrower
and Payee (as amended to date and as it may be further amended, the “Credit
Agreement”). Capitalized terms used herein and not defined have the meanings
assigned to them in the Credit Agreement.

 

This Note is Borrower’s “Note” and is issued pursuant to and entitled to the
benefits of the Credit Agreement, to which reference is hereby made for a more
complete statement of the terms and conditions under which the Loans evidenced
hereby were made and are to be repaid.

 

All payments of principal and interest in respect of this Note shall be made in
lawful money of the United States of America in immediately available funds at
the location designated by Payee.

 

Whenever any payment on this Note shall be stated to be due on a day which is
not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of the
payment of interest on this Note.

 

This Note is subject to prepayment at the option of Borrower as provided in
subsection 2.4(a)(i) of the Credit Agreement.

 

Upon the occurrence of an Event of Default, the unpaid balance of the principal
amount of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

A-1

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IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed and
delivered by its officer thereunto duly authorized as of the date and at the
place first written above.

 

MK RESOURCES COMPANY

By:

 

 

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Name:

   

Title:

   

 

 

A-2

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Exhibit B

 

[Form of Pledge and Security Agreement]

 

B-1