Document:

ex10-1.htm

Exhibit 10.1

PROMISSORY NOTE

(Wayne, Pennsylvania)

	
$30,000.00

	
March 16, 2010

 

The undersigned, Ascend Acquisition Corp., a Delaware corporation (hereinafter called "Maker" or the “Corporation”), whose address for purposes hereof is 435 Devon Park Drive, Bldg. 700, Wayne, PA 19087, for value received, without grace, in the manner, on the dates and in the amounts herein stipulated, promises to pay to Don K. Rice (hereinafter called "Payee"), at 435 Devon Park Drive, Bldg. 700, Wayne, PA 19087, or at such other place as Payee may hereafter designate, the sum of THIRTY THOUSAND DOLLARS ($30,000.00), in lawful money of the United States of America, with interest at the rate herein specified.

SECTION 1.  INTEREST ACCRUAL.  The unpaid principal amount from time to time outstanding hereunder shall bear interest from and after the date hereof until such amount is paid in full at a fixed rate per annum equal FIVE PERCENT (5%).  Interest on this Note shall be computed on the basis of a 365-day year for the actual number of days elapsed.

SECTION 2.  PAYMENT OBLIGATION AND PREPAYMENT.  The unpaid principal balance of this Note with all accrued but unpaid interest thereon shall be due and payable in full on DEMAND, or in the event there is no demand, on or before midnight on fifth annual anniversary of the date of this Note (the “Maturity Date”).

The principal amount of this Note and all accrued interest thereon may be prepaid in cash at any time.  Any payment shall be applied first, to accrued interest, and second, to principal.  No further interest will accrue on the portion of this Note to be prepaid from and after the date fixed for prepayment if payment of the prepayment amount has been made or duly provided for.

At any time prior to the Maturity Date and prior to payment or redemption of this Note, and, in the event that the Corporation elects to redeem or pay this Note prior to maturity, within ten days after Payee’s receipt of any redemption or prepayment notice, Payee may at his sole discretion convert the entire principal amount of this Note, or any portion thereof, together with accrued and unpaid interest, if any, into shares of common stock of the Corporation (“Common Stock”) at the conversion price as defined in section 3.5 below, subject to adjustments as described below (the “Conversion Price”).  The right to convert this Note by Payee after it is called for redemption will terminate at the close of the tenth day following receipt by Payee of a redemption notice; provided that such period for Conversion may be extended by the Corporation at its sole and absolute discretion.

SECTION 3.  CONVERSION.

3.1      Conversion. On a date (the "Conversion Date") on which any amount remains outstanding on this Note and on which Payee gives to Maker written notice that Payee wishes for the entire principal amount of this Note, or any portion thereof, together with accrued and unpaid interest, if any, to be converted into Maker’s Common, this Note shall, without any action required on the part of either Maker or Payee, automatically convert into, and Payee shall be entitled to receive in lieu of payment of the indebtedness evidenced hereby, a number of shares of Common Stock equal to the quotient of (a) a sum equal to the outstanding principal amount of and accrued interest on this Note that Maker desires to so convert, divided by (b) the "Conversion Price" (as defined in Section 3.5 below) in effect at the Conversion Date.

  

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3.2      Issuance of Certificates. As promptly after the Conversion Date as reasonably practicable and after Payee’s surrender of this Note marked "Cancelled", Maker shall instruct its transfer agent to issue and deliver to Payee at the address of Payee set forth above, without any charge to Payee, a certificate or certificates (issued in the name of Payee) for the number of full shares of Common Stock of Maker issuable upon the conversion of this Note.

3.3      Status on Conversion. Upon conversion of this Note, Payee shall be deemed to have become the stockholder of record of the shares of Common Stock into which this Note is converted on the Conversion Date (unless the transfer books of Maker are closed on that date, in which event Payee shall be deemed to have become the stockholder of record on the next succeeding day on which the transfer books are open and the conversion shall be at the rate in effect on such date).

3.4      Elimination of Fractional Interests. No fractional shares of Common Stock shall be issued upon conversion of this Note, nor shall Maker be required to pay cash in lieu of fractional interests, it being the intent of the parties that all fractional interests shall be eliminated and that all issuances of Common Stock shall be rounded up to the nearest whole share.

3.5      Conversion Price.

(a)      The initial Conversion Price of this Note shall be $0.06.

(b)      The Conversion Price shall be adjusted from time to time as follows: if Maker shall at any time after the date hereof (i) issue any shares of Common Stock by way of a dividend or other distribution on any stock of Maker and without consideration, or (ii) subdivide or combine its outstanding shares of Common Stock, the Conversion Price shall be adjusted (to the nearest full cent) by multiplying (x) the Conversion Price in effect immediately prior to the adjustment by (y) a fraction, the numerator of which is the total number of shares of Common Stock outstanding immediately before the issuance of shares, and the denominator of which is the total number of shares of Common Stock outstanding immediately after such issuance or sale.  For the purposes of any computation to be made in accordance with this Section 3, shares of Common Stock issuable by way of dividend or other distribution on any stock of Maker shall be deemed to have been issued immediately after the opening of business on the day following the record date for the determination of stockholders entitled to receive such dividend or other distribution.

3.6      Effect of Reclassification, Consolidation, Merger, etc.  In case of the reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from no par value to par value or vice versa, or as a result of a subdivision or combination), or in the case of any consolidation or merger of Maker with or into a corporation (other than a consolidation or merger into which Maker is the surviving corporation and which does not result in any reclassification or change of outstanding shares of Common Stock except a change as a result of a subdivision or combination of such shares or a change in par value as described above), or in the case of a sale or conveyance to another corporation of all or substantially all of the assets of Maker, this Note shall be converted on the Conversion Date into the kind and number of shares of stock and/or other securities or property receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock into which this Note might have been converted immediately before the time of determination of the stockholders of Maker entitled to receive such shares of stock and/or other securities or property. Maker shall be obligated to retain and set aside, or otherwise make fair provision for exercise of the right of Payee to receive, the shares of stock and/or other securities or property provided for in this Section 3.6.

  

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3.7      Certificate Concerning Adjusted Conversion Price. Whenever the Conversion Price is adjusted pursuant to this Section 3, Maker promptly shall: (i) place on file at its principal executive office an officer's certificate signed by the chief financial officer or controller of Maker showing in appropriate detail the facts requiring such adjustment, the computation thereof, and the adjusted Conversion Price, and shall exhibit the certificate from time to time to Payee of this Note if Payee desires to inspect the same; and (ii) mail or cause to be mailed to Payee, in the manner provided for giving notice pursuant to this Note, a notice stating that such adjustment has been made and setting forth the adjusted Conversion Price.

 

3.8      Reservation and Listing of Shares for Issuance. Maker shall reserve and keep available out of its authorized and unissued shares of Common Stock, for the purpose of effecting the conversion of this Note, such number of its duly authorized shares as shall from time to time be sufficient to effect the conversion of this Note. Maker covenants that all shares of Common Stock issued upon conversion of this Note in compliance with the terms hereof will be duly and validly issued and fully paid and non-assessable.  As long as this Note shall be outstanding, Maker shall use its reasonable best efforts to cause all shares of Common Stock issuable upon conversion of this Note to be listed (subject to official notice of issuance) on all securities exchanges on which the Common Stock is then listed, if any.

 

3.9      Investment Intent, Restrictions on Transfer, Legends etc. Payee acknowledges that this Note and the Common Stock to be issued upon conversion have not been registered under the Securities Act of 1933, as now in force or hereafter amended, or any successor legislation (the "Act"), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Note or any Common Stock issued upon conversion in the absence of (i) an effective registration statement under the Act as to this Note or the Common Stock and registration or qualification of this Note or the Common Stock under any applicable blue sky or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to Maker, that such registration and qualification are not required.  Without limiting the generality of the foregoing, unless the offering and sale of Common Stock issued upon conversion to be issued shall have been effectively registered under the Act, Maker shall be under no obligation to issue the shares covered by such conversion unless and until Payee shall have executed an investment letter in form and substance satisfactory to Maker, including a warranty at the time of such exercise that he is acquiring such shares for his own account, for investment and not with a view to, or for sale in connection with, the distribution of any such shares, in which event Payee shall be bound by the provisions of a legend to such effect on the certificate(s) representing Common Stock to be issued upon conversion.  In addition, without limiting the generality of the foregoing, Maker may delay issuance of Common Stock to be issued upon conversion until completion of any action or obtaining of any consent, which Maker believes necessary or advisable under any applicable law (including without limitation state securities or "blue sky" laws).

  

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SECTION 4. DEFAULTS AND REMEDIES.

Time is of the essence concerning this Note.  If this Note is not timely paid at maturity, then Payee may institute in any court of competent jurisdiction an action for collection.  In such event, Maker agrees to pay all expenses incurred, including reasonable attorneys' fees, all of which shall become a part of the principal hereof.

Maker and each and all other liable parties expressly and specifically, (i) severally waive grace, presentment for payment, demand for payment, notice of intent to accelerate and notice of acceleration, notice of dishonor, protest and notice of protest, notice of nonpayment, and any and all other notices, the filing of suit and diligence in collecting this Note or enforcing any of the security herefor, (ii) severally agree to any substitution, subordination, exchange or release of any security held for the payment of this Note or any other obligation to Payee and release of any party primarily or secondarily liable hereon, (iii) severally agree that Payee shall not be required first to institute suit or exhaust Payee's remedies hereon against Maker or other parties liable hereon or to enforce Payee's rights against them or any security herefor in order to enforce payment of this Note by any of them, and (iv) severally agree to any extension or postponement of time of payment of this Note and to any other indulgence with respect hereto without notice thereof to any of them.

SECTION 5. MISCELLANEOUS.

The invalidity, or unenforceability in particular circumstances, of any provision of this Note shall not extend beyond such provision or such circumstances and no other provision of this Note shall be affected thereby.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

IN WITNESS WHEREOF, the undersigned has set his hand hereunto as of as of the day and year first above written.

                                                      ASCEND ACQUISITION CORP.                                                                                     

By:_______________________________________

  Don K. Rice, Chief Executive Officer

 

 

 

4ex10-1.htm

Exhibit 10.1

 

FIRST AMENDMENT TO SECOND

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “First Amendment”), dated as of March 12, 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, supplemented, amended and restated or otherwise modified prior to the date hereof, the “Existing Credit Agreement” and, as amended by this First 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 First 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 First 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.

 

  

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“Existing Credit Agreement” is defined in the recitals.

 

“Lenders” is defined in the preamble.

 

“First Amendment” is defined in the preamble.

 

“First 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 First 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 First 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 “Applicable Margin” to read as follows:

 

“Applicable Margin” means (x) 3.00% per annum with respect to Base Rate Loans, and (y) 4.00% per annum with respect to LIBO Rate Loans.

 

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

 

“First Amendment” means the First Amendment to Credit Agreement, dated as of March 12, 2010, among the Borrowers and the Lenders party thereto.

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

 

(c)           by amending and restating clause (e) of the definition “Indebtedness” to read as follows:

 

(e)           Hedging Obligations (provided that, solely for purposes of calculating the Leverage Ratio, the amount of any Hedging Obligations shall be the negative mark-to-market amounts (on a net basis) of Hedging Obligations for which an early termination event has occurred and the Parent or a Subsidiary thereof is the defaulting party or an affected party).

 

(d)           by amending and restating the definition of “Stated Maturity Date” to read as follows:

 

“Stated Maturity Date” means, with respect to all Loans, March 12, 2013.

 

  

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SUBPART 2.2   Amendment to Section 1.3.  Section 1.3 of the Existing Credit Agreement is hereby amended by inserting the following clause (e) immediately following clause (d) contained therein:

 

(e)  References to early termination event, termination event, termination value, defaulting party and affected party in the definition of Indebtedness, Section 8.1.5(b) or otherwise in this Credit Agreement when referring to Hedging Obligations shall have the meanings attributed to them in the ISDA Master Agreement under which such Hedging Obligations arise (or, if such terms are not used in such ISDA Master Agreement or such Hedging Obligations do not arise under an ISDA Master Agreement, such replacement or similar terms as are used in such ISDA Master Agreement or other agreement under which such Hedging Obligations arise).

 

SUBPART 2.3   Amendment to Section 3.3.2.  Section 3.3.2 of the Existing Credit Agreement is hereby amended by deleting the text “2.40%” contained therein and inserting text “1.40%” in lieu thereof.

 

PART III

AFFIRMATION AND CONSENT

 

SUBPART 3.1   Affirmation and Consent.  Each of the Obligors confirms that it has received a copy of this First 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 First Amendment.

 

PART IV

CONDITIONS TO EFFECTIVENESS

 

SUBPART 4.1   Amendment Effective Date.  This First Amendment shall be and become effective as of the date hereof (the “First 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 First Amendment.  The Administrative Agent shall have received counterparts satisfactory to the Administrative Agent of this First 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 First Amendment Effective Date.

 

PART V

MISCELLANEOUS

 

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

 

  

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SUBPART 5.2   Instrument Pursuant to Existing Credit Agreement.  This First 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 First 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 First 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 First Amendment, (b) it is duly authorized to, and has been authorized by all necessary action, to execute, deliver and perform this First 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.

 

SUBPART 5.5   Counterparts.  This First 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 First 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   Governing Law. THIS FIRST 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 First 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 First 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/ Ronald W. Clayton	 
	 	 	Name: Ronald W. Clayton	 
	 	 	Title: President, Hecla Limited	 
	 	 	 	 

	 	 	 
	 	
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: Sr. Vice President & CFO	 
	 	 	 	 

	 	 	 
	 	
BURKE TRADING INC.,

a Delaware corporation

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Ronald W. Clayton	 
	 	 	Name: Ronald W. Clayton	 
	 	 	Title:Vice President	 
	 	 	 	 

 

  

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HECLA ADMIRALTY COMPANY,

a Delaware corporation

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

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

	 	
HECLA LIMITED,

a Delaware corporation

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Ronald W. Clayton	 
	 	 	Name: Ronald W. Clayton	 
	 	 	Title: President	 
	 	 	 	 

 

  

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	 	THE BANK OF NOVA SCOTIA, as a Lender	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Ray Clarke	 
	 	 	Name: Ray Clarke	 
	 	 	Title: Managing Directors	 
	 	 	 	 

	 	 	 	 
	
 

	
By: 

	/s/ Bob Deoi	 
	 	 	Name: Bob Deoi	 
	 	 	Title: Associate Director	 
	 	 	 	 

 

  

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ING CAPITAL LLC, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Remko van de Water	 
	 	 	Name: Remko van de Water	 
	 	 	Title: Director	 
	 	 	 	 

 

 

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