Document:

Exhibit 10.2 to Hecla Mining Company Form 8-K dated September 18, 2006

Exhibit 10.2 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT
AGREEMENT, dated as of September 18, 2006 (this “Amendment”), to the
Existing Credit Agreement (as defined below) is made by HECLA MINING COMPANY, a Delaware corporation (the “
Borrower”), and the Lenders (such capitalized term and other capitalized terms used in this
preamble and the recitals below to have the meanings set forth in, or are defined by reference in, Article I below).

W I T N E S S E T H:

WHEREAS, the Borrower, the
Lenders, The Bank of Nova Scotia, as the Administrative Agent, and N M Rothschild & Sons Limited, as Technical Agent, are all
parties to the Credit Agreement, dated as of September 12, 2005 (as amended 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 and restated or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, pursuant to Section 2.8
of the Credit Agreement, the Borrower has requested that the Lenders extend the Stated Maturity Date for a period of one year and
the Lenders are willing, on the terms and subject to the conditions hereinafter set forth, to provide such extension;
and

WHEREAS, the Borrower has requested that the Lenders amend certain other provisions of the Existing Credit Agreement and the Lenders are willing, on the terms and subject to the conditions hereinafter set forth, to modify the Existing Credit Agreement as set forth below;

NOW, THEREFORE, the parties hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

SECTION
1.1.   Certain Definitions.   The following terms
when used in this Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural
forms thereof):

“Amendment” is defined in the preamble.

“Amendment Effective Date” is defined in Article III.

“Borrower” is defined in the preamble.

“Credit Agreement” is defined in the first recital.

 

“Existing Credit Agreement” is defined in the first recital.

SECTION 1.2. Other Definitions. Terms for which meanings are provided in the Existing Credit Agreement are, unless otherwise defined herein or the context otherwise requires, used in this Amendment with such meanings.

ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

Effective on (and subject to the
occurrence of) the Amendment Effective Date, the provisions of the Existing Credit Agreement referred to below are hereby amended
in accordance with this Article II. 

SECTION
2.1.   Amendments to Section 1.1.   Section 1.1 of
the Existing Credit Agreement is hereby amended as follows:

(a)          The definition of “Adjusted EBITDA” is hereby amended by inserting the clause “but in an amount not to exceed $5,400,000 for Fiscal Year 2006 or $2,600,000 for Fiscal Year 2007” at the end of clause (b)(ii) of such definition. 

(b)          The definition of “Stated Maturity Date” is hereby amended by replacing the date “September 12, 2007” contained therein with “September 12, 2008”. 

SECTION
2.2.   Amendment to Section 7.2.5.   Clause (m) of
Section 7.2.5 of the Existing Credit Agreement is hereby amended by replacing the amount “$5,400,000” contained in
clause (ii) thereof with the amount “$15,000,000”. 

 

SECTION
2.3.   Amendment to Disclosure Schedule.   Item 6.8
of the Disclosure Schedule is hereby amended by supplementing the table therein with the Subsidiaries set forth on Annex I hereto. 

 

ARTICLE III

CONDITIONS TO EFFECTIVENESS

This Amendment and the amendments
contained herein shall become effective on the date (the “Amendment Effective Date”) when each of the conditions set forth in this Article III shall have
been fulfilled to the satisfaction of the Administrative Agent.

SECTION
3.1.   Counterparts.   The Administrative Agent shall
have received counterparts hereof executed on behalf of the Borrower and the Lenders. 

2 

SECTION
3.2.   Affirmation and Consent.   The Administrative
Agent shall have received, with counterparts for each Lender, a duly executed copy of an Affirmation and Consent, dated as of the
Amendment Effective Date, in form and substance satisfactory to the Administrative Agent, duly executed and delivered by each of
the Obligors (other than the Borrower).

SECTION
3.3.   Costs and Expenses, etc.   The Administrative
Agent shall have received for the account of each Lender, all fees, costs and expenses due and payable pursuant to Sections 2.8,
3.3 and 10.3 of the Credit Agreement, if then invoiced.

SECTION
3.4.   Satisfactory Legal Form.   The Administrative
Agent and its counsel shall have received all information, and such counterpart originals or such certified or other copies of
such materials, as the Administrative Agent or its counsel may reasonably request, and all legal matters incident to the
effectiveness of this Amendment shall be satisfactory to the Administrative Agent and its counsel. All documents executed or
submitted pursuant hereto or in connection herewith shall be reasonably satisfactory in form and substance to the Administrative
Agent and its counsel.

ARTICLE IV

MISCELLANEOUS

SECTION
4.1.   Cross-References.   References in this
Amendment to any Article or Section are, unless otherwise specified, to such Article or Section of this Amendment.

SECTION
4.2.   Loan Document Pursuant to Existing Credit Agreement.   This
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 all of the terms and provisions of the Existing Credit
Agreement, as amended hereby, including Article X thereof.

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

SECTION
4.4.   Counterparts.   This Amendment may be executed
by the parties hereto in several counterparts, each of which when executed and delivered shall be an original and all of which
shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION
4.5.   Governing Law.   THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

3 

SECTION
4.6.   Full Force and Effect; Limited Amendment.   Except as expressly amended 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.

SECTION
4.7.   Representations and Warranties.   In order to
induce the Lenders to execute and deliver this Amendment, the Borrower hereby represents and warrants to the Lenders, on the
Amendment Effective Date, both before and after giving effect to this Amendment, all statements set forth in Section 5.3.1 of the
Credit Agreement are true and correct as of such date, except to the extent that any such statement expressly relates to an
earlier date (in which case such statement was true and correct on and as of such earlier date).

 

IN WITNESS WHEREOF, the parties
hereto have executed and delivered this Amendment as of the date first above written.

 

	 	HECLA MINING COMPANY 
	 
	    	By:    	/s/   Lewis E. Walde 
	 	 	Name:   Lewis E. Walde
Title:     Chief Financial Officer 
	 

4 

	 	LENDERS:

THE BANK OF NOVA SCOTIA 
	 
	    	By:    	/s/   Ray Clarke 
	 	 	Title:     Director 
	 
	    	By:    	/s/   Bob Deol 
	 	 	Title:     Associate 
	 
	 
	 	N M ROTHSCHILD & SONS LIMITED 
	 
	    	By:    	/s/   N.A. Woods 
	 	 	Title:     Director 
	 
	    	By:    	/s/   George Pyper 
	 	 	Title:     Assistant Director 

5EXHIBIT 4.1  

AMENDED STOCK OPTION
PLAN 

1.    Purpose 

The purpose of the Amended Stock
Option Plan (the “Plan”) of ALAMOS GOLD INC., a corporation continued
under the Company Act (British Columbia) and transitioned under the Business
Corporations Act (British Columbia) (the “Corporation”) is to advance the
interests of the Corporation by encouraging the directors, officers, employees and
consultants of the Corporation, and of its subsidiaries and affiliates, to acquire shares
in the Corporation, thereby increasing their proprietary interest in the Corporation,
encouraging them to remain associated with the Corporation and furnishing them with
additional incentive in their efforts on behalf of the Corporation in the conduct of its
affairs. 

2.    Administration 

The Plan shall be administered by the
Board of Directors of the Corporation or by a committee of the directors appointed from
time to time by the Board of Directors of the Corporation pursuant to rules of procedure
fixed by the Board of Directors (such committee or, if no such committee is appointed, the
Board of Directors of the Corporation is hereinafter referred to as the
“Board”). A majority of the Board shall constitute a quorum, and the acts of a
majority of the directors present at any meeting at which a quorum is present, or acts
unanimously approved in writing, shall be the acts of the Board. 

Subject to the provisions of the
Plan, the Board shall have authority to construe and interpret the Plan and all option
agreements entered into thereunder, to define the terms used in the Plan and in all option
agreements entered into thereunder, to prescribe, amend and rescind rules and regulations
relating to the Plan and to make all other determinations necessary or advisable for the
administration of the Plan. All determinations and interpretations made by the Board shall
be binding and conclusive on all participants in the Plan and on their legal personal
representatives and beneficiaries. 

Each option granted hereunder may be
evidenced by an agreement in writing, signed on behalf of the Corporation and by the
optionee, in such form as the Board shall approve. Each such agreement shall recite that
it is subject to the provisions of this Plan. 

All options granted pursuant to this
Plan shall be subject to the approval of the TSX and any stock exchange or exchanges or
securities regulatory agency having jurisdiction in the circumstances (hereinafter
collectively referred to as, the “Exchange”). 

3.    Shares Subject to Plan 

Subject to adjustment as provided in
Section 14 hereof, the shares to be offered under the Plan shall consist of shares of the
Corporation’s authorized but unissued common shares. The aggregate number of shares
issuable upon the exercise of all options granted under the Plan shall not exceed 10% of
the issued and outstanding shares of the Corporation as at the date of grant of each
option under the Plan. If any option granted hereunder shall expire or terminate for any
reason in accordance with the terms of the Plan without being exercised, the un-purchased
shares subject thereto shall again be available for the purpose of this Plan. 

4.    Maintenance of
Sufficient Capital 

The Corporation shall at all times
during the term of the Plan reserve and keep available such numbers of shares as will be
sufficient to satisfy the requirements of the Plan. 

5.    Eligibility and
Participation 

Directors, officers, consultants, and
employees of the Corporation or its subsidiaries, and individuals of a person or
corporation providing ongoing management services to the Corporation or its subsidiaries
and affiliates shall be eligible for selection to participate in the Plan (such persons
hereinafter collectively referred to as “Participants”). Subject to compliance
with applicable requirements of the Exchange, Participants may elect to hold options
granted to them in an 

— 2 — 

incorporated entity wholly owned by
them and such entity shall be bound by the Plan in the same manner as if the options were
held by the Participant. 

Subject to the terms hereof, the
Board shall determine to whom options shall be granted, the terms and provisions of the
respective option agreements, the time or times at which such options shall be granted and
vested, and the number of shares to be subject to each option. 

An individual who has been granted an
option may, if he is otherwise eligible, and if permitted under the policies of the
Exchange, be granted an additional option or options if the Board shall so determine. 

6.    Exercise Price 

	  	(a)  	  	The
exercise price of the shares subject to each option shall be determined by
               the Board, subject to applicable Exchange approval, at the time any option
is                granted. In no event shall such price be lower than the price permitted
by the                Exchange.  

	  	(b)  	  	Once
the exercise price has been determined by the Board, accepted by the
               Exchange and the option has been granted, the exercise price of an option
may                only be reduced, in the case of options held by insiders of the
Corporation (as                defined by the Exchange), if disinterested shareholder
approval is obtained at a                meeting of the shareholders of the Corporation.  

7.    Number of Optioned
Shares 

The number of shares subject to an
option granted to any one Participant shall be determined by the Board subject to: 

	  	(a)  	  	the
number of securities issuable to insiders, at any time, under all security
               based compensation arrangements, cannot exceed 10% of issued and
outstanding                securities;  

	  	(b)  	  	the
number of securities issued to Insiders, (as defined in the policies of the
               TSX), as a group, pursuant to the exercise of options granted under the
Plan and                all other share compensation arrangements, in any one year
period, will not                exceed 10% of the issued and outstanding shares of the
Corporation; and  

	  	(c)  	  	no
Participant shall be granted an option in any 12-month period which exceeds
               5% of the number of issued shares of the Corporation.  

8.    Duration of Option 

Each option and all rights thereunder
shall be expressed to expire on the date set out in an option agreement with a Participant
and shall be subject to earlier termination as provided in Sections 10 and 11. 

Option Period,
Consideration and Payment 

	  	(a)  	  	The
option period shall be a period of time fixed by the Board not to exceed a
               maximum of 10 years, provided that the option period shall be reduced with
               respect to any option as provided in Sections 10 and 11 covering cessation
as a                director, officer, consultant or employee of the Corporation or its
               subsidiaries, or death of the Participant.  

	  	(b)  	  	Except
as set forth in Sections 10 and 11, no option may be exercised unless the
               Participant is at the time of such exercise a director, officer,
consultant, or                employee of the Corporation or any of its subsidiaries or
affiliates.  

	  	(c)  	  	The
exercise of any option will be contingent upon receipt by the Corporation at
               its head office of a written notice of exercise, specifying the number of
common                shares with respect to which the option  

— 3 — 

	  	
is
being exercised, accompanied by cash payment, certified cheque or bank draft for the full
purchase price of such common shares with respect to which the option is exercised. No
Participant or his legal representatives, legatees or distributees will be, or will be
deemed to be, a holder of any shares subject to an option under this Plan, unless and
until the certificates for such shares are issued to him or them under the terms of the
Plan. 

9.    Ceasing To Be a
Director, Officer, Consultant or Employee 

If a Participant shall cease to be a
director, officer, consultant or employee of the Corporation or its subsidiaries or
affiliates for any reason (other than death), he may exercise his option to the extent
that he was entitled to exercise it at the date of such cessation as set out in an option
agreement with such Participant, or if there is none, no later than the first to occur of
the expiry date of the option and 90 days after the date of such cessation as a director,
officer, consultant or employee of the Corporation or its subsidiaries or affiliates
subject to any restrictions under applicable Exchange policies and rules. 

Nothing contained in the Plan, nor in
any option granted pursuant to the Plan, shall as such confer upon any Participant any
right with respect to continuance as a director, officer, consultant or employee of the
Corporation or of any of its subsidiaries or its affiliates. 

10.    Death of Participant 

In the event of the death of a
Participant, the option previously granted to him shall be exercisable only within the one
(1) year after such death and then only: 

	  	(a)  	  	by
the person or persons to whom the Participant’s rights under the option
               shall pass by the Participant’s will or the laws of descent and
               distribution; and  

	  	(b)  	  	if
and to the extent that he was entitled to exercise the Option at the date of
               his death.  

11.    Rights of Optionee 

No person entitled to exercise any
option granted under the Plan shall have any of the rights or privileges of a shareholder
of the Corporation in respect of any shares issuable upon exercise of such option until
certificates representing such shares shall have been issued and delivered. 

12.    Proceeds from Sale
of Shares 

The proceeds from sale of shares
issued upon the exercise of options shall be added to the general funds of the Corporation
and shall thereafter be used from time to time for such corporate purposes as the Board
may determine. 

13.    Adjustments 

If the outstanding shares of the
Corporation are increased, decreased, changed into or exchanged for a different number or
kind of shares of securities of the Corporation through re-organization, merger,
re-capitalization, re-classification, stock dividend, subdivision or consolidation, an
appropriate and proportionate adjustment shall be made by the Board in its discretion in
the number or kind of shares optioned and the exercise price per share, as regards
previously granted and unexercised options or portions thereof, and as regards options
which may be granted subsequent to any such change in the Corporation’s capital. 

Upon the liquidation or dissolution
of the Corporation or upon a re-organization, merger or consolidation of the Corporation
with one or more corporations as a result of which the Corporation is not the surviving
corporation, or upon the sale of substantially all of the property or more than eighty
(80%) percent of the then outstanding shares of the Corporation to another corporation,
the Plan shall terminate, and any options theretofore granted hereunder shall terminate
unless provision is made in writing in connection with such transaction for the
continuance of the Plan and for 

— 4 — 

the assumption of options theretofore
granted, or the substitution for such options of new options covering the shares of a
successor employer corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to number and kind of shares and exercise prices, in which event the Plan
and options theretofore granted shall continue in the manner and upon the terms so
provided. If the Plan and unexercised options shall terminate pursuant to the foregoing
sentence, the shares subject to all options granted shall immediately vest and all
Participants then entitled to exercise any unexercised portion of options then outstanding
shall have the right at such time immediately prior to consummation of the event which
results in the termination of the Plan as the Corporation shall designate, to exercise
their options to the full extent not theretofore exercised. 

Adjustments under this Section shall
be made by the Board whose determination as to what adjustments shall be made, and the
extent thereof, shall be final, binding and conclusive. No fractional share shall be
required to be issued under the Plan on any such adjustment. 

Amendments to stock options held by
insiders will be subject to regulatory and disinterested shareholder approval prior to the
exercise of the option. 

14.    Transferability 

All benefits, rights and options
accruing to any Participant in accordance with the terms and conditions of the Plan shall
not be transferable or assignable unless specifically provided herein or the extent, if
any, permitted by the Exchange. During the lifetime of a Participant any benefits, rights
and options may only be exercised by the Participant. 

15.    Amendment and
Termination of Plan 

Subject to applicable approval of the
Exchange, the Board may, at any time, suspend or terminate the Plan. Subject to applicable
approval of the Exchange, the Board may also at any time amend or revise the terms of the
Plan, provided that no such amendment or revision shall alter the terms of any options
theretofore granted under the Plan. 

16.    Necessary Approvals 

The ability of a Participant to
exercise options and the obligation of the Corporation to issue and deliver shares in
accordance with the Plan is subject to any approvals which may be required from
shareholders of the Corporation and any regulatory authority or Exchange having
jurisdiction over the securities of the Corporation. If any shares cannot be issued to any
Participant for whatever reason, the obligation of the Corporation to issue such shares
shall terminate and any option exercise price paid to the Corporation will be returned to
the Participant. 

17.    Effective Date of
Plan 

The Plan has been adopted by the
Board of the Corporation subject to the approval of the Exchange and, if so approved, the
Plan shall become effective upon such approvals being obtained. 

18.    Interpretation 

The Plan will be governed by and
construed in accordance with the laws of the Province of British Columbia. 

MADE by the Board of Directors
of the Corporation as evidenced by the signature of the following senior officer duly
authorized in that behalf effective the 10th day of March, 2005. 

ALAMOS GOLD INC. 

           /s/
Jon Morda 

Per:   ______________________________

            Jon Morda,
Chief Financial Officer

ALAMOS GOLD INC. 

Addendum to 

Amended Stock Option
Plan

(the “Addendum”) 

The Amended Stock Option Plan
(Rolling) of Alamos Gold Inc. (the “Corporation”) made effective March 10, 2005
(the “Plan”) is hereby amended by the provisions set out below which are
incorporated into and form a part of the Plan. 

All capitalized terms used and not
otherwise defined in this Addendum have the meanings attributed to them in Plan.  

	1.  	  	Section
7 of the Plan is hereby amended by adding the following Subsection 7(c):  

	  	“ 7(c)	  	
                Notwithstanding anything contained in Plan to the contrary, the
exercise price                of shares subject to each option granted shall be at or
above 100% of the                closing trading price of the Corporation’s common
shares listed on the                Exchange at the particular time of grant.” 

	2. 	  	Section
6 of the Plan is hereby amended by adding the following paragraph at the           end of
Section 6:  

	  	
“ Notwithstanding
anything contained in Plan to the contrary, each option granted to non-employee directors
of the Corporation shall be approved by the Corporation’s Compensation Committee and
may be automatically granted at certain intervals based on a set formula that shall be
determined by or otherwise approved by the Corporation’s Compensation Committee.” 

In all other respects the Plan shall
remain amended and in full force and effect. 

MADE by the Board of Directors
of the Corporation as evidenced by the signature of the following senior officer duly
authorized in that behalf effective the 17th day of May, 2006. 

ALAMOS GOLD INC. 

           /s/
Jon Morda 

Per:   ______________________________

            Jon Morda,
Chief Financial Officer

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