Document:

ex_185105.htm

Exhibit 10.1

 

FOURTH AMENDMENT TO FIFTH

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Fourth Amendment”), dated as of February 7, 2020, 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, (iii) each of the banks and other financial institutions identified as “Lenders” on the signature pages hereto (the “Lenders”), and (iv) THE BANK OF NOVA SCOTIA, as the administrative agent for the Lenders (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Fifth Amended and Restated Credit Agreement, dated as of July 16, 2018 (as amended by that First Amendment dated as of May 8, 2019, that Second Amendment dated as of July 15, 2019, that Third Amendment dated as of August 23, 2019, and as further amended, supplemented, amended and restated or otherwise modified prior to the date hereof, the “Existing Credit Agreement” and, as amended by this Fourth 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 Administrative Agent, the Lenders have made commitments to extend certain credit facilities to the Borrowers.

 

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 Fourth 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.

 

“Fourth Amendment” is defined in the preamble.

 

 

 

 

“Fourth Amendment Effective Date” is defined in Subpart 4.1.

 

“Lenders” is defined in the preamble.

 

SUBPART 1.2    Other Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Fourth 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 Fourth 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. Effective as of the Fourth Amendment Effective Date (as defined below) Section 1.1 of the Existing Credit Agreement is hereby amended as follows:

 

(a)     Amendment to Section 1.1. Section 1.1 of the Existing Credit Agreement is hereby amended as follows:

 

(i)      by adding the following defined terms therein in the appropriate alphabetical order:

 

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

 

“Covered Entity” means any of the following:

 

(i)       a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

(ii)      a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

(iii)     a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Covered Party” is defined in Section 9.21.

 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

 

“Fourth Amendment” shall mean that certain Fourth Amendment to Fifth Amended and Restated Credit Agreement dated February 7, 2020, by and among the Borrowers, the other Loan Parties party thereto, the Lenders and the Administrative Agent.

 

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“Fourth Amendment Effective Date” shall mean the effectiveness date of the Fourth Amendment.

 

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

 

“QFC Credit Support” is defined in Section 9.21.

 

“Successful New Senior Notes Issuance” means the incurrence of Indebtedness pursuant to Section 6.2(u) in an amount of not less than $400,000,000, the proceeds of which are used solely to Refinance in whole or in part the Senior Notes Indebtedness and to pay cost of issuance of such Indebtedness, including underwriter’s discount.

 

“Supported QFC” is defined in Section 9.21.

 

“Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrowers or any Subsidiaries shall be a Swap Agreement.

 

“U.S. Special Resolution Regimes” is defined in Section 9.21.

 

(ii) by amending the definitions of “Commitment”, “Maturity Date”, “Secured Debt”, “Senior Notes Refinancing”, “Total Debt” and “Total Net Leverage Ratio” therein to read as follows:

 

“Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.4. Effective as of the Effective Date, the initial amount of each Lender’s Commitment is set forth on Part A of Schedule 2.1, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable; provided however, commencing with (a) the Fourth Amendment Effective Date and prior to the earlier of (i) the date on which the Senior Notes Refinancing shall be consummated or (ii) the Revolver Increase Date, the amount of each Lender’s Commitment shall be as set forth on Part B of Schedule 2.1, and (b) the earlier of (i) the date on which the Senior Notes Refinancing shall be consummated or (ii) the Revolver Increase Date, the amount of each Lender’s Commitment shall be as set forth on Part A of Schedule 2.1.

 

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“Maturity Date” means February 7, 2023; provided that if as of the Springing Maturity Date the Parent has not consummated the Senior Notes Refinancing, the “Maturity Date” shall mean the Springing Maturing Date.

 

“Secured Debt” means, at any time, the outstanding principal amount of all Indebtedness of the Parent and its Subsidiaries secured by Liens on any property of any Loan Party (exclusive of Senior Notes Indebtedness secured on a first-priority basis by any restricted cash and Cash Equivalent Investment deposit in an amount not exceeding the amount of such restricted cash and Cash Equivalent Investment deposit).

 

“Senior Notes Refinancing” means either (i) the repayment in full of the Senior Notes Indebtedness or (ii) the deposit of cash and Cash Equivalent Investments with the trustee for the Senior Notes Indebtedness in an amount, either in gross or after giving effect to any investment income, that is sufficient to repay in full the Senior Notes Indebtedness.

 

“Total Debt” means, at any time, the outstanding principal amount of all Indebtedness of the Parent and its Subsidiaries of the type referred to in clause (a), clause (b), clause (c), clause (e), clause (f) (other than Earn-out Obligations (A) that have not been reduced to a fixed amount or (B) to the extent such obligations may, in accordance with their terms, be satisfied at the sole option of the obligor thereof at any time regardless of the happening of any event by the delivery of Equity Interests (other than Redeemable Capital Securities) of the Parent), clause (g) and clause (h), in each case of the definition of “Indebtedness” (exclusive of (i)  Indebtedness secured on a first-priority basis by any restricted cash deposit in an amount not exceeding the amount of such restricted cash deposit, (ii) Senior Notes Indebtedness secured on a first-priority basis by any restricted Cash Equivalent Investment deposit in an amount not exceeding the amount of such restricted Cash Equivalent Investment deposit and (iii) to the extent constituting Indebtedness, Designated Preferred Stock) and any Contingent Liability (including for the benefit of third parties) in respect of any of the foregoing.

 

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“Total Net Leverage Ratio” means, as of the last day of any Fiscal Quarter, the ratio of:

 

(a) (i) Total Debt outstanding on the last day of such Fiscal Quarter (calculated without giving effect to any reclamation related bonds in the aggregate equal to or less than $65 million), less (ii) the amount of unencumbered cash then held by the Parent and its Subsidiaries (provided, that if the aggregate principal amount of Indebtedness outstanding under Section 6.2(u) at such time equals or exceeds $550,000,000, the amount of unencumbered cash for purposes of this clause (a)(ii) shall not exceed $50,000,000), to

 

(b) EBITDA computed for the period consisting of such Fiscal Quarter and each of the three immediately preceding Fiscal Quarters.

 

(iii) by deleting the definitions of “Convertible Net Cash Proceeds”, “Permitted Bond Hedge Transaction” and “Permitted Warrant Transaction” therein in their entirety;

 

(iv)     by amending and restating clause (c) of the definition of “Change in Control” to read as follows:

 

“(c) the occurrence of any “Change in Control” (or similar term) under (and as defined in) any Subordinated Debt Document or Designated Preferred Stock Document or the Senior Notes Documents or the documents evidencing Indebtedness incurred under Section 6.2(u) (including in any document evidencing the Refinancing thereof); or”

 

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

 

“(e)     to the extent deducted in determining Net Income, any fees, costs and expenses paid by the Borrowers in respect of the Klondex Related Transactions and the issuance of Indebtedness permitted under Section 6.2(u) and the purchase and redemption of the Aurizon Acquisition Notes.”

 

(b)     Amendment to Section 2.1. Section 2.1 of the Existing Credit Agreement is hereby amended by amending and restating the last sentence thereof to read as follows:

 

“As of the Fourth Amendment Effective Date and until the earlier of (i) the date on which the Senior Notes Refinancing shall be consummated or (ii) the Revolver Increase Date, the aggregate Commitment amount shall be equal to $150,000,000.”

 

(c)     Amendment to Section 2.6(b). Section 2.6(b) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

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“(b)     The Borrowers may, at any time, reduce or terminate the Commitments or may terminate or reduce the Commitments that would be available on the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date; provided, that each partial reduction of the Commitments and Commitments that would be available on the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date shall be in a minimum aggregate amount of $1,000,000 or in an integral multiple of $500,000 in excess thereof.”

 

(d)     Amendment to Section 2.9(a). Section 2.9(a) of the Existing Credit Agreement is hereby amended by replacing the text “the Revolver Increase Date” therein with “the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date”.

 

(e)     Amendment to Section 3.32(b). Section 3.32(b) of the Existing Credit Agreement is hereby amended by replacing the text “July __, 2018” therein with “July 16, 2018”.

 

(f)     Amendment to Section 5.1(s). Section 5.1(s) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(s) upon the occurrence thereof, notice of the occurrence of a Successful New Senior Notes Issuance and the Senior Notes Refinancing.”

 

(g)     Amendment to Section 4.3. Section 4.3 of the Existing Credit Agreement is hereby amended by replacing the text “Prior to October 31, 2018, the” therein with “The”.

 

(h)     Amendment to Section 5.8. Section 5.8 of the Existing Credit Agreement is hereby amended by amending and restating the first sentence thereof to read as follows:

 

“The proceeds of the Loans shall be used only for the purposes of (a) repaying any outstanding Obligations (as defined in the Existing Credit Agreement) on the Effective Date, and (b) for the general working capital and corporate purposes of the Parent and its Subsidiaries; provided that, proceeds of the Loans in an aggregate amount not to exceed $100,000,000 may be used on or before August 7, 2020 to refinance any outstanding Senior Notes Indebtedness so long as, immediately after giving effect to the making of such Loans, a Successful New Senior Notes Issuance and the Senior Notes Refinancing shall each be consummated.”

 

(i)      Amendment to Section 6.1(b). Section 6.1(b) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

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“(b)     Total Net Leverage Ratio. The Loan Parties shall not permit the Total Net Leverage Ratio:

 

(i)     as of the last day of the Fiscal Quarter ending December 31, 2019, and calculated for the period of four consecutive Fiscal Quarters ending on such date, to be greater than 6.00:1.00;

 

(ii)     as of the last day of any Fiscal Quarter ending on or after March 31, 2020 but on or prior to June 30, 2020, and calculated for the period of four consecutive Fiscal Quarters ending on such date, to be greater than 4.25:1.00; and

 

(iii)     as of the last day of any Fiscal Quarter ending September 30, 2020 and thereafter, and calculated for the period of four consecutive Fiscal Quarters ending on such date, to be greater than 4.00:1.00.”

 

(j)     Amendment to Section 6.2(e). Section 6.2(e) of the Existing Credit Agreement is hereby amended by replacing all references to “the Revolver Increase Date” therein with “the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date”.

 

(k)     Amendment to Section 6.2(k). Section 6.2(k) of the Existing Credit Agreement is hereby amended by replacing the text “the Revolver Increase Date” therein with “the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date”.

 

(l)      Amendment to Section 6.2(s). Section 6.2(s) of the Existing Credit Agreement is hereby amended by deleting the text “including without limitation, the Aurizon Acquisition Notes,” therein.

 

(m)     Amendment to Section 6.2(u). Section 6.2(u) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(u)     Indebtedness of the Parent consisting of senior unsecured notes issued in one or more series from time to time in an aggregate principal amount not to exceed $650,000,000 at any time outstanding, having a maturity date no earlier than February 7, 2025, having terms that are substantially consistent with then prevailing market terms for senior unsecured notes for issuers similar to the Parent, having financial covenants or ratios (to the extent that they are maintenance covenants) that are no more restrictive than those set forth in Section 6.1, and which does not require any scheduled payment or repayment within one year following the Maturity Date at the time of issuance, together with the Guarantees issued in connection therewith (together with any Refinancing), provided that such Indebtedness, shall not, in whole or in part, (a) upon the happening of an event or passage of time mature or be required to be redeemed or required to be repurchased (for consideration other than shares of common stock of the Parent) on or prior to the one-year anniversary of the Maturity Date (at the time the notes are issued), except to the extent such mandatory redemption is required pursuant to a customary asset disposition or change of control provision which expressly provides that all indebtedness that may be required to be redeemed or prepaid on account of the relevant asset disposition or change of control shall have been redeemed or prepaid prior to, or simultaneous with, any such redemption of such Indebtedness, (b) be redeemable at the option of the holder thereof (for consideration other than shares of common stock of the Parent) at any time prior to such date or (c) be convertible into or exchangeable for Indebtedness or other debt securities of the Parent or any of its Subsidiaries at any time prior to such anniversary;”

 

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(n)     Amendment to Section 6.2(v). Section 6.2(v) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(v)     [Reserved];”

 

(o)     Amendment to Section 6.2(w). Section 6.2(w) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(w)     [Reserved]; and”

 

(p)     Additional Amendment to Section 6.2. The proviso at the end of Section 6.2 of the Existing Credit Agreement is hereby amended by replacing the text “, (u), (v) and (w)” in clause (i) thereof with “and (u)”, by deleting the text “and (v)” in clause (ix) thereof, by deleting the term “and” at the end of clause (ix) thereof and by adding the following text at the end thereof:

 

“, and (xi) if the aggregate principal amount of Indebtedness outstanding under subsection (u) above exceeds $600,000,000, the aggregate Commitments shall be automatically reduced by an amount equal to (x) the aggregate principal amount of Indebtedness outstanding under subsection (u) above minus $600,000,000, which reduction shall be made ratably among the Lenders in accordance with their respective applicable Commitments”.

 

(q)     Amendment to Section 6.8. Section 6.8 of the Existing Credit Agreement is hereby amended by adding the term “and” at the end of clause (k) thereof, by replacing the semicolon at the end of clause (l) thereof with a period, by deleting clause (m) thereof in its entirety, and by replacing the text “the Revolver Increase Date” in the last sentence thereof with “the earlier of the consummation of the Senior Notes Refinancing or the Revolver Increase Date”.

 

(r)     Amendment to Section 6.12(f). Section 6.12(f) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(f)     the Senior Notes Documents or other documents evidencing Indebtedness incurred under Section 6.2(u), other than any amendment, supplement, waiver or modification which (i) extends the date or reduces the amount of any required repayment, prepayment or redemption of the principal of such Indebtedness, (ii) reduces the rate or extends the date for payment of the interest, premium (if any) or fees payable on such Indebtedness or (iii) makes the covenants, events of default or remedies in such Senior Notes Documents less restrictive on the Parent or any of its Subsidiaries.”

 

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(s)     Amendment to Section 6.14.     Section 6.14 of the Existing Credit Agreement is hereby amended by deleting the text “Section 6.2(v), Section 6.2(w),” in clause (c) thereof and deleting the text “, Section 6(v), Section 6.2(w)” in the proviso at the end thereof.

 

(t)     Amendment to Section 6.15. Section 6.15 of the Existing Credit Agreement is hereby amended by adding the following text at the end of clause (b) thereof: “, except to the extent permitted under Section 5.8”.

 

(u)     Amendment to Section 6.16. Section 6.16 of the Existing Credit Agreement is hereby amended by adding the term “or” at the end of clause (c) thereof and deleting the following text in its entirety: “, or (e) the issuance of Parent’s common stock in settlement of the Permitted Warrant Transaction”.

 

(v)     Amendment to Section 6.18(b). Section 6.18(b) of the Existing Credit Agreement is hereby amended by replacing the text “, (u), (v) or (w)” therein with “or (u)”.

 

(w)     Amendment to Section 6.18(d). Section 6.18(d) of the Existing Credit Agreement is hereby amended by replacing the text “, (u), (v) and (w)” therein with “and (u)”.

 

(x)     Amendment to Section 6.19(b). Section 6.19(b) of the Existing Credit Agreement is hereby amended by replacing the text “, (u), (v) or (w)” therein with “or (u)”.

 

(y)     Amendment to Article IX.     Article IX of the Existing Credit Agreement is hereby amended by adding a new Section 9.21 therein to read as follows:

 

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“SECTION 9.21     Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Agreements or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

 

In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.”

 

(z)     Amendment to Schedule 9.1. Schedule 9.1 of the Existing Credit Agreement is hereby amended and restated in its entirety with Annex A attached hereto.

 

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 Fourth 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 Fourth Amendment.

 

PART IV

CONDITIONS TO EFFECTIVENESS

 

SUBPART 4.1      Amendment Effective Date. This Fourth Amendment shall be and become effective as of the date (the “Fourth 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 Fourth Amendment. The Administrative Agent shall have received counterparts satisfactory to the Administrative Agent of this Fourth Amendment, which collectively shall have been duly executed on behalf of each Borrower, each of the other Loan Parties, each Lender and the Administrative Agent.

 

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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 Fourth 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, all fees, costs and expenses due and payable pursuant to that certain Fee Letter dated as of the date hereof by and among the Borrowers, the Administrative Agent and the Lenders, and Section 9.3 of the Credit Agreement, if then invoiced, or any other Loan Document.

 

PART V

MISCELLANEOUS

 

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

 

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

 

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 Fourth Amendment, (b) it is duly authorized to, and has been authorized by all necessary action, to execute, deliver and perform this Fourth 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 Fourth 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 Fourth Amendment by telecopy or other electronic transmission shall be effective as an original and shall constitute a representation that an original will be delivered.

 

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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 FOURTH 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 Fourth 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 Fourth 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 Mining Company,

			        its Managing Member

			

			

			By:./s/Philips S. Baker, Jr.                                                     

			     Philips S. Baker, Jr.

			     President & CEO of Managing

			     Member

			
	 	 
	 	
			HECLA GREENS CREEK MINING 

			COMPANY, a Delaware corporation

			
	 	 
	 	 
	 	
			By: /s/ Lauren M Roberts                                                      

			      Lauren M. Roberts

			      Vice President

			 

			 

			HECLA JUNEAU MINING COMPANY,

			a Delaware corporation

			 

			

			By: /s/ Lauren M Roberts                                                      

			      Lauren M. Roberts

			      Vice President

			 

			HECLA LIMITED,

			a Delaware corporation

			

			

			By: /s/ Lauren M Roberts                                                      

			      Lauren M. Roberts

			      President

			 

			HECLA MINING COMPANY,

			a Delaware corporation

			 

			By:./s/Philips S. Baker, Jr.                                                     

			      Philips S. Baker, Jr.

			      President & CEO

			

                   

Fourth Amendment

 

 

 

 

	OTHER LOAN PARTIES:	 
	 	 
	 	
			BURKE TRADING INC., 

			a Delaware corporation

			
	 	 
	 	 
	 	
			By: /s/ Lauren M Roberts                                                    

			Lauren M. Roberts

			President

			 

			HECLA ADMIRALTY COMPANY,

			a Delaware corporation

			

			

			By: /s/ Lauren M Roberts                                                    

			Lauren M. Roberts

			President

			 

			Silver Hunter Mining Company,

			a Delaware corporation

			

	
			 

				
			 

			
	 	 
	 	
			By: /s/ Lauren M Roberts                                                      

			Lauren M. Roberts 

			President

			
	 	 
	 	RIO GRANDE SILVER, INC.,

			a Delaware corporation
	 	 
	 	 
	 	
			By: /s/ Lauren M Roberts                                                      

			Lauren M. Roberts 

			President

			
	 	 
	 	HECLA SILVER VALLEY, INC.,

			a Delaware corporation
	 	 
	 	 
	 	
			By: /s/ Lauren M Roberts                                                      

			Lauren M. Roberts 

			President

			

 

Fourth Amendment

 

 

 

 

	 	
			HECLA MC SUBSIDIARY, LLC,

			a Delaware limited liability company

			

			

			By:/s/Daniel A. Nelson                                                      

			      Daniel A. Nelson

			      President

			 

			HECLA MONTANA, INC.,

			a Delaware corporation

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President

			 

			REVETT SILVER COMPANY,

			a Montana corporation

			 

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President & CEO

			 

			TROY MINE INC.,

			a Montana corporation

			 

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President

			

 

Fourth Amendment

 

 

 

 

	 	
			RC RESOURCES, INC.,

			a Montana corporation

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President

			 

			REVETT EXPLORATION, INC.,

			a Montana corporation

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President

			 

			REVETT HOLDINGS, INC.,

			a Montana corporation

			

			

			By:/s/Luther J. Russell                                                       

			      Luther J. Russell

			      President

			 

			MINES MANAGEMENT, INC.,

			an Idaho corporation

			

			

			By:/s/Kurt Allen                                                                 

			      Kurt Allen

			      President

			 

			NEWHI, INC.,

			a Washington corporation

			

			

			By:/s/Kurt Allen                                                                 

			      Kurt Allen

			      President

			

 

Fourth Amendment

 

 

 

 

	 	
			MONTANORE MINERALS CORP.,

			a Delaware corporation

			

			

			By:/s/Kurt Allen                                                         

			      Kurt Allen

			      President

			 

			KLONDEX HOLDINGS (usa) iNC., a Nevada 

			corporation

			 

			By: /s/ Lauren M Roberts                                                    

			      Lauren M. Roberts

			      President

			 

			klondex gold & silver mining 

			coMPANY, a Nevada corporation

			 

			By: /s/ Lauren M Roberts                                                    

			     Lauren M. Roberts

			     President

			 

			KLONDEX MIDAS holdings limited, , a 

			Nevada corporation

			 

			 

			By: /s/ Lauren M Roberts                                                    

			     Lauren M. Roberts

			     President

			 

			klondex midas operations inc.,

			a Nevada corporation

			 

			 

			By: /s/ Lauren M Roberts                                                    

			     Lauren M. Roberts

			     President

			 

			klondex aurora mine inc., 

			a Nevada corporation

			 

			 

			By: /s/ Lauren M Roberts                                                    

			     Lauren M. Roberts

			     President

			

 

Fourth Amendment

 

 

 

 

	 	
			klondex hollister mine inc.,

			a Nevada corporation

			 

			 

			By: /s/ Lauren M Roberts                                                    

			     Lauren M. Roberts

			     President

			 

			HECLA QUEBEC INC./HECLA QUÉBEC 

			INC., a Canadian federal corporation

			 

			By: /s/ Lauren M Roberts                                                   

			     Lauren M. Roberts

			     President

			

 

Fourth Amendment

 

 

 

 

	ADMINISTRATIVE AGENT:	THE BANK OF NOVA SCOTIA, 
	 	as Administrative Agent
	 	 
	 	 
	 	
			By:/s/Clement Yu                                                               

			     Name: Clement Yu

			     Title: Director

			 

			 

			 

			By:/s/Ryan Moonilal                                                          

			      Name: Ryan Moonilal

			      Title: Analyst

			

     

Fourth Amendment

 

 

 

 

	LENDERS: 	THE BANK OF NOVA SCOTIA, 
	 	as a Lender
	 	 
	 	 
	 	
			By:/s/Kurt Foellmer                                                           

			     Name: Kurt Foellmer

			     Title: Director

			 

			 

			 

			By:/s/Stephen MacNeil                                                      

			      Name: Stephen MacNeil

			      Title: Director

			

    Fourth Amendment

 

 

 

 

	 	
			ING CAPITAL LLC, as a Lender

			

			

			By:/s/Remko van de Water                                                

			     Name: Remko van de Water

			     Title: Managing Director

			

			

			By:/s/Brian Gorski                                                             

			     Name: Brian Gorski

			     Title: Vice President

			

 

  Fourth Amendment

 

 

 

 

	 	
			Canadian Imperial Bank of Commerce, 

			as a Lender

			

			

			By:/s/Jens Paterson                                                             

			     Name: Jens Paterson

			     Title: Executive Director

			

			

			By:/s/Kazim Mehdi                                                            

			     Name: Kazim Mehdi

			     Title: Executive Director

			

 

   Fourth Amendment

 

 

 

 

	 	
			JPMorgan Chase Bank, N. A.,

			as a Lender

			 

			 

			By:/s/James Shender                                                          

			     Name: James Shender

			     Title: Executive Director

			

 

Fourth Amendment

 

 

 

 

Annex A

SCHEDULE 9.1

 

 

LIBOR OFFICE; DOMESTIC OFFICE; CONTACT INFORMATION

 

The Bank of Nova Scotia (as Administrative Agent, Issuing Bank, Co-Lead Arranger, Co-Bookrunner and Lender) shall be contacted as follows:

 

 

	
			Contact for notices:

				
			Contact for Administration and Operational Matters:

			
	 	 
	
			Attn: Director & Head of Agency Services

			 

			The Bank of Nova Scotia

			Corporate Banking – Global Loan Syndications

			40 King Street West

			Scotia Plaza, 62nd Floor

			Toronto, Ontario

			M5W 2X6

			Canada

			 

			Email: agency.services@scotiabank.com

			 

			With a copy to:

			 

			Stephen MacNeil

			Kurt Foellmer

			 

			The Bank of Nova Scotia

			Corporate Banking – Global Loan Syndications

			40 King Street West

			Scotia Plaza, 62nd Floor

			Toronto, Ontario

			M5W 2X6

			Canada

			 

			Tel.Nos.: (416) 866-6788

			                (604) 601-1556

			 

			Email:

			           stephen.macneil@scotiabank.com

			           kurt.foellmer@scotiabank.com

				
			Attn: Senior Manager

			 

			The Bank of Nova Scotia

			720 King Street West

			2nd Floor

			Toronto, Ontario

			M5V 2T3

			Canada

			 

			Email: GWSLoanOps.CdnAgency@scotiabank.com

			

 

Schedule 9.1-1

 

 

ING Capital LLC (as Co-Lead Arranger, Co-Bookrunner and Lender) shall be contacted as follows:

 

	 	
			Contact for notices:

			
	 	 
	 	
			Remko van de Water/James Gordon

			 

			ING Capital LLC

			1133 Avenue of the Americas

			New York, NY 10019

			 

			Tel. Nos: (646) 424-6084

			                (646) 424-6913

			 

			Fax No.: (646) 424-7484

			 

			Emails: remko.van.de.water@ ing.com 

			              james.gordon@ing.com  

			

 

Schedule 9.1-2

 

 

Canadian Imperial Bank of Commerce (as Co-Lead Arranger, Co-Bookrunner and Lender) shall be contacted as follows:

 

	
			Contact for notices:

				
			Contact for Administration and Operational Matters:

			
	 	 
	
			Jens Paterson

			CIBC

			161 Bay Street, 8th Floor

			Toronto, ON

			M5J 2S8

			 

			Email: Jens.paterson@cibc.com

			Tel. No.: (416) 594-8316

			 

			Ian Curry

			CIBC

			161 Bay Street

			Toronto, ON

			M5J 2S8

			 

			Email: Ian.curry@cibc.com

			Tel. No.: (416) 248-3409

				
			Karin Kinch

			CIBC

			595 Bay Street, 5th Floor

			Toronto, ON

			M5G 2C2

			 

			Email: Karin.kinch@cibc.com

			Tel. No.: (416) 980-5855

			 

			Lili Hagoriles

			CIBC

			595 Bay Street, 5th Floor

			Toronto, ON

			M5G 2C2

			 

			Email: Lili.hagoriles@cibc.ca

			Tel. No.: (416) 542-4525

			Fax: (416) 980-5855

			
	 	 

Schedule 9.1-3

 

 

The Borrowers shall be contacted as follows:

 

	
			Names of Borrowers:

				
			Notice Address of each Borrower:

			
	 	 
	
			Hecla Mining Company

			Hecla Limited

			Hecla Alaska, LLC

			Hecla Greens Creek Mining Company

			Hecla Juneau Mining Company

				
			6500 N. Mineral Drive, Suite 200

			Coeur d'Alene, ID 83815-9408

			 

			Attention: Lindsay Hall, Chief Financial Officer

			                  and

			                  Russel Lawlar, Treasury Manager,

			                  Hecla Limited

			 

			Phone:       (208) 769-4102

			 

			Email: LHall@hecla-mining.com

			            rlawlar@hecla-mining.com

			 

			with copies to:

			 

			6500 N. Mineral Drive, Suite 200

			Coeur d'Alene, ID 83815-9408

			 

			Attention:David C. Sienko – Vice President & General Counsel

			 

			Fax: 208-209-1278

			 

			Email: DSienko@hecla-mining.com

			

 

Schedule 9.1-4Exhibit

Exhibit 10.1

    
March 5, 2018

Raina Moskowitz 
[Delivered electronically]

Dear Raina,

Congratulations! We are thrilled to offer you a full-time position at Etsy (technically, at Etsy, Inc.). This letter details the terms of the offer. Please read it carefully and, if you accept, sign and date this letter and the attached Confidentiality and Prior Inventions Agreement (which we refer to in this offer letter as the CPIA).  Your employment will begin on or around April 10, 2018 (“Start Date”). You will be a Senior Vice President and your exact title will be mutually agreed upon between you and Etsy. In your role, you will oversee:

		
	•
	Etsy’s annual strategic planning process and advise on strategic matters (based on strategy designed and determined by the full Executive Team and Board of Directors)

		
	•
	The Member Operations function 

		
	•
	The People and Workplace function

		
	•
	Business and Corporate development 

You will report to Josh Silverman, working from our Brooklyn office. If you ever wish to change your work location, you will need prior written approval from Etsy. Your salary will be $300,000 per year and you will also be eligible for the great benefits that Etsy provides to regular, full-time employees. 
 
You will receive a signing bonus of $100,000 on the first administratively feasible payroll after your Start Date. You agree that if you resign your position with Etsy for any reason before you have worked for Etsy for one full year, you will repay the full amount to Etsy. 

You will be eligible to participate in the Management Cash Incentive Plan, with an annual target of 60% of your base salary earned during the performance period, which currently follows a calendar year (Jan 1 to Dec 31) cycle. Your bonus award will be prorated from your start date and determined based upon company financial performance and your individual performance. Your participation is subject to the terms and conditions of the Management Cash Incentive Plan and the applicable participation notice. Generally, awards (if any) are paid within two and a half months after the end of a calendar year. 
 

You will participate in the Etsy, Inc. Executive Severance Plan, which provides, subject to the terms and conditions of the plan document and your participation notice:

		
	•
	In the event of an involuntary termination following a change in control- twelve months of severance and up to twelve months of company-paid COBRA coverage, and a 100% acceleration factor for all outstanding equity awards issued to you. 

		
	•
	In the event of an involuntary termination not related to a change in control - six months of severance and up to six months of company-paid COBRA coverage.  

Etsy will also propose that you receive an equity award with a fair value at the time of the grant equal to $1,100,000. The equity award and related terms below are subject to the approval of Etsy’s Compensation Committee and are typically granted on the first day of the month following your Start Date.  

Fifty percent (50%) of the equity award will be in the form of Restricted Stock Units (which we refer to as RSUs). The RSUs will “vest” (or convert into shares of Etsy’s common stock) over the course of your employment with Etsy. 25% of your RSUs will vest if you remain continuously employed at Etsy for 12 months after the first RSU vesting date following your Start Date. The balance of your RSUs will vest in equal quarterly installments over the next three years of continuous employment with Etsy. 

Fifty percent (50%) of the equity award will be in the form of Stock Options (an option to purchase shares of the Etsy’s common stock) with an exercise price per share equal to the fair market value of Etsy’s common stock on the grant date. 25% of your Stock Options will vest (or become exercisable) if you remain continuously employed at Etsy for 12 months after the grant date. The balance of your Stock Options will vest in equal monthly installments over the next three years of continuous employment with Etsy. 

Your equity awards will be subject to the terms and conditions of Etsy’s 2015 Equity Incentive Plan and your award agreements, which will also specify your vesting dates. 
Beginning in 2019, you will be eligible to participate in Etsy’s equity award program on the same terms and conditions as other similarly situated executives, which presently includes an annual equity grant. However, any future equity awards will be made at the discretion of Etsy’s Board of Directors and/or its Compensation Committee.
 
To accept our offer, you will also need to sign the attached CPIA. It contains important information about your employment with Etsy, so please read it carefully. Here are a few highlights:

		
	•
	You confirm that you have no legal obligations that would prohibit you from working for Etsy. For example, you have not signed a non-compete agreement with your current or former employer that would prevent you from working for Etsy.

		
	•
	You agree not to use, rely upon, or share any confidential information of your former employer while working for Etsy.

		
	•
	You agree that during your employment with Etsy (and otherwise as described in your CPIA), you will not engage in any other employment, consulting, or business activity that would create a conflict with your position with Etsy.

Before starting work, you will be required to provide proof of your identity and your legal authorization to work in the United States.

This letter (including the attached CPIA) is the entire agreement between you and Etsy. Any discussions you may have had previously with Etsy are superseded by the terms of this letter and the CPIA. The terms of this offer may only be changed by a written agreement signed by you and a duly authorized Etsy officer.

Although we are hiring you for the role described above, your job duties, title, compensation, and benefits may change in the future. You understand that you will be an at-will employee of Etsy with the right to terminate your employment at any time and for any reason, and that Etsy will have a similar right. You also agree to comply with Etsy’s workplace policies, which will be made available to you and may change from time to time.

We hope and expect that working at Etsy will be beneficial and rewarding for both you and us, but we do have to let you know that this letter and the resolution of any disputes relating to this letter or your employment with Etsy will be governed by the laws of New York State (excluding laws relating to conflicts or choice of law).  Also, because Etsy is based in Brooklyn, you and Etsy agree to submit to the personal jurisdiction of a state court located in Kings County, New York or the United States District Court for the Eastern District of New York located in Brooklyn to resolve any dispute or claim between you and Etsy or any of its directors, officers, managers, or employees.

We can’t wait for you to join our team!

Very truly yours,

Josh Silverman
CEO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
I have read and accept this employment offer:

Name:        Raina Moskowitz            Date: March 8, 2018

Signature:    /s/ Raina Moskowitz            Email:

Exhibit A

CONFIDENTIALITY AND PRIOR INVENTIONS AGREEMENT
This Confidentiality and Prior Inventions Agreement (or the “Agreement,” for short) is an important part of the employment offer that Etsy, Inc. has made to you. Please read it carefully and sign at the bottom if you understand and agree to all of its terms. If you sign this Agreement, it will take effect on the first day of your employment with Etsy. If you have any questions about this Agreement, please speak with your contact on the Etsy Recruiting team before signing below.
In return for offering you the position described in your offer letter and for providing you with access to new and additional training and Confidential Information belonging to Etsy (and described below), Etsy needs you to make certain commitments. These commitments relate to:
		
	(a)
	your ability to work for Etsy and perform your job duties without violating any commitments you may have agreed to in the past or that you are otherwise subject to, 

		
	(b)
	Etsy’s ownership of any ideas you come up with or technologies you develop while working for Etsy,

		
	(c)
	the need to keep confidential and protect certain information about Etsy and its members and employees both while working for Etsy and after you leave the company, and

		
	(d)
	your willingness not to compete with Etsy or take certain actions that could hurt Etsy’s legitimate interests while you are working for Etsy and for a short period of time afterward. 

Each of these commitments is described in more detail below in Section 1 of this Agreement. Section 1 also contains information about your employment status with Etsy, which will be as an at-will employee.
In Section 2, you will find information on the rights you and Etsy have under this Agreement and how you and Etsy can enforce those rights. Section 2 also contains important information about how disputes relating to your employment will be resolved.
Section 1 – Your Commitments to Etsy
There are no conflicts that would prevent you from working for Etsy or performing your job. As much as we want you to join our company, we need you to confirm that the terms of your employment with your current employer (and any former employers) do not restrict your ability to work for Etsy. By signing this Agreement, you agree that you have not entered into an agreement (and will not in the future) that is in conflict with this Agreement or the terms of your employment with Etsy. You also agree that you have shared with Etsy a copy of any agreement (such as a non-compete or non-solicitation agreement) that could impact your ability to work for Etsy.
 
Example: You currently work for eBay and signed an offer letter or employment agreement that says you will not work for another online marketplace for one year after you leave eBay. You have a conflict that could prevent you from working for Etsy and must share that document with Etsy before you sign this Agreement. 
    
You will not use any property or confidential information of a current or former employer without their permission. We want to respect the rights of your current and former employers, and quite frankly, we don’t want them claiming any rights to the work you do here at Etsy. By signing this Agreement, you agree that you will not bring to Etsy, and will not use or disclose at 

Etsy, the confidential information of any current or former employer or any other party, unless you have their written permission to do so (and our Legal team would like to see that written permission, thank you). You also agree that you will not use at Etsy any documents or other property (including documents or property that you created yourself) from your current or former employer without the employer’s written permission.
Example: You have confidential agreements or customer lists from your previous job that you think might be helpful in the work you will do for Etsy. You cannot use those materials while working for Etsy or share those materials with Etsy employees without getting written permission from your previous employer.

Etsy will own anything you create while working for Etsy that relates to the work you do for Etsy. While working for Etsy, you will hopefully develop or contribute to one or more products, services, or programs. In this Agreement, we refer to all ideas, products, services, processes, and designs you develop or contribute to while working for Etsy and that relate to Etsy’s business as “Covered Inventions.” In addition to your salary and benefits, Etsy will also provide you with the resources, materials, and support you need to do your job, including the development of Covered Inventions. In return, you agree that Etsy will own all rights in all Covered Inventions (including all patents, copyrights and other intellectual property rights), whether or not the work is performed in Etsy’s offices, uses Etsy resources, or takes place during business hours. 

By signing this Agreement, you are assigning to Etsy all of your rights in the U.S. and internationally in all Covered Inventions and all intellectual property rights related to those Covered Inventions. Any copyrights in the Covered Inventions, including in any computer programs, programming documentation, and other works of authorship, are “works made for hire” for purposes of Etsy’s rights under copyright laws.  By signing this Agreement, you are also assigning to Etsy any rights you currently have or may acquire at any time in the future in any Covered Inventions. Lastly, you agree to disclose all Covered Inventions to Etsy and to waive any claims you have or may have in the future for infringement of any Covered Inventions. 

Example: As a software developer for Etsy, you write a piece of code that is included in a new Etsy product. Etsy will own all rights in the code you wrote and in any products or services that rely on that code.

Etsy has no interest in owning things you created or developed in the past, but Etsy needs a license from you if you incorporate that prior work into the work you do at Etsy. If you previously created something that relates to Etsy’s business, and you do not want that creation to be considered a Covered Invention for purposes of this Agreement, please list it in Appendix A. We refer to any items listed in Appendix A as “Prior Inventions.” We will follow an internal review process to be sure that we understand and agree about what you are claiming as a Prior Invention. While Etsy does not claim to own your Prior Inventions, you agree that if you incorporate Prior Inventions into the work you do for Etsy, Etsy will have the right to use those Prior Inventions to operate its business. Here is the legalese version of the previous sentence: If any of the work you do for Etsy incorporates or uses a Prior Invention, you give Etsy a perpetual, irrevocable, worldwide, royalty-free, non-exclusive, sublicensable right and license to incorporate or use such Prior Invention and any related intellectual property rights. 

Example: You are a graphic designer and want to retain ownership of some designs you did in the past. You list those designs in Appendix A and retain ownership of those designs, which are considered Prior Inventions. Later on, you incorporate one of the designs into a design you create for Etsy’s website. Etsy then has a license to use your original design, because the original design is now part of the website design that you created for, and that is owned by, Etsy.

Etsy permits its employees to perform outside work and to take on side projects if certain conditions are met. We recognize that you may want to take on some outside work or side projects while working for Etsy. We have an approval process for activities like those; you will receive more information about the process after your start date. Etsy will not have or claim rights in anything you develop or create through an authorized side project as long as (a) the work is done entirely on your own time and will not interfere with your ability to perform the work you do for Etsy, (b) you did not incorporate any Etsy materials or resources, and (c) the development or creation does not relate to an Etsy product or service or Etsy intellectual property. 

Example: If you are part of the Etsy PR team and want to do some work as a freelance calligrapher in your spare time, that would likely be an approved side project. 
    
Example: If you are a software developer for Etsy and you want to serve on the board of advisors for a new gaming startup that doesn’t conflict with your work at Etsy, that would likely be approved outside work.
 
You will keep confidential any Confidential Information you receive or learn about while working for Etsy. In order to perform your job at Etsy, you may create or be given access to Confidential Information about Etsy, or about its employees, contractors, customers, suppliers, and other parties. When we refer to “Confidential Information” in this Agreement, we mean information and physical materials not generally known or available outside of Etsy. Confidential Information could be technical data, product ideas, product roadmaps, business deals that we haven’t announced to the public, software code and designs, personal information about other Etsy employees, or lists of suppliers. Confidential Information includes both information and materials that belong or relate to Etsy, as well as information and materials that a third party has disclosed to Etsy on a confidential basis.

By signing this Agreement, you agree that you will hold Confidential Information in strict confidence and that you will not use or disclose any Confidential Information, except as required to do your job. The restriction on your use or disclosure of Confidential Information will continue if you leave Etsy and will remain in effect until the Confidential Information becomes publicly available through no fault of your own.
Example: While working for Etsy, you have access to a supplier’s pricing lists. The price lists are considered Confidential Information and you are required to maintain the confidentiality of the pricing information both while working for Etsy and after your employment ends.

If your employment with Etsy ends, you agree to return to Etsy all copies of any matierals you have that contain Confidential Information. You may keep your compensation records and a copy of this Agreement.
You will maintain the privacy of Etsy members and employees. As part of your work for Etsy, you may have access to private information about Etsy members and employees. Both groups place a high value on their privacy and it is critical that you treat private member and employee information with the highest degree of care. By signing this Agreement, you agree that you will only access and use Etsy member and employee information when it is necessary to do your job. You also agree that you will not share Etsy member and employee personal information outside of Etsy, or even with other Etsy employees, without proper authorization and even then only when required as part of your job. If you are ever in doubt about whether member or employee information may be shared within or outside of Etsy, you should ask the Etsy Legal team.
______________________________________________________________________________
Please note that when we refer to a Competing Business in the next three paragraphs, we mean (a) any of the following companies, and any of their subsidiaries or parent companies that operate an online marketplace: Amazon, eBay, and Alibaba; (b) any business that develops or operates an online marketplace selling the types of products sold on Etsy.com or its related websites (for example, crafts, art, handmade goods, vintage goods, or craft supplies), and (c) any business that develops or operates a platform or tools for building or operating e-commerce websites. For purposes of illustration only, examples of category (b) include Craftsy and Michaels.com; and examples of category (c) include Shopify and WordPress.
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

You will not compete against Etsy while you are employed by Etsy. It probably goes without saying, but Etsy is hiring you to help build its business and not to compete with it. Competition could take several different forms, including starting or working for a Competing Business, doing consulting work for another company that conflicts with your work for Etsy, or diverting business opportunities from Etsy. By signing this Agreement, you agree that while working for Etsy you will not start, invest in, or do work for a Competing Business, or divert business opportunities with vendors, suppliers, or other business partners that otherwise might have been available to Etsy.  

Example: It is not okay to (a) consult for the marketplace startup your friend founded, or (b) try to convince an Etsy partner to end its relationship with Etsy. 

Example: It is okay to buy paper towels from Amazon or sneakers from eBay.

You will not compete against Etsy for a short period after your employment with Etsy ends. While working for Etsy you may be given access to plans, processes, contacts, customers, or other information that could put Etsy at an unfair competitive disadvantage if they were shared with or used for the benefit of a Competing Business. To protect Etsy’s legitimate interests, we require that you agree to certain limits on actions that would be competitive with Etsy for a short period after your employment with Etsy ends. By signing this Agreement, you agree that for six 

months after your employment with Etsy ends for any reason, you will not, without Etsy’s written permission, start, invest in, or do work for a Competing Business in a capacity that is similar in form or function to that which you performed in the last year of your employment with Etsy, and that you will not divert business opportunities that otherwise might have been available to Etsy. 

Example: It is not okay to leave Etsy and immediately take a similar position with Amazon Handmade.

Example: It is okay to leave Etsy to launch a laundry delivery startup or to join a company like Google or Facebook.

You will not poach or solicit Etsy employees, members, or business partners while you are employed by Etsy or for a short period of time after your employment with Etsy ends. In addition to working for a Competing Business or diverting business opportunities from Etsy, you could also unfairly compete against Etsy by poaching or soliciting Etsy employees, members, vendors, suppliers, or other business partners. By signing this Agreement, you agree that both during your employment with Etsy and for one year after your employment with Etsy ends for any reason, you will not directly or indirectly cause anyone to leave their position with Etsy, or solicit any Etsy members, vendors, suppliers, or other business partners with whom you worked or acquired Confidential Information from in the last two years of your employment with Etsy.

Example: It is not okay to (a) persuade an Etsy seller to close her shop and instead sell on a competing platform that you own stock in, or (b) convince an Etsy developer to leave Etsy to work for your sister’s startup. 

Example: It is okay to encourage a colleague to leave Etsy to follow her dream of running her Etsy Shop full-time.

You will be an at-will employee of Etsy. You will be an at-will employee of Etsy, which means that you are free to resign at any time and that Etsy may terminate your employment at any time and for any or no reason. By signing this Agreement, you acknowledge that you will be an at-will employee of Etsy and that you are not entering into an employment contract with Etsy for a set period of time. 

Section 2 – Enforcement of Rights and Other Legal Information
New York law will be used to resolve disputes. If there is a dispute concerning this Agreement or your employment with Etsy, the dispute will be resolved using the laws of New York State (excluding laws relating to conflicts or choice of law). Also, because Etsy is based in Brooklyn, you and Etsy agree to submit to the personal jurisdiction of a state court located in Kings County, New York or the United States District Court for the Eastern District of New York located in Brooklyn. 

Nothing in this Agreement prohibits you from reporting violations of the law or Etsy’s policies, and no retaliatory action will be taken against you for doing so. Nothing in this Agreement, including the section on Confidential Information, prohibits you from reporting possible violations of the law. This includes making reports to a governmental agency, such as the Department of Justice or the Securities and Exchange Commission. Similarly, nothing in this Agreement prohibits you from reporting possible violations of the law or Etsy’s Code of Conduct or other policies to your manager, Etsy’s General Counsel, or Etsy’s Chief Executive Officer, or through Etsy’s whistleblower hotline. You do not need authorization from Etsy to report violations of the law or Etsy’s policies and you do not have to notify Etsy that you have done so. Etsy takes its non-retaliatory culture very seriously and will not allow anyone to take adverse action, threaten, intimidate, or retaliate against you if you report a violation or a suspected violation in good faith, or cooperate with an investigation.

You may have additional rights not described in this Agreement. You may have additional rights that are not described in this Agreement. If you have any questions about your rights under this Agreement or otherwise, you should speak with a lawyer before signing this Agreement.

What you and Etsy must do to waive rights created by this Agreement. For you or Etsy to waive a right granted by this Agreement, you and an authorized representative of Etsy must explicitly agree to waive that right in writing. If either you or Etsy do not enforce a right granted by this Agreement for some period of time, that right will not be considered to have been waived. Similarly, if you or Etsy exercise one right granted by this Agreement, that will not be considered a waiver of any other right you or Etsy may have under this Agreement. 

Example: You develop a piece of code for Etsy and then use that code in a website you develop for a friend. You tell your manager what you are doing and she tells you verbally that it’s okay. Six months later, your VP finds out that you’re using Etsy code for a non-Etsy project and asks you to stop. Neither your conversation with your manager nor the fact that six months elapsed before Etsy asked you to stop would be considered a waiver of Etsy’s rights under this Agreement to control the use of the code you developed.

Etsy may assign this Agreement to certain third parties. Etsy may assign this Agreement to an affiliate, or to a third party in the case of a merger or acquisition. In the case of a merger or acquisition, as an at-will employee, you would still be free to resign at any time.

Etsy will be entitled to an injunction if you violate or threaten to violate this Agreement. Etsy could suffer serious harm if you violate this Agreement. By signing this Agreement, you agree 

that Etsy will be entitled to an injunction (and will not be required to post a bond) to protect itself if you breach or threaten to breach this Agreement. Note that a court has the discretion to strike or modify any part of this Agreement that it determines is too broad or unenforceable under the specific circumstances related to your departure.

Section 1 of this Agreement will remain in effect after you stop working for Etsy. Whether you resign from Etsy or Etsy terminates your employment, the obligations you agreed to in Section 1 of this Agreement, including those concerning Confidential Information, ownership of your work, and non-competition, will remain in effect indefinitely. 

	
			
	ETSY, INC.
	EMPLOYEE
	 

	By:  /s/ Josh Silverman
	Name: Raina Moskowitz
	 

	Name: Josh Silverman
	Signature:  /s/ Raina Moskowitz
	 

	Title:  CEO
	

Date: March 8, 2018

Email: 
	 

	 
	 
	 

	 
	 
	 

    

Appendix A
PRIOR INVENTIONS

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