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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 4, 2024
HECLA MINING COMPANY
(Exact name of registrant as specified in its charter)
Delaware |
1-8491 |
77-0664171 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
6500 North Mineral Drive, Suite 200
Coeur d'Alene, Idaho 83815-9408
(Address of principal executive offices) (Zip Code)
(208) 769-4100
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.25 per share
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HL
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New York Stock Exchange
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Series B Cumulative Convertible Preferred Stock, par value $0.25 per share
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HL-PB
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New York Stock Exchange
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On November 4, 2024, Hecla Mining Company (the “Company”) announced that its Board of Directors (the “Board”) had appointed Mr. Robert Krcmarov, age 60, as President and Chief Executive Officer, effective November 7, 2024. Mr. Krcmarov succeeds Catherine J. Boggs, who has served as Interim President and Chief Executive Officer since May 22, 2024. Ms. Boggs will remain as Chair of the Board.
In connection with his appointment, Mr. Krcmarov and the Company executed an offer letter (the “Offer Letter”) on November 4. Pursuant to the Offer Letter, during Mr. Krcmarov’s employment with the Company, he will receive an initial base salary of $850,000 and is eligible to participate in the Company’s Short-term Incentive Plan with a target for his position of 110% of base salary, with the opportunity to receive an additional payout depending on the Company’s performance. Mr. Krcmarov will also receive $1,030,000 in the Company’s common stock in the form of restricted stock units under the 2010 Stock Incentive Plan, with a vesting schedule of one-third on June 21, 2025 (prorated), one-third on June 21, 2026, and one-third on June 21, 2027, and $1,265,000 in performance-based units, based on the Company’s Total Shareholder Return of its common stock for the 3-year period from January 1, 2025 through December 31, 2027. Mr. Krcmarov will also receive a one-time grant of $900,000 in restricted stock units with a 3-year vesting period of one-third on June 21, 2025, one-third on June 21, 2026, and one-third on June 21, 2027 (prorated). The Company will also make a relocation payment to Mr. Krcmarov for up to $100,000 payable 60 days after the date of the Offer Letter. In addition, the company will pay for full-service movement of one standard household item (excluding boats and other similar or heavy/oversized items) and up to two automobiles. The Company will also assist in Mr. Krcmarov’s filing obligations with the Internal Revenue Service for the 2024 through 2026 tax years.
The description of the Offer Letter in this Item 5.02 is qualified in its entirety by reference to the full text of the Offer Letter, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
The Compensation Committee of the Board of the Company approved entering into an Indemnification Agreement and Change in Control and Severance Agreement (“CIC Agreement”) with Mr. Krcmarov. The Indemnification Agreement is substantially identical to prior agreements entered into with other executive officers of the Company. The material terms of the Indemnification Agreement are set forth in Exhibit 10.3 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, which is incorporated herein by reference as Exhibit 10.2. The CIC Agreement is set forth in Exhibit 10.3 attached herein to this Form 8-K.
On November 4, 2024, the Company announced the Board of the Company had increased the size of the Board, and appointed Mr. Robert Krcmarov as a Class I director (standing for election in 2026), to fill the resulting vacancy, effective November 7, 2024. Mr. Krcmarov was also appointed to serve on the Executive Committee. He is not eligible to receive standard director and committee fees or grants under the Company’s Stock Plan for Nonemployee Directors. The news release is attached hereto as Exhibit 99.1 to this Form 8-K.
There are no family relationships between Mr. Krcmarov and any Company director or executive officer, and no arrangements or understandings between Mr. Krcmarov and any other person pursuant to which he was appointed as an officer and director. There are no past, present or proposed transactions between Mr. Krcmarov and the Company that would require disclosure under Item 404(a) of Regulation S-K of the Exchange Securities Exchange Act of 1934, as amended.
Mr. Krcmarov is a geologist and experienced international mining executive who has held mine site, regional and corporate leadership roles in his 35-year career in the natural resources industry. Mr. Krcmarov most recently served as a technical advisor to Barrick Gold Corporation (“Barrick”), and previously served as part of the executive leadership team with that company for 13 years, including as Barrick’s Executive Vice President Exploration and Growth from 2016 to 2021. He holds a Master of Economic Geology from the University of Tasmania and a Bachelor of Science in Geology from the University of Adelaide.
Effective November 7, 2024, Ms. Catherine J. Boggs will return to Class II of the Board standing for reelection in 2027 after having been reassigned to Class I on June 3, 2024, and she will be reappointed to the Compensation and Governance and Social Responsibility Committees of the Board.
Item 7.01
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Regulation FD Disclosure
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A copy of the Company’s press release relating to the announcement described in Item 5.02, dated November 4, 2024, is furnished as Exhibit 99.1 to this Form 8-K.
Item 8.01 Other Events
On November 4, 2024, the Company announced the promotion of Carlos Aguiar, the Company’s Vice President – Operations to Senior Vice President & Chief Operating Officer.
Item 9.01 Financial Statements and Exhibits.
Exhibit
Number
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Description
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10.1
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10.2 |
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Form of Indemnification Agreement dated November 7, 2024, between Registrant and Mr. Robert Krcmarov. Identical Indemnification Agreements were entered into between the Registrant and Charles B. Stanley on May 4, 2007, David C. Sienko on January 29, 2010, Robert D. Brown on January 4, 2016, Stephen F. Ralbovsky and George R. Johnson on March 1, 2016, Catherine J. Boggs on January 1, 2017, Alice Wong on February 26, 2021, Michael L. Clary on March 1, 2020, Russell D. Lawlar on March 1, 2021, Kurt Allen on July 1, 2021, and Carlos Aguiar on August 16, 2023. Filed as Exhibit 10.7 to Registrant’s Form 10-Q for the quarter ended September 30, 2006, and incorporated herein by reference. (1) |
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10.3 |
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Change in Control and Severance Agreement dated November 7, 2024, between Registrant and Mr. Robert Krcmarov.* (1) |
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99.1 |
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News Release, dated November 4, 2024.* |
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104 |
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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* Furnished herewith
(1) Indicates a management contract or compensatory plan or arrangement.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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HECLA MINING COMPANY
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By:
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/s/ David C. Sienko
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David C. Sienko
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Sr. Vice President and General Counsel
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Dated: November 4, 2024
Exhibit 10.1
November 2, 2024
Robert Krcmarov
Via Email: krichy227@gmail.com
RE: Employment Offer: President and Chief Executive Officer
Dear Rob,
On behalf of Hecla Mining Company (“Hecla” or “the Company”), I am pleased to offer you the positions of President and Chief Executive Officer (“Position”). The terms and conditions of our employment offer to you are outlined in the sections below.
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1.
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Position and Duties: you will perform those duties and responsibilities as are customary for the Position of President and Chief Executive Officer and as may be directed by the Board of Directors (“the Board”), to whom you will report. It is expected that the Board will expand its size and appoint you as a director. Your primary office location will be the Company’s corporate office in Coeur d’Alene, Idaho. Notwithstanding the foregoing, the Company reserves the right to reasonably require you to perform your duties at places other than your primary office location or at certain other locations from time to time, and to require reasonable business travel. Subject to the satisfaction of all conditions described in this letter, your anticipated start date is on or about November 7, 2024.
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2.
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Executive Compensation: This Position includes an annual base salary of $850,000, payable semi-monthly and subject to applicable withholdings. The remaining components of our performance-based compensation are described below:
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Short Term Incentive Plan (STIP): if the Company’s performance generates an incentive pool, the target for your Position is 110% of base salary. The annual incentive plan can achieve a payout of up to two times target. Actual award levels are a function of performance against corporate goals.
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●
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Equity: You will be eligible to receive annual equity exposure as part of the Company's Long-Term Incentive Plan, when approved by the Company's Board of Directors. In the past, these grants have primarily been in the form of performance shares and restricted stock. The exact mix may change from time to time depending on a number of factors.
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6500 Mineral Drive, Suite 200 • Coeur d’Alene, Idaho 83815-9408 • 208.769.4100 • FAX 208.769.4107 • www.hecla.com
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o
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Restricted Stock Units (RSUs): Your initial equity award for this role will consist of an award of RSUs valued at $1,030,000 and will vest over a 3-year period. The first year’s award shall be prorated based on the number of full months worked. Such equity award will be made in the second half of January 2025.
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o
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Performance Based Units (PSUs): Your initial equity award for this role will also consist of target PSUs valued at $1,265,000 under Hecla’s 2025 fiscal year PSU program for senior executives, as will be specified in the award agreement.
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o
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One-time Equity Grant: You will receive a one-time equity award in the form of RSUs, in the amount of $900,000. The RSUs will vest over a 3-year period, as will be specified in your award agreement. Such award will be made in the second half of January 2025.
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3.
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Other Employment Benefits: During your employment, you will be eligible to participate in our comprehensive health benefit plans. You will receive more specific information about these plans upon your arrival. The following is a summary of your additional benefits as a salaried employee:
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Vacations and Holidays: You will be entitled to paid vacation during your employment in accordance with Company policy. You will be eligible for four weeks of vacation per year. Vacation is awarded annually on January 1st. Your award will be prorated from your hire date through December 2024, and a full allotment will be granted on January 1, 2025. Vacation not used by the end of each calendar year will be forfeited. In addition, you will receive 10 paid holidays annually.
401(k) Plan: Employees are eligible to participate in Hecla's Capital Accumulation Plan (“401(k) plan” or the “Plan”) immediately upon date of employment. This Plan allows you to defer up to 50% of your salary with Hecla matching 100% of the first 6% deferred.
Life Insurance: During your tenure, the Company will provide a term life insurance policy equal to 1 times your base salary, the beneficiary of which shall be decided by you.
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4.
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Relocation: In accordance with Exhibit A, you will be eligible for relocation assistance in the amount of $100,000. This payment is intended to offset reasonable costs incurred in connection with your relocation to the Coeur d’Alene, Idaho area, including any such expenses you may incur related to temporary housing, travel, storage, real estate transactions, and other miscellaneous expenses.
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In addition, the Company will pay for full-service movement of one standard household of items (excluding boats and other similar or heavy/oversized items) and up to two automobiles.
6500 Mineral Drive, Suite 200 • Coeur d’Alene, Idaho 83815-9408 • 208.769.4100 • FAX 208.769.4107 • www.hecla.com
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5.
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Severance Benefits: Subject to your execution of the Company’s standard Severance Agreement, in the event of a qualifying termination within the applicable time period, the Company or the Company’s successors shall pay or provide to you certain change in control benefits, so long as you satisfy the conditions described therein. In the event of a qualifying not-for-cause termination, the Company shall pay certain benefits. Such Severance Agreement will be provided to you at your time of hire.
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6.
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Clawback: All incentive-based compensation is subject to the Company’s Clawback Policy as described in Hecla’s most recent Proxy Statement, available here: https://www.sec.gov/ix?doc=/Archives/edgar/data/719413/000119312524087295/d536883ddef14a.htm
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7.
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Confidential Information and Other Company Policies. You will be bound by and comply fully with the Company’s standard insider trading policy, code of conduct, and any other policies and programs adopted by the Company regulating the behavior of its employees.
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8.
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Section 409A – Nonqualified Deferred Compensation. The terms of this agreement are intended to comply with or be exempt from the requirements of Internal Revenue Code Section 409A, and you agree that this agreement may be modified to the extent necessary to comply therewith; provided, that, any such modification shall endeavor to maintain the intended economics of this agreement.
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9.
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Tax Filings. To assist with your income tax filing obligations for the tax years 2024 through 2026, the Company will provide support through a qualified tax accounting firm. This firm will handle the preparation of your US and Canadian income taxes to ensure compliance with all applicable tax regulations.
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10.
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Employment Term: You understand and agree that, notwithstanding any of the aforementioned terms and conditions, your employment with Hecla will be for an indefinite duration on an at-will basis and that either Hecla or you are free to terminate this employment relationship, either with or without cause, at will, and with or without notice at any time. Upon termination of your employment, you will resign from all other positions with Hecla as the Board may request, including as a director.
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11.
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Immigration Status: You understand your employment is contingent upon your ability to receive a valid permit allowing work in the United States.
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12.
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Disputes: The laws of the State of Idaho, excluding its choice of law provisions, shall govern this Agreement. The parties hereby irrevocably and unconditionally agree to submit any legal action or proceeding relating to the subject matter of this Agreement to the jurisdiction of the district court of the State of Idaho located in Kootenai County, and in any such action or proceeding, consent to jurisdiction in such courts and waive any objection to the venue in such court.
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6500 Mineral Drive, Suite 200 • Coeur d’Alene, Idaho 83815-9408 • 208.769.4100 • FAX 208.769.4107 • www.hecla.com
We are pleased at the prospect of having a person of your caliber and ability join the Hecla team. Your employment is contingent upon your written acceptance of this offer and successfully passing a routine drug screen and background check. To accept this offer, please sign the last page of this letter, initial the other pages to indicate your agreement, and return one signed copy to me. Your signature also indicates that you confirm any facts regarding your citizenship, residency, etc. or any other facts about yourself that are assumed and described in this offer letter. This offer shall be null and void at the end of the day on November 4, 2024 if it has not been executed and returned as indicated above, unless extended by Hecla beyond that date.
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Sincerely,
/s/ Catherine J. Boggs
Catherine J. Boggs
Interim President and CEO
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I HEREBYCONFIRM ANY FACTS OR ASSUMPTIONS REGARDING MYSELF MADE IN THIS LETTER AND I ACCEPT HECLA’S OFFER OF EMPLOYMENT ACCORDING TO THE TERMS AS STATED ABOVE.
Signed: |
/s/ Robert Krcmarov |
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Date: |
November 4, 2024 |
6500 Mineral Drive, Suite 200 • Coeur d’Alene, Idaho 83815-9408 • 208.769.4100 • FAX 208.769.4107 • www.hecla.com
Exhibit A
Relocation Agreement
This agreement is between Robert Krcmarov (Recipient) and Hecla Mining Company (“Hecla”).
Hecla agrees to pay the Recipient $100,000 for relocation expenses incurred for employment. Following 60 days of this agreement’s full execution, the lump sum payment shall be payable to the recipient within 30 days of written request. This payment is intended to offset reasonable costs incurred in connection with your relocation to the Company’s headquarters in Coeur d’Alene, Idaho, including any such expenses you may incur related to temporary housing, individual(s) travel, storage, real estate transactions, and other miscellaneous expenses. Request for this lump sum must be made within 180 days of employment.
Hecla further agrees to pay for one-time, full-service movement of up to 40,000 pounds standard household items (excluding boats and other similar or heavy/oversized items) and up to two automobiles. Full-service movement shall include packing, loading and unloading, furniture placement, transportation, and insurance. This service must be requested within 12 months of hire and relocation must be to an area with 50 miles of our corporate offices in Coeur d’ Alene, Idaho.
The US Internal Revenue Code requires all relocation expenses, which are reimbursed or paid directly by the company, to be reported as income by the recipient. Certain reimbursements are taxed by the federal and appropriate state taxing authorities and are subject to withholding for the current tax year. The company will “gross up” the amount of relocation benefits to meet the expense of income taxes associated with the amount of relocation.
Agreement and Acceptance:
I hereby acknowledge and accept the terms and conditions cited in the foregoing Relocation Agreement. I understand and agree that this Relocation Agreement may be terminated at any time by Hecla or its affiliates.
Employee Signature: |
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Hecla Representative: |
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6500 Mineral Drive, Suite 200 • Coeur d’Alene, Idaho 83815-9408 • 208.769.4100 • FAX 208.769.4107 • www.hecla.com
Exhibit 10.3
HECLA MINING COMPANY
CHANGE IN CONTROL AND SEVERANCE AGREEMENT
This Change in Control and Severance Agreement (the “Agreement”) is made by and between Hecla Mining Company, a Delaware corporation (the “Company”), and Robert Krcmarov (the “Executive”), effective November 7, 2024.
The Company and the Executive agree as follows:
1. Term of Agreement. This Agreement will continue indefinitely until terminated by written consent of the parties hereto, or if earlier, upon the date that all of the obligations of the parties hereto with respect to this Agreement have been satisfied.
2. Severance Benefits.
2.1. Qualifying Termination During the Change in Control Period. In the event of a Qualifying Termination that occurs during the Change in Control Period, the Executive will receive the following payments and benefits from the Company:
2.1.1. Salary and Bonus Severance. A single, lump sum, cash payment equal to two hundred percent (200%) of the sum of the Executive’s then current annual salary plus the Executive’s then current target annual bonus opportunity.
2.1.2. COBRA Severance. A single, lump sum, cash payment equal to twenty-four (24) times the monthly medical, dental and vision premiums paid by the Executive and the Company for the benefit of the Executive and the Executive’s eligible dependents for the month immediately preceding the month of the Qualifying Termination.
2.1.3. Outplacement Severance. A single, lump sum, cash payment equal to twenty thousand dollars ($20,000) for outplacement services.
2.1.4. Equity Awards. Accelerated vesting of one hundred percent (100%) of the equity awards held by the Executive on the date of the Qualifying Termination, with performance-based equity awards vesting at the higher of target achievement or actual performance through the date of the Qualifying Termination.
2.2. Qualifying Termination Outside of the Change in Control Period. In the event of a Qualifying Termination that occurs outside of the Change in Control Period, the Executive will receive the following payments and benefits from the Company:
2.2.1. Salary and Bonus Severance. A single, lump sum, cash payment equal to one hundred and fifty percent (150%) of the sum of the Executive’s then current annual salary plus the Executive’s then current target annual bonus opportunity.
2.2.2. COBRA Severance. A single, lump sum, cash payment equal to eighteen (18) times the monthly medical, dental and vision premiums paid by the Executive and the Company for the benefit of the Executive and the Executive’s eligible dependents for the month immediately preceding the month of the Qualifying Termination.
2.2.3. Outplacement Severance. A single, lump sum, cash payment equal to twenty thousand dollars ($20,000) for outplacement services.
2.2.4. Equity Awards. Accelerated vesting of fifty percent (50%) of the unvested time-based equity awards held by the Executive on the date of the Qualifying Termination, and one hundred percent (100%) of the unvested performance-based equity awards vesting at target achievement, prorated for the number of days prior to the date of the Qualifying Termination in the applicable performance period.
2.3. Termination due to Death or Disability. In the event of a termination of the Executive’s employment with the Company either (a) by the Company due to Disability or (b) due to death, the Executive will receive the following payments and benefits from the Company, subject to the requirements of this Agreement:
2.3.1. Salary Severance. A single, lump sum, cash payment equal to one hundred and fifty percent (150%) of the Executive’s then current annual salary.
2.3.2. Bonus Severance. A single, lump sum, cash payment equal to one hundred percent (100%) of the Executive’s then target annual bonus opportunity, prorated for the number of days prior to the date of the Qualifying Termination in the applicable performance period.
2.4. Other Terminations. If the termination of the Executive’s employment does not constitute a termination covered in this Section, then the Executive will not be entitled to receive any severance or other benefits in connection with such termination under this Agreement. Consequently, for the avoidance of doubt, upon a voluntary termination by the Executive other than for Good Reason during the Change in Control Period, or upon a termination initiated by the Company for Cause, the Executive will not become entitled to any severance or other benefits under this Agreement.
3. Accrued Compensation. On any termination of the Executive’s employment with the Company, the Executive will be entitled to receive all accrued but unpaid vacation, expense reimbursements, wages, and other benefits due to the Executive under any Company-provided plans, policies, and arrangements.
4. Conditions to Receipt of Severance.
4.1. Separation Agreement and Release of Claims. The Executive’s receipt of any severance payments or benefits under this Agreement is subject to the Executive signing and not revoking the Company’s then standard separation agreement and release of claims with the Company, which must become effective and irrevocable no later than the fifty-fifth (55th) day following the date of the Qualifying Termination. If the release does not become effective and irrevocable by such deadline, the Executive will forfeit any right to the severance payments or benefits under this Agreement. Pursuant to the release, the Executive will (i) acknowledge the receipt of the severance payments and benefits under this Agreement, (ii) release the Company and its affiliates and other persons and entities designated by the Company from any liability arising from the Executive’s employment or termination of employment (other than with respect to the Executive’s rights under this Agreement) and (iii) agree to covenants related to confidentiality and the Company’s reputation, as well as other covenants that are customary, standard or appropriate within the industry in which the Company operates, as determined by the Company in its reasonable discretion.
4.2. Payment Timing. Any lump sum cash severance payments under this Agreement will be provided to the Executive on the second regularly scheduled payroll date of the Company following the date the release described in this Section becomes effective and irrevocable (or with respect to a Qualifying Termination under Section 2.1, if later than such termination, the date of the Change in Control). Any acceleration of equity awards will be effective, subject to the terms of the applicable equity award governing the settlement timing of the equity award to the extent such terms specifically require any such delay in order to comply with the requirements of Section 409A, (a) on a date within ten (10) days following the date the release described in this Section becomes effective and irrevocable, or (b) if later than such termination, in the event of a Qualifying Termination under Section 2.1, on the date of the Change in Control.
5. Definitions.
5.1.“ Cause” means: (i) the Executive’s act of dishonesty or fraud in connection with the performance of the Executive’s responsibilities to the Company, (ii) the Executive’s conviction of, or plea of nolo contendere to, a felony, (iii) the Executive’s willful failure to perform the Executive’s reasonable duties or responsibilities, (iv) the Executive’s material violation or breach of this Agreement or any other agreement with the Company, or (v) the Executive’s material breach of the Company’s code of business conduct, human resources rules, policies and/or restrictions relating to harassment, discrimination and/or any other actions that create a hostile work environment; provided that if any of the foregoing events is capable of being cured, as determined by the Company, the Company will provide notice to the Executive describing the nature of such event and the Executive thereafter will have thirty (30) days to cure such event.
5.2. “Change in Control” means as defined in the Company’s 2010 Stock Incentive Plan (Amended and Restated as of August 21, 2021), as may be further amended and/or restated or succeeded).
5.3. “Change in Control Period” means the period beginning on the date three (3) months prior to a Change in Control and ending on (and inclusive of) the date that is the two (2) year anniversary of such Change in Control.
5.4. “Code” means the Internal Revenue Code of 1986, as amended.
5.5. “Disability” means total and permanent disability as defined in Code Section 22(e)(3).
5.6. “Good Reason” means the Executive’s termination of the Executive’s employment with the Company during the Change in Control Period and within sixty (60) days following the expiration of the Company’s Cure Period (as defined below) following the occurrence of any of the following without the Executive’s written consent: (i) a material reduction in the Executive’s authority, responsibilities, position or duties; (ii) a material reduction in the Executive’s compensation or in the aggregate level of benefits made available to the Executive; or (iii) relocation of the Executive’s primary place of business for the performance of the Executive’s duties to the Company to a location that is more than thirty‑five (35) miles from its prior location. In order for an event to qualify as Good Reason, the Executive must not terminate employment with the Company without first providing the Company with written notice identifying the acts or omissions constituting the grounds for “Good Reason” within sixty (60) days following the Executive’s initial knowledge of the grounds for “Good Reason” and a cure period of thirty (30) days following the date of such notice (the “Cure Period”).
5.7. “Qualifying Termination” means a termination of the Executive’s employment with the Company by the Company without Cause and other than due to the Executive’s death or Disability, provided that, during the Change in Control Period, Qualifying Termination also means a termination of the Executive’s employment with the Company by the Executive for Good Reason.
5.8. “Section 409A” means Code Section 409A and the Treasury Regulations and guidance thereunder, and any applicable state law equivalent, as each may be promulgated, amended or modified from time to time.
6. Successors. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors, and legal representatives of the Executive upon the Executive’s death, and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. None of the rights of the Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution, including to a living trust for the benefit of the Executive and Executive’s beneficiary or beneficiaries upon the Executive’s death.
7. Notice. All notices and other communications required or permitted under this Agreement will be in writing and will be effectively given (a) upon actual delivery to the party to be notified, (b) upon transmission by email, (c) one (1) business day after deposit with a recognized overnight courier, or (d) three (3) business days after deposit with the U.S. Postal Service by first class certified or registered mail, return receipt requested, postage prepaid, addressed: (i) if to the Executive, at the address the Executive will have most recently furnished to the Company in writing, (ii) if to the Company, at the Company’s principle executive office specified in the Company’s most recent Form 10-K or Form 10-Q filing with the Securities and Exchange Commission, attention to the Chief Legal Officer or General Counsel. Any termination of the Executive’s employment by the Company for Cause will be communicated by a notice of termination of the Executive’s employment to the Executive, and any termination by the Executive for Good Reason will be communicated by a notice of termination to the Company. The notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated.
8. Resignation. The termination of the Executive’s employment for any reason also will constitute, without any further required action by the Executive, the Executive’s voluntary resignation from all other positions held at the Company or any of its subsidiaries or affiliates, including as an officer, manager, or director, and from all corporate, trade, civic or charitable boards or committees on which the Executive serves on behalf of the Company or at the Company’s Board of Director’s request.
9. Miscellaneous Provisions.
9.1. No Duty to Mitigate. The Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any payment be reduced by any earnings that the Executive may receive from any other source.
9.2. Waiver; Amendment. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by an authorized officer of the Company (other than the Executive) and by the Executive, unless such modification, waiver or discharge is initiated by the Company and not materially adverse to the Executive. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time.
9.3. Headings. Headings are provided herein for convenience only, and will not serve as a basis for interpretation or construction of this Agreement.
9.4. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter of this Agreement.
9.5. Governing Law. This Agreement will be governed by the laws of the State of Idaho but without regard to the conflict of laws provision. To the extent that any lawsuit is permitted with respect to any provisions under this Agreement, exclusive jurisdiction and venue shall be the state and federal courts located in Kootenai County, Idaho.
9.6. Severability. If any provision of this Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason, such invalidity, illegality, or unenforceability will not affect the remaining parts of this Agreement, and this Agreement will be construed and enforced as if the invalid, illegal, or unenforceable provision had not been included.
9.7. Withholding. The Company (and any parent, subsidiary or other affiliate of the Company, as applicable) will have the right and authority to deduct from any payments or benefits all withholdings and deductions required by law. Neither the Company nor any parent, subsidiary or other affiliate of the Company will have any responsibility, liability or obligation to pay the Executive’s taxes arising from or relating to any payments or benefits under this Agreement.
9.8. At-Will Employment. The Company and the Executive acknowledge that the Executive’s employment is and will continue to be at-will, as defined under applicable law. No payments, benefits, or provisions under this Agreement will confer upon the Executive any right to continue the Executive’s employment with the Company, nor will they interfere with or limit in any way the right of the Company or the Executive to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws.
9.9. Section 409A. The Company intends that all payments and benefits provided under this Agreement or otherwise are exempt from, or comply with, the requirements of Section 409A so that none of the payments or benefits will be subject to the additional tax imposed under Section 409A, and any ambiguities and ambiguous terms in this Agreement will be interpreted in accordance with this intent. No payments or benefits to be provided to the Executive, if any, under this Agreement or otherwise, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (the “Deferred Payments”) will be paid or otherwise provided until the Executive has a “separation from service” within the meaning of Section 409A. To the extent required to be exempt from or comply with Section 409A, references to the termination of the Executive’s employment or similar phrases used in this Agreement will mean the Executive’s “separation from service” within the meaning of Section 409A. Notwithstanding any provisions to the contrary in this Agreement, if the Executive is a “specified employee” within the meaning of Section 409A at the time of the Executive’s separation from service (other than due to death), then any payments or benefits under this Agreement that constitute Deferred Payments payable within the first six (6) months after the Executive’s separation from service instead will be delayed to the extent required by Section 409A. Each payment, installment, and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2). In no event will the Executive have any discretion to choose the Executive’s taxable year in which any payments or benefits are provided under this Agreement. Notwithstanding any other provision of this Agreement, any lump sum cash severance payment under this Agreement will be provided to the Executive no later than March 15 of the year following the year in which the payment becomes earned under Section 409A. In no event will the Company or any parent, subsidiary or other affiliate of the Company have any responsibility, liability or obligation to reimburse, indemnify or hold harmless the Executive for any taxes, penalties or interest that may be imposed, or other costs that may be incurred, as a result of Section 409A.
9.10. Non-duplication of Payment or Benefits. For purposes of clarity, in the event of a Qualifying Termination that occurs during the period within three (3) months prior to a Change in Control, any severance payments and benefits to be provided to the Executive thereafter will be reduced by any amounts that already were provided to the Executive under this Agreement. For purposes of clarity, in the event of the Executive’s Qualifying Termination that occurs prior to a Change in Control, any then outstanding and unvested portion of the Executive’s equity awards will remain outstanding (and unvested) until the earlier of (x) three (3) months following the Qualifying Termination, or (y) a Change in Control that occurs within three (3) months following the Qualifying Termination, solely so that any benefits due on a Qualifying Termination can be provided if the Qualifying Termination occurs during the Change in Control Period (provided that in no event will the Executive’s stock option equity awards or similar equity awards remain outstanding beyond the equity award’s maximum term to expiration). If no Change in Control occurs within three (3) months following a Qualifying Termination, any unvested portion of the Executive’s equity awards automatically and permanently will be forfeited on the date three (3) months following the date of the Qualifying Termination without having vested.
9.11. Reduction of Severance Benefits. If any payment or benefit that the Executive would receive from the Company or any other party under this Agreement or otherwise (the “Payments”) would (a) constitute a “parachute payment” within the meaning of Section 280G of the Code and (b) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payments will be either delivered in full, or delivered as to such lesser extent that would result in no portion of the Payments being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the Executive’s receipt, on an after-tax basis, of the greatest amount of Payments, notwithstanding that all or some of the Payments may be subject to the Excise Tax. If a reduction in Payments is made in accordance with the immediately preceding sentence, the reduction will occur, with respect to the Payments considered parachute payments within the meaning of Code Section 280G, in the following order: (i) reduction of cash payments in reverse chronological order (that is, the cash payment owed on the latest date following the occurrence of the event triggering the Excise Tax will be the first cash payment to be reduced); (ii) cancellation of equity awards that were granted “contingent on a change in ownership or control” within the meaning of Section 280G of the Code in the reverse order of date of grant of the equity awards (that is, the most recently granted equity awards will be cancelled first); (iii) reduction of the accelerated vesting of equity awards in the reverse order of date of grant of the equity awards (that is, the vesting of the most recently granted equity awards will be cancelled first); and (iv) reduction of employee benefits in reverse chronological order (that is, the benefit owed on the latest date following the occurrence of the event triggering the Excise Tax will be the first benefit to be reduced). If two or more equity awards are granted on the same date, each award will be reduced on a prorated basis. In no event will the Executive have any discretion with respect to the ordering of Payment reductions. Any required determinations will be made in writing by a nationally recognized accounting or valuation firm selected by the Company, whose determinations will be conclusive and binding upon the Executive and the Company for all purposes. The Company and the Executive will furnish to the firm such information and documents as the firm reasonably may request in order to make determinations required under this Agreement. The Company will bear the costs and make all payments required to be made to the firm for the firm’s services that are rendered in connection with any calculations contemplated by this Agreement. The Company will have no liability to the Executive for the determinations of the firm.
9.12. Clawback Policy. Any payment or benefit that the Executive would receive from the Company under this Agreement will be subject to any Company policy or arrangement regarding the clawback, recoupment or forfeiture of incentive-based compensation.
9.13. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
[Signature page follows.]
By its signature below, each of the parties signifies its acceptance of the terms of this Agreement, in the case of the Company by its duly authorized officer.
COMPANY |
HECLA MINING COMPANY |
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By: /s/ Catherine J. Boggs
Title: Chairperson of the Board of Directors
Date: November 7, 2024
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EXECUTIVE |
/s/ Robert Krcmarov
Robert Krcmarov
Date: November 7 , 2024
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Exhibit 99.1
NEWS RELEASE
Hecla Names Rob Krcmarov as President and CEO
Seasoned mining executive with more than 35 years of industry expertise
FOR IMMEDIATE RELEASE
November 4, 2024
COEUR D’ALENE, Idaho, November 4, 2024 — Hecla Mining Company (NYSE: HL) today announced that its Board of Directors has appointed Rob Krcmarov as the company’s new President and Chief Executive Officer (“CEO”), effective November 7, 2024. Mr. Krcmarov will also join Hecla’s Board of Directors. He succeeds Catherine (“Cassie”) J. Boggs, who has served as Interim President and CEO since May 22, 2024, and will remain as Chair of the Board of Directors.
"We are excited that Rob Krcmarov will be Hecla’s new CEO and join the Board," said Ms. Boggs. “The Board conducted a rigorous selection process to ensure that our new CEO has the right experience, vision, and leadership to guide Hecla forward, and that is Rob. Rob is a highly respected figure in the mining industry with a proven track record across various international markets. His experience in managing complex operations and his commitment to safe, sustainable mining practices make him the ideal fit for Hecla’s next chapter. We look forward to his input on all of our operations, including our large inventory of exploration and pre-development projects."
Mr. Krcmarov stated, "It’s a privilege to join Hecla and lead such a talented and dedicated team. I look forward to building upon Hecla’s legacy of operational excellence, culture of innovation, and continuous improvement and furthering our commitment to safety, environmental responsibility, and stakeholder engagement."
A seasoned geologist and mining executive, Mr. Krcmarov brings over three decades of industry expertise. Prior to joining Hecla, he served for 13 years on the executive leadership team at Barrick Gold Corporation, including his most recent role as Executive Vice President of Exploration and Growth. Mr. Krcmarov’s international experience spans many countries on five continents, and he has a strong track record of running efficient and safe operations, evaluating new business opportunities, conducting effective community relations, and engaging in constructive dialogue with institutional investors, financial markets, board members, government officials, and other stakeholders. Mr. Krcmarov’s leadership capabilities span mineral exploration, drilling operations, mining operations, change management, research and development, and strategic planning.
Mr. Krcmarov holds a Master of Economic Geology from the University of Tasmania and a Bachelor of Science in Geology from the University of Adelaide.
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Hecla Mining Company ● 1-800-432-5291 ● hmc-info@hecla.com |
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Additionally, the Company announced the promotion of Carlos Aguiar from Vice President – Operations to Senior Vice President and Chief Operating Officer effective also as of November 7, 2024. Mr. Aguiar, who joined Hecla in 1996, was appointed Vice President – Operations in August 2023 after serving as Vice President and General Manager at the Lucky Friday Mine and previously at the San Sebastian Mine. With over 25 years of engineering and management experience in mining, he has held various leadership roles across Hecla’s operations. Mr. Aguiar holds a degree in Chemical Engineering with a minor in Metallurgy from the University of Sonora (Mexico).
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.
For further information, please contact:
Anvita M. Patil, Vice President – Investor Relations and Treasurer
Cheryl Turner, Communications Coordinator
800-HECLA91 (800-432-5291)
Investor Relations
Email: hmc-info@hecla.com
Website: www.hecla.com
Hecla Mining Company ● 1-800-432-5291 ● hmc-info@hecla.com |
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