Exhibit
10.3


EMPLOYMENT
AGREEMENT


THIS EMPLOYMENT AGREEMENT (the “Agreement”),
is dated as of August 7, 2007 (the “Effective Date”), between Mines Management,
Inc, an Idaho corporation (the “Company”) and Douglas Dobbs (“Executive”).


W I T N E S S E T
H   T H A T:


WHEREAS, the Company wishes to retain the
services of Executive as Vice President, Corporate Development and Investor
Relations of the Company and Executive is willing to continue to make his
services available to the Company on the terms and conditions herein provided.


NOW, THEREFORE, in consideration thereof and
hereof, the parties hereto covenant and agree as follows:


Section 1.                                            Term of
Employment; Compensation.  The
Company agrees to employ Executive from the Effective Date, in the full time capacity
of Vice President, Corporate Development and Investor Relations of the Company,
with the responsibilities normally associated with such position, which
employment shall continue until terminated as hereafter provided.  The Company will pay Executive for his
services at an annual rate of One Hundred Fifty Thousand Dollars ($150,000),
payable in arrears, in equal installments, in accordance with standard Company
practice, but in any event not less often than monthly, subject only to such
payroll and withholding deductions as are required by law of authorized by
Executive.  Executive shall also be
entitled to participate in all employee benefit plans of the Company on the
same terms and conditions as other employees similarly situated, subject to the
Company’s right, in any event, to modify or terminate such plans.  The Company shall pay Executive’s individual
medical and dental insurance premiums and shall provide paid monthly parking.
In addition, Executive shall be eligible to receive such stock options as may
be approved, in its sole discretion, by the Compensation Committee of the Board
of Directors of the Company (the “Board”) or by the Board. Executive’s
performance will be evaluated annually or at such other times as determined by
the Board.


Section 2.                                            Office
and Duties.  Executive shall have the
usual duties of a corporate officer and shall be responsible for developing and
executing the Company’s investor relations program, responding to shareholder
inquiries, overseeing corporate communications, building and maintaining
strategic corporation relationships, evaluating business and acquisition
opportunities, participating in the management and direction of the Company’s
business and operations, and performing such specific other tasks consistent
with Executive’s position as a member of senior management as may from time to
time be assigned to Executive by the President or Chief Executive Officer of
the Company.  Executive shall devote
substantially all of his business time, labor, skill, undivided attention, and
best ability to the performance of his duties hereunder in a manner that will
faithfully and diligently further the business and interests of the Company on
a full time basis.  Executive shall not
directly or indirectly pursue any other 













business activity without the Company’s prior written consent.  Executive agrees that he will travel as is
reasonably necessary in the conduct of the Company’s business.


Section 3.                                            Expenses.  Executive shall be entitled to reimbursement
for expenses incurred by him in connection with the performance of his duties
hereunder upon receipt of vouchers therefor in accordance with such procedures
as the Company has heretofore or may hereafter establish.


Section 4.                                            Vacation
During Employment.  Executive shall
be entitled to such reasonable vacation time as may be allowed by the Company
in accordance with general practices established or to be established, but in
any event not less than three (3) weeks of vacation during each twelve (12)
month period plus usual statutory and other public holidays, the timing of such
vacation to be mutually agreed upon between Executive and the Company.  The Company recommends that all employees
take vacation, but if duties of Executive prevent him from taking said
vacation, Executive shall be paid for any unused vacation at the end of each
year. Unused vacation time will not be accrued and carried from year to year,
and Executive will forfeit any unused vacation at the end of each year.


Section 5.                                            Additional
Benefits.  Nothing herein contained
shall preclude Executive, to the extent he is otherwise eligible, from
participation in all group insurance programs or other fringe benefit plans
that the Company may hereafter in its sole and absolute discretion make
available generally to its employees.


Section 6.                                            Certain
Definitions.  For purposes of this
Agreement, the following words and phrases shall have the following meanings:


(a)                                           “Cause”
shall mean termination by the Company of Executive due to:  (i) engaging in illegal conduct, including but
not limited to fraud or embezzlement; (ii) being convicted of a felony; (iii)
engaging in substance abuse which impairs Executive’s ability to perform the
duties and obligations of his employment or causes harm to the reputation of
the Company; (iv) the willful breach of Executive’s duties to the Company; (v)
failure or refusal by Executive to follow reasonable directions by the Company;
or (vi) engaging in conduct which in the sole opinion of management of
the Company is deemed to be detrimental to the Company.  Whether Cause exists for termination will be
determined by the Company in its sole discretion.


(b)                                          A
“Change in Control” shall be deemed to have occurred if any of the following
occurs with respect to the Company:  (i)
the direct or indirect sale or exchange in a single transaction or series of
transactions by the shareholders of the Company of more than thirty five
percent (35%) of the voting stock of the Company to an individual, an entity or
a “group” as that term is defined in Section 13 of the Securities Exchange Act
of 1934; (ii) a merger or consolidation to which the Company is a party and
following which the shareholders of the Company do not have more than fifty
percent (50%) of the voting stock of the resulting company (or its ultimate parent
company); (iii) the sale, exchange, or transfer of all or substantially all of
the assets of the Company; (iv) a liquidation or dissolution of the Company; or
(v) a series of related 



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Transactions (each of the items (i) through (iv) constituting a “Transaction”) wherein the
shareholders of the Company immediately before the Transaction do not retain
immediately after the Transaction, in substantially the same proportions as
their ownership of shares of the Company’s voting stock immediately before the Transaction,
direct or indirect beneficial ownership of more than fifty percent (50%) of the
total combined voting power of the outstanding voting securities of the Company
or, in the case of a Transaction involving the sale, exchange, or transfer of
all or substantially all of the assets of the Company, the corporation or other
business entity to which the assets of the Company were transferred (the “Transferee”), as the case may
be.  For purposes of the preceding
sentence, indirect beneficial ownership shall include, without limitation, an
interest resulting from ownership of the voting securities of one or more
corporations or other business entities which own the Company or the
Transferee, as the case may be, either directly or through one or more subsidiary
corporations or other business entities. 
The Board shall have the right to determine whether multiple sales or
exchanges of the voting securities of the Company or multiple Transactions are
related, and its determination shall be final, binding and conclusive.  Notwithstanding the preceding sentence, a
Change in Control shall not include a distribution or transaction in which the
voting stock of the Company or a parent or subsidiary is distributed to the
shareholders of a parent of such entity. 
Any change in ownership resulting from an underwritten public offering
of the common stock or the stock of any parent or subsidiary shall not be
deemed a Change in Control for any purpose hereunder.


(c)                                           The
“Change in Control Date” shall be any date during the term of this Agreement on
which a Change in Control occurs. 
Anything in this Agreement to the contrary notwithstanding, if Executive’s
employment or status as an elected officer with the Company is terminated
within six (6) months before the date on which a Change in Control occurs, and
it is reasonably demonstrated that such termination (i) was at the request
of a third party who has taken steps reasonably calculated or intended to
effect a Change in Control or (ii) otherwise arose in connection with or anticipation
of a Change in Control, then for all purposes of this Agreement the “Change in
Control Date” shall mean the date immediately before the date of such
termination.


(d)                                          “Code”
shall mean the Internal Revenue Code of 1986, as amended.


(e)                                           “Disability,”
for purposes of this Agreement, shall mean total disability as defined in any
long-term disability plan sponsored by the Company in which Executive
participates, or, if there is no such plan or such plan does not define such
term, then it shall mean the physical or mental incapacity of Executive that
prevents him from substantially performing the duties of Vice President,
Corporate Development and Investor Relations, and which incapacity has
continued for a period of at least ninety (90) days in any three hundred sixty
five (365) day period.


(f)                                             “Good
Reason” means:


(i)                                     the
assignment to Executive within the Protection Period (as defined in
subparagraph (g) below) of any duties inconsistent in any material 



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respect with Executive’s
position (including status, offices, titles and reporting requirements,
authority, duties or responsibilities), or any other action that results in a
material diminution in such position, authority, duties, or responsibilities,
excluding for this purpose an isolated or inadvertent action not taken in bad
faith, or that is remedied by the Company within thirty (30) days after receipt
of written notice given by Executive;


(ii)                                  a
reduction by the Company in Executive’s base salary as in effect immediately
before the beginning of the Protection Period or as increased from time to time
after the beginning of the Protection Period;


(iii)                               a
failure by the Company to maintain plans providing benefits at least as
beneficial as those provided by any benefit or compensation plan (including,
without limitation, any incentive compensation plan, bonus plan or program,
retirement, pension or savings plan, life insurance plan, health and dental
plan or disability plan) in which Executive is participating immediately before
the beginning of the Protection Period, or any action taken by the Company that
would adversely affect Executive’s participation in or reduce Executive’s
opportunity to benefit under any of such plans or deprive Executive of any
material fringe benefit enjoyed by him immediately before the beginning of the
Protection Period; provided, however, that a reduction in benefits under the
Company’s tax-qualified retirement, pension, or savings plans or its life
insurance plan, health and dental plan, disability plans or other insurance
plans, which reduction applies generally to all participants in the plans or
has a de minimis effect on Executive shall not constitute “Good Reason”;


(iv)                              the
Company’s requiring Executive, without Executive’s written consent, to be based
at any office or location in excess of fifty (50) miles from his office
location immediately before the beginning of the Protection Period, except for
travel reasonably required in the performance of Executive’s responsibilities;


(v)                                 any
failure by the Company to obtain the assumption of the obligations contained in
this Agreement by any successor as contemplated in Section 13 of
this Agreement; or


(vi)                              any
material breach of this Agreement by the Company.


(g)                                          “Protection
Period” means the period beginning on the Change in Control Date and ending on
the one year anniversary of the Change in Control Date.


Section 7.                                            Termination
of Employment.


(a)                                           Notwithstanding
any other provision of this Agreement, Executive’s employment may be
terminated:


(i)                                     by
Executive upon ninety (90) days written notice;



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(ii)                                  by
the Company upon thirty (30) days written notice, without Cause;


(iii)                               by
the Company, with notice to Executive, for Disability;


(iv)                              in
the event of Executive’s death during the term of his employment, provided that
the Company’s obligation to pay further compensation hereunder shall cease
forthwith, except that the legal representative of Executive’s estate shall be
entitled to receive an amount equal to one-twelfth (1/12) of Executive’s then
current annual base salary for a period of three (3) months beginning with the
pay period immediately after Executive’s death shall have occurred; or


(v)                                 by
the Company, at any time for Cause.


Upon the termination of Executive’s employment pursuant to this Section
7(a), this Agreement shall automatically terminate, except as otherwise
provided herein.


(b)                                          In
the event that Executive’s employment is terminated pursuant to Section 7(a)(i),
(ii), (iii) or (iv) 
or Section 7(d), Executive shall receive an amount equal to
Executive’s full base salary and vacation pay (for vacation not taken) accrued
but unpaid through the date of termination at the rate in effect at the time of
the termination.


(c)                                           In
the event that Executive’s employment is terminated pursuant to Section 7(a)(ii)
or (iii) or Section 7(d):


(i)                                     shares,
options, or other forms of securities issued by the Company and beneficially
owned by Executive (whether granted before or after the date of this Agreement)
that are unvested, restricted, or subject to any similar restriction shall vest
automatically on the termination date and shall be exercisable by Executive or
Executive’s personal representative in accordance with the terms of the
applicable Company stock option plan and restrictions shall lapse; and


(ii)                                  the
Company shall pay the premium for Executive’s COBRA continuation coverage for
health benefits provided by the Company for a period of up to twenty-four (24)
months (or such lesser period of COBRA coverage as may apply to Executive)
following the date of termination.


(d)                                          Benefits
upon Termination During a Protection Period.   If, during a Protection Period, Executive’s
employment is terminated by the Company other than for Cause or Disability or
other than as a result of Executive’s death, or if Executive terminates his employment
for Good Reason, and such termination of employment constitutes a “separation
from service” within the meaning of Section 409A of the Code, the Company shall
pay to Executive in a lump sum in cash, within ten (10) days after the date of
termination, the aggregate of the following amounts:



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(i)                                     Severance.  The Company shall pay to Executive a
severance amount equal to two (2) times Executive’s Annual Compensation.  As used herein,  “Annual Compensation” shall be an amount
equal to the sum of (i) Executive’s annual base salary from the Company
and its subsidiaries; and (ii) the amount of annual bonus, if any, paid by
the Company to Executive for the year before the Change of Control occurs.


(ii)                                  Gross-Up Benefits.  Anything
in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the
benefit of Executive (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 7(d) (a “Payment”)
would be subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties are incurred by Executive with respect to such excise tax
that are not due to Executive’s actions or inactions (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to
as the “Excise Tax”), then Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by
Executive of all taxes imposed upon the Gross-Up Payment (including any
federal, state, and local income taxes, employment taxes under
Section 3101(b) of the Code, and Excise Taxes, assuming the highest
marginal income tax rates apply to the Gross-Up Payment), Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.  In the event that Executive is
entitled to a Gross-Up Payment, the following shall apply:


(1)                                  All
determinations required to be made, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment, shall be made by a
nationally recognized certified public accounting firm selected by the Company
(the “Accounting Firm”).  The Accounting
Firm shall be requested to provide detailed supporting calculations both to the
Company and to Executive within fifteen (15) business days of the receipt
of notice that there has been a Payment. 
All fees and expenses of the Accounting Firm shall be borne solely by
the Company.  Any Gross-Up Payment shall
be paid by the Company to Executive within five (5) days of the receipt of
the Accounting Firm’s determination.  Any
determination by the Accounting Firm shall be binding upon the Company and
Executive.  As a result of uncertainty in
the application of Sections 280G and 4999 of the Code, it is possible that
Gross-Up Payments that will not have been made by the Company should have been made
(an “Underpayment”).  In the event the Company
exhausts its remedies pursuant to the following subparagraph and Executive is
thereafter required to make a payment of any Excise Tax, the Accounting Firm
shall be requested to determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to
Executive.


(2)                                  Executive
shall notify the Company in writing of any assertion by the Internal Revenue
Service that, if successful, would require the payment by the Company of an
Underpayment.  Such notification shall be
given as soon 



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as practicable, but no later than ten
(10) business days after Executive is informed of such assertion.  Executive shall apprise the Company of the
nature of such assertion and provide copies of all letters, notices, etc. regarding
the assertion, and written summaries of any statements made to Executive or by
Executive in connection with the assertion. 
Executive shall not pay any amount asserted to be due prior to the
expiration of the 30-day period following the date on which Executive gives
such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such assertion is due).  If the Company notifies Executive in writing
prior to the expiration of such period that the Company desires to contest such
assertion, Executive shall:


a.                                       give
the Company any information reasonably requested by the Company relating to
such assertion,


b.                                      take
such action in connection with contesting such assertion as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such assertion by an attorney
reasonably selected by the Company,


c.                                       cooperate
with the Company in good faith in order effectively to contest such assertion,
and


d.                                      permit
the Company to participate in any proceedings relating to such assertion;


provided,
however, that the Company shall bear and pay directly all
costs and expenses (including additional interest and penalties) incurred in
connection with such contest, and shall indemnify and hold Executive harmless,
on an after-tax basis, for any Excise Tax and income and employment tax
(including interest and penalties) imposed as a result of such representation
and payment of costs and expenses.  The
Company shall control all proceedings taken in connection with such contest,
and, at its sole discretion, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the applicable taxing
authority in respect of such assertion and may, at its sole discretion, either
direct Executive to pay the tax asserted and sue for a refund or contest the
claim in any permissible manner, and Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that, if the Company directs Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to Executive, on an interest-free basis, and shall indemnify and hold
Executive harmless, on an after-tax basis, from any Excise Tax and income and
employment tax (including interest or penalties) imposed with respect to such
advance or with respect to any imputed income in connection with such advance;
and provided, further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year with respect to which such
contested amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which the
Gross-Up Payment would be payable hereunder, and Executive shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.



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(3)                                  If,
after the receipt by Executive of a Gross-Up Payment or an amount advanced by
the Company, Executive becomes entitled to receive any refund with respect to
the Excise Tax to which such Gross-Up Payment relates or with respect to such
claim, Executive shall (subject to the Company’s complying with the
requirements of this section, if applicable) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto).  If,
after the receipt by Executive of an amount advanced by the Company pursuant to
this section, a determination is made that Executive shall not be entitled to
any refund with respect to such claim and the Company does not notify Executive
in writing of its intent to contest such denial of refund prior to the
expiration of thirty (30) days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.


(e)                                           Prior
to receiving any payment or other consideration set forth in Section 7(b),
Section 7(c)(i), (ii) or Section 7(d), Executive must first sign
a Confidential Severance and Release Agreement in a form reasonably
satisfactory to the Company.


Section 8.                                            Code
Section 409A Savings Provision. 
Anything in this Agreement to the contrary notwithstanding, if (1) on
the date of Executive’s “separation from service” to the Company (within the
meaning of Section 409A of the Code), any of the Company’s stock is publicly
traded on an established securities market or otherwise (within the meaning of
Section 409A(a)(2)(B)(i) of the Code) and (2) as a result of such separation
from service, Executive would receive any payment that, absent the application
of this Section 8, would be subject to constructive receipt,
interest and additional tax imposed pursuant to Code Section 409A(a) as a
result of the application of Code Section 409A(2)(B)(i), then no such payment
shall be payable until the date that is the earliest of (i) six (6) months
after Executive’s separation from service date, (ii) Executive’s death or (iii)
such other date as will not result in such payment being subject to such
interest and additional tax.  It is the intention of the parties that all
amounts payable under this Agreement not be subject to constructive receipt,
interest and additional tax imposed pursuant to Code Section 409A, and all
provisions of the Code shall be interpreted consistently therewith.  To the extent amounts payable under this
Agreement may be or become subject to such interest and additional tax, based
on subsequent governmental or court interpretation of Code Section 409A, the
parties shall cooperate to amend this Agreement with the goal of giving
Executive the same or equivalent value of the benefits described in this
Agreement in a manner that does not result in such constructive receipt,
interest and additional tax.


Section 9.                                            Proprietary
Information.  Executive hereby grants
to the Company all right, title, and interest in and to any information
concerning discoveries; methods; business plans and practices; enterprises;
explorations; mining information; plant design, location, or operation; or any
other information affecting the business operations of the Company and any
invention, discovery, or improvement conceived or reduced to practice in
connection with the services performed hereunder (“Proprietary Information”).  Executive will keep signed, witnessed, and
dated written records of all such inventions, discoveries, or improvements;
will furnish the Company promptly with complete 



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information in respect thereof and will do all things necessary to
protect the interests of the Company therein.


Section 10.                                      Confidentiality.  Executive shall not, either during the period
of Executive’s employment with the Company or for a period of two (2) years
thereafter, reveal or disclose to any person outside the Company or use for
Executive’s own benefit or for the benefit of any third party, without the
Company’s specific written authorization, whether by private communication or
by public address or publication or otherwise, any information not already
lawfully available to the public concerning the Company or the Company’s equity
securities, including any Proprietary Information, whether or not supplied by
the Company, and whether or not made, developed, and/or conceived by Executive
or by others in the employ of the Company. 
All originals and copies of any of the foregoing, relating to the
business of the Company, however and whenever produced, shall be the sole
property of the Company, not to be removed from the premises or custody of the
Company without in each instance first obtaining written consent or
authorization of the Company.  Upon the
termination of Executive’s employment in any manner or for any reason,
Executive shall promptly surrender to the Company all copies of any of the
foregoing, together with any other documents, materials, data, information, and
equipment belonging to or relating to the Company’s business and in his
possession, custody, or control, and Executive shall not thereafter retain or
deliver to any other person, any of the foregoing or any summary or memorandum
thereof.


Section 11.                                      Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed to have been given when
delivered or three (3) days after mailing if mailed by first-class, registered,
or certified mail, postage prepaid, addressed (a) if to Executive: Doug
Dobbs, 8824 S. Hilby Lane, Spokane, Washington 99223 and (b) if to the Company:
President, Mines Management, Inc., 905 W. Riverside Ave. Suite 311, Spokane, WA
99201, or to such other person(s) or address(es) as the Company shall have
furnished to Executive in writing.


Section 12.                                      Survival.   The rights and obligations of the parties
hereto arising under Sections 6, 7, 8, 9, 10,
11, 12, 13, 14, 15, 16, 17, 18,
19, and 22 shall survive the termination or cancellation of this
Agreement for any reason.


Section 13.                                      Assignability.  If the Company shall be merged with, or
consolidated into any other corporation, or in the event that it shall sell and
transfer substantially all of its assets to another corporation, the terms of
this Agreement shall inure to the benefit of, and be assumed by, the
corporation resulting from such merger or consolidation, or to which the
Company’s assets shall be sold and transferred. 
This Agreement shall not be assignable by Executive, but it shall be
binding upon and to the extent provided in Section 7 shall inure to
the benefit of, his heirs, executors, administrators, and legal
representatives.


Section 14.                                      Entire
Agreement.  This Agreement contains
the entire agreement between the Company and Executive with respect to the
subject matter hereof and there have been no oral or other agreements of any
kind whatsoever as a condition precedent or 



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inducement to the signing of this Agreement or
otherwise concerning this Agreement or the subject matter hereof. This
Agreement supersedes and replaces any prior agreements, promises, or
understandings between the Company and Executive.


Section 15.                                      Expenses.  Each party shall pay its or his own expenses
incident to the performance or enforcement of this Agreement, including all
fees and expenses of its counsel for all activities of such counsel undertaken
pursuant to this Agreement, except as otherwise herein specifically provided.


Section 16.                                      Equitable
Relief.  Executive recognizes and agrees
that the Company’s remedy at law for any breach of the provisions of Sections 9
or 10 hereof would be inadequate, and he agrees that for breach of such
provisions, the Company shall, in addition to such other remedies as may be
available to it at law or in equity or as provided in this Agreement, be
entitled to injunctive relief and to enforce its rights by an action for
specific performance to the extent permitted by law.  If Executive engages in any activities
prohibited by this Agreement, he agrees to pay over to the Company all
compensation, remunerations or property of any sort received in connection with
such activities; such payment shall not impair any rights or remedies of the
Company or obligations or liabilities of Executive that such parties may have
under this Agreement or applicable law.


Section 17.                                      Waivers and
Further Agreements.  Any waiver of
any terms or conditions of this Agreement shall not operate as a waiver of any
other breach of such terms or conditions or any other term or condition, nor
shall any failure to enforce any provision hereof operate as a waiver of such
provision or of any other provision hereof, unless it, by its own terms,
explicitly provides to the contrary, nor shall it be construed to effect a
continuing waiver of the provision being waived and no such waiver in any
instance shall constitute a waiver in any other instance or for any other
purpose or impair the right of the party against whom such waiver is claimed in
all other instances or for all other purposes to require full compliance with
such provision.  Each of the parties
hereto agrees to execute all such further instruments and documents and to take
all such further action as the other party may reasonably require in order to
effectuate the terms and purposes of this Agreement.


Section 18.                                      Amendments.  This Agreement may not be amended, nor shall
any waiver, change, modification, consent, or discharge be effected except by
an instrument in writing executed by or on behalf of the party against whom
enforcement of any such waiver, change, modification, consent, or discharge is
sought.


Section 19.                                      Severability.  If any provision of this Agreement shall be
held or deemed to be, or shall in fact be, invalid, inoperative, or
unenforceable as applied to any particular case in any jurisdiction or
jurisdictions, or in all jurisdictions or in all cases, because of the conflict
of any provision with any constitution or statute or rule of public policy or
for any other reason, such circumstance shall not have the effect of rendering
the provision or provisions in question, invalid, inoperative, or unenforceable
in any other jurisdiction or in any other case or circumstance or of rendering
any other provision or provisions herein contained invalid, inoperative, or
unenforceable to the extent that such 



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other provisions are not themselves actually in conflict with such
constitution, statute, or rule of public policy, but this Agreement shall be
reformed and construed in any such jurisdiction or case as if such invalid,
inoperative, or unenforceable provision had never been contained herein and
such provision reformed so that it would be valid, operative, and enforceable
to the maximum extent permitted in such jurisdiction or in such case.


Section 20.                                      Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.


Section 21.                                      Section
Headings.  The headings contained in
this Agreement are for reference purposes only and shall not in any way affect
the meaning or interpretation of this Agreement.


Section 22.                                      General
Provisions.


(a)                                           Executive
further agrees that his obligations under Sections 9 and 10
of this Agreement shall be binding upon him irrespective of the duration of his
employment by the Company, the reasons for any cessation of his employment by
the Company, or the amount of his compensation and shall survive the
termination of this Agreement (whether such termination is by the Company, by
Executive, upon expiration of this Agreement or otherwise).


(b)                                          Executive
represents and warrants to the Company that he is not now under any obligations
to any person, firm, or corporation, and has no other interest that is
inconsistent or in conflict with this Agreement, or that would prevent, limit
or impair, in any way, the performance by him of any of the covenants or duties
in his employment.


Section 23.                                      Gender.  Whenever used herein, the singular number
shall include the plural, the plural shall include the singular, and the use of
any gender shall include all genders.


Section 24.                                      Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the law of Washington.  Venue for any action arising from or in
connection with this Agreement shall be in Spokane County, Washington.


Signature Page Follows.



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IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written.


	
  

  	
  MINES MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Glenn M. Dobbs

  
	
   

  	
  Name:

  	
  Glenn M. Dobbs

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas Dobbs

  
	
   

  	
  Douglas Dobbs

  



 



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