exv10wb





Exhibit
10.(b)



COEUR D’ALENE MINES CORPORATION

2003 LONG-TERM INCENTIVE PLAN




(Adjusted to Reflect 1-for-10 Reverse Stock Split Effective May 26, 2009)



ARTICLE 1.



ESTABLISHMENT, PURPOSE, AND DURATION



     1.1 Establishment of the Plan. Coeur d’Alene Mines Corporation, an Idaho corporation
(hereinafter referred to as the “Company”), establishes an incentive compensation plan to be known
as the Coeur d’Alene Mines Corporation 2003 Long-Term Incentive Plan (hereinafter referred to as
the “Plan”), as set forth in this document.



     The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights (“SARs”), Restricted Stock, Restricted Stock Units, Performance Shares,
Performance Units, Cash-Based Awards, and Stock-Based Awards.



     The Plan became effective May 20, 2003 (the “Effective Date”) and was amended effective May
26, 2009 to reflect adjustments relating to the Company’s one-for-ten reverse stock split of its
common stock. The Plan shall remain in effect as provided in Section 1.3 hereof.



     1.2 Purpose of the Plan. The purpose of the Plan is to promote the success and enhance the
value of the Company by linking the personal interests of the Participants to those of the
Company’s shareholders, and by providing Participants with an incentive for outstanding
performance.



     The Plan is further intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of Participants upon whose judgment, interest, and special effort
the successful conduct of its operation is largely dependent.



     1.3 Duration of the Plan. The Plan shall commence as of the Effective Date, as described in
Section 1.1 herein, and shall remain in effect, subject to the right of the Committee or the Board
of Directors to amend or terminate the Plan at any time pursuant to Article 16 herein, until all
Shares subject to the Plan have been purchased or acquired according to the Plan’s provisions.



ARTICLE 2.




DEFINITIONS



     Whenever used in the Plan, the following terms shall have the meaning set forth below, and
when the meaning is intended, the initial letter of the word shall be capitalized.



 









 






     (a) “Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the
General Rules and Regulations of the Exchange Act.




     (b) “Award” means, individually or collectively, a grant under this Plan of NQSOs,
ISOs, SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units,
Cash-Based Awards, or Stock-Based Awards.




     (c) “Award Agreement” means either (i) an agreement entered into by the Company and
each Participant setting forth the terms and provisions applicable to Awards granted under
this Plan; or (ii) a statement issued by the Company to a Participant describing the terms
and provisions of such Award.




     (d) “Beneficial Owner” shall have the meaning ascribed to such term in rule 13d-3 of
the General Rules and Regulations under the Exchange Act.




     (e) “Board” or “Board of Directors” means the Board of Directors of the Company.




     (f) “Cash-Based Award” means an Award granted to a Participant as described in Article
10 herein.




     (g) “Cause” means: (i) fraud, misrepresentation, theft, or embezzlement; (ii)
intentional violation of laws involving moral turpitude or which is materially injurious to
the Company; or (iii) willful and continued failure by the Participant substantially to
perform his or her duties with the Company or its subsidiaries (other than failure resulting
from the Participant’s incapacity due to physical or mental illness), after a demand for
substantial performance is delivered to the Participant by the President or the Chairman of
the Board of the Company, which demand specifically identifies the manner in which the
Participant has not substantially performed his or her duties.




     (h) “Change in Control” shall mean any of the following events: (i) any organization,
group, or person (“Person”) (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) (the “Exchange Act”) is or becomes the
Beneficial Owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing thirty-five percent (35%) or more of the combined
voting power of the then outstanding securities of the Company; or (ii) during any two (2)
year period, a majority of the members of the Board serving at the date of approval of this
Plan by shareholders is replaced by Directors who are not nominated and approved by the
Board; or (iii) a majority of the members of the Board are represented by, appointed by, or
affiliated with any Person whom the Board has determined is seeking to effect a Change in
Control of the Company; or (iv) the Company shall be combined with or acquired by another
company and the Board shall have determined, either before such event or thereafter, by
resolution, that a Change in Control will or has occurred.




     (i) “Code” means the U.S. Internal Revenue Code of 1986, as amended from



2









 







time to time, or any successor thereto.




     (j) “Committee” means the Compensation Committee of the Board of Directors. The members
of the Committee shall be appointed from time to time by and shall serve at the discretion
of the Board.




     (k) “Company” means Coeur d’Alene Mines Corporation, an Idaho corporation, and any
successor thereto as provided in Article 18 herein.




     (l) “Covered Employee” means a Participant who is a “covered employee,” as defined in
Section 162(m) of the Code and the regulations promulgated under Section 162(m) of the Code,
or any successor statute.




     (m) “Director” means any individual who is a member of the Board of Directors of the
Company.




     (n) “Employee” means any employee of the Company, its Affiliates, and/or its
Subsidiaries. Directors who are not otherwise employed by the Company, its Affiliates,
and/or its Subsidiaries shall not be considered Employees under this Plan.




     Individuals described in the first sentence of this definition who are foreign
nationals or are employed outside of the United States, or both, are considered to be
Employees and may be granted Awards on the terms and conditions set forth in the Plan, or on
such other terms and conditions as may, in the judgment of the Committee, be necessary or
desirable to further the purpose of the Plan.




     (o) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto.




     (p) “Fair Market Value” or “FMV” means a price that is based on the opening, closing,
actual, high, low, or average selling prices of a Share on the New York Stock Exchange
(“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the
preceding trading day, the next succeeding trading day, or an average of trading days, as
determined by the Committee in its discretion. Such definition of FMV shall be specified in
the Award Agreement and may differ depending on whether FMV is in reference to the grant,
exercise, vesting, or settlement or payout of an Award. If, however, the accounting
standards used to account for equity awards granted to Participants are substantially
modified subsequent to the Effective Date of the Plan, the Committee shall have the ability
to determine an Award’s FMV based on the relevant facts and circumstances. If Shares are not
traded on an established stock exchange, FMV shall be determined by the Committee based on
objective criteria.




     (q) “Fiscal Year” means the year commencing on January 1 and ending December 31 or
other time period as approved by the Board.




     (r) “Freestanding SAR” means an SAR that is granted independently of any



3









 







Options, as described in Article 7 herein.




     (s) “Grant Price” means the price at which a SAR may be exercised by a Participant, as
determined by the Committee and set forth in Section 7.1 herein.




     (t) “Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under
Article 6 herein and that is designated as an Incentive Stock Option and is intended to meet
the requirements of Section 422 of the Code, or any successor provision.




     (u) “Insider” shall mean an individual who is, on the relevant date, an officer,
Director, or more than ten percent (10%) Beneficial Owner of any class of the Company’s
equity securities that is registered pursuant to Section 12 of the Exchange Act, as
determined by the Board in accordance with Section 16 of the Exchange Act.




     (v) “Nonqualified Stock Option” or “NQSO” means an Option to purchase Shares, granted
under Article 6 herein, which is not intended to be an Incentive Stock Option or that
otherwise does not meet such requirements.




     (w) “Option” means an Incentive Stock Option or a Nonqualified Stock Option, as
described in Article 6 herein.




     (x) “Option Price” means the price at which a Share may be purchased by a Participant
pursuant to an Option, as determined by the Committee.




     (y) “Participant” means an Employee who has been selected to receive an Award or who
has an outstanding Award granted under the Plan.




     (z) “Performance-Based Compensation” means compensation under an Award that is granted
in order to provide remuneration solely on account of the attainment of one or more
preestablished, objective performance goals under circumstances that satisfy the
requirements of Section 162(m) of the Code.




     (aa) “Performance Measures” means measures as described in Article 11, the attainment
of which may determine the degree of payout and/or vesting with respect to Awards to Covered
Employees that are designated to qualify as Performance-Based Compensation.




     (ab) “Performance Period” means the period of time during which the performance goals
must be met in order to determine the degree of payout and/or vesting with respect to an
Award.




     (ac) “Performance Share” means an Award granted to a Participant, as described in
Article 9 herein.




     (ad) “Performance Unit” means an Award granted to a Participant, as described in
Article 9 herein.



4









 






     (ae) “Period of Restriction” means the period when Awards are subject to forfeiture
based on the passage of time, the achievement of performance goals, and/or upon the
occurrence of other events as determined by the Committee, at its discretion.




     (af) “Restricted Stock” means an Award of Shares granted to a Participant pursuant to
Article 8 herein.




     (ag) “Restricted Stock Unit” means an Award granted to a Participant pursuant to
Article 8 herein.




     (ah) “Shares” means the Shares of common stock of the Company.




     (ai) “Stock Appreciation Right” or “SAR” means an Award, designated as an SAR, pursuant
to the terms of Article 7 herein.




     (aj) “Stock-Based Award” means an Award granted pursuant to the terms of Section 10.5
herein.




     (ak) “Subsidiary” means any corporation, partnership, joint venture, limited liability
company, or other entity (other than the Company) in an unbroken chain of entities beginning
with the Company if each of the entities other than the last entity in the unbroken chain
owns at least fifty percent (50%) of the total combined voting power in one of the other
entities in such chain.




     (al) “Tandem SAR” means an SAR that is granted in connection with a related Option
pursuant to Article 7 herein, the exercise of which shall require forfeiture of the right to
purchase a Share under the related Option (and when a Share is purchased under the Option,
the Tandem SAR shall similarly be cancelled) or an SAR that is granted in tandem with an
Option but the exercise of such Option does not cancel the SAR, but rather results in the
exercise of the related SAR.



ARTICLE 3.




ADMINISTRATION



     3.1 General. The Committee shall be responsible for administering the Plan. The Committee may
employ attorneys, consultants, accountants, and other persons, and the Committee, the Company, and
its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of
any such persons. All actions taken and all interpretations and determinations made by the
Committee shall be final, conclusive, and binding upon the Participants, the Company, and all other
interested parties.



     3.2 Authority of the Committee. The Committee shall have full and exclusive discretionary
power to interpret the terms and the intent of the Plan and to determine eligibility



5









 




for Awards and to adopt such rules, regulations, and guidelines for administering the Plan as the
Committee may deem necessary or proper. Such authority shall include, but not be limited to,
selecting Award recipients, establishing all Award terms and conditions and, subject to Article 16,
adopting modifications and amendments, or subplans to the Plan or any Award Agreement, including
without limitation, any that are necessary to comply with the laws of the countries in which the
Company, its Affiliates, and/or its Subsidiaries operate.




     3.3 Delegation. The Committee may delegate to one or more of its members or to one or more
officers of the Company, its Affiliates and/or its Subsidiaries, or to one or more agents or
advisors such administrative duties as it may deem advisable, and the Committee or any person to
whom it has delegated duties as aforesaid may employ one or more persons to render advice with
respect to any responsibility the Committee or such person may have under the Plan. Except with
respect to Awards to Insiders, the Committee may, by resolution, authorize one or more officers of
the Company to do one or both of the following: (a) designate officers or Employees of the Company,
its Affiliates, and/or its Subsidiaries to be recipients of Awards; and (b) determine the size of
the Award; provided, however, that the resolution providing such authorization sets forth the total
number of Awards such officer or officers may grant.



ARTICLE 4.




SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS



     4.1 Number of Shares Available for Awards. Subject to adjustment as provided in Section 4.2
herein, the number of Shares hereby reserved for issuance to Participants under the Plan shall be
six hundred eighty thousand (680,000). The number of Shares that may be issued under the Plan for
Awards other than Options granted with an Option Price equal to at least the FMV of a Share on the
date of grant or Stock Appreciation Rights with a Grant Price equal to at least the FMV of a Share
on the date of grant shall not exceed sixty thousand (60,000) Shares. All of the reserved Shares
may be used as ISOs. Any Shares related to Awards which terminate by expiration, forfeiture,
cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of
Shares, or are exchanged with the Committee’s permission for Awards not involving Shares, shall be
available again for grant under the Plan. Moreover, if the Option Price of any Option granted under
the Plan or the tax withholding requirements with respect to any Award granted under the Plan are
satisfied by tendering Shares to the Company (by either actual delivery or by attestation), or if
an SAR is exercised, only the number of Shares issued, net of the Shares tendered, if any, will be
deemed delivered for purposes of determining the maximum number of Shares available for delivery
under the Plan. The maximum number of Shares available for issuance under the Plan shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested into additional Shares
or credited as additional Restricted Stock, Restricted Stock Units, Performance Shares, or
Stock-Based Awards. In addition, the Committee, in its discretion, may establish any other
appropriate methodology for calculating the number of Shares issued pursuant to the Plan. The
Shares available for issuance under the Plan may be authorized and unissued Shares or treasury
Shares.



     Unless and until the Committee determines that an Award to a Covered Employee shall



6









 




not be designed to qualify as Performance-Based Compensation, the following limits (“Award Limits”)
shall apply to grants of such Awards under the Plan:





     (a) Options. The maximum aggregate number of Shares that may be granted in the form of
Options, pursuant to any Award granted in any one Fiscal Year to any one
Participant shall be sixty thousand (60,000).




     (b) SARs. The maximum aggregate number of Shares that may be granted in the form of
Stock Appreciation Rights, pursuant to any Award granted in any one Fiscal Year to any one
Participant shall be sixty thousand (60,000).




     (c) Restricted Stock/ Restricted Stock Units. The maximum aggregate grant with respect
to Awards of Restricted Stock/Restricted Stock Units granted in any one Fiscal Year to any
one Participant shall be sixty thousand (60,000) Shares.




     (d) Performance Shares/ Performance Units. The maximum aggregate Award of Performance
Shares or Performance Units that a Participant may receive in any one Fiscal Year shall be
sixty thousand (60,000) Shares, or equal to the value of sixty thousand (60,000) Shares
determined as of the date of vesting or payout, as applicable.




     (e) Cash-Based Awards. The maximum aggregate amount awarded or credited with respect
to Cash-Based Awards to any one Participant in any one Fiscal Year may not exceed one
million two hundred thousand dollars ($1,200,000) determined as of the date of vesting or
payout, as applicable.




     (f) Stock Awards. The maximum aggregate grant with respect to Awards of Stock-Based
Awards in any one Fiscal Year to any one Participant shall be sixty thousand (60,000)
Shares.



     4.2 Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the Shares of the Company or the capitalization of the
Company) such as a merger, consolidation, reorganization, recapitalization, separation, stock
dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or
property of the Company, combination of securities, exchange of securities, dividend in kind, or
other like change in capital structure or distribution (other than normal cash dividends) to
shareholders of the Company, or any similar corporate event or transaction, the Committee, in its
sole discretion, in order to prevent dilution or enlargement of Participants’ rights under the
Plan, may substitute or adjust, in an equitable manner, as applicable, the number and kind of
Shares that may be issued under the Plan, the number and kind of Shares subject to outstanding
Awards, the Option Price or Grant Price applicable to outstanding Awards, the Award Limits, the
limit on issuing Awards other than Options granted with an Option Price equal to at least the FMV
of a Share on the date of grant or Stock Appreciation Rights with a Grant Price equal to at least
the FMV of a Share on the date of grant, and other value determinations applicable to outstanding
Awards.



7









 





     Appropriate adjustments may also be made by the Committee in the terms of any Awards under the
Plan to reflect such changes or distributions and to modify any other terms of outstanding Awards
on an equitable basis, including modifications of performance goals and changes in the length of
Performance Periods. The determination of the Committee as to the foregoing adjustments, if any,
shall be conclusive and binding on Participants under the Plan.



     Subject to the provisions of Article 15 and any applicable law or regulatory requirement,
without affecting the number of Shares reserved or available hereunder, the Committee may authorize
the issuance, assumption, substitution, or conversion of Awards under this Plan in connection with
any merger, consolidation, acquisition of property or stock, or reorganization, upon such terms and
conditions as it may deem appropriate. Additionally, the Committee may amend the Plan, or adopt
supplements to the Plan, in such manner as it deems appropriate to provide for such issuance,
assumption, substitution, or conversion, all without further action by the Company’s shareholders.



ARTICLE 5.




ELIGIBILITY AND PARTICIPATION



     5.1 Eligibility. Individuals eligible to participate in the Plan include all Employees.



     5.2 Actual Participation. Subject to the provisions of the Plan, the Committee may from time
to time, select from all eligible Employees, those to whom Awards shall be granted and shall
determine the nature and amount of each Award.



ARTICLE 6.




STOCK OPTIONS



     6.1 Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted
to Participants in such number, and upon such terms, and at any time and from time to time as shall
be determined by the Committee. In addition, ISOs may not be granted following the ten (10) year
anniversary of the Board’s adoption of the Plan, which is May 20, 2003.



     6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
specify the Option Price, the duration of the Option, the number of Shares to which the Option
pertains, the conditions upon which an Option shall become vested and exercisable, and such other
provisions as the Committee shall determine which are not inconsistent with the terms of the Plan.
The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO.



     6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be
determined by the Committee and shall be specified in the Award Agreement. The Option Price may
include (but not be limited to) an Option Price based on one hundred percent (100%)



8









 




of the FMV of the Shares on the date of grant, an Option Price that is either set at a discount or
premium to the FMV of the Shares on the date of grant, or is indexed to the FMV of the Shares on
the date of grant, with the index determined by the Committee, in its discretion, however, if the
Option is an ISO the Option Price must be at least equal to one hundred percent (100%) of the FMV
of the Shares on the date of grant.




     6.4 Duration of Options. Each Option granted to a Participant shall expire at such time as
the Committee shall determine at the time of grant; provided, however, no Option shall be
exercisable later than the tenth (10th) anniversary date of its grant. Notwithstanding the
foregoing, for Options granted to Participants outside the United States, the Committee has the
authority to grant Options that have a term greater than ten (10) years.



     6.5 Exercise of Options. Options granted under this Article 6 shall be exercisable at such
times and be subject to such restrictions and conditions as the Committee shall in each instance
approve, which need not be the same for each grant or for each Participant.



     6.6 Payment. Options granted under this Article 6 shall be exercised by the delivery of a
written notice of exercise to the Company, setting forth the number of Shares with respect to which
the Option is to be exercised, accompanied by full payment for the Shares.



     The Option Price upon exercise of any Option shall be payable to the Company in full either:
(a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate FMV at the time of exercise equal to the total
Option Price (provided, however, if the Company is accounting for the Options using APB Opinion 25,
the Shares that are tendered must have been held by the Participant for at least six (6) months
prior to their tender to satisfy the Option Price or have been purchased on the open market); (c)
by a combination of (a) and (b); or (d) any other method approved by the Committee in its sole
discretion at the time of grant and as set forth in the Award Agreement.



     The Committee also may allow cashless exercise as permitted under the Federal Reserve Board’s
Regulation T, subject to applicable securities law restrictions, or by any other means which the
Committee determines to be consistent with the Plan’s purpose and applicable law.



     Subject to Section 6.7 and any governing rules or regulations, as soon as practicable after
receipt of a written notification of exercise and full payment, the Company shall deliver to the
Participant, Share certificates or evidence of book entry Shares, in an appropriate amount based
upon the number of Shares purchased under the Option(s).



     Unless otherwise determined by the Committee, all payments under all of the methods indicated
above shall be paid in United States dollars.



     6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem
advisable, including, without limitation, requiring the Participant to hold the Shares acquired
pursuant to exercise for a specified period of time, restrictions under applicable federal
securities laws, under the requirements of any stock exchange or market upon



9









 




which such Shares are then listed and/or traded, and under any blue sky or state securities laws
applicable to such Shares.




     6.8 Termination of Employment. Each Participant’s Award Agreement shall set forth the extent
to which the Participant shall have the right to exercise the Option following termination of the
Participant’s employment with the Company, its Affiliates, and/or its Subsidiaries. Such provisions
shall be determined in the sole discretion of the Committee, shall be included in the Award
Agreement entered into with each Participant, need not be uniform among all Options issued pursuant
to this Article 6, and may reflect distinctions based on the reasons for termination.



     6.9 Transferability of Options.




     (a) Incentive Stock Options. No ISO granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws
of descent and distribution. Further, all ISOs granted to a Participant under this Article 6
shall be exercisable during his or her lifetime only by such Participant.




     (b) Nonqualified Stock Options. Except as otherwise provided in a Participant’s Award
Agreement, no NQSO granted under this Article 6 may be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided in a Participant’s Award Agreement, all
NQSOs granted to a Participant under this Article 6 shall be exercisable during his or her
lifetime only by such Participant.



     6.10 Notification of Disqualifying Disposition. The Participant will notify the Company upon
the disposition of Shares issued pursuant to the exercise of an ISO. The Company will use such
information to determine whether a disqualifying disposition as described in Section 421(b) of the
Code has occurred.



     6.11 Prohibition on Repricing Without Shareholder Approval. Notwithstanding any provision in
this Plan to the contrary, without the prior approval of the Company’s shareholders, Options issued
under the Plan will not be repriced, replaced, or regranted through cancellation, or by lowering
the exercise price of a previously granted Option.



ARTICLE 7.




STOCK APPRECIATION RIGHTS



     7.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to
Participants at any time and from time to time as shall be determined by the Committee. The
Committee may grant Freestanding SARs, Tandem SARs, or any combination of these forms of SARs.



10









 





     Subject to the terms and conditions of the Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Participant and, consistent with the provisions
of the Plan, in determining the terms and conditions pertaining to such SARs.



     The SAR Grant Price for each grant of a Freestanding SAR shall be determined by the Committee
and shall be specified in the Award Agreement. The SAR Grant Price may include (but not be limited
to) a Grant Price based on one hundred percent (100%) of the FMV of the Shares on the date of
grant, a Grant Price that is either set at a discount or premium to the FMV of the Shares on the
date of grant, or is indexed to the FMV of the Shares on the date of grant, with the index
determined by the Committee, in its discretion. The Grant Price of Tandem SARs shall be equal to
the Option Price of the related Option.



     7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify
the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.



     7.3 Term of SAR. The term of an SAR granted under the Plan shall be determined by the
Committee, in its sole discretion, and except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth (10th)
anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants
outside the United States, the Committee has the authority to grant SARs that have a term greater
than ten (10) years.



     7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and
conditions the Committee, in its sole discretion, imposes upon them.



     7.5 Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares
subject to the related Option upon the surrender of the right to exercise the equivalent portion of
the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its
related Option is then exercisable.



     Notwithstanding any other provision of this Plan to the contrary, with respect to a Tandem SAR
granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of
the underlying ISO; (b) the value of the payout with respect to the Tandem SAR may be for no more
than one hundred percent (100%) of the difference between the Option Price of the underlying ISO
and the FMV of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised;
and (c) the Tandem SAR may be exercised only when the FMV of the Shares subject to the ISO exceeds
the Option Price of the ISO.



     7.6 Payment of SAR Amount. Upon the exercise of an SAR, a Participant shall be entitled to
receive payment from the Company in an amount determined by multiplying:




     (a) The difference between the FMV of a Share on the date of exercise over the Grant
Price; by




     (b) The number of Shares with respect to which the SAR is exercised.








11









 











     At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Shares of
equivalent value, in some combination thereof, or in any other manner approved by the Committee at
its sole discretion. The Committee’s determination regarding the form of SAR payout shall be set
forth in the Award Agreement pertaining to the grant of the SAR.



     7.7 Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the SAR following termination of the Participant’s
employment with the Company, its Affiliates, and/or its Subsidiaries. Such provisions shall be
determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with Participants, need not be uniform among all SARs issued pursuant to the Plan, and
may reflect distinctions based on the reasons for termination.



     7.8 Nontransferability of SARs. Except as otherwise provided in a Participant’s Award
Agreement, no SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution. Further,
except as otherwise provided in a Participant’s Award Agreement, all SARs granted to a Participant
under the Plan shall be exercisable during his or her lifetime only by such Participant.



     7.9 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares received upon exercise of an SAR granted pursuant to the Plan as it may deem
advisable. This includes, but is not limited to, requiring the Participant to hold the Shares
received upon exercise of an SAR for a specified period of time.



     7.10 Substituting SARs. In the event the Company no longer uses APB Opinion 25 to account for
equity compensation and is required to or elects to expense the cost of stock options pursuant to
FAS 123 (or a successor standard), the Committee shall have the ability to substitute, without
receiving Participant permission, SARs paid only in stock for outstanding Options; provided, the
terms of the substituted stock SARs are the same as the terms for the stock options and the
difference between the Fair Market Value of the underlying Shares and the Grant Price of the SARs
is equivalent to the difference between the Fair Market Value of the underlying Shares and the
Option Price of the Options. If this provision creates adverse accounting consequences for the
Company as determined in the sole discretion of the Committee, it shall be considered null and
void.



     7.11 Prohibition on Repricing SARs Without Shareholder Approval. Notwithstanding any
provision in this Plan to the contrary, without the prior approval of the Company’s shareholders,
SARs issued under the Plan will not be repriced, replaced, or regranted through cancellation, or by
lowering the exercise price of a previously granted SAR.



12









 





ARTICLE 8.




RESTRICTED STOCK AND RESTRICTED STOCK UNITS



     8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions
of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock
and/or Restricted Stock Units to Participants in such amounts, as the Committee shall determine.
Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually
awarded to the Participant on the date of grant.



     8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted
Stock Units granted, and such other provisions as the Committee shall determine.



     8.3 Transferability. Except as provided in this Article 8, the Shares of Restricted Stock
and/or Restricted Stock Units granted herein may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until the end of the applicable Period of Restriction
established by the Committee and specified in the Award Agreement (and in the case of Restricted
Stock Units until the date of delivery or other payment), or upon earlier satisfaction of any other
conditions, as specified by the Committee, in its sole discretion, and set forth in the Award
Agreement. All rights with respect to the Restricted Stock and/or Restricted Stock Units granted to
a Participant under the Plan shall be available during his or her lifetime only to such
Participant.



     8.4 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to the Plan as it may
deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based
upon the achievement of specific performance goals, time-based restrictions on vesting following
the attainment of the performance goals, time-based restrictions, restrictions under applicable
federal or state securities laws, or any holding requirements or sale restrictions placed on the
Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units.



     To the extent deemed appropriate by the Committee, the Company may retain the certificates
representing Shares of Restricted Stock in the Company’s possession until such time as all
conditions and/or restrictions applicable to such Shares have been satisfied or lapse.



     Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each
Restricted Stock Award shall become freely transferable by the Participant after all conditions and
restrictions applicable to such Shares have been satisfied or lapse, and Restricted Stock Units
shall be paid in cash, Shares, or a combination of cash and Shares as the Committee, in its sole
discretion shall determine.



13









 





     8.5 Certificate Legend. In addition to any legends placed on certificates pursuant to Section
8.4 herein, each certificate representing Shares of Restricted Stock granted pursuant to the Plan
may bear a legend such as the following:



     The sale or other transfer of the shares of stock represented by this certificate, whether
voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as
set forth in the Coeur d’Alene Mines Corporation 2003 Long-Term Incentive Plan, and in the
associated Restricted Stock Award Agreement. A copy of the Plan and such Restricted Stock Award
Agreement may be obtained from the Coeur d’Alene Mines Corporation.



     8.6 Voting Rights. To the extent permitted or required by law, as determined by the
Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the
right to exercise full voting rights with respect to those Shares during the Period of Restriction.
A Participant shall have no voting rights with respect to any Restricted Stock Units granted
hereunder.



     8.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding
Shares of Restricted Stock or Restricted Stock Units granted hereunder may, if the Committee so
determines, be credited with dividends paid with respect to the underlying Shares or dividend
equivalents while they are so held in a manner determined by the Committee in its sole discretion.
The Committee may apply any restrictions to the dividends or dividend equivalents that the
Committee deems appropriate. The Committee, in its sole discretion, may determine the form of
payment of dividends or dividend equivalents, including cash, Shares, Restricted Stock, or
Restricted Stock Units.



     8.8 Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following
termination of the Participant’s employment with the Company, its Affiliates, and/or its
Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with each Participant, need not be uniform among all
Shares of Restricted Stock or Restricted Stock Units issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination.



     8.9 Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of
Restricted Stock is conditioned upon the Participant making or refraining from making an election
with respect to the Award under Section 83(b) of the Code. If a Participant makes an election
pursuant to Section 83(b) of the Code concerning a Restricted Stock Award, the Participant shall be
required to file promptly a copy of such election with the Company.



ARTICLE 9.




PERFORMANCE SHARES AND PERFORMANCE UNITS



     9.1 Grant of Performance Shares and Performance Units. Subject to the terms of the Plan,
Performance Shares and/or Performance Units may be granted to Participants in such



14









 




amounts and upon such terms, and at any time and from time to time, as shall be determined by the
Committee.




     9.2 Value of Performance Shares and Performance Units. Each Performance Share shall have an
initial value equal to the FMV of a Share on the date of grant. Each Performance Unit shall have an
initial value that is established by the Committee at the time of grant. The Committee shall set
performance goals in its discretion which, depending on the extent to which they are met, will
determine the value and/or number of Performance Shares/ Performance Units that will be paid out to
the Participant.



     9.3 Earning of Performance Shares and Performance Units. Subject to the terms of this Plan,
after the applicable Performance Period has ended, the holder of Performance Shares/ Performance
Units shall be entitled to receive payout on the value and number of Performance Shares/
Performance Units earned by the Participant over the Performance Period, to be determined as a
function of the extent to which the corresponding performance goals have been achieved.
Notwithstanding the foregoing, the Company has the ability to require the Participant to hold the
Shares received pursuant to such Award for a specified period of time.



     9.4 Form and Timing of Payment of Performance Shares and Performance Units. Payment of earned
Performance Shares/ Performance Units shall be as determined by the Committee and as evidenced in
the Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may
pay earned Performance Shares/ Performance Units in the form of cash or in Shares (or in a
combination thereof) equal to the value of the earned Performance Shares/ Performance Units at the
close of the applicable Performance Period. Any Shares may be granted subject to any restrictions
deemed appropriate by the Committee. The determination of the Committee with respect to the form of
payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the
Award.



     9.5 Dividends and Other Distributions. At the discretion of the Committee, Participants
holding Performance Shares may be entitled to receive dividend equivalents with respect to
dividends declared with respect to the Shares. Such dividends may be subject to the accrual,
forfeiture, or payout restrictions as determined by the Committee in its sole discretion.



     9.6 Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Performance Shares and/or Performance Units following
termination of the Participant’s employment with the Company, its Affiliates, and/or its
Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with each Participant, need not be uniform among all
Awards of Performance Shares or Performance Units issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination.



     9.7 Nontransferability. Except as otherwise provided in a Participant’s Award Agreement,
Performance Shares/ Performance Units may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution. Further,
except as otherwise provided in a Participant’s Award Agreement, a Participant’s rights under the
Plan shall be exercisable during his or her lifetime only by such



15









 




participant.




ARTICLE 10.




CASH-BASED AWARDS AND STOCK-BASED AWARDS



     10.1 Grant of Cash-Based Awards. Subject to the terms of the Plan, Cash-Based Awards may be
granted to Participants in such amounts and upon such terms, and at any time and from time to time,
as shall be determined by the Committee.



     10.2 Value of Cash-Based Awards. Each Cash-Based Award shall have a value as may be
determined by the Committee. The Committee may establish performance goals in its discretion. If
the Committee exercises its discretion to establish performance goals, the number and/or value of
Cash-Based Awards that will be paid out to the Participant will depend on the extent to which the
performance goals are met.



     10.3 Earning of Cash-Based Awards. Subject to the terms of this Plan, the holder of
Cash-Based Awards shall be entitled to receive payout on the number and value of Cash-Based Awards
earned by the Participant, to be determined as a function of the extent to which applicable
performance goals, if any, have been achieved.



     10.4 Form and Timing of Payment of Cash-Based Awards. Payment of earned Cash-Based Awards
shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the
terms of the Plan, the Committee, in its sole discretion, may pay earned Cash-Based Awards in the
form of cash or in Shares (or in a combination thereof) that have an aggregate FMV equal to the
value of the earned Cash-Based Awards. Such Shares may be granted subject to any restrictions
deemed appropriate by the Committee. The determination of the Committee with respect to the form of
payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the
Award.



     10.5 Stock-Based Awards. The Committee may grant other types of equity-based or
equity-related Awards (including the grant or offer for sale of unrestricted Shares) in such
amounts and subject to such terms and conditions, as the Committee shall determine. Payment of
earned Stock-Based Awards shall be as determined by the Committee and as evidenced in the Award
Agreement. Such Awards may entail the transfer of actual Shares to Participants, or payment in cash
or otherwise of amounts based on the value of Shares and may include, without limitation, Awards
designed to comply with or take advantage of the applicable local laws of jurisdictions other than
the United States. The determination of the Committee with respect to the form of payout of such
Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.



     10.6 Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to receive Cash-Based Awards and Stock-Based Awards following
termination of the Participant’s employment with the Company, its Affiliates, and/or its
Subsidiaries. Such provisions shall be determined in the sole discretion of the



16









 




Committee, shall be included in the Award Agreement entered into with each Participant, need not be
uniform among all Awards of Cash-Based Awards and Stock-Based Awards issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination.




     10.7 Nontransferability. Except as otherwise provided in a Participant’s Award Agreement,
Cash-Based Awards and Stock-Based Awards may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
Further, except as otherwise provided in a Participant’s Award Agreement, a Participant’s rights
under the Plan shall be exercisable during the Participant’s lifetime only by the Participant.



ARTICLE 11.




PERFORMANCE MEASURES



     Unless and until the Committee proposes for shareholder vote and the shareholders approve a
change in the general Performance Measures set forth in this Article 11, the performance goals upon
which the payment or vesting of an Award to a Covered Employee that is intended to qualify as
Performance-Based Compensation shall be limited to the following Performance Measures:




     (a) Earnings per share (actual or targeted growth);




     (b) Economic valued added (EVA);




     (c) Net income after capital costs;




     (d) Net income (before or after taxes);




     (e) Return measures (including, but not limited to, return on average assets, return on
capital, return on equity, or cash-flow return measures);




     (f) Stock price (including, but not limited to, growth measures and total shareholder
return);




     (g) Expense targets;




     (h) Margins;




     (i) Production levels;




     (j) Cash cost per ounce of production;




     (k) Earnings before interest, tax, depreciation, and amortization;




     (l) Capital budget targets; and



17









 






     (m) Budget target measures.



     Any Performance Measure(s) may be used to measure the performance of the Company as a whole or
any business unit of the Company or any combination thereof, as the Committee may deem appropriate,
or any of the above Performance Measures as compared to the performance of a group of comparator
companies, or published or special index that the Committee, in its sole discretion, deems
appropriate, or the Company may select Performance Measure (f) above as compared to various stock
market indices. The Committee also has the authority to provide for accelerated vesting of any
Award based on the achievement of performance goals pursuant to the Performance Measures specified
in this Article 11.



     The Committee may provide in any such Award that any evaluation of performance may include or
exclude any of the following events that occurs during a Performance Period: (a) asset write-downs;
(b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting
principles, or other laws or provisions affecting reported results; (d) any reorganization and
restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles
Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and
results of operations appearing in the Company’s annual report to shareholders for the applicable
year; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. To the extent
such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a
form that meets the requirements of Code Section 162(m) for deductibility.



     Awards that are designed to qualify as Performance-Based Compensation, and that are held by
Covered Employees, may not be adjusted upward. The Committee shall retain the discretion to adjust
such Awards downward.



     In the event that applicable tax and/or securities laws change to permit Committee discretion
to alter the governing Performance Measures without obtaining shareholder approval of such changes,
the Committee shall have sole discretion to make such changes without obtaining shareholder
approval. In addition, in the event that the Committee determines that it is advisable to grant
Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants
without satisfying the requirements of Code Section 162(m).



ARTICLE 12.




BENEFICIARY DESIGNATION



     A Participant’s “beneficiary” is the person or persons entitled to receive payments or other
benefits or exercise rights that are available under the Plan in the event of the Participant’s
death. A Participant may designate a beneficiary or change a previous beneficiary designation at
any time by using forms and following procedures approved by the Committee for that purpose. If no
beneficiary designated by the Participant is eligible to receive payments or other benefits or
exercise rights that are available under the Plan at the Participant’s death the beneficiary shall
be the Participant’s estate.



18









 





     Notwithstanding the provisions above, the Committee may in its discretion, after notifying the
affected Participants, modify the foregoing requirements, institute additional requirements for
beneficiary designations, or suspend the existing beneficiary designations of living Participants
or the process of determining beneficiaries under this Article 12, or both. If the Committee
suspends the process of designating beneficiaries on forms and in accordance with procedures it has
approved pursuant to this Article 12, the determination of who is a Participant’s beneficiary shall
be made under the Participant’s will and applicable state law.



ARTICLE 13.




DEFERRALS AND SHARE SETTLEMENTS



     Notwithstanding any other provision under the Plan, the Committee may permit or require a
Participant to defer such Participant’s receipt of the payment of cash or the delivery of Shares
that would otherwise be due to such Participant by virtue of the exercise of an Option or SAR, or
with respect to the lapse or waiver of restrictions with respect to Restricted Stock or Restricted
Stock Units or the satisfaction of any requirements or performance goals with respect to
Performance Shares, Performance Units, Cash-Based Awards, or Stock-Based Awards. If any such
deferral election is required or permitted, the Committee shall, in its sole discretion, establish
rules and procedures for such payment deferrals.



ARTICLE 14.




RIGHTS OF EMPLOYEES



     14.1 Employment. Nothing in the Plan or an Award Agreement shall interfere with or limit in
any way the right of the Company, its Affiliates, and/or its Subsidiaries to terminate any
Participant’s employment or other service relationship at any time, nor confer upon any Participant
any right to continue in the capacity in which he or she is employed or otherwise serves the
Company, its Affiliates, and/or its Subsidiaries.



     Neither an Award nor any benefits arising under this Plan shall constitute part of an
employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly,
subject to Articles 3 and 16, this Plan and the benefits hereunder may be terminated at any time in
the sole and exclusive discretion of the Committee without giving rise to liability on the part of
the Company, its Affiliates, and/or its Subsidiaries for severance payments.



     For purposes of the Plan, transfer of employment of a Participant between the Company, its
Affiliates, and/or its Subsidiaries shall not be deemed a termination of employment. Additionally,
the Committee shall have the ability to stipulate in a Participant’s Award Agreement that a
transfer to a company that is spun-off from the Company shall not be deemed a termination of
employment with the Company for purposes of the Plan until the Participant’s employment is
terminated with the spun-off company.



19









 





     14.2 Participation. No Employee shall have the right to be selected to receive an Award under
this Plan, or, having been so selected, to be selected to receive a future Award.



     14.3 Rights as a Shareholder. A Participant shall have none of the rights of a shareholder
with respect to Shares covered by any Award until the Participant becomes the record holder of such
Shares.



ARTICLE 15.




CHANGE IN CONTROL



     Upon the occurrence of a Change in Control, unless otherwise specifically prohibited under
applicable laws, or by the rules and regulations of any governing governmental agencies or national
securities exchanges, or unless the Committee shall determine otherwise in the Award Agreement:




     (a) Any and all Options and SARs granted hereunder shall become immediately
exercisable; additionally, if a Participant’s employment is terminated for any other reason
except Cause within twelve (12) months of such Change in Control, the Participant shall have
until the earlier of: (i) twelve (12) months following such termination date; or (ii) the
expiration of the Option or SAR term, to exercise any such Option or SAR;




     (b) Any Period of Restriction for Restricted Stock and Restricted Stock Units granted
hereunder that have not previously vested shall end, and such Restricted Stock and
Restricted Stock Units shall become fully vested;




     (c) The target payout opportunities attainable under all outstanding Awards which are
subject to achievement of any of the Performance Measures specified in Article 11, or any
other performance conditions or restrictions that the Committee has made the Award
contingent upon, shall be deemed to have been earned as of the effective date of the Change
in Control, and such Awards treated as follows:




     (i) The vesting of all such Awards denominated in Shares shall be accelerated
as of the effective date of the Change in Control, and there shall be paid out to
Participants a pro rata number of Shares based upon an assumed achievement of all
relevant targeted performance goals and upon the length of time within the
Performance Period, if any, that has elapsed prior to the Change in Control. The
Committee has the authority to pay all or any portion of the value of the Shares in
cash.




     (ii) All such Awards denominated in cash shall be paid pro rata to Participants
with the proration determined as a function of the length of time within the
Performance Period, if any, that has elapsed prior to the Change in Control, and
based on an assumed achievement of all relevant targeted



20









 







performance goals.




     (d) Subject to Article 16, herein, the Committee shall have the authority to make any
modifications to the Awards as determined by the Committee to be appropriate before the
effective date of the Change in Control.



ARTICLE 16.




AMENDMENT, MODIFICATION, SUSPENSION, AND TERMINATION



     16.1 Amendment, Modification, Suspension, and Termination. Subject to Section 6.11, the
Committee or Board may, at any time and from time to time, alter, amend, modify, suspend, or
terminate the Plan in whole or in part. No amendment of the Plan shall be made without shareholder
approval if shareholder approval is required by law, regulation, or stock exchange rule.



     16.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards
in recognition of unusual or nonrecurring events (including, without limitation, the events
described in Section 4.2 hereof) affecting the Company or the financial statements of the Company
or of changes in applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent unintended dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan. The
determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and
binding on Participants under the Plan.



     16.3 Awards Previously Granted. Notwithstanding any other provision of the Plan to the
contrary, no termination, amendment, suspension, or modification of the Plan shall adversely affect
in any material way any Award previously granted under the Plan, without the written consent of the
Participant holding such Award.



ARTICLE 17.




WITHHOLDING



     17.1 Tax Withholding. The Company shall have the power and the right to deduct or withhold,
or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state,
and local taxes, domestic or foreign (including the Participant’s FICA obligation), required by law
or regulation to be withheld with respect to any taxable event arising or as a result of this Plan.



     17.2 Share Withholding. With respect to withholding required upon the exercise of Options or
SARs, upon the lapse of restrictions on Restricted Stock or Restricted Stock Units, or upon the
achievement of performance goals related to Performance Shares, or any other taxable



21









 




event arising as a result of Awards granted hereunder, Participants may elect, subject to the
approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having
the Company withhold Shares having a FMV of a Share on the date the tax is to be determined equal
to the tax that could be imposed on the transaction, except that if the Company is using APB
Opinion 25 to account for equity awards in its financial statements, the amount of tax shall not
exceed the minimum statutory total tax that could be imposed on the transaction. All elections
shall be irrevocable, made in writing, and signed by the Participant, and shall be subject to any
restrictions or limitations that the Committee, in its sole discretion, deems appropriate.




ARTICLE 18.




SUCCESSORS



     All obligations of the Company under the Plan with respect to Awards granted hereunder, shall
be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all
of the business and/or assets of the Company.



ARTICLE 19.




GENERAL PROVISIONS



     19.1 Forfeiture Events. The Committee may specify in an Award Agreement that the
Participant’s rights, payments, and benefits with respect to an Award shall be subject to
reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events,
in addition to any otherwise applicable vesting or performance conditions of an Award. Such events
shall include, but shall not be limited to, termination of employment for Cause, violation of
material Company, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality,
or other restrictive covenants that may apply to the Participant, or other conduct by the
Participant that is detrimental to the business or reputation of the Company, its Affiliates,
and/or its Subsidiaries.



     19.2 Legend. The certificates for Shares may include any legend that the Committee deems
appropriate to reflect any restrictions on transfer of such Shares.



     19.3 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of
title for Shares issued under the Plan prior to:




     (a) Obtaining any approvals from governmental agencies that the Company determines are
necessary or advisable; and




     (b) Completion of any registration or other qualification of the Shares under any
applicable national or foreign law or ruling of any governmental body that the Company
determines to be necessary or advisable.



22









 





     19.4 Investment Representations. The Committee may require each Participant receiving Shares
pursuant to an Award under this Plan to represent and warrant in writing that the Participant is
acquiring the Shares for investment and without any present intention to sell or distribute such
Shares.



     19.5 Employees Based Outside of the United States. Notwithstanding any provision of the Plan
to the contrary, in order to comply with the laws in other countries in which the Company, its
Affiliates, and/or its Subsidiaries operate or have Employees, the Committee, in its sole
discretion, shall have the power and authority to:




     (a) Determine which Affiliates and Subsidiaries shall be covered by the Plan;




     (b) Determine which Employees outside the United States are eligible to
participate in the Plan;




     (c) Modify the terms and conditions of any Award granted to Employees outside
the United States to comply with applicable foreign laws;




     (d) Establish subplans and modify exercise procedures and other terms and procedures,
to the extent such actions may be necessary or advisable. Any subplans and modifications to
Plan terms and procedures established under this Section 19.5 by the Committee shall be
attached to this Plan document as appendices; and




     (e) Take any action, before or after an Award is made that it deems advisable to obtain
approval or comply with any necessary local government regulatory exemptions or approvals.



     Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards
shall be granted, that would violate the Exchange Act, the Code, any securities law, or governing
statute or any other applicable law.



     19.6 Uncertificated Shares. To the extent that the Plan provides for issuance of certificates
to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated
basis, to the extent not prohibited by applicable law or the rules of any stock exchange.



     19.7 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to
any investments that the Company, its Affiliates, and/or its Subsidiaries may make to aid it in
meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary
relationship between the Company, its Affiliates, and/or its Subsidiaries and any Participant,
beneficiary, legal representative, or any other person. To the extent that any person acquires a
right to receive payments from the Company, its Affiliates, and/or its Subsidiaries under the Plan,
such right shall be no greater than the right of an unsecured general creditor of the Company. All
payments to be made hereunder shall be paid from the general funds of the



23









 




Company and no special or separate fund shall be established and no segregation of assets shall be
made to assure payment of such amounts except as expressly set forth in the Plan. The Plan is not
intended to be subject to ERISA.




     19.8 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be
issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto
shall be forfeited or otherwise eliminated.



ARTICLE 20.




LEGAL CONSTRUCTION



     20.1 Gender and Number. Except where otherwise indicated by the context, any masculine term
used herein also shall include the feminine, the plural shall include the singular, and the
singular shall include the plural.



     20.2 Severability. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.



     20.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required. The Company shall
receive the consideration required by law for the issuance of Awards under the Plan.



     The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained.



     20.4 Securities Law Compliance. The Company may use reasonable endeavors to register Shares
allotted pursuant to the exercise of an Award with the United States Securities and Exchange
Commission or to effect compliance with the registration, qualification, and listing requirements
of any national or foreign securities laws, stock exchange, or automated quotation system. With
respect to Insiders, transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of
the Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee.



     20.5 Governing Law. The Plan and each Award Agreement shall be governed by the laws of the
State of Idaho, excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of the Plan to the substantive law of another jurisdiction.
Unless otherwise provided in the Award Agreement, recipients of an Award under



24









 




the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state
courts of Idaho, to resolve any and all issues that may arise out of or relate to the Plan or any
related Award Agreement.





25