Document:

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                                                                   EXHIBIT 10.66

EAGLEPICHER INCORPORATED (FORMERLY EAGLE-PICHER INDUSTRIES, INC.) 2002 LONG-TERM
BONUS PROGRAM

                          EAGLE-PICHER INDUSTRIES, INC.

                          2002 LONG TERM BONUS PROGRAM

         Section 1.        Purpose. The 2002 Long Term Bonus Program (the "LTBP"
or the "Program") is intended to further the attainment of the profit and growth
objectives of Eagle-Picher Industries, Inc, (the "Company") and its subsidiaries
by providing incentive to attract and retain top quartile leadership. The
Program is not intended to be an "employee pension benefit plan" within the
meaning of Section 3 of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA").

         Section 2.        Defined Terms. Capitalized terms used in this
document without a specific definition shall have the meanings given in Annex A
hereto.

         Section 3.        Establishment of Units.

                  (a)      The Company hereby establishes 19,192,840 Authorized
Units under the Program. Units do not constitute a share of, nor represent any
ownership interest in, the Company.

                  (b)      The Committee may determine that Units exercised or
forfeited by a Participant are available for subsequent award pursuant to this
Program.

                  (c)      The Committee may increase or decrease the number of
Authorized Units in the Program in the event that the Company or its parent
Eagle-Picher Holdings, Inc. issues additional or repurchases common stock or
securities convertible into common stock so that the then current Unit Value
does not change as a result of such issuance of equity securities.

         Section 4.        Award of Units. The Committee shall award Units
annually to the President and CEO and approve awards of Units to other
Participants upon the recommendation of the President and CEO. No more than 15%
of the Authorized Units shall be outstanding at any time.

         Section 5.        Vesting of Units.

                  (a)      A Participant's rights with respect to Units awarded
to him or her shall vest, as to any Units granted on a single Award Date,
one-third of such Units on each of the first three anniversaries of the Award
Date or such other shorter vesting schedule as the Committee may determine.

                  (b)      In the event that a Participant ceases to hold all
positions as an officer, director or employee of the Company or any of its
Affiliates for any reason other than Retirement, death or being Incapacitated,
any of the Participant's Units that have not yet vested as of the date of such
termination shall be forfeited. If such Participant does not exercise any vested
Units in the next succeeding Exercise Window, any vested Units shall be
forfeited.

                  (c)      In the event that a Participant ceases to hold all
positions as an officer, director or employee of the Company or any of its
Affiliates upon Retirement, any of the Participant's Units that have not yet
vested as of the date of such termination shall be forfeited, and any vested
Units shall be exercisable for the life of the Units in accordance with the
terms of the Program.

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                  (d)      The Units of a Participant who dies or is
Incapacitated while an officer, director or employee of the Company or any of
its Affiliates shall be immediately 100% vested as of the date of death or
Incapacity and shall be exercisable for the life of the Units in accordance with
the terms of the Program.

                  (e)      The Units of a Participant who is an officer,
director or employee of the Company or any of its Affiliates on any Change of
Control Date shall be immediately 100% vested as of the Change of Control Date.

                  (f)      At any time the Committee may accelerate the vesting
schedule applicable to a particular Participant by notifying the Participant in
writing.

                  (g)      In the event a Participant's employment or status as
an officer, director or employee is terminated for "Misconduct," then all of his
or her vested and unvested Units shall be forfeited.

         Section 6.        Exercise of Vested Units.

                  (a)      No Units shall be exercisable until the Initial
Exercise Date.

                  (b)      Within 15 days following the Initial Exercise Date,
the Committee shall calculate the Unit Value based on the most recently ended
fiscal year and send written notice to all Participants holding vested Units of
such amounts by United States first class mail to the last known address of each
such Participant shown on the books and records of the Company and its
Affiliates.

                  (c)      After the Initial Exercise Date, within ten (10) days
following the filing of Holdings' or the Company's Annual Report on Form 10-K
with the U.S. Securities and Exchange Commission (or, if neither Holdings nor
the Company file such Form 10-K, within 90 days following the end of each fiscal
year of the Company), the Committee shall calculate the Unit Value based on the
most recently ended fiscal year and send written notice to all Participants
holding vested Units of such amounts by United States first class mail, to the
last known address of each such Participant shown on the books and records of
the Company and its Affiliates.

                  (d)      Participants holding vested unexercised Units shall
have eighteen (18) days from the date of mailing of notice pursuant to
subsections (b) or (c) above (regardless of whether a Participant actually
receives such notice), or until the next postal business day if such 18th day is
not a postal business day (the "Notice Date"), to exercise such Units by sending
written notice to the Company as provided below, specifying the number of Units
to be exercised and the Award Date of such Units and the Base Value of such
Units if the Participant holds Units with the same Award Date and different Base
Values. If notice of exercise is not received by the third day after the Notice
Date, or the next postal business day if such day is not a postal business day,
then such notice shall not be timely and shall not be valid or effective.

                  (e)      Notice of exercise shall be in writing and shall be
sent to the following address:

                                    Senior Vice President - Human Resources
                                    Eagle-Picher Industries, Inc.
                                    11201 N. Tatum Blvd., Suite 110
                                    Phoenix, AZ 85028

                  (f)      Units held by a Participant who is then an officer,
director or employee of the Company or any of its Affiliates, or a Participant
who ceased to hold all positions as an officer, director or employee of the
Company or any of its Affiliates upon Retirement, or the estate or heirs or
legatees of a Participant who dies or is Incapacitated while an officer,
director or employee of the Company or any of its Affiliates, which have not
been exercised or forfeited prior to the Exercise Window next following the
fifth anniversary of the Award Date of such Units shall be deemed to have been
exercised in such Exercise Window.

                  (g)      All Units shall be deemed to have been exercised upon
a Change of Control, provided, however, that by written notice received by the
Company within thirty (30) days after a Change of Control, a

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Participant may designate that all or part of the Units held by him or her
shall not be deemed exercised upon a Change of Control.

         Section 7.        Payment for Exercised Units.

                  (a)      Upon valid exercise of a vested Unit, a Participant
(or his or her estate if a Participant dies) shall be entitled to payment for
the number of vested Units validly exercised multiplied by their Net
Appreciation Value.

                  (b)      Subject to the restrictions contained herein, payment
for validly exercised vested Units shall be made in U.S. dollars within thirty
(30) days after the close of an Exercise Window, or within thirty (30) days
after a Change of Control Date in the event of a Change of Control, provided
that sufficient available funds to make such payments shall be placed in trust
with a commercial bank on the Change of Control Date.

                  (c)      Except upon a Change of Control, no payments for
exercised Units shall be made if any one of the following conditions applies:

                  (1)      Taking into account payments to be made for exercised
                           but unpaid Units, cumulative payments for exercised
                           Units under the Program would exceed cumulative Free
                           Cash Flow since the Effective Date;

                  (2)      Taking into account payments to be made for exercised
                           but unpaid Units, based on the Pro Forma AOP the
                           Company or any of its Affiliates would not meet any
                           covenant in any instrument evidencing or documenting
                           Indebtedness during the upcoming fiscal year; or

                  (3)      Taking into account payments to be made for exercised
                           but unpaid Units, based on the Pro Forma AOP the
                           Company would not have sufficient liquidity to make
                           all of the following payments during the upcoming
                           fiscal year: (i) scheduled principal payments on
                           Indebtedness and any principal payments required with
                           respect to excess cash flow, (ii) interest on
                           Indebtedness (using the higher of the interest rate
                           then in effect or the average rate during the
                           preceding fiscal year for a particular type of
                           Indebtedness in the case of variable interest rate
                           Indebtedness), (iii) cash tax payments required to be
                           made, (iv) dividends required to be paid on Preferred
                           Stock, (v) capital expenditures budgeted in the AOP,
                           and (vi) any working capital increase shown in the
                           AOP.

                  (d)      In the event that payment for exercised Units is
limited under Section 7(c) above, the Company will make payments to the maximum
extent permitted under Section 7(c) in the priority set forth in Section 7(e)
below, and the balance of any payments shall be deferred ("Deferred Payments").
Deferred Payments shall be bear interest at the Applicable Interest Rate
compounded quarterly and shall be paid as soon as permitted under Section 7(c)
above.

                  (e)      In the event of Deferred Payments, payments for Units
shall be made in the following order of priority to the following classes:

                  (1)      First, for Units which were exercised or deemed
                           exercised at the fifth anniversary of their Award
                           Date in a preceding year;

                  (2)      Second, for Units which were exercised or deemed
                           exercised at the fifth anniversary of their Award
                           Date in the current year;

                  (3)      Third, for Units which were exercised or deemed
                           exercised prior to the fifth anniversary of their
                           Award Date in a preceding year; and

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                  (4)      Fourth, for Units which were exercised or deemed
                           exercised prior to the fifth anniversary of their
                           Award Date in the current year.

Payments shall not be made to a higher numbered class until all Deferred
Payments to all lower numbered class have been paid in full. Within a class
payments shall be made pro rata according to the total payments due to each
Participant in the Class.

                  (f)      The Company will mail notice of any restrictions on
payment as promptly as possible following receipt of notices of exercise of
Units. Participants holding Units for which payment is deferred and which were
not deemed exercised pursuant to Section 6(f) above may withdraw their exercise
of such Units by sending written notice to the Company as provided above . If
notice of withdrawal of exercise is not received by the fifteenth day after the
mailing of notice of restrictions on payment by the Company, or the next postal
business day if such day is not a postal business day, then such notice shall
not be timely and shall not be valid or effective.

                  (g)      Each Participant may file with the Company a written
designation of one or more individuals, entities or trusts as the beneficiary
who shall be entitled to receive the amount, if any, payable under the Program
upon his or her death.

         Section 8.        Miscellaneous.

                  (a)      Nothing in the Program shall confer upon any
Participant the right to continue in the employ of, or to continue as an officer
or director of the Company, or any Affiliate, as the case may be, or to be
entitled to any remuneration or benefits not set forth in the Program or to
interfere with or limit in any way the right of the Company or any Affiliate to
terminate such Participant's employment or officership or directorship.

                  (b)      The Company and an Affiliate are authorized to
withhold from any payment of cash with respect to Units under the Program,
amounts of withholding and other taxes due in connection with such payment.

                  (c)      The Committee may at any time and from time to time
alter, amend, suspend, or terminate the Program in whole or in part.
Notwithstanding the foregoing, no amendment affecting all Participants or a
group of Participants generally shall affect adversely any of the rights of such
Participants without the consent of Participants (other than Participants who
are not officers, directors or employees of the Company) holding a majority of
the then outstanding Units (or a majority of Units held by a group, as
applicable), and no amendment affecting a specific Participant only shall affect
adversely any of the rights of such Participant without the consent of such
Participant. Without limiting the generality of the foregoing, the Program may
be amended as a result of a Divestiture or Acquisition to maintain competitive
targeted long term incentive values, provided that the then existing Net
Appreciation Value of any outstanding Units shall not be reduced.

                  (d)      Neither the Units nor any interest in Units shall be
subject in any manner to anticipation, alienation, pledge, transfer, or
assignment, except by will or by the laws of descent and distribution or with
the written consent of the Committee, and any attempt to so anticipate,
alienate, pledge, transfer, or assign shall be void and the interest of the
Participant in such Units shall be forfeited.

                  (e)      Awards and payouts of Units will not be considered as
compensation for the purpose of computing employee contributions or benefits
under the Company's retirement, pension, thrift, group life insurance or other
employee benefit plan.

                  (f)      Any payment by the Company shall be from the general
funds of the Company. No special or separate fund shall be required to be
established or other segregation of assets required to be made to assure any
cash payment by the Company under the Program. No Participant or other person
shall have under any circumstances any interest whatever in any particular
property or assets of the Company.

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                  (g)      The Company shall be entitled to set off any amounts
owing from a Participant to the Company or any of its Affiliates or for which a
Participant is liable to the Company or any of its Affiliates against any
payments due to such Participant under the Program

                  (h)      This document, together with any Exhibits, Schedules,
Annexes or Appendices hereto, and any other written agreements expressly
referred to herein, is intended as a complete and exclusive statement of the
terms of the Program, and supersedes any and all prior agreements or
understandings, written or oral, among the parties with respect to its subject
matter.

                  (i)      The failure of the Company or the Committee to insist
upon strict adherence to any provision of this Program shall not be considered a
waiver or deprive the Committee of the right thereafter to insist upon strict
adherence to that term or any other term of this Program. Any waiver of any
provision of this Program must be in a written instrument signed and delivered
by the party waiving the provision.

                  (j)      This Program shall be governed by the internal laws
of the State of Arizona, without regard to the conflicts of law principles
thereof. Each Participant hereby submits to the jurisdiction of federal or state
trial courts in Maricopa County, Arizona (and any appellate courts with
jurisdiction over such trial courts) for any claim arising out of or related to
this Agreement brought by the Company and agrees that any such claim brought
against the Company by a Participant shall be brought exclusively in such trial
courts.

                  (k)      Section headings are for convenience only and shall
not be used in interpreting this Program.

                  (l)      If any provision of this Agreement shall be found by
a court of competent jurisdiction to be unenforceable in any respect, then (i)
the court shall revise such provision the least amount necessary in order to
make it enforceable, and (ii) the enforceability of any other provision of this
Agreement shall not be affected thereby.

                  (m)      Any and all personal income taxes and/or capital gain
taxes with respect to receipt of Units or any payments in respect of Units shall
be paid by the Participant holding such Units.

                                    /s/ Joel P. Wyler
                                    --------------------------------------------
                                    Joel P. Wyler, Chairman
                                    Eagle-Picher Industries, Inc.

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                                     ANNEX A

                          EAGLE-PICHER INDUSTRIES, INC.

                          2002 LONG TERM BONUS PROGRAM

                                   DEFINITIONS

As used herein, the following terms shall have the following meanings:

                  (a)      "Acquisition" means any acquisition of assets or
securities of a going concern business or intended to be operated by Holdings or
any of its Subsidiaries as a going concern business.

                  (b)      "Affiliate" means any entity that controls, is
controlled by or is under common control with the Company.

                  (c)      "Applicable Interest Rate" means (1) 9% per annum in
the case of Participants who are an officer, director or employee of the Company
or any of its Affiliates, or (2) the average interest rate on the Company's
revolving credit facility under the Credit Agreement (or any revolving credit
facility replacing such facility) in the case of Participants who are not an
officer, director or employee of the Company or any of its Affiliates.

                  (d)      "Authorized Units" shall mean the total number of
Units authorized under the Program from time to time, which shall initially be
19,192,840.

                  (e)      "Award Date" of Units means the date specified by the
Committee as the Award Date for a Unit, or if the Committee does not specify an
Award Date, the date of the letter whereby the Committee announces in writing
the award of the Units to a Participant.

                  (f)      "Base Value" of a Unit means the value of a Unit
determined by the Committee as of the Award Date to be the Base Value, provided
that if the Committee does not specify a Base Value, the Base Value shall be the
Unit Value of a Unit as of the Award Date. In fiscal year 2002, the Unit Value
shall be deemed to be $1.00.

                  (g)      "Beneficiary" means the person, persons, trust or
trusts which have been designated by a Participant in his or her most recent
written beneficiary designation filed with the Committee to receive the
Participant's rights under the Program upon the Participant's death, or, if
there is no such designation or no such designated person survives the
Participant, then the person, persons trust or trusts entitled by will or
applicable law to receive such rights or, if no such person has such right, then
the Participant's executor or administrator.

                  (h)      "Capital Investment" shall have the meaning given in
the Receivables Purchase and Servicing Agreement dated as of January 8, 2002 by
and among Eagle-Picher Funding Corporation as Seller, Redwood Receivables
Corporation as Conduit Purchaser, the Company as Servicer and General Electric
Capital Corporation as Committed Purchaser and Servicing Agent, as amended, or
any successor agreement.

                  (i)      "Capitalized Earnings Value" means a US Dollar amount
equal to (i) the Multiple times EBITDA, minus (ii) Net Debt plus the aggregate
liquidation preference (including any accreted and/or unpaid dividends) of all
Preferred Stock. The calculation of Capitalized Earnings Value shall be as of
the Company's most recently ended fiscal year. If the Company makes a
Divestiture prior to Refinancing, the following transition rules shall apply:

         (1)      The EBITDA of the divested business shall be included in the
            Company's EBITDA and the amount of any paydown of Indebtedness or
            repurchase of Preferred Stock from the proceeds of the Divestiture
            shall be added back to Net Debt;

         (2)      The EBITDA of the divested business shall be deemed to
            increase at the same rate as EBITDA of the Company following the
            Divestiture and Net Debt shall be reduced by the free cash flow of
            the

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            divested business, which shall be deemed to be a percentage of the
            deemed EBITDA of the divested business equal to the percentage of
            EBITDA represented by the free cash flow of the Company following
            the Divestiture;

         (3)      If the Company makes an Acquisition, then the pro forma
            adjustments described in subsections (1) and (2) above shall be
            reduced starting with the first full fiscal year after the
            Acquisition (i) for Net Debt, the amount added to Net Debt shall be
            reduced (but not less than zero) by the amount of Indebtedness
            incurred in connection with the Acquisition, and (ii) for EBITDA,
            the amount of the pro forma EBITDA of the divested business added
            back shall be reduced (but not less than zero) by a fraction, the
            numerator of which is the amount of Indebtedness incurred in
            connection with the Acquisition and the denominator of which is the
            amount initially added back to Net Debt under subsection (1) above.

         (4)      If and to the extent EBITDA is added back under subsections
            (1) and (2) above, the Multiple shall not be adjusted following a
            Divestiture. If the amount of EBITDA added back is reduced following
            an Acquisition, then the Multiple shall be adjusted as provided in
            the definition of Multiple with respect to the EBITDA of the
            Divestiture not added back and the EBITDA of the Acquisition so that
            the Net Appreciation Value of Units does not change solely as a
            result of the Acquisition or Divestiture.

                  (j)      "Capitalized Lease Obligations" of any Person means
the obligations of such Person to pay rent or other amounts under a lease that
is required to be capitalized for financial reporting purposes in accordance
with GAAP, and the amount of such obligation shall be the capitalized amount
thereof determined in accordance with GAAP.

                  (k)      "Change of Control" shall occur if (i) any person or
group of persons (as defined in Section 13(d) of the Securities Exchange Act of
1934 and/or rules and regulations of the U.S. Securities and Exchange Commission
thereunder and administrative or judicial decisions thereof) who as of the
Effective Date do not, directly or indirectly, exercise or have the power to
direct the exercise of a majority of the voting power of the Company or Holdings
in the election of directors of such corporation shall acquire (directly or
indirectly, including by purchase or merger) the right to exercise or the power
to direct the exercise of a majority of the voting power of the Company or
Holdings in the election of directors of such corporation (or any successor of
either corporation), provided the foregoing shall not apply to spouses or lineal
descendants (or trusts for the benefit of or entities wholly owned by such
persons or personal representatives of such persons) of Joel P. Wyler or Daniel
C. Wyler, or (ii) substantially all of the assets of the Company or Holdings are
sold, leased, exchanged, transferred, or otherwise disposed of or liquidated.

                  (l)      "Change of Control Date" means the date on which a
Change of Control occurs.

                  (m)      "Change of Control Value" means the greater of (i)
the Unit Value as of a Change of Control Date, or (ii) the Sale Value, if any,
for the Company divided by the number of Authorized Units.

                  (n)      "Committee" means the Compensation Committee of the
Board of Directors of the Company.

                  (o)      "Company" means Eagle-Picher Industries, Inc., or any
successor entity.

                  (p)      "Conflict of Interest" shall mean (i) the
appropriation of a material business opportunity of the Company or any of its
Affiliates by Participant or any Affiliate or Related Person of Participant, or
(ii) the Participant causing the Company or any Affiliate of the Company to
enter into a material transaction with an Affiliate of Participant or a Related
Person of Participant, regardless of the terms if such transaction, unless the
Participant shall have informed his immediate superior (or the Board of
Directors in the case of the President and Chief Executive Officer of the
Company) in writing of all material terms of such transaction and the nature of
the relationship of Participant with Participant's Affiliate or Related Person
and Participant's immediate superior (or the Board of Directors in the case of
the President and Chief Executive Officer of the Company) shall have approved
such transaction.

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                  (q)      "Consolidated Amortization Expense" for any period
means the amortization expense of Holdings and its Subsidiaries for such period
(to the extent included in the computation of Consolidated Net Income),
determined on a consolidated basis in accordance with GAAP.

                  (r)      "Consolidated Depreciation Expense" for any period
means the depreciation expense of Holdings and its Subsidiaries for such period
(to the extent included in the computation of Consolidated Net Income),
determined on a consolidated basis in accordance with GAAP.

                  (s)      "Consolidated Income Tax Expense" for any period
means the provision for taxes based on income and profits of Holdings and its
Subsidiaries to the extent such income or profits were included in computing
Consolidated Net Income for such period.

                  (t)      "Consolidated Interest Expense" for any period means
the sum, without duplication, of the total interest expense of Holdings and its
consolidated Subsidiaries for such period (to the extent included in the
computation of Consolidated Net Income), determined on a consolidated basis in
accordance with GAAP and including, without limitation (i) imputed interest on
Capitalized Lease Obligations and Sale Leaseback Interest, (ii) commissions,
discounts and other fees and charges owed with respect to letters of credit
securing financial obligations and bankers" acceptance financing, (iii) the net
costs associated with Hedging Obligations, (iv) amortization of other financing
fees and expenses, (v) the interest portion of any deferred payment obligations,
(vi) amortization of debt discount or premium, if any, (vii) all other non-cash
interest expense, (viii) capitalized interest, (ix) all cash dividend payments
on any series of preferred stock of Holdings, (x) all interest payable with
respect to discontinued operations, and (xi) all interest on any Indebtedness of
any other Person guaranteed by Holdings or any of its Subsidiaries.

                  (u)      "Consolidated Net Income" for any period means the
net income (or loss) of Holdings and its consolidated Subsidiaries before
dividends on preferred stock for such period determined on a consolidated basis
in accordance with GAAP.

                  (v)      "Credit Agreement" means the Credit Agreement dated
as of February 19, 1998 among the Company, as successor to E-P Acquisition,
Inc., the lenders from time to time party thereto, ABN AMRO Bank N.V., as Agent,
the "Agent"), PNC Bank, National Association, as Documentation Agent and NBD
Bank, N.A., as Syndication Agent, as amended from time to time.

                  (w)      "Deferred Payment" shall have the meaning given in
Section 7(d) of the Program.

                  (x)      "Divestiture" means any sale of all of the capital
stock of a Subsidiary of Holdings or substantially all of the assets of an
operating unit of Holdings or any of its Subsidiaries.

                  (y)      "EBITDA" means, for any fiscal year, without
duplication, the sum of the amounts for such period of (i) Consolidated Net
Income plus (ii) in each case to the extent deducted in determining Consolidated
Net Income for such period (and without duplication), (A) Consolidated Interest
Expense, (B) Consolidated Income Tax Expense, (C) Consolidated Depreciation
Expense and (D) Consolidated Amortization Expense (but only to the extent not
included in Consolidated Interest Expense), subject to the following adjustments
(except as otherwise provided in the definition of Capitalized Earnings Value)
which are intended to insure that the Net Appreciation Value of Units does not
change solely as the result of an Acquisition or a Divestiture:

                  (1)      Gains or losses from Divestitures shall be excluded;

                  (2)      Items included in Consolidated Net Income (whether
                           cash receipt or payment or non-cash charge or gain)
                           which arise out of events occurring or conditions
                           existing before the Effective Date and which either
                           (i) were known to management of the Company as of the
                           filing of its Annual Report on Form 10-K for the
                           fiscal year ended November 30, 2002, or (ii) are
                           approved for exclusion by the Committee, shall be
                           excluded; and

                  (3)      Extraordinary items (as defined under GAAP) shall be
                           excluded;

                  (4)      EBITDA from a business unit sold in a Divestiture
                           shall be excluded in the year of sale;

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                  (5)      Accruals and expenses for payments under this Program
                           shall be excluded; and

                  (6)      EBITDA from a business unit acquired in an
                           Acquisition shall be excluded in the year of
                           acquisition.

                  (z)      "Effective Date" means December 1, 2001.

                  (aa)     "Exercise Date" of a Unit means the date on which the
Participant gives notice of the exercise of his or her right to payment with
respect to a vested Unit or is deemed to have exercised as provided in Section 6
above.

                  (bb)     "Exercise Window" means the period to exercise vested
Units pursuant to Section 6(b) of the Program.

                  (cc)     "Free Cash Flow" means, for any fiscal year, cash
flow from operating activities determined under GAAP for such fiscal year minus
capital expenditures made during the fiscal year, minus all scheduled debt
repayments and any debt repayments required as the result of excess cash flow of
Holdings or its Subsidiaries during the fiscal year, minus any cash dividends
paid on capital stock of Holdings and the aggregate amount of purchases of
capital stock of Holdings by Holdings or its Subsidiaries during the fiscal
year, plus the amount of any payments to Participants under the Program during
the fiscal year.

                  (dd)     "GAAP" means generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, as in effect on the Effective
Date. If after the Effective Date (i) there are changes to GAAP which Holdings
adopts, or (ii) Holdings changes any accounting policies or principles, then at
the option of the Committee (a) the accounting policies and principles used by
the Company prior to such change shall continue for all calculations under the
Program, or (ii) the Committee may restate the Base Value for any Units awarded
prior to such change as if the Company had adopted such change prior to each
Award Date so affected.

                  (ee)     "Hedging Obligation" of any Person means the
obligations of such Person pursuant to (i) any interest rate swap agreement,
interest rate collar agreement or other similar agreement or arrangement
designed to protect such Person against fluctuations in interest rates, (ii)
agreements or arrangements designed to protect such Person against fluctuations
in foreign currency exchange rates in the conduct of its operations, or (iii)
any forward contract, commodity swap agreement, commodity option agreement or
other similar agreement or arrangement designed to protect such Person against
fluctuations in commodity prices.

                  (ff)     "Holdings" means Eagle-Picher Holdings, Inc., or any
other US entity of which the Company is a Subsidiary.

                  (gg)     "Incapacitated" means permanently and totally
disabled within the meaning of Section 22(e)(3) of the Internal Revenue Code of
1986, as amended (or the successor section thereto).

                  (hh)     "Indebtedness" of any Person at any date means,
without duplication: (i) all indebtedness for borrowed money of such Person
(whether or not the recourse of the lender is to the whole of the assets of such
person or only to a portion thereof); (ii) all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments; (iii) all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except trade payables and accrued expenses incurred by
such Person in the ordinary course of business in connection with obtaining
inventory, utilities, labor or services (and, if such price is conditioned on or
determined by reference to future events other than passage of time, the price
shall be included in Indebtedness only when such condition is irrevocably
satisfied or such future event has occurred); (iv) all Capitalized Lease
Obligations of such Person; and (v) all Indebtedness of others guaranteed by
such Person to the extent of such guarantee.

                  (ii)     "Initial Exercise Date" means the earlier of (i)
September 1, 2004, or (ii) completion of a Refinancing.

<PAGE>

                  (jj)     "Misconduct" means any of the following: (i) the
Participant's commission of any act constituting a felony criminal offense or a
felony criminal offense by the Company, (ii) the Participant's commission of an
act or acts that result or were intended to result directly or indirectly in
gain to or personal enrichment or benefit of the Participant at the expense of
the Company or any of its affiliates (other than compensation and benefits to
which the Participant is entitled); (iii) the Participant attempting to engage
in, or ordering or attempting to order any subordinate employee to engage in,
any activity specified in the preceding subsections, or (iii) the Participant's
material neglect of his duties under this Agreement (other than as a result of
illness or medical condition other than substance abuse, drug addiction or
alcoholism) which continues after notice to the Participant.

                  (kk)     "Multiple" means 6.54, subject to the following
adjustments (except as provided in the definition of Capitalized Earnings
Value):

                  (1)      if an Acquisition occurs during any fiscal year which
                           is financed in whole or in part by an increase in
                           Indebtedness, the Multiple applicable to that fiscal
                           year shall not change but the Multiple applicable to
                           subsequent fiscal years shall be adjusted by the
                           following formula:

         Adjusted Multiple = (T4Q EP EBITDA * Prior Multiple) + Acquisition Debt
                             ---------------------------------------------------
                                   (T4Q EP EBITDA + T4Q Acquisition EBITDA)

                           where

                           "Acquisition Debt" means the amount of increase in
                           Indebtedness as a result of the purchase price of the
                           Acquisition.

                           "T4Q Acquisition EBITDA" means earnings before
                           interest, taxes, depreciation and amortization of the
                           acquired business, calculated on a basis consistent
                           with the calculation of EBITDA, for the trailing four
                           quarters immediately prior to completion of the
                           Acquisition.

                           "T4Q EP EBITDA" means EBITDA for the trailing four
                           quarters immediately prior to completion of the
                           Acquisition.

                  (2)      if a Divestiture occurs during any fiscal year, then
                           the Multiple applicable to that and subsequent fiscal
                           years shall be adjusted by the following formula:

          Adjusted Multiple = (T4Q EP EBITDA * Prior Multiple) - Debt Repayment
                              -------------------------------------------------
                                    (T4Q EP EBITDA - T4Q Divested EBITDA)

                           where

                           "Debt Repayment" means the amount of Indebtedness as
                           a result of the sales proceeds of the Divestiture.

                           "T4Q Divested EBITDA" means EBITDA of the divested
                           business for the trailing four quarters immediately
                           prior to completion of the Divestiture.

                           "T4Q EP EBITDA" means EBITDA for the trailing four
                           quarters immediately prior to completion of the
                           Divestiture.

                  (ll)     "Net Appreciation Value" of a Unit means the excess,
if any, of the Unit Value (or the Change of Control Value in the event of a
Change of Control) of a Unit as of the Exercise Date over the Base Value of such
Unit.

<PAGE>

                  (mm)     "Net Debt" means (i) Indebtedness, plus (ii)
Securitization Capital Investment, less (iii) cash and cash equivalents, of
Holdings and its Subsidiaries on a consolidated basis as of the end of the most
recent fiscal year, subject to the adjustments provided for in the definition of
Capitalized Earnings Value and subject to the following adjustments:

                  (1)      if Holdings or any of its Subsidiaries makes an
                           Acquisition during a fiscal year, the amount of
                           Indebtedness incurred in connection with such
                           Acquisition shall be subtracted in determining Net
                           Debt for such fiscal year only;

                  (2)      the amount of cash received from an item of income or
                           gain that is excluded from EBITDA pursuant to the
                           definition thereof shall be added to Indebtedness to
                           determine Net Debt; and

                  (3)      the amount of cash spent in connection with an item
                           of expense or loss that is excluded from EBITDA shall
                           be subtracted from Indebtedness to determine Net
                           Debt.

                  (nn)     "Participant" means any person to whom the Committee
awards Units.

                  (oo)     "Person" shall mean an individual or a legal entity.

                  (pp)     "Program" means this Long Term Bonus Program in its
entirety, including any amendments, rules and regulations adopted by the
Committee pursuant hereto.

                  (qq)     "Preferred Stock" means any preferred stock issued by
Holdings or the Company.

                  (rr)     "Pro Forma AOP" means the Annual Operating Plan of
the Company as approved by the Board of Directors adjusted to 90% of earnings
before interest, taxes, depreciation and amortization in the Annual Operating
Plan approved by the Board.

                  (ss)     "Refinancing" means the date of the sale of all
Holdings Preferred Stock by Dakruiter SA, Luxembourg..

                  (tt)     "Retirement" means a person voluntarily ceasing to
hold all positions as an officer, director or employee of the Company or any of
its Affiliates upon reaching age 65 unless the Company would then have the right
to terminate such person for Misconduct, or a person voluntarily ceasing to hold
all positions as an officer, director or employee of the Company or any of its
Affiliates before reaching age 65 with the express written consent of the
Company that such person shall be deemed Retired.

                  (uu)     "Related Person" shall mean a person's spouse,
parents or lineal descendants; siblings or parents of a person's spouse; or a
spouse of a person's lineal descendant.

                  (vv)     "Sale Leaseback Interest" when used with respect to
any Sale and Leaseback Transaction, means, as at the time of determination, the
present value (discounted at a rate equivalent to the Company's then-current
weighted average cost of funds for borrowed money as at the time of
determination, compounded on a semi-annual basis) of the total obligations of
the lessee for rental payments during the remaining term of the lease included
in any such Sale and Leaseback Transaction.

                  (ww)     "Sale and Leaseback Transaction" means with respect
to any Person, an arrangement with any bank, insurance company or other lender
or investor or to which such lender or investor is a party, providing for the
leasing by such Person of any property or asset of such Person which has been or
is being sold or transferred by such Person to such lender or investor or to any
Person to whom funds have been or are to be advanced by such lender or investor
on the security of such property or asset.

                  (xx)     "Sale Value" means (i) the total consideration paid
for the common equity of the Company, or (ii) the total consideration paid for
all or substantially all of the assets of the Company less any Indebtedness of
the Company, as applicable, in either case net of any brokerage commissions paid
in connection with the sale of the Company.

<PAGE>

                  (yy)     "Securitization Capital Investment" shall mean the
Capital Investment of Eagle-Picher Funding Corp.

                  (zz)     "Subsidiary" of any person means any entity in which
the person owns, directly or indirectly, at least. 50% of the combined voting
power of all classes of stock or at least 50% of the ownership interests.

                  (aaa)    "Unit" means one of the unit interests in the Program
awarded by the Committee representing the right when vested and duly exercised,
subject to the provisions of the Program, to receive a cash payment from the
Company equal to the "Net Appreciation Value" with respect to such Unit

                  (bbb)    "Unit Value" of a Unit means the Capitalized Earnings
Value as of the Exercise Date divided by the number of Authorized Units.

                             *** End of Annex A ***<PAGE>

                                                                   EXHIBIT 10.67

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT DATED DECEMBER 1, 2002
    BETWEEN EAGLEPICHER INCORPORATED AND JOHN W. WEBER

                              AMENDED AND RESTATED

                         EXECUTIVE EMPLOYMENT AGREEMENT

         AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT dated April 9,
2003, between EAGLEPICHER INCORPORATED (the "Company") and JOHN H. WEBER (the
"Executive").

         1. EMPLOYMENT AND DUTIES. The Company hereby employs the Executive, and
the Executive accepts employment, effective as of December 1, 2002, as President
and Chief Executive Officer of the Company and of Eagle-Picher Holdings, Inc.,
to perform such duties consistent with his position as may be assigned to him by
the Board of Directors of the Company (the "Board"). The Executive shall report
directly to the Board of Directors of the Company. The Executive shall devote
substantially all of his time during normal business hours to the business and
affairs of the Company except for vacation as provided in Paragraph 2(l) herein,
illness or incapacity. The Executive shall not, during his employment pursuant
to the Agreement, engage in any other business activity or occupation for gain,
profit or other pecuniary advantage without the prior consent of the Board;
provided, however, that such a prohibition shall not prohibit the Executive from
investing or trading for his own benefit in stocks, bonds, securities or other
forms of investment. The Company's headquarters shall be located within a 50
mile radius of Executive's current residence set forth below.

         2.  COMPENSATION; EXPENSES; BENEFITS.

                  2.a. BASE SALARY. As compensation for his services hereunder
in whatever capacity rendered, the Company shall pay to the Executive a base
salary, payable in equal installments twice a month at such times as is
customary with respect to the Company's executives, at a rate of $650,000 per
year ("Base Salary"). The Executive will not be entitled to any additional
compensation for any position held with an affiliate of the Company or for
representing the Company or its affiliates. The Executive's Base Salary shall be
reviewed annually and subject to increase at the discretion of the Board.

                  2.b. EXECUTIVE INCENTIVE BONUS. The Executive shall be
entitled to an annual bonus based on his achievement of annual objectives
mutually agreed upon by the Board and the Executive. Any bonus earned shall be
paid no later than five (5) business days following approval by the Board of the
Company's audited financial statements for the fiscal year to which the bonus
relates. The parties agree that the Executive's target bonus shall be sixty
percent (60%), based upon meeting plans and objectives mutually agreed to prior
to each fiscal year.

                  2.c. PREFERRED STOCK REFINANCING BONUS. If a "Preferred Stock
Refinancing" (as defined in Appendix A hereto) is completed, the Executive shall
be entitled to the Preferred Stock Refinancing Bonus as provided in Appendix A
hereto.

                  2.d. LONG TERM BONUS PROGRAM. The Executive shall be granted a
minimum of 150,000 units per year under the Company's 2002 Long Term Bonus
Program (the "LTBP") on each December 1 commencing December 1, 2001 until such
plan is terminated or amended, and in such event shall be entitled to equivalent
expected value based on Company performance under an amended or replacement long
term incentive program.

                  2.e. EMPLOYEE BENEFIT PLANS. The Executive shall be eligible
to participate in all pension, hospitalization, medical, long-term disability,
and life insurance programs and/or other retirement, welfare and fringe benefit
plans, programs or arrangements now or hereafter in effect for executives of the
Company (the "Employee Benefit Plans"), on the same terms as are at any given
time in effect for executives of the Company.

                  2.f. AUTOMOBILE. The Company shall provide to the Executive,
during the term of this Agreement, the use of an automobile that is comparable
to the Executive's currently leased vehicle (Jaguar Vanden Plas Supercharged
MSRP of $85,000) for which the Company shall pay the cost of insurance, taxes,
maintenance and business related operating expenses upon presentation by the
Executive of documentation supporting such

<PAGE>

expenses, plus an additional amount necessary to pay all federal, state, local
and payroll taxes on all payments related to said automobile.

                  2.g. CLUB FEES. The Company shall pay the Executive's
membership dues for a private luncheon/country club and for the cost of the
Executive's membership in the Young Presidents Organization. The Company shall
reimburse the Executive for his travel expenses related to any meetings of the
Young Presidents Organization.

                  2.h. BUSINESS EXPENSES. The Executive shall be entitled to
reimbursement for his ordinary and necessary business expenses incurred in the
performance of his duties hereunder including all office expenses such as rent,
first class travel for all flights of three (3) hours or more, reimbursement for
reasonable upgrade charges and business related entertainment expenses, provided
that his claims therefor are documented in accordance with the Company's usual
rules and regulations, and are reviewed quarterly by the Board and reimbursement
approved by the Chairman of the Board.

                  2.i. VACATION. The Executive shall be entitled to four (4)
weeks vacation each calendar year.

         3.  TERMINATION OF EMPLOYMENT.  Notwithstanding any other provision of
this Agreement, the Executive's employment may be terminated as follows:

                  3.a. CAUSE. Cause means any of the following: (i) the
Executive's commission of any crime involving an act or acts of dishonesty that
constitute a felony and result or were intended to result directly or indirectly
in gain to or personal enrichment of the Executive or engages in misconduct that
constitutes a serious felony; or (ii) the Executive's material willful breach of
his duties under this Agreement which breach is not cured by the Executive
within ten (10) days of receipt of written notice of such breach from the Board
to the Executive. The Company shall give the Executive three (3) business days'
written notice of its decision to terminate the Executive under clause (i) above
and shall specify the event relied upon for the termination. In the event the
Executive is terminated for cause pursuant to this Paragraph, the Company's
obligations to pay compensation expenses and benefits described in Paragraph 2
of this Agreement shall cease on the date of termination for cause, except for
unpaid salary or benefits for the period prior to the termination and the
Executive's rights under the LTBP.

                  3.b. BY COMPANY WITHOUT CAUSE. By the Company, other than
pursuant Paragraphs 3(a), 3(e) or 3(f), in which event the Executive's
employment hereunder shall be deemed terminated as of the ninetieth (90th) day
following the giving of written notice to the Executive of the Company's
decision to terminate pursuant to this Paragraph. The Company may elect to
suspend the Executive following the giving of notice hereunder up to the date of
termination, subject to the Company's continuing obligation to pay the
Executive's compensation and benefits under Paragraph 2. If the Company
terminates the Executive's employment hereunder, the Executive shall be entitled
to the payments set forth under Paragraph 3(c)(ii) of this Agreement.

                  3.c. BY EXECUTIVE WITH GOOD REASON.

                           3.c.i. By the Executive, upon the occurrence of any
         of the following events:

                           3.c.i.(1) Failure to elect or reelect the Executive
         to, or removal of the Executive from, the offices referred to in
         Paragraph 1.

                           3.c.i.(2) A significant diminution in the nature or
         scope of the essential authorities, powers, functions, duties or
         responsibilities attached to the positions referred to in Paragraph 1
         or a reduction in the compensation, expenses or benefits described in
         Paragraph 2, which in either event is not remedied within thirty (30)
         days after receipt by the Company of written notice from the Executive.

                           3.c.i.(3) Within two (2) years of a Change in
         Control, as defined below, the Executive gives written notice to the
         Company of his determination made in his discretion that, as a result
         of a Change in Control:

<PAGE>

                           3.c.i.3.(A) he is unable to carry out the
                  authorities, powers, functions, duties or responsibilities
                  related to the positions described in Paragraph 1; or

                           3.c.i.3.(B) his working conditions otherwise have
                  become unacceptable and, in the discretion of the Executive,
                  the Situation is not remedied to his satisfaction within
                  thirty (30) days after receipt by the Company of written
                  notice from the Executive of such determination, outlining the
                  Executive's objections and proposed solutions that have not
                  been implemented by the Company.

                           3.c.i.(4) A breach by the Company of any provisions
         of this Agreement not embraced within the foregoing clauses (1), (2)
         and (3), which is not remedied within thirty (30) days after receipt by
         the Company of written notice from the Executive of the breach.

         In any event set forth in this Paragraph, the Executive shall give
         written notice to the Board that he has elected to terminate his
         employment, which notice shall be given not less than thirty (30) days
         prior to the termination. Said written notice will be given within
         three (3) calendar months after (A) the Executive's failure to be
         elected or reelected, or his removal, or (B) expiration of the
         thirty-day cure period, if applicable. The Company may elect to suspend
         the Executive following receipt of the Executive's Notice of
         Termination from the date of the Company's receipt of said Notice, up
         to the date of termination, subject to the Company's continuing
         obligation to pay the Executive's compensation and benefits under
         Paragraph 2 herein. If the Executive elects to terminate his employment
         pursuant to Paragraph 3.c.i.3, he shall not be entitled to any benefit
         or right resulting from such Change in Control, except for the benefits
         and rights provided pursuant to this Agreement, and he shall reimburse
         the Company or its successor for any such benefit or right (other than
         benefits or rights provided pursuant to this Agreement) received prior
         to his election to terminate pursuant to Paragraph 3.c.i.3.

                  3.c.ii. In the event that the Executive terminates his
employment pursuant to Paragraph 3(c)(i) or the Company terminates his
employment pursuant to Paragraph 3(b) of this Agreement:

                           3.c.ii.(1) The Company shall pay the Executive for
         eighteen (18) months (the "Severance Period") an amount equal to the
         then-existing Base Salary provided in Paragraph 2(a). At the Company's
         option, said payment can be made monthly or in a lump sum.

                           3.c.ii.(2) The Company shall pay the Executive a pro
         rata share of the annual bonus described in Paragraph 2.c for the year
         in which termination occurred, which shall be calculated by multiplying
         the number of full and partial months of employment for the year of
         termination preceding the termination by one-twelfth (1/12) of the
         Executive's annual bonus for the contract year preceding the year of
         termination, which pro rata bonus shall be paid as described in
         Paragraph 2.c. In addition, for the Severance Period, the Executive
         shall be paid one hundred fifty percent (150%) of the Executive's
         annual bonus for the fiscal year proceeding the year of termination,
         which shall be paid in a lump sum no later than five (5) business days
         after the effective date of termination or in equal monthly
         installments during the Severance Period, at the election of the
         Company.

                           3.c.ii.(3) During the Severance Period in addition to
         payment of the Base Salary, the Executive shall continue to be entitled
         to all benefits and perquisites provided for in Paragraph 2 (f), as if
         the Executive had not been terminated, unless expressly prohibited by
         applicable law.

                           3.c.ii.(4) To the extent set forth in Appendix A
         hereto, the Executive shall be entitled to a Preferred Stock
         Refinancing Bonus if a Preferred Stock Refinancing is completed during
         the Severance Period.

                           3.c.ii.(5) The Executive shall have the rights set
forth in the LTBP.

         3.c.iii. For purposes of this Agreement, a "Change of Control" of the
Company shall be deemed to have occurred as a result of any of the following:

<PAGE>

                  3.c.iii.(1) Granaria Holdings no longer controls, directly or
         indirectly, at least a majority of the voting power of the Company in
         the election of directors;

                  3.c.iii.(2) The Company's gross sales are less than $500
         million for a period of at least one fiscal year as a result of the
         sale of the Company's assets (excluding the sale of CED);

                  3.c.iii.(3) The Board approves a consolidation or merger of
         the Company with another corporation and such consolidation or merger
         is consummated, unless such consummation results in Granaria Holdings
         controlling a majority of the voting power, directly or indirectly, in
         the election of directors in the surviving entity and the Executive is
         offered the position of President, CEO and member of the Board of
         Directors of the surviving entity on terms and conditions at least as
         favorable as those set forth herein; or

                  3.c.iii.(4) A change in the Board occurs with the result that
         the members of the Board on the date hereof ("Incumbent Directors") no
         longer constitute a majority of such Board; provided, that any person
         becoming a director whose election or nomination for election was
         supported by a majority of the Incumbent Directors shall be considered
         an Incumbent Director for purposes hereof; and provided, further, that
         any director whose appointment or nomination occurs and is required and
         made by any person other than the Company and its affiliates (including
         Granaria Holdings and ABN-AMRO) in connection with an acquisition of
         Common Stock of the Company pursuant to a merger, consolidation,
         purchase of shares or similar transaction involving the Company shall
         not be treated as an Incumbent Director. Upon his election to the
         Board, the Executive shall be an Incumbent Director.

         3.d. BY EXECUTIVE WITHOUT GOOD REASON. By the Executive, at any time
and for any reason, in which event the Executive's employment hereunder shall be
deemed terminated as of the ninetieth (90th) day following the giving of written
notice to the Company of the Executive's decision to terminate pursuant to this
Paragraph. The Company may elect to suspend the Executive following receipt of
the Executive's Notice of Termination from the date of the Company's receipt of
the Notice, up to the date of the termination, subject to the Company's
continuing obligation to pay the Executive's compensation and benefits under
Paragraph 2 herein. In the event the Executive terminates his employment
pursuant to this Paragraph, the Company's obligations to pay compensation
expenses and benefits described in Paragraph 2 of this Agreement shall cease on
the date of such termination, except for unpaid salary or benefits for the
period prior to the termination and the Executive's rights under the LTBP, and
all entitlements to the Refinancing Bonus as provided in Appendix A.

         3.e. DISABILITY. In case of the Executive's disability, which for this
purpose shall mean that, as a result of illness or injury, the Executive is
unable substantially to perform his duties hereunder for a period of at least
twelve (12) consecutive months, the Company may terminate the Executive's
employment hereunder by giving him at least thirty (30) days' notice of
termination. The Executive agrees that in the event of any dispute under this
Paragraph to submit to a physical examination by a licensed physician selected
by the Company. If the Company terminates the Executive's employment pursuant to
the foregoing, for the duration of his disability, the Executive will be
entitled to receive payments under the Company's long-term disability policy.
Except as specifically provided in Paragraph 1(b) of Appendix A hereto, the
Executive shall not be entitled to a Preferred Stock Refinancing Bonus with
respect to any Preferred Stock Refinancing completed after the date his
employment is terminated for disability. The Executive shall have the rights set
forth in the LTBP.

         3.f. DEATH. Upon the death of the Executive, the Company shall continue
to make payments under Paragraphs 2(a) ("Base Salary") and 2(f) ("Employee
Benefit Plans") for three (3) months from the date death and proceeds shall
become payable under the death benefit plans described in Paragraph 2(f) in
accordance with their terms. Except as specifically provided in Paragraph 1(b)
of Appendix A hereto, if the Executive dies before the completion of a Preferred
Stock Refinancing, the Company shall have no obligation to pay a Preferred Stock
Refinancing Bonus with respect to such refinancing. The Executive's estate shall
have the rights set forth in Appendix B hereto with respect to the LTB Plan.

         3.g.  EXCISE TAX GROSS UP.

                  3.g.i. In the event any payment that is either received by the
         Executive or paid by the Company on his behalf or any property or any
         other benefit provided to him under this Agreement or under any other
         plan, arrangement or agreement with the Company or any member of the
         Company's affiliated group (as

<PAGE>

         defined in Section 280G(d)(5) of the Internal Revenue Code (the
         "Code"))(collectively the "Company Payments"), will be subject to the
         tax (the "Excise Tax") imposed by Code Section 4999 or any
         substantially similar tax that may hereafter be imposed by any taxing
         authority, the Company shall pay to the Executive an additional amount
         (the "Gross-up Payment") such that the net amount retained by the
         Executive, after deduction of any Excise Tax on the Company Payments
         and any federal, state, and local income and payroll taxes upon the
         Gross-up Payment provided for by this Paragraph before deduction for
         any federal, state, and local income and payroll taxes on the Company
         Payments, shall be equal to the Company Payments. In no event shall the
         Company have any obligation to make any other payment to the Executive
         with respect to any federal, state or local income, payroll or other
         tax with respect to the Company Payments.

                  3.g.ii. The determination of whether any of the Company
         Payments and the Gross-up Payment (collectively the "Total Payments")
         will be subject to the Excise Tax and the amount of such Excise Tax
         will be made by the Company's independent certified public accountants
         appointed prior to any change in ownership (as defined under Code
         Section 280G(b)(2)) or tax counsel selected by such accountants or the
         Company, provided that such counsel advised the Company with regard to
         tax matters prior to any such change in ownership (the "Accountants").
         The value of any non-cash benefits or any deferred payment or benefit
         shall be determined by the Accountants in accordance with the
         principles of Code Section 280G. Any determination by the Accountants
         shall be binding upon the Company and the Executive. Any Gross-Up
         Payment will be paid to the Executive within ten (10) business days of
         the Accountant's determination of the amount of such payment. If the
         Internal Revenue Service makes a claim that would require the payment
         of Excise Tax in an amount greater than that calculated by the
         Accountants, the provisions of Paragraph 3.g.v. shall control the
         determination of the amount of the Excise Tax.

                  3.g.iii. For purposes of determining the amount of the
         Gross-up Payment, the Executive shall be deemed to pay federal income
         taxes at the highest marginal rate of federal income taxation
         applicable to the Executive in the calendar year in which the Gross-up
         Payment is to be made and state and local income taxes at the highest
         marginal rate of taxation applicable to the Executive in the state and
         locality of the Executive's residence for the calendar year in which
         the Company Payment is to be made, net of the maximum reduction in
         federal income taxes which could be obtained by the Executive from
         deduction of such state and local taxes if paid in such year.

                  3.g.iv. In the event that the Excise Tax ultimately paid by
         the Executive, taking into account any refund amount, is less than the
         amount taken into account hereunder at the time the Gross-up Payment is
         made, the Executive shall repay to the Company, at the time that the
         Excise Tax is paid or the refund is received, as applicable, the
         portion of the prior Gross-up Payment attributable to such reduction
         (plus the portion of the Gross-up Payment attributable to the Excise
         Tax and federal, state and local income tax imposed on the portion of
         the Gross-up Payment being repaid by the Executive if such repayment
         results in a reduction in Excise Tax or federal, state and local income
         tax deduction), plus interest on the amount of such repayment at the
         rate provided in Code Section 1274(b)(2)(B).

                  3.g.v. The Executive shall notify the Company in writing of
         any claim by the Internal Revenue Service that, if successful, would
         require the payment of any Excise Tax in excess of the amount
         determined under Paragraph 3.g.ii. Such notification shall be given as
         soon as practicable but no later than five business days after the
         Executive is informed in writing of such claim and shall apprise the
         Company of the nature of such claim and the date on which such claim is
         requested to be paid. The Executive shall not pay such claim before the
         expiration of the 30-day period following the date on which it gave
         such notice to the Company (or such shorter period ending on the date
         that any payment of taxes with respect to such claim is due). If the
         Company notifies the Executive in writing before the expiration of such
         period that it desires to contest such claim, the Executive shall:

                           (i) give the Company any information reasonably
requested by the Company relating to such claim,

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

<PAGE>

                           (iii) cooperate with the Company in good faith to
contest such claim, and

                           (iv) permit the Company to participate in any
proceedings relating to such claim.

         The Company shall bear and pay directly all costs and expenses
(including additional interest, deemed interest with respect to interest-free
advances and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise
Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this Paragraph 3.g, the
Company shall control all proceedings taken in connection with such contest and,
at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct the Executive to pay the
tax claimed and sue for a refund or contest the claim in any permissible manner,
and the 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. If the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance. Furthermore, the Company's control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder, and the 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.

         4. INDEMNIFICATION. The Company will indemnify the Executive (and his
estate) to the fullest extent permitted by the laws of the State of Ohio that
are in effect at the time of the subject act or omission, or the Amended and
Restated Articles of Incorporation and Regulations of the Company, as in effect
at such time or on the effective date of this Agreement, whichever affords or
afforded greater protection to the Executive (including payment of expenses in
advance of final disposition of a proceeding). Furthermore, the Executive shall
be entitled to the protection of any insurance policies the Company may elect to
maintain generally for the benefit of its directors and officers, against all
costs, charges and expenses whatsoever incurred or sustained by him or his legal
representatives in connection with any action, suit or proceeding to which he
(or his legal representatives or other successors) may be made a party by reason
of his being or having been a director, officer or employee of the Company or
his serving or having served any other enterprise as a director, officer or
employee at the request of the Company.

         5. ARBITRATION. In case of any dispute or disagreement arising out of
or in connection with this Agreement, the parties hereto hereby agree to submit
said dispute or disagreement under the National Rules for the Resolution of
Employment Disputes ("Rules") of the American Arbitration Association ("AAA").
The hearings will be held in Phoenix, Arizona and will be conducted pursuant to
the Rules of the AAA. The dispute will be submitted to a panel of arbitrators
selected in accordance with the Rules of the AAA. The panel or arbitrators'
award shall be issued within one hundred twenty (120) days following submission
of the dispute to the AAA. Any decision or award of said arbitration panel shall
be final and binding on the Company and the Executive.

         6. SURVIVAL OF OBLIGATIONS. The obligations under Paragraphs 4
(Indemnification) and 5 (Arbitration) shall survive the termination of this
Agreement for any reason, whether such termination is by the Company, by the
Executive, upon the expiration of this Agreement or otherwise.

         7. SEVERABILITY. In case any one or more of the provisions or part of a
provision contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect in any jurisdiction, such
invalidity, illegality or unenforceability shall be deemed not to affect any
other jurisdiction or any other provision or part of a provision of this
Agreement, but this Agreement shall be reformed and construed in such
jurisdiction as if such provision or part of a provision held to be invalid or
illegal or unenforceable had never been contained herein and such provision or
part reformed so that it would be valid, legal and enforceable in such
jurisdiction to the maximum extent possible.

         8. ENTIRE AGREEMENT; AMENDMENT. This Agreement contains the entire
agreement between the Company and the Executive with respect to the subject
matter hereof and supersedes all prior written agreements. This Agreement may
not be amended, waived, changed, modified or discharged except by an instrument
in writing

<PAGE>

executed by or on behalf of the party against whom any amendment, waiver,
change, modification or discharge is sought.

         9. NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered or mailed, postage prepaid, first class as follows:

                  (a)   TO THE COMPANY:              (b)  TO THE EXECUTIVE:

                        Chairman of the Board             5112 Rockridge Road
                        Granaria Holding                  Phoenix, Arizona 85018
                        P.O. Box 233
                        2501 CE The Hague
                        The Netherlands

and/or to such other persons and addresses as either party shall have specified
in writing to the other.

         10. NO RAID; NON-COMPETITION. The Executive agrees that he will not,
for a period of eighteen (18) months following his termination of employment,
for any reason whatsoever, do any of the following:

         10.a. solicit, entice, persuade, encourage or otherwise induce any
individual or entity (including any subsidiary or affiliate of such individual
or entity and any officer, stockholder, partner, employee or other
representative of such individual or entity) that was a customer of the Company
(whether or not the Executive provided services for such customer) at any time
Executive was an employee of the Company (i) to refrain from purchasing products
manufactured by the Company or using the services of the Company or (ii) to
purchase products and services available from the Company from any person or
entity other than the Company;

         10.b. hire or otherwise engage the services of any officer or employee
of the Company or any of its subsidiaries or affiliates;

         10.c. solicit, entice, persuade, encourage or otherwise induce any
employee of the Company (including any of its subsidiaries or affiliates) to
terminate such employment or to become employed by any person or entity other
than the Company; or

         10.d. own, manage, control or participate in the ownership, management
or control, or be employed or engaged by or otherwise affiliated or associated
as an employee, consultant, independent contractor, director, agent, or
otherwise with any other corporation, partnership, proprietorship, firm,
association or other business entity in the world that manufactures or sells any
product that competes with or is a substitute for any product manufactured or
sold by the Company on the date of the Executive's termination of employment;
provided, however, that the Executive may own up to one percent (1%) of any
class of publicly traded securities of any such entity, and provided further,
that if a court determines that the foregoing restriction is not enforceable
because the territorial scope is too broad, then the restrictions shall be
limited to businesses that sell a material amount of competitive products or
substitutes into any country or countries as to which the Company or one of its
subsidiaries sold a material amount of products during the twelve months
preceding termination of Executive's employment. Notwithstanding the foregoing,
the Executive may own, participate in or be employed by any entity that
manufactures or sells any product that competes with or is a substitute for any
product manufactured or sold by the Company on the date of the Executive's
termination of employment if, and only if, the aggregate annual revenue
contributed by all of such competitive or substitute products to such other
entity is not greater than five percent (5%) of such entity's total annual
revenue and the Executive does not have any direct management responsibility for
such competitive as substitute products manufactured or sold by such other
entity. For purposes of this Paragraph 10.d, the term "direct management
responsibility" means that the management of the manufacture or sale of
competitive or substitute products comprises a material part the Executive's
duties

         11. CONFIDENTIALITY. The Executive agrees that he will not, following
his termination of employment, for any reason whatsoever; use, disclose, furnish
or make accessible, directly or indirectly, in any manner or for any purpose
unauthorized by the Company, any trade secrets, confidential or proprietary
information or any information, documents or materials owned, developed or
possessed by the Company, whether in tangible or intangible form, pertaining to
the business of the Company, including, without limitation, identities of
clients and

<PAGE>

prospective clients, identities of individual contacts at business entitles
which are clients or prospective clients, and business relationships provided,
that this Paragraph 11 shall not apply to information generally known to the
public.

         12. ASSIGNABILITY. In the event that the Company shall be merged with,
or consolidate into, any other entity, or in the event that it shall sell and
transfer substantially all of its assets to another entity, and if, in the case
of either event, regardless of whether or not the transaction results in a
"Change in Control" under the provisions of this Agreement referred to in
Paragraph 3(c)(iii) (Change in Control), the terms of this Agreement shall inure
to the benefit of, be assumed by, and be binding upon, the entity resulting from
such merger or consolidation, or to which the Company's assets shall be sold and
transferred; provided, however, that in the event that this Agreement is
assigned by the Company, in connection with such a merger, consolidation or sale
or transfer, or otherwise, the Executive and his dependents, beneficiaries,
estate and surviving spouse shall be entitled to exactly the same compensation,
benefits, perquisites, payments and other rights as would have been their
entitlement had this Agreement not been assigned. This Agreement shall not be
assignable by the Executive, but it shall be binding upon, and shall inure to
the benefit of, his heirs, executors, administrators and legal representatives.

         13. GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Arizona.

         14. WAIVER AND FURTHER AGREEMENT. Any waiver of any breach 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. 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.

         15.  MISCELLANEOUS; TAXES.

         15.a. The paragraph headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

         15.b. Notwithstanding anything herein to the contrary, except as
otherwise specifically provided in this Agreement (including the Appendices) or
any other written agreement between the Company and the Executive, the Executive
shall be liable for paying all taxes of any kind imposed on him with respect to
the amounts and benefits payable to him hereunder.

         15.c. This Agreement is the entire agreement of the parties, and
supersedes any other agreements or understandings, written or oral, with respect
to its subject matter. Without limiting the generality of the foregoing, this
Agreement amends and restates in its entirety the Executive Employment Agreement
dated as of July 15, 2001 between Executive and the Company (then known as
Eagle-Picher Industries, Inc.).

                                            EAGLEPICHER INCORPORATED

/s/ John H. Weber                           By /s/ Joel P. Wyler
-----------------                              ---------------------------
JOHN H. WEBER                                  Dr. Joel P. Wyler, Chairman

<PAGE>

                                   APPENDIX A

                        PREFERRED STOCK REFINANCING BONUS

         The Company hereby represents that: As of the date hereof, 51.8% of the
outstanding Preferred Stock of the Company is owned by Dakruiter, a special
purpose vehicle based in Luxembourg (the "SPV"), which is owned by ABN AMRO
("AA") and Granaria Holdings ("GH"). AA and GH have entered into a Shareholders'
Agreement, dated March 23, 2001, the material terms of which have been disclosed
to the Executive (the "Shareholders' Agreement").

         1.  AMOUNT OF PREFERRED STOCK BONUS.

                  1.a. Upon completion of each Preferred Stock Refinancing, (the
"Completion Date"), the Executive shall be entitled to a cash bonus, calculated
as follows:

<TABLE>
<CAPTION>
Completion Date is:                         Percentage of SPV Profit
<S>                                         <C>
Prior to March 31, 2005                                5%
Prior to April 30, 2006                                4%
After April 30, 2006                                   3%
</TABLE>

                  1.b. The Executive shall be entitled to receive the cash bonus
described in this Appendix A if he is still employed by the Company on the
Completion Date, provided that, if substantial actions have been put in motion
prior to the Executive's date of termination that result in a Preferred Stock
Refinancing, the Executive (or his estate, if applicable) shall be entitled to
the following percentage of the bonus: (i) 100%, if the Completion Date occurs
within the Severance Period if his employment is terminated by the Company
without cause (pursuant to Paragraph 3(b) of the Employment Agreement) or by the
Executive for good reason (pursuant to Paragraph 3(c) of the Employment
Agreement), or (ii) 50%, if the Completion Date occurs on or before the first
anniversary of the termination of his employment as a result of the Executive's
disability or death (pursuant to Paragraph 3(e) or (f), respectively, of the
Employment Agreement). The Executive shall not be entitled to the cash bonus
described in this Appendix A if the Completion Date occurs after the Executive's
termination for cause (pursuant to Paragraph 3(a) of the Employment Agreement)
or voluntary termination (pursuant to paragraph 3(d) of the Employment
Agreement).

                  1.c. Notwithstanding Paragraph 1.a above, the Executive's
Preferred Stock Bonus shall not be less than $2.5 million (or $2.5 million times
the percentage of Preferred Stock transferred if less than all of the Preferred
Stock of the SPV is transferred) if the Preferred Stock Refinancing is at one
hundred percent (100%) of the present face value of the shares (which is $10,000
each) or the applicable percentage between one hundred percent (100%) and
eighty-three percent (83%) if the Completion Date is prior to March 1, 2003.

                  1.d. If a Preferred Stock Refinancing occurs, and the
Executive and the Company cannot agree whether the Executive is entitled to a
Preferred Stock Refinancing Bonus and/or the amount thereof, the Company shall
provide the Executive with a true and complete copy of the Shareholders'
Agreement (including all amendments thereto) within three days of Executive's
request therefor and the dispute shall be resolved through arbitration pursuant
to Paragraph 5 above.

         2.  DEFINITIONS.

                  2.a. "SPV Profit" shall be determined in accordance with the
following formula:

                                                              Shares Transferred
                  SPV Profit  =  Proceeds - Aggregate Cost x  ------------------
                                                                 Shares Owned

Where:

"Proceeds" means the proceeds of the Preferred Stock Refinancing received by SPV
in cash or other liquid assets plus dividends paid with respect to the Preferred
Stock

<PAGE>

"Aggregate Cost" means the aggregate price paid by SPV to acquire the Preferred
Stock plus all brokerage fees and similar costs related to the acquisition and
transfer of the Preferred Stock

"Shares Transferred" means the number of shares of Preferred Stock transferred
by SPV in the Preferred Stock Refinancing

"Shares Owned" means the number of shares of Preferred Stock owned by the SPV at
the time of the Preferred Stock Refinancing

SPV Profit will not be reduced by any interest cost or taxes payable by the SPV.

                  2.b. "Preferred Stock Refinancing" shall mean any transaction
as a result of which all or any portion of the Preferred Stock owned by the SPV
is transferred to a third party (including the Company but excluding GH, AA and
Residex) in exchange for cash or other liquid assets. The date as of which the
assets received are fully and unconditionally liquid shall determine the date
that such refinancing has been completed.

         3. PAYMENT.

                  3.a. The Company shall pay the Executive a Preferred Stock
Refinancing Bonus in cash within thirty (30) days after the Completion Date;
provided, however, that if the SPV does not receive all of the Proceeds (as
defined above) of the Preferred Stock Refinancing on the Completion Date, the
Company shall pay the Executive a pro rata portion of the Preferred Stock
Refinancing Bonus, which pro rata portion shall be determined by multiplying the
amount of the Preferred Stock Refinancing Bonus by a fraction, the numerator of
which is the Proceeds received by the SPV on the Completion Date and the
denominator of which is the total Proceeds. Thereafter, the Company shall pay
the Executive the remainder of the Preferred Stock Refinancing Bonus or a pro
rata portion thereof, as Proceeds are received by the SPV, within thirty (30)
days of the SPV's receipt of such Proceeds; provided, however, that if any
Proceeds are received by the SPV at any time after the third anniversary of the
Executive's termination of employment under this Agreement, the Executive shall
not be entitled to any further amount of the Preferred Stock Refinancing Bonus
with respect to such Proceeds and the Company shall have no further obligation
to pay the remainder of the Preferred Stock Refinancing Bonus with respect to
such Proceeds.

                  3.b. If the exact value of the Preferred Stock Refinancing
Bonus cannot be determined prior to the date for payment, the Company shall make
an interim payment to the Executive based on a good-faith estimate on the date
for payment. Thereafter, within five business days after the amount is
determined (but in no event more than sixty (60) days after the Completion
Date), the Company shall pay the Executive any additional amount due, and the
Executive shall return to the Company any amount paid to him by the Company to
which he was not entitled.

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