Document:

EMPLOYMENT AGREEMENT - PRESIDENT AND CHIEF EXECUTIVE OFFICER

EMPLOYMENT AGREEMENT

(President and Chief Executive Officer)

THIS AGREEMENT, made and entered into as of August 17, 2000,
by and between Richard C. Notebaert (the "Executive") and Tellabs, Inc., a
Delaware corporation (the "Company");

WITNESSETH THAT:

WHEREAS, the parties desire to enter into this Agreement
pertaining to the employment of the Executive by the Company;

NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth below, it is hereby covenanted and agreed by the Executive and the
Company as follows:

1.Employment.  Subject to the terms of this Agreement,
the Company hereby agrees to employ the Executive as its President and Chief Executive
Officer during the Agreement Term (as defined below), with the authority,
responsibilities and duties customarily exercised by a person holding that position,
with such additions or modifications thereto which are consistent with his authority,
responsibilities and duties hereunder, as the Board of Directors of the Company
(the "Board") may, from time to time, in its discretion and after
consultation with the Executive, adopt.  The "Agreement Term" shall be the
period beginning on September 18, 2000 (the "Effective Date") and ending
on the third anniversary of the Effective Date, subject to earlier termination as
provided herein; provided, however, that the Agreement Term will be automatically
extended by twelve months on the second anniversary of the Effective Date and on each
anniversary thereof, unless one party to this Agreement provides written notice of
non-renewal to the other party at least 30 days prior to the date of such automatic
extension.

2.Performance of Duties.  The Executive agrees that during
his employment with the Company, he shall devote his full business time, energies and
talents to serving as its President and Chief Executive Officer and that he shall
perform his duties faithfully and efficiently subject to the directions of the Board.
Notwithstanding the foregoing provisions of this Section  2, the Executive
may (i) serve as a director, trustee or officer or otherwise participate in
not-for-profit educational, welfare, social, religious and civic organizations;
(ii) after consultation with, and approval by, the Board, serve as a director of
any for-profit business which does not compete with the Company or any of its
subsidiaries or affiliates, and (iii) acquire passive investment interests in one
or more entities; provided, that such activities described in clauses (i), (ii) and
(iii) are not prohibited under the Company's Integrity Policy and do not inhibit or
interfere with the performance of the Executive's duties under this Agreement.  The
Company acknowledges that the Executive has entered into a services agreement with SBC
Communications, Inc. ("SBC") pursuant to which he may be obligated to provide
consulting services to SBC and its subsidiaries through April 8, 2002.  The
Executive represents that any demands that would require him to devote time to SBC
pursuant to such services agreement will not materially interfere with the performance
of his duties under this Agreement.

3.Initial Stock Option Awards.  The Executive shall be
granted options under the Company's 1998 Stock Option Plan, as amended, to acquire up
to 900,000 shares of the Company's common stock ("Common Stock") in
accordance with the following:

a.On the Effective Date, the Executive shall be granted
options to acquire 500,000 shares of Common Stock.  Subject to the discretion of the
Compensation Committee based on the Executive's performance, on the first anniversary
of the Effective Date the Executive shall be granted options to acquire 200,000 shares
of Common Stock, and on the second anniversary of the Effective Date, the Executive
shall be granted options to acquire an additional 200,000 shares of Common Stock;
provided, such options may be granted on earlier date or dates as the Compensation
Committee may in its discretion determine.  The date of grant of the options shall be
referred to herein as the Award Date.  Each option shall have a ten-year term commencing
on the applicable Award Date, subject to earlier termination as provided in
subparagraph (e) below upon termination of employment.

b.The option price ("Option Price") with respect
to each option shall be the closing price on the applicable Award Date for sales of
shares of Common Stock made and reported through the National Market System of the
National Association of Securities Dealers, Inc. or such national stock exchange on
which Common Stock may then be listed and which constitutes the principal market for
the Common Stock, or, if no sales of Common Stock shall have been reported with respect
to that date, on the next preceding date with respect to which sales were reported.
Upon the exercise of any such options, the Option Price with respect thereto shall be
payable in cash or its equivalent (including, for this purpose, the proceeds from a
cashless exercise as permitted under the Federal Reserve Board's Regulation T), or
by tendering (either actually or by attestation of ownership) shares of Common Stock
previously acquired by the Executive in the open market or shares of Common Stock which
have been held by the Executive for at least six months having an aggregate fair market
value (determined as provided in the preceding sentence based on the closing sales
price of shares of Common Stock) at the time of exercise equal to the total Option
Price of the options.

c.In the event of any change in corporate capitalization,
such as a stock split, or a corporate transaction, such as any merger, consolidation,
separation, including a spin-off, or other distribution of stock or property of the
Company, any reorganization (whether or not such reorganization comes with the
definition of such term in Section 368 of the Internal Revenue Code) or any
partial or complete liquidation of the Company, the number and class of shares subject
to options awarded or to be awarded in accordance with subparagraph (a) above, and
the Option Price for such options under subparagraph (b) above, shall be adjusted
by the Compensation Committee of the Company's Board of Directors to prevent dilution
of the Executive's rights.

d.The options relating to the 500,000 shares of Common Stock
granted on the Effective Date in accordance with paragraph (a) above shall become
vested and exercisable at the rate of 25% per year on each anniversary of the Award
Date thereof.  Each of the options relating to 200,000 shares of Common Stock described
in paragraph (a) above shall become vested and exercisable at the rate of one-third per
year on each anniversary of the Award Date thereof.  To the extent not previously
vested, all such options shall become fully vested and exercisable on the earlier of a
Change in Control (as defined in subparagraph 6(e) below) or the Executive's
termination of employment by reason of death, Disability (as defined in subparagraph
6(a) below) termination by the Company without Cause (as defined in
subparagraph 6(b) below), or Constructive Discharge (as defined in
subparagraph 6(d) below).  To the extent not previously vested, all such options
shall be immediately forfeited in the event of a termination of the Executive's
employment for Cause or upon the Executive's resignation from the employ of the
Company other than pursuant to a Constructive Discharge.

e.In the event that the Executive resigns from the employ of
the Company other than pursuant to a Constructive Discharge, or is terminated by the
Company for Cause, any option or unexercised portion thereof granted under
subparagraph (a) above may be exercised, to the extent such option would have been
exercisable by the Executive on the date on which the Executive ceased to be an
employee, within three months of such date, but in no event later than the date of
expiration of the term of the option.  In the event of a termination of the Executive's
employment by the Company without Cause or by the Executive by reason of a Constructive
Discharge, any such option shall be exercisable until the third anniversary of such
date of termination, but in no event later than the expiration of the term of the
option.  In the event of termination of employment due to the death or Disability of
the Executive while an employee of the Company or in the event of death within not more
than three months after the date on which the Executive ceases to be an employee, any
such option or unexercised portion thereof maybe exercised, to the extent exercisable
at the date on which the Executive ceased to be an employee, by the Executive or the
Executive's personal representatives, heirs or legatees at any time prior to one year
after the date on which the Executive ceased to be an employee, but in no event later
than the date of the expiration of the term of the option.

f.Options granted in accordance with subparagraph (a)
above may be transferred by the Executive to the Executive's spouse, children or
grandchildren ("Immediate Family Members") or to a trust or trusts for the
exclusive benefit of such Immediate Family Members or to a partnership in which such
Immediate Family Members are the only partners.

g.The Company shall take all steps necessary or desirable
to register the shares subject to the foregoing options under an S-8 or other
appropriate form.

 

4.Compensation.  Subject to the terms of this Agreement,
during the Agreement Term, while the Executive is employed by the Company, the Company
shall compensate him for his services as follows:

a.Base Salary.  The Executive shall receive a Base
Salary of not less than $750,000 per annum payable in 26 bi-weekly installments.  The
Executive's Base Salary shall be reviewed and may be increased, but not decreased,
annually by the Board pursuant to its normal performance review policies for senior
executives, with the first such review occurring in 2001.

b.Annual Bonus.  For each calendar year, the
Executive shall be eligible to receive an Annual Bonus payment in accordance with the
Company's annual bonus plans as in effect from time to time.  The target level for each
Annual Bonus shall not be less than 50% of the Executive's Base Salary for the year,
provided that the Company achieves the applicable financial and strategic objectives
established for the year. Commencing with calendar year 2001, such objectives will be
established by the Compensation Committee of the Board, in consultation with the
Executive and other senior officers.  The Executive shall be eligible to receive a
bonus for calendar year 2000, based on the Company's achievement of financial and
strategic goals established for the year 2000.  The amount of the bonus shall be
prorated to reflect the Executive's partial year of service from the Effective Date
through the end of the calendar year. 

c.Annual Equity Awards.  Commencing with 2003, the
Executive shall be entitled to annual stock option grants and, to the extent
applicable, other stock based compensation on a basis no less favorable than the awards
granted to other senior executives of the Company.  Such awards shall be in addition to
the initial stock option awards under Section 3 above.

d.Employee Benefits, Fringe Benefits and Perquisites.
The Executive shall be provided with employee benefits, fringe benefits and perquisites
on a basis no less favorable than such benefits and perquisites are provided by the
Company from time to time to the Company's other senior executives.

e.Expense Reimbursement.  The Company will reimburse
the Executive for all reasonable expenses incurred by him (i) in connection with
the negotiation and preparation of this Agreement, which reimbursement shall not exceed
$25,000, and (ii) in the performance of his duties in accordance with the
Company's policies applicable to senior executives.

f.Change in Control Benefits.  Following the
Effective Date, the Executive and the Company shall enter into a change of control
agreement substantially similar to those which the Company has entered into with its
other senior executives, it being understood that the Executive shall only receive
whatever incremental payments or  benefits are provided under such change of control
agreement and that there shall be no duplication of payments or benefits under this
Agreement and such change of control agreement.

g.Additional Payments.  If any payments or benefits
received or to be received by the Executive in connection with the Executive's
employment (whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement with the Company, or any person affiliated with the Company)
(the "Payments"), will be subject to the tax (the "Excise Tax")
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(the "Code") (or any similar tax that may hereafter be imposed), the Company
shall pay at the time specified below, an additional amount (the "Gross-Up
Payment") such that the net amount retained by the Executive, after deduction of
any Excise Tax on the Payments and any federal, state and local income or other
applicable tax and Excise Tax upon the payment provided for by this paragraph, shall be
equal to the Payments.  For purposes of determining the amount of the Gross-Up Payment,
the Executive shall be deemed to pay federal income taxes at the Executive's highest
marginal rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made and state and local income taxes at the Executive's highest
marginal rate of taxation in the state and locality of the Executive's residence on the
date on which the Excise Tax is determined, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local taxes.  The
computations required by this paragraph shall be made by the independent public
accountants then regularly retained by the Company, in consultation with tax counsel
selected by them and acceptable to the Executive.  The Company shall provide the
Executive with sufficient tax and compensation data to enable the Executive or his tax
advisor to verify such computations and shall reimburse the Executive for reasonable
fees and expenses incurred with respect thereto.  In the event that the Excise Tax is
subsequently determined to be less than the amount taken into account hereunder, the
Executive shall repay to the Company at the time that the amount of such reduction in
Excise Tax is finally determined the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax
and federal and state and local income tax imposed on the Gross-Up Payment being repaid
by the Executive) plus interest on the amount of such repayment from the date the
Gross-Up Payment was initially made to the date of repayment at the rate provided in
Section 1274(b)(2)(B) of the Code (the "Applicable Rate").  In the event that
the Excise Tax is determined by the Internal Revenue Service or by such independent
public accountants to exceed the amount taken into account hereunder (including by
reason of any payment the existence or amount of which cannot be determined at the time
of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in
respect of such excess (plus any interest, penalties, fines or additions to tax payable
with respect to such excess) at the time that the amount of such excess if finally
determined. Any payment to be made under this paragraph shall be payable within five
(5) days of the determination of the accountants that such a payment is required
hereunder and, if applicable, within five (5) days of such determination that the
Excise Tax is greater or less than initially calculated but, in no event, later than
thirty (30) days after the Executive's receipt of the Payments resulting in such Excise
Tax.

5.Indemnification.  The Company agrees that if the
Executive is made a party, or is threatened to be made a party, to any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(a "Proceeding"), by reason of the fact that he is or was a director, officer
or employee of the Company or is or was serving at the request of the Company as a
director, officer, member, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, including service with respect to employee benefit
plans, whether or not the basis of such Proceeding is the Executive's alleged action in
an official capacity while serving as a director, officer, member, employee or agent,
the Executive shall be indemnified and held harmless by the Company to the fullest
extent legally permitted or authorized by the Company's certificate of incorporation or
bylaws or resolutions of the Company's Board of Directors or, if greater, by the laws
of the State of Delaware, against all cost, expense, liability and loss (including,
without limitation, attorneys' fees, judgments, fines, ERISA excise taxes or other
liabilities or penalties and amounts paid or to be paid in settlement) reasonably
incurred or suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if he has ceased to be a director, member,
employee or agent of the Company or other entity, with respect to acts or omissions
which occurred prior to his cessation of employment with the Company, and shall inure
to the benefit of the Executive's heirs, executors and administrators.  The Company
shall advance to the Executive all reasonable costs and expenses incurred by him in
connection with a Proceeding within 20 calendar days after receipt by the Company of a
written request for such advance.  Such request shall include an undertaking by the
Executive to repay the amount of such advance if it shall ultimately be determined that
he is not entitled to be indemnified against such costs and expenses.

6.Termination of Employment.  Upon termination of the
Executive's employment for any reason, the Executive or, in the event of death, the
Executive's estate shall be entitled to the Executive's Base Salary prorated through
the date of termination.  Any Annual Bonus awarded to the Executive for a prior award
period, but not yet paid to the Executive, and any employee benefits to which the
Executive is entitled by reason of his employment shall be paid to the Executive or his
estate at such time as is provided by the terms of the applicable Company plan or
policy.  If the Executive's employment is terminated during the Agreement Term, the
Executive's right to additional payments and benefits under this Agreement for periods
after his date of termination shall be determined in accordance with the following
provisions of this Section 6.

a.Death or Disability.  If the Executive's employment
is terminated by reason of death or by reason of the Executive's Disability, the
Executive, or, in the event of his death, his estate, shall be entitled to a prompt
cash payment of a prorated Annual Bonus for the year in which such termination occurs,
based on the target Annual Bonus for such year.  The Executive or the Company shall be
entitled to terminate the Executive's employment because of the Executive's Disability
during the Agreement Term.  "Disability" means that the Executive is disabled
within the meaning of the Company's long-term disability policy or, if there is no such
policy in effect, that (i) the Executive has been substantially unable, for 120
business days within a period of 180 consecutive business days, to perform the
Executive's duties under this Agreement, as a result of physical or mental illness or
injury, and (ii) a physician selected by the Company or its insurers, and reasonably
acceptable to the Executive or the Executive's legal representative, has determined
that the Executive is disabled.  A termination of the Executive's employment by the
Company for Disability shall be communicated to the Executive by written notice, and
shall be effective on the 30th day after receipt of such notice by the Executive
(the "Disability Effective Time"), unless the Executive returns to full-time
performance of the Executive's duties before the Disability Effective Time.

b.Termination for Cause or Voluntary Resignation.
If the Executive's employment is terminated by the Company for Cause or if the
Executive voluntarily resigns from the employ of the Company, other than pursuant to a
Constructive Discharge, all payments and benefits to which the Executive would
otherwise be entitled under this Agreement shall immediately cease, except as otherwise
specifically provided above in this Section 6 with respect to his prorated Base
Salary through the date of termination, his Annual Bonus, if any, awarded for a prior
award period but not yet paid and his previously earned employee benefits.  For
purposes of this Agreement, the term "Cause" shall mean:

i.The Executive is convicted of a felony or any crime
involving moral turpitude; or

ii.A reasonable determination by a vote of directors
comprising two-thirds of the entire Board, after giving the Executive notice and an
opportunity to be heard, that, (A) the Executive has willfully and continuously failed
to perform substantially his duties as contemplated by Section 2 above (other than such
failure resulting from incapacity due to physical or mental illness), after a written
demand for corrected performance is delivered to the Executive by the Board which
specifically identifies the manners in which the Board believes the Executive has not
substantially performed his duties or (B) the Executive has engaged in gross neglect or
gross misconduct, unless the Executive had a good faith belief that such conduct was
in, or not opposed to, the best interests of the Company.

c.Termination Without Cause.  If the Company
terminates the Executive without Cause, the Executive shall be entitled to a prompt
lump sum cash payment equal to the Base Salary and Annual Bonus to which he would
otherwise would have been entitled if he had remained in the employ of the Company
through the last day of the Term of this Agreement.  For purposes of the preceding
sentence, the Annual Bonus component shall be based upon the target bonus for the year
of termination and shall include a prorated bonus for the partial year ending on the
last day of the Agreement Term.

d.Resignation for Constructive Discharge.  The
Executive's voluntary resignation for  Constructive Discharge shall be treated for all
purposes of this Agreement as a termination by the Company without Cause. For purposes
of this Agreement, "Constructive Discharge"" shall mean the occurrence
of any of the following circumstances:

i.A reduction by the Company in the Executive's Base
Salary or Annual Bonus target to an amount that is less than required under Section 4
above;

ii.The removal of the Executive from the position of
President and Chief Executive Officer or the failure of the Executive to be nominated
or reelected to the Company's Board of Directors;

iii.Any action by the Company which results in
significant diminution in the Executive's authority, power, responsibilities or duties
from those contemplated by Sections 1 and 2 above, or the assignment to the Executive
without his written consent of any duties inconsistent with the Executive's position
and status as President and Chief Executive Officer of the Company as contemplated by
Sections 1 and 2 above, which action or assignment continues after written notice
thereof and a reasonable opportunity to cure of not less than fifteen (15) days has
been given by the Executive to the Company; or

iv.Any other breach by the Company of any of its
material obligations to the Executive under this Agreement, which breach continues
after written notice thereof and a reasonable opportunity to cure of not less than
thirty (30) days has been given by the Executive to the Company.

e.Change in Control.  The term "Change in
Control" of the Company means the first to occur of:

i.Any "person" (as defined in Section 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), excluding for this purpose, the Company or any subsidiary of the Company,
or any employee benefit plan of the Company or any subsidiary of the Company, or any
person or entity organized, appointed or established by the Company for or pursuant to
the terms of any such plan which acquires beneficial ownership of voting securities of
the Company, 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 20% or more of the combined voting power of the Company's then outstanding
securities; provided, however, that no Change in Control will be deemed to have
occurred as a result of a change in ownership percentage resulting solely from an
acquisition of securities by the Company; and provided further that no Change in
Control will be deemed to have occurred if a person inadvertently acquires an ownership
interest of 20% or more but then promptly reduces that ownership interest below
20%;

ii.During any two consecutive years (not including any
period beginning prior to June 30, 2000), individuals who at the beginning of such
two-year period constitute the Board and any new director (except for a director
designated by a person who has entered into an agreement with the Company to effect a
transaction described elsewhere in this definition of Change in Control) whose election
by the Board or nomination for election by the Company's stockholders was approved by a
vote of at least two-thirds of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for election
was previously so approved (such individuals and any such new director, the
"Incumbent Board") cease for any reason to constitute at least a majority of
the Board;

iii.Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the assets of
the Company (a "Business Combination"), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and entities
who were the beneficial owners of outstanding voting securities of the Company
immediately prior to such Business Combination beneficially own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the
company resulting from such Business Combination (including, without limitation, a
company which as a result of such transaction owns the Company or all or substantially
all of the Company's assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such
Business Combination of the outstanding voting securities of the Company; (ii) no
person (excluding any company resulting from such Business Combination or any employee
benefit plan (or related trust) of the Company or such company resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then combined voting power of the then outstanding voting securities
of such company except to the extent that such ownership existed prior to the Business
Combination; and (iii) at least a majority of the members of the board of
directors of the company resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action
of the Board, providing for such Business Combination;

iv.Approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company; or

v.A tender offer (for which a filing has been made with
the Securities and Exchange Commission "SEC") which purports to comply with
the requirements of Section 14(d) of the Securities Exchange Act of 1934 and the
corresponding SEC rules) is made for the stock of the Company, then the first to occur
of:

(A)Any time during the offer when the person making
the offer owns or has accepted for payment stock of the Company with 25% or more of the
total voting power of the Company's securities, or

(B)Three business days before the offer is to
terminate unless the offer is withdrawn first if the person making the offer could own,
by the terms of the offer plus any shares owned by this person, stock with 50% or more
of total voting power of the Company's securities when the offer terminates.

7.No Mitigation; No Offset.  In the event of any
termination of employment, the Executive shall be under no obligation to seek other
employment and there shall be no offset against amounts due the Executive under this
Agreement on account of any remuneration attributable to any subsequent employment that
he may obtain.

8.Confidential Information.  The Executive agrees that,
during his employment by the Company and at all times thereafter, he shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its subsidiaries or affiliates, and
their respective businesses, which shall have been obtained by the Executive during the
Executive's employment by the Company or during his consultation with the Company after
his termination of employment, and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation of this
Agreement).  Except in the good faith performance of his duties for the Company, the
Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those designated by
it.

9.Protective Covenants.  For a period of two years
following the termination of Executive's employment for any reason, the Executive shall
not, without the written consent of the Board, directly or indirectly, 

a.engage or be interested in (as owner, partner, stockholder,
employee, director, officer, agent, consultant or otherwise), with or without
compensation, any business which is in direct competition with the Company or of any of
its subsidiaries in providing data, voice or video transport, switching/routing,
network access system and/or voice quality enhancement solutions to service providers
or end users;

b.hire any person who was employed by the Company or any of
its subsidiaries or affiliates (other than persons employed in a clerical or other
non-professional position) within the six-month period preceding the date of such
hiring; or

c.solicit, entice, persuade or induce any person or entity
doing business with the Company and its subsidiaries or affiliates, to terminate such
relationship or to refrain from extending or renewing the same.  

Nothing in subparagraph (a) above, will prohibit the Executive from
acquiring or holding not more than one percent of any class of publicly traded
securities of any such business; provided that such securities entitle the Executive to
no more than one percent of the total outstanding votes entitled to be cast by security
holders of such business in matters on which such security holders are entitled to
vote.

10.Remedies.  The Executive agrees that the restrictions
set forth in Sections 8 and 9 hereof are reasonably and necessary to protect the legal
interests of the Company.  The Executive further agrees that the Company shall be
entitled to injunctive relief in the event of any actual or threatened breach of such
restrictions.

11.Assignability, Binding Nature.  This Agreement shall
be binding upon and inure to the benefit of the Parties and their respective successors,
heirs (in the case of the Executive) and assigns.  No rights or obligations of the
Company under this Agreement may be assigned or transferred by the Company except that
such rights or obligations may be assigned or transferred pursuant to a merger or
consolidation in which the Company is not the continuing entity, or the sale or
liquidation of all or substantially all of the assets of the Company, provided that the
assignee or transferee is the successor to all or substantially all of the assets of
the Company and such assignee or transferee assumes the liabilities, obligations and
duties of the Company, as contained in this Agreement, either contractually or as a
matter of law. The Company further agrees that, in the event of a sale of assets or
liquidation as described in the preceding sentence, it shall take whatever action it
legally can in order to cause such assignee or transferee to expressly assume the
liabilities, obligations and duties of the Company hereunder.  No rights or obligations
of the Executive under this Agreement may be assigned or transferred by the Executive
other than his rights to compensation and benefits, which may be transferred only by
will or operation of law.

12.Amendment.  This Agreement may be amended or canceled
only by mutual agreement of the parties in writing without the consent of any other
person.  So long as the Executive lives, no person, other than the parties hereto,
shall have any rights under or interest in this Agreement or the subject matter hereof
except that in the event of the Executive's Disability so as to render him incapable of
such action, his legal representative may be substituted for purposes of such amendment.

13.Applicable Law.  The provisions of this Agreement
shall be construed in accordance with the internal laws of the State of Illinois,
without regard to the conflict of law provisions of any state.

14.Severability.  The invalidity or unenforceability of
any provision of this Agreement will not affect the validity or enforceability of any
other provision of this Agreement, and this Agreement will be construed as if such
invalid or unenforceable provision were omitted (but only to the extent that such
provision cannot be appropriately reformed or modified).

15.Waiver of Breach.  No waiver by any party hereto of a
breach of any provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party, will
operate or be construed as a waiver of any subsequent breach by such other party of any
similar or dissimilar provisions and conditions at the same or any prior or subsequent
time.  The failure of any party hereto to take any action by reason of such breach will
not deprive such party of the right to take action at any time while such breach
continues.

16.Notices.  Notices and all other communications
provided for in this Agreement shall be in writing and shall be delivered personally
or sent by registered or certified mail, return receipt requested, postage prepaid, or
prepaid overnight courier to the parties at the addresses set forth below (or such other
addresses as shall be specified by the parties by like notice):

to the Company:

Tellabs, Inc.

4951 Indiana Avenue

Lisle, Illinois 60532-1698

Attn:  Chairman of the Board

or to the Executive:

Richard C. Notebaert

2355 North Commonwealth

Chicago, Illinois 60614

with a copy to:

Mayer, Brown & Platt

190 South LaSalle Street

Chicago, Illinois 60603-3441

Attn:  Herbert W. Krueger

Each party, by written notice furnished to the other party, may
modify the applicable delivery address, except that notice of change of address shall
be effective only upon receipt.  Such notices, demands, claims and other communications
shall be deemed given in the case of delivery by overnight service with guaranteed next
day delivery, the next day or the day designated for delivery; or in the case of
certified or registered U.S. mail, five days after deposit in the U.S. mail; provided,
however, that in no event shall any such communications be deemed to be given later
than the date they are actually received.

17.Arbitration of Disputes and Reimbursement of Legal
Costs.  Any controversy or claim arising out of or relating to this Agreement (or
the breach thereof) shall be settled by final, binding and non-appealable arbitration
in Chicago, Illinois by three arbitrators.  Subject to the following provisions, the
arbitration shall be conducted in accordance with the rules of the American Arbitration
Association (the "Association") then in effect.  One of the arbitrators shall
be appointed by the Company, one shall be appointed by the Executive, and the third
shall be appointed by the first two arbitrators.  If the first two arbitrators cannot
agree on the third arbitrator within 30 days of the appointment of the second
arbitrator, then the third arbitrator shall be appointed by the Association and shall
be experienced in the resolution of disputes under employment agreements for CEOs of
major corporations.  Any award entered by the arbitrators shall be final, binding and
nonappealable and judgment may be entered thereon by either party in accordance with
applicable law in any court of competent jurisdiction.  This arbitration provision
shall be specifically enforceable.  The arbitrators shall have no authority to modify
any provision of this Agreement or to award a remedy for a dispute involving this
Agreement other than a benefit specifically provided under or by virtue of the
Agreement.  If the Executive prevails on any material issue which is the subject of
such arbitration or lawsuit, the Company shall be responsible for all of the fees of
the American Arbitration Association and the arbitrators and any expenses relating to
the conduct of the arbitration (including the Company's and the Executive's reasonable
attorneys' fees and expenses).  Otherwise, each party shall be responsible for its own
expenses relating to the conduct of the arbitration (including reasonable attorneys'
fees and expenses) and shall share the fees of the American Arbitration Association
equally.

18.Survivorship.  Upon the expiration or other termination
of this Agreement, the respective rights and obligations of the parties hereto shall
survive such expiration or other termination to the extent necessary to carry out the
intentions of the parties under this Agreement.

19.Entire Agreement.  Except as otherwise noted herein,
this Agreement constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all prior and contemporaneous agreements, if any,
between the parties relating to the subject matter hereof.

20.Counterparts.  This Agreement may be executed in
separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

 

IN WITNESS THEREOF, the Executive has hereunto set his hand, and the Company
has

caused this Agreement to be executed in its name and on its behalf,
and its corporate seal to be hereunto affixed, all as of the day and year first above
written.

EXECUTIVE:

RICHARD C. NOTEBAERT

COMPANY:

TELLABS, INC., a Delaware corporation

By:  /s Michael J. Birck

Its:   Chairman of the Board                            

 

ATTEST:

Secretary<PAGE>          1

                                                     Exhibit 10.2

                      EMPLOYMENT AGREEMENT

     AGREEMENT  by and between Hecla Mining Company,  a  Delaware
corporation  (the  "Company") and ARTHUR BROWN (the  "Executive")
dated as of the 1st day of June, 2000.

     The  Board  of  Directors of the Company (the "Board"),  has
determined  that it is in the best interests of the  Company  and
its  shareholders  to  assure that  the  Company  will  have  the
continued  dedication  of  the  Executive,  notwithstanding   the
possibility,  threat  or occurrence of a Change  of  Control  (as
defined  below)  of  the  Company.   The  Board  believes  it  is
imperative  to  diminish  the  inevitable  distraction   of   the
Executive  by  virtue  of  the personal uncertainties  and  risks
created  by  a  pending or threatened Change of  Control  and  to
encourage  the Executive's full attention and dedication  to  the
Company,  and  to the Company currently and in the event  of  any
threatened  or  pending Change of Control,  and  to  provide  the
Executive  with  compensation and benefits  arrangements  upon  a
Change of Control which ensure that the compensation and benefits
expectations  of the Executive will be satisfied  and  which  are
competitive  with  those  of other corporations.   Therefore,  in
order  to  accomplish these objectives, the Board has caused  the
company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.  CERTAIN DEFINITIONS.

     (a)  The "Effective Date" shall be the first date during the
"Change of Control Period" (as defined in Section 1(b)) on  which
a  Change of Control occurs.  Anything in this Agreement  to  the
contrary notwithstanding, if the Executive's employment with  the
Company is terminated or the Executive ceases to be an officer of
the  Company  prior  to the date on which  a  Change  of  Control
occurs,  and  it is reasonably demonstrated that such termination
of  employment  (1) was at the request of a third party  who  has
taken steps reasonably calculated to effect the Change of Control
or  (2) otherwise arose in connection with or anticipation of the
Change  of  Control, then for all purposes of this Agreement  the
"Effective  Date" shall mean the date immediately  prior  to  the
date of such termination of employment.

     (b)  The "Change of Control Period" is the period commencing
on the date hereof and ending on the third anniversary of the
date hereof; provided, however, that commencing on the first
anniversary of the date hereof, and on each subsequent
anniversary of such date (each such anniversary is hereinafter
referred to as the "Renewal Date"), the Change of Control Period
shall be automatically extended so as to terminate three years
from such Renewal Date, unless at least 60 days prior to the
Renewal Date the Company shall give notice to the Executive that
the Change of Control Period shall not be so extended.

<PAGE>          2

     (c)      The "Deemed Retirement Benefit" means the aggregate
benefits  that would be payable to the Executive under the  Hecla
Mining  Company  Qualified Retirement Plan and/or  any  successor
defined benefit plan (the "Retirement Plan") and any supplemental
and/or   excess   retirement  plans  in   which   the   Executive
participates (the "SERP"), assuming that (i) the Executive's  age
as  of  the  Date of Termination were increased by one  year  for
purposes  of  calculating  the  pension  reduction  but  not  for
purposes of determining covered compensation (as those terms  are
defined  in  the  Retirement Plan), (ii) the Executive's  average
annual  earnings were calculated by assuming that  the  Executive
had  continued  to receive the compensation required  by  Section
4(b)  of this Agreement for one year, (iii) the Executive's years
of  service  were increased by one year, and (iv) the Executive's
benefits  under  the  Retirement Plan and  the  SERP  were  fully
vested.

     (d)     The "Actual Retirement Benefit" means the aggregate
benefits that actually are payable to the Executive under the
Retirement Plan and the SERP as of the Date of Termination,
determined in accordance with the applicable terms of the
Retirement Plan and the SERP.

     2.  CHANGE OF CONTROL.  For the purpose of this Agreement,
a "Change of Control" shall mean:

     (a)   Any individual, entity or group (within the meaning of
Section  13(d)(3) or 14(d)(2) of the Securities Exchange  Act  of
1934,  as amended (the "Exchange Act")) (a "Person") becomes  the
"beneficial  owner" (within the meaning of Rule 13d-3 promulgated
under  the  Exchange Act) of 20% or more of either (i)  the  then
outstanding   shares  of  common  stock  of  the   Company   (the
"Outstanding  Company Common Stock") or (ii) the combined  voting
power  of  the then outstanding voting securities of the  Company
entitled  to  vote  generally in the election of  directors  (the
"Outstanding Company Voting Securities"); provided, however, that
for  purposes  of  this Section 2(a), the following  acquisitions
shall  not  constitute a Change of Control:  (I) any  acquisition
directly from the Company or approved by the Incumbent Directors,
following  which  such  Person owns not  more  than  40%  of  the
Outstanding  Company  Common  Stock or  the  Outstanding  Company
Voting   Securities,  (II)  any  acquisition  by  an  underwriter
temporarily  holding securities pursuant to an offering  of  such
securities,  (III)  any  acquisition by  the  Company,  (IV)  any
acquisition  by  any  employee benefit plan  (or  related  trust)
sponsored  or  maintained  by  the  Company  or  any  corporation
controlled by the Company, or (V) any acquisition pursuant  to  a
transaction  which complies with clauses (i), (ii) and  (iii)  of
Section 2(c) below; or

<PAGE>          3

     (b)   Individuals who, as of the date hereof, constitute the
Board  (the  "Incumbent  Directors")  cease  for  any  reason  to
constitute  at least a majority of the Board; provided,  however,
that  any  individual becoming a director subsequent to the  date
hereof  whose  election,  or  nomination  for  election  by   the
Company's  shareholders, was approved by a vote  of  at  least  a
majority of the Incumbent Directors then on the Board (either  by
a  specific  vote  or by approval of the proxy statement  of  the
Company  in which such person is named as a nominee for director,
without written objection to such nomination) shall be considered
as  though  such  individual  were  an  Incumbent  Director,  but
excluding,  for this purpose, any such individual  whose  initial
assumption  of  office  occurs  as  a  result  of  an  actual  or
threatened  election  contest with respect  to  the  election  or
removal  of  directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the
Board; or

     (c)  Consummation of a reorganization, merger or
consolidation (or similar corporate transaction) involving the
Company or any of its subsidiaries, a sale or other disposition
of all or substantially all of the assets of the Company, or the
acquisition of assets or stock of another entity (a "Business
Combination"), in each case, unless, immediately following such
Business Combination, (i) more than 60% of, respectively, the
then outstanding shares of common stock and the total voting
power of (A) the corporation resulting from such Business
Combination (the "Surviving Corporation"), or (B) if applicable,
the ultimate parent corporation that directly or indirectly has
beneficial ownership of 80% of the voting securities eligible to
elect directors of the Surviving Corporation (the "Parent
Corporation"), is represented by Outstanding Company Common Stock
and Company Voting Securities that were outstanding immediately
prior to such Business Combination (or, if applicable, is
represented by shares into which such Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may
be, were converted pursuant to such Business Combination), and
such beneficial ownership of common stock or voting power among
the holders thereof is in substantially the same proportion as
the beneficial ownership of Outstanding Company Common Stock and
the voting power of such Company Voting Securities among the
holders thereof immediately prior to the Business Combination,
(ii) no person (other than any employee benefit plan (or related
trust) sponsored or maintained by the Surviving Corporation or
the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 20% or more of the outstanding shares
of common stock and the total voting power of the outstanding
voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving
Corporation), unless such acquisition is pursuant to a Business
Combination that is an acquisition by the Company or a subsidiary
of the Company of the assets or Stock of another entity that is
approved by the Incumbent Directors, following which such person

<PAGE>       4

owns not more than 40% of such outstanding shares and voting
power, and (iii) at least a majority of the members of the board
of directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) following the
consummation of the Business Combination were Incumbent Directors
at the time of the Board's approval of the execution of the
initial agreement providing for such Business Combination; or

     (d)     Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

Notwithstanding  the foregoing, a Change of Control  of  the  Company
shall  not  be  deemed  to occur solely because any  person  acquires
beneficial  ownership  of  more than 20% of the  Outstanding  Company
Common Stock or Outstanding Company Voting Securities as a result  of
the  acquisition of Outstanding Company Common Stock  or  Outstanding
Company Voting Securities by the Company which reduces the number  of
shares  of  Outstanding Company Common Stock or  Outstanding  Company
Voting  Securities; PROVIDED, that if after such acquisition  by  the
Company such person becomes the beneficial owner of additional shares
of  Outstanding  Company Common Stock or Outstanding  Company  Voting
Securities  that  increases  the percentage  of  Outstanding  Company
Common  Stock  or Outstanding Company Voting Securities  beneficially
owned  by such person, a Change of Control of the Company shall  then
occur.

     3.  EMPLOYMENT PERIOD.  The Company hereby agrees  to
continue the Executive in its employ for the period commencing on
the  Effective Date and ending on the first anniversary  of  such
date  (the  "Employment  Period").  The Employment  Period  shall
terminate upon the Executive's termination of employment for  any
reason.

     4.  TERMS OF EMPLOYMENT.

     (a) POSITION AND DUTIES.

         (i)   During the Employment Period, (A) the Executive's
     position  (including status, offices, titles  and  reporting
     requirements), authority, duties and responsibilities shall be at
     least  commensurate in all material respects with  the  most
     significant of those held, exercised and assigned at any time
     during the 90-day period immediately preceding the Effective Date
     and   (B) the Executive's services shall be performed at the
     location where the Executive was employed immediately preceding
     the Effective Date or any office or location less than 35 miles
     from such location.

         (ii)  During the Employment Period, and excluding any periods
     of vacation and sick leave to which the Executive is entitled,
     the Executive agrees to devote reasonable attention and time
     during normal business hours

<PAGE>      5

     to the business and affairs of the Company and, to the extent
     necessary to discharge the responsibilities assigned to the
     Executive hereunder, to use the Executive's reasonable best
     efforts to perform faithfully and efficiently such
     responsibilities.  During the Employment Period it shall not be a
     violation of this Agreement for the Executive to (A) serve on
     corporate, civic or charitable boards or committees, (B) deliver
     lectures, fulfill speaking engagements or teach at educational
     institutions and (C) manage-personal investments, so long as such
     activities do not significantly interfere with the performance of
     the Executive's responsibilities as an employee of the Company in
     accordance with this Agreement.  It is expressly understood and
     agreed that to the extent that any such activities have been
     conducted by the Executive prior to the Effective Date, the
     continued conduct of such activities (or the conduct of
     activities similar in nature and scope thereto) subsequent to the
     Effective Date shall not thereafter be deemed to interfere with
     the performance of the Executive's responsibilities to the Company.

     (b) COMPENSATION.

         (i)       BASE SALARY.  During the Employment Period, the
     Executive shall receive an annual base salary ("Annual  Base
     Salary"), which shall be paid at a monthly rate, at least equal
     to twelve times the highest monthly base salary paid or payable
     to the Executive by the Company and its affiliated companies in
     respect of the twelve-month period immediately preceding the
     month in which the Effective Date occurs.  During the Employment
     Period,  the Annual Base Salary shall be reviewed  at  least
     annually and shall. be increased at any time and from time to
     time as shall be substantially consistent with increases in base
     salary awarded in the ordinary course of business to other peer
     executives of the Company and its affiliated companies.  Any
     increase in Annual Base Salary shall not serve to limit or reduce
     any  other obligation to the Executive under this Agreement.
     Annual Base Salary shall not be reduced after any such increase
     and the term Annual Base Salary as utilized in this Agreement
     shall refer to Annual Base Salary as so increased.  As used in
     this Agreement, the term "affiliated companies;" includes any
     company controlled by, controlling or under common control with
     the Company.

         (ii)      ANNUAL BONUS.  In addition to Annual Base Salary, the
     Executive shall be awarded, for each fiscal year beginning or
     ending during the Employment Period, an annual bonus (the "Annual
     Bonus") in cash at least equal to the highest bonus paid or
     payable, including by reason of deferral, to the Executive by the
     Company and its affiliated companies in respect of the three
     fiscal years immediately preceding the fiscal year in, which the
     Effective Date

<PAGE>          6

     occurs (annualized for any fiscal year during the Employment
     Period consisting of less than twelve full, months or with
     respect to which the Executive has been employed by the Company
     for less than twelve full months) (the "Recent Annual Bonus").
     Each such Annual Bonus shall be paid no later than the end of the
     third month of the fiscal year next following the fiscal year for
     which the Annual Bonus is awarded, unless the Executive shall
     elect to defer the receipt of such Annual Bonus.

         (iii) INCENTIVE, SAVINGS AND RETIREMENT PLANS.  In
     addition to Annual Base salary and Annual Bonus payable as
     hereinabove provided, the Executive shall be entitled to
     participate during the Employment Period in all incentive,
     savings and retirement plans, practices, policies and programs
     applicable generally to other peer executives of the Company and
     its affiliated companies, but in no event. shall such plans,
     practices, policies and programs provide the Executive with
     incentive, savings and retirement benefit opportunities, in each
     case, less favorable, in the aggregate, than (x) the most
     favorable of those provided by the Company and its affiliated
     companies for the Executive under such plans, practices, policies
     and programs as in effect at any time during the 90-day period
     immediately preceding the Effective Date of (y) if more favorable
     to the Executive, those provided at any time after the Effective
     Date to other peer executives of the Company and its affiliated
     companies.

         (iv)  WELFARE BENEFIT PLANS.  During the Employment Period,
     the Executive and/or the Executive's family, as the case may be,
     shall be eligible for participation in and shall receive all
     benefits under welfare benefit plans, practices, policies and
     programs provided by the Company and its affiliated companies
     (including, without limitation, medical, prescription, dental,
     disability, salary continuance, employee life, group life,
     accidental death and travel accident insurance plans and
     programs) to the extent generally applicable to other peer
     executives of the Company and its affiliated companies, but in no
     event shall such plans, practices, policies and programs provide
     the Executive with benefits which are less favorable, in the
     aggregate, than (x) the most favorable of such plans, practices,
     policies and programs in effect for the Executive at any time
     during the 90-day period immediately preceding the Effective Date
     or (y) if more favorable to the Executive, those provided at: any
     time after the Effective Date generally to other peer executives
     of the Company and its affiliated companies.

         (v)   EXPENSES.  During the Employment Period, the Executive
     shall be entitled to receive prompt reimbursement for all
     reasonable expenses incurred by the Executive in

<PAGE>          7

     accordance with the most favorable policies, practices and
     procedures of the Company and its affiliated companies in effect
     for the Executive at any time during the 90-day period
     immediately preceding the Effective Date or, if more favorable to
     the Executive, as in effect generally at any time thereafter with
     respect to other peer executives of the Company and its
     affiliated companies.

         (vi)  FRINGE BENEFITS.  During the Employment Period, the
     Executive shall be entitled to fringe benefits in accordance with
     the most favorable plans, practices, programs and policies of the
     company and its affiliated companies in effect for the Executive
     at any time during the 90-day period immediately preceding the
     Effective Date or, if more favorable to the Executive, as in
     effect generally at any time thereafter with respect to other
     peer executives of the Company and its affiliated companies.

         (vii)  OFFICE AND SUPPORT STAFF.  During the Employment
     Period, the Executive shall be entitled to an office -or offices
     of a size and with furnishings and other appointments, and to
     exclusive personal secretarial and other assistance, at least
     equal to the most favorable of the foregoing provided to the
     Executive by the Company and its affiliated companies at any time
     during the 90-day period immediately preceding the Effective Date
     or, if more favorable to the Executive, as provided generally at
     any time thereafter with respect to other peer executives of the
     Company and its affiliated companies.

         (viii) VACATION.  During the Employment Period, the
     Executive shall be entitled to paid vacation in accordance with
     the most favorable plans, policies, programs and practices of the
     Company and its affiliated companies as in effect at any time
     during the 90-day period immediately preceding the Effective Date
     or, if more favorable to the Executive, as in effect generally at
     any time thereafter with respect to other peer incentives of the
     Company and its affiliated companies.

     5.  TERMINATION OF EMPLOYMENT.

     (a) DEATH OR DISABILITY.  The Executive's employment shall
terminate  automatically upon the Executive's  death  during  the
Employment Period.  If the Company determines in good faith  that
the   Disability  of  the  Executive  has  occurred  during   the
Employment  Period (pursuant to the definition of Disability  set
forth  below),  it  may give to the Executive written  notice  in
accordance with Section 12(b) of this Agreement of its, intention
to  terminate  the Executive's employment.  In  such  event,  the
Executive's employment with the Company shall terminate effective
on  the  30th  day after receipt of such notice by the  Executive
(the "Disability Effective Date"), provided that, within the 30

<PAGE>          8

days after such receipt, the Executive shall not have returned to
full-time performance of the Executive's duties.  For purposes of
this  Agreement, "Disability" means the absence of the  Executive
from  the Executive's duties with the Company on a fulltime basis
for  180 consecutive business days as a result of incapacity  due
to mental or physical illness which is determined to be total and
permanent by a physician selected by the Company or its  insurers
and   acceptable  to  the  Executive  or  the  Executive's  legal
representative  (such agreement. as to acceptability  not  to  be
withheld unreasonably).

     (b) CAUSE.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes
of this Agreement, "Cause" means:

         (i)   the willful and continued failure of the Executive to
     perform substantially the Executive's duties (as contemplated by
     Section 4(a)) with the Company or any affiliated company (other
     than any such failure resulting from incapacity due to physical
     or mental illness or following the Executive's delivery of a
     Notice of Termination for Good Reason), after a written demand
     for substantial performance is delivered to the Executive by the
     Board  or  the  Chief Executive Officer of the Company  that
     specifically identifies the manner in which the Board or the
     Chief  Executive  Officer of the Company believes  that  the
     Executive has not substantially performed the Executive's duties,
     or

         (ii)  the willful engaging by the Executive in illegal
     conduct or gross misconduct that is materially and demonstrably
     injurious to the Company.

For purposes of this Section 5(b), no act, or failure to act,  on
the part of the Executive shall be considered "willful" unless it
is done, or omitted to be done, by the Executive in bad faith and
without reasonable belief that the Executive's action or omission
was in the best interests of the Company.  Any act, or failure to
act,  based  upon  authority given pursuant to a resolution  duly
adopted  by  the  Board  or upon the instructions  of  the  Chief
Executive  Officer  of  the Company or a senior  officer  of  the
Company or based upon the advice of counsel for the Company shall
be  conclusively presumed to be done, or omitted to be  done,  by
the  Executive  in  good faith and in the best interests  of  the
Company.  The cessation of employment of the Executive shall  not
be  deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by
the  affirmative  vote  of not less than  three-quarters  of  the
entire  membership of the Board (excluding the Executive  if  the
Executive  is  a member of the Board) at a meeting of  the  Board
called  and  held  for such purpose (after reasonable  notice  is
provided  to  the  Executive  and  the  Executive  is  given   an
opportunity, together with counsel for the Executive, to be heard
before the Board), finding that, in the good faith opinion of the
Board,  the  Executive  is  guilty of the  conduct  described  in
Section  5(b)(i)  or  5(b)(ii), and  specifying  the  particulars
thereof in detail.

<PAGE>          9

     (c) GOOD REASON.  The Executive's employment may be
terminated during the Employment Period by the Executive for Good
Reason or by the Executive voluntarily without Good Reason.   For
purposes of this Agreement, "Good Reason" means

         (i)   the assignment to the Executive of any duties
     inconsistent  in  any respect with the Executive's  position
     (including status, offices, titles and reporting requirements),
     authority, duties or responsibilities as contemplated by Section
     4(a) of this Agreement, or any other diminution in such position,
     authority, duties or responsibilities (whether or not occurring
     solely as a result of the Company's ceasing to be a publicly
     traded  entity),  excluding for this  purpose  an  isolated,
     insubstantial and inadvertent action not taken in bad faith and
     which is remedied by the Company promptly after receipt of notice
     thereof given by the Executive;

         (ii)  any failure by the Company to comply with any of the
     provisions of Section 4(b) of this Agreement, other than an
     isolated, insubstantial and inadvertent failures not occurring in
     bad faith and which is remedied by the Company promptly after
     receipt of notice thereof given by the Executive;

         (iii) the Company's requiring the Executive to be based
     at any office or location other than that described in Section
     4(a)(i)(B) hereof, or the Company's requiring the Executive to
     travel on Company business to a substantially greater extent than
     required immediately prior to the Effective Date;

         (iv)  any purported termination by the Company of the
     Executive's employment otherwise than as expressly permitted by
     this Agreement; or

         (v)   any failure by the Company to comply with and satisfy
     Section 11(c) of this Agreement.

     For purposes of this Agreement, any good faith determination
of  Good  Reason made by the Executive shall be conclusive.   The
Executive's   mental   or  physical  incapacity   following   the
occurrence of an event described above in clauses (i) through (v)
shall  not affect the Executive's ability to terminate employment
for Good Reason.

     (d) NOTICE OF TERMINATION.  Any termination by the Company
for  Cause  or  by  the  Executive  for  Good  Reason  shall   be
communicated  by Notice of Termination to the other party  hereto
given  in  accordance with Section 12(b) of this Agreement.   For
purposes  of  this Agreement, a "Notice of Termination"  means  a
written  notice  which  (i)  indicates the  specific  termination
provision in this Agreement relied upon, (ii) to the extent

<PAGE>          10

applicable  sets  forth  in  reasonable  detail  the  facts   and
circumstances claimed to provide a basis for termination  of  the
Executive's employment under the provision so indicated and (iii)
if  the Date of Termination (as defined below) is other than  the
date  of  receipt of such notice, specifies the termination  date
(which  date shall be not more than fifteen days after the giving
of such notice).  In the case of a termination of the Executive's
employment  for  Cause, a Notice of Termination shall  include  a
copy of a resolution duly adopted by the affirmative vote of  not
less  than two-thirds of the entire membership of the Board at  a
meeting  of  the  Board called and held for  the  purpose  (after
reasonable notice to the Executive and reasonable opportunity for
the Executive, together with the Executive's counsel, to be heard
before  the Board prior to such vote), finding that in  the  good
faith  opinion of the Board the Executive was guilty  of  conduct
constituting Cause.  No purported termination of the  Executive's
employment  for  Cause shall be effective  without  a  Notice  of
Termination.   The failure by the Executive to set forth  in  the
Notice  of Termination any fact or circumstance which contributes
to  a  showing  of Good Reason shall not waive any right  of  the
Executive hereunder or preclude the Executive from asserting such
fact   or  circumstance  in  enforcing  the  Executive's   rights
hereunder.

     (e) DATE OF TERMINATION.  "Date of Termination" means the
date of receipt of the Notice of Termination or any later date
specified therein (which date shall be not more than 30 days
after the giving of such notice), as the case may be; provided,
however, that (i) if the Executive's employment is terminated by
the Company other than for Cause or Disability, the Date of
Termination shall be the date on which the Company notifies the
Executive of such termination and  (ii) if the Executive's
employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of death of the Executive
or the Disability Effective Date, as the case may be.

     6.  OBLIGATIONS OF THE COMPANY UPON TERMINATION.

         (a)   DEATH.  If the Executive's employment is terminated by
reason  of  the  Executive's death during the Employment  Period,
this Agreement shall terminate without further obligations to the
Executive's  legal  representatives under this  Agreement,  other
than  the  following obligations: (i) payment of the  Executive's
Annual  Base Salary through the Date of Termination to the extent
not  theretofore  paid, (ii) payment of the product  of  (x)  the
greater  of  (A) the Annual Bonus paid or payable,  including  by
reason   of  deferral,  (and  annualized  for  any  fiscal   year
consisting  of  less than twelve full months  or  for  which  the
Executive has been employed for less than twelve full months) for
the  most  recently completed fiscal year during  the  Employment
Period,  if  any, and (B) the Recent Annual Bonus  (such  greater
amount hereafter referred to as the "Highest Annual

<PAGE>          11

Bonus")  and a fraction, the numerator of which is the number  of
days  in the current fiscal year through the Date of Termination,
and  the  denominator of which is 365 and  (iii) payment  of  any
compensation previously deferred by the Executive (together  with
any accrued interest thereon) and not yet paid by the Company and
any accrued vacation pay not yet paid by the Company (the amounts
described  in  paragraphs  (i),  (ii)  and  (iii)  are  hereafter
referred  to  as "Accrued Obligations").  All Accrued Obligations
shall  be  paid  to  the Executive's estate  or  beneficiary,  as
applicable, in a lump sum in cash within 30 days of the  Date  of
Termination.   In addition, the Executive's estate or  designated
beneficiaries shall be entitled to receive the Executive's Annual
Base  Salary for the balance of the Employment Period.   Anything
in   this   Agreement   to  the  contrary  notwithstanding,   the
Executive's  estate  and  family shall  be  entitled  to  receive
benefits  at least equal to the most favorable benefits  provided
generally  by the Company and any of its affiliated companies  to
the  estates  and  surviving families of peer executives  of  the
Company and such affiliated under such plans, programs, practices
and  policies  relating to death benefits, if any, as  in  effect
generally with respect to other peer executives and their  estate
and  families  at  any time during the 90-day period  immediately
preceding  the  Effective  Date or,  if  more  favorable  to  the
Executive and/or the Executive's family, as in effect on the date
of  the  Executive's death generally with respect to  other  peer
executives of the Company and its affiliated companies and  their
families.

         (b)   DISABILITY.  If the Executive's employment is
terminated by reason of the Executive's Disability during the
Employment period, this Agreement shall terminate without further
obligations to the Executive, other than for Accrued Obligations.
All Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination.  In
addition, the Executive shall be entitled to receive the
Executive's Annual Base Salary for the balance of the Employment
Period; provided, however, that such payments of Annual Base
Salary shall be reduced by any benefits paid to the Executive
under the Retirement Plan by reason of Disability.  Anything in
this Agreement to the contrary notwithstanding, the Executive
shall be entitled after the Disability Effective Date to receive
disability and other benefits at least equal to the most
favorable of those generally provided by the Company and its
affiliated companies to disable executives and/or their families
in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with
respect to other peer executives and their families at any time
during the 90-day period immediately preceding the Effective Date
or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with
respect to other peer executives of the Company and its
affiliated companies and their families.

<PAGE>          12

         (c)   CAUSE; OTHER THAN FOR GOOD REASON.  If the Executive's
employment  shall be terminated for Cause during  the  Employment
Period,   this   Agreement   shall  terminate   without   further
obligations to the Executive other than the obligation to pay the
Executive Annual Base Salary through the Date of Termination plus
the  amount  of  any  compensation  previously  deferred  by  the
Executive, in each case to the extent theretofore unpaid.  If the
Executive  terminates  employment during  the  Employment  Period
other  than  for  Good  Reason, this  Agreement  shall  terminate
without  further  obligations to the Executive,  other  than  for
Accrued Obligations.  In such case, all Accrued Obligations shall
be  paid to the Executive in a lump sum in cash within 30 days of
the Date of Termination.

         (d)   GOOD REASON; OTHER THAN FOR CAUSE OR DISABILITY.  If,
during the Employment Period, the Company shall terminate the
Executive's employment other than for Cause or Disability, or if
the Executive shall terminate employment under this Agreement for
Good Reason:
         (i)   the Company shall pay, to the Executive in a lump sum
     in  cash  within  30 days after the Date of Termination  the
     aggregate of the following amounts:

               A.    all Accrued Obligations; and

               B.    the product of (x) one and (y) the sum of (i) Annual
         Base Salary and (ii) the Highest Annual Bonus; and

               C.    a lump-sum retirement benefit equal to the excess of
         (a) the actuarial equivalent of the Deemed Retirement Benefit
         over (b) the actuarial equivalent of the Executive's Actual
         Retirement Benefit; and for purposes of determining the amount
         payable pursuant to this Section 5(d)(i)C, the actuarial
         assumptions utilized shall be no less favorable to the Executive
         than those in effect with respect to the Retirement Plan and the
         SERP during the 90-day period immediately prior to the Effective
         Date; and

         (ii)  for one additional year, or such longer period as any
     plan, program, practice or policy may provide, the Company shall
     continue benefits to the Executive and/or the Executive's family
     at least equal to those which would have been provided to them in
     accordance with the plans, programs, practices and policies
     described in Section 4 (b) (iv) of this Agreement if the
     Executive's employment had not been terminated in accordance with
     the most favorable plans, practices, programs or policies of the
     Company and its affiliated companies applicable generally to
     other peer executives and their families during the 90-day period

<PAGE>          13

     immediately  preceding  the  Effective  Date  or,  if   more
     favorable  to the Executive, as in effect generally  at  any
     time thereafter with respect to other peer executives of the
     Company and its affiliated companies and their families; and
     for purposes of determining eligibility of the Executive for
     retiree benefits pursuant to such plans, practices, programs
     and  policies,  the  Executive shall be considered  to  have
     remained employed for one additional year, and to have  then
     retired; and

         (iii) the Company shall, at its sole expense as
     incurred, provide the Executive with outplacement services the
     scope and provider of which shall be selected by the Executive in
     the Executive's sole discretion; PROVIDED, that the cost of such
     outplacement shall not exceed $20,000; and

         (iv)  to the extent not theretofore paid or provided, the
     Company shall timely pay or provide to the Executive any other
     amounts or benefits required to be paid or provided or that the
     Executive is eligible to receive under any plan, program, policy
     or practice or contract or agreement of the Company and the
     Affiliated Companies.

Notwithstanding  the provisions of clause (ii)  of  this  Section
6(d),  if after using its reasonable best efforts to obtain  life
insurance,  long-term  disability or  travel  accident  insurance
coverage for the Executive as required by said clause (ii) at the
lowest  available  rates, the Company is unable  to  obtain  such
coverage for an aggregate annual cost to the Company of not  more
than  two percent of the Annual Base Salary, the Executive  shall
be  required  to elect to either (i) waive one or  more  of  such
coverages, or (ii) have the amount or duration of one or more  of
such  coverages  reduced, in either case so  as  to  reduce  such
aggregate annual cost to not more than two percent of the  Annual
Base Salary.  If any of such coverages cannot be obtained, or  if
the  Executive elects to waive any of such coverages as  provided
in  the  preceding  sentence, then  the  Company  shall  pay  the
Executive  cash in lieu thereof, in the amount of  two-thirds  of
one percent of the Annual Base Salary for each such coverage that
is not provided.

     7.  NON-EXCLUSIVITY OF RIGHTS.  Nothing in this  Agreement
shall  prevent  or  limit the Executive's  continuing  or  future
participation  in any benefit, bonus, incentive or  other  plans,
programs, policies or practices, provided by the Company  or  any
of  its  affiliated  companies and for which  the  Executive  may
qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any other agreements  with
the  Company  or any of its affiliated companies.  Amounts  which
are  vested benefits or which the Executive is otherwise entitled
to  receive  under any plan, policy, practice or program  of  the
Company  or  any of its affiliated companies at or subsequent  to
the Date of Termination shall be payable in accordance with such

<PAGE>          14

plan,  policy, practice or program except as explicitly  modified
by   this  Agreement.   Notwithstanding  the  foregoing,  if  the
Executive receives payments and benefits pursuant to Section 6(d)
of  this  Agreement, the Executive shall not be entitled  to  any
severance  pay or benefits under any severance plan,  program  or
policy  of  the  Company  and  the affiliated  companies,  unless
otherwise  specifically provided therein in a specific  reference
to this Agreement.

     8.  FULL SETTLEMENT.  The Company's obligation to make the
payments provided for in this Agreement and otherwise to  perform
its  obligations hereunder shall not be affected by  any  setoff,
counterclaim, recoupment, defense or other claim, right or action
which  the Company may have against the Executive or others.   In
no   event  shall  the  Executive  be  obligated  to  seek  other
employment or take any other action by way of mitigation  of  the
amounts  payable to the Executive under any of the provisions  of
this  Agreement.  The Company agrees to pay, to the  full  extent
permitted by law, all legal fees and expenses which the Executive
may  reasonably  incur as a result of any contest (regardless  of
the  outcome thereof) by the Company, the Executive or others  of
the  validity  or  enforceability of,  or  liability  under,  any
provision  of  this  Agreement or any  guarantee  of  performance
thereof  (including as a result of any contest by  the  Executive
about  the  amount of any payment pursuant to Section 9  of  this
Agreement), plus in each case interest at the applicable  Federal
rate  provided for in section 7872(f)(2) of the Internal  Revenue
Code of 1986, as amended (the "Code'').

     9.  CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

     (a) Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it
shall be determined that any Payment would be subject to the
Excise Tax, then the Executive shall be entitled to receive an
additional payment (the "Gross-Up Payment") in an amount such
that, after payment by the Executive of all taxes (and any
interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax
imposed upon the Gross-Up Payment, the Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed
upon the Payments.  Notwithstanding the foregoing provisions of
this Section 9(a), if it shall be determined that the Executive
is entitled to the Gross-Up Payment, but that the Parachute Value
of all Payments do not exceed 110% of the Safe Harbor Amount,
then no Gross-Up Payment shall be made to the Executive and the
amounts payable under this Agreement shall be reduced so that the
Parachute Value of all Payments, in the aggregate, equals the
Safe Harbor Amount.  The reduction of the amounts payable
hereunder, if applicable, shall be made by first reducing the
payments under Section 6(d)(i), unless an alternative method of
reduction is elected by the Executive, and in any event shall be

<PAGE>          15

made in  such a manner  as to maximize  the Value of all Payments
actually made  to  the Executive.  For  purposes of  reducing the
Payments  to the Safe  Harbor Amount,  only amounts payable under
this  Agreement (and no other Payments) shall be reduced.  If the
reduction of  the amount payable  under this  Agreement would not
result in a reduction  of the Parachute Value of  all Payments to
the  Safe Harbor  Amount, no amounts  payable under the Agreement
shall  be reduced pursuant  to this Section 9(a).  The  Company's
obligation to  make Gross-Up Payments  under this Section 9 shall
not be conditioned upon the Executive's termination of employment.

     (b) Subject to the provisions of Section 9(c), all
determinations  required  to  be  made  under  this  Section   9,
including  whether and when a Gross-Up Payment is  required,  the
amount  of  such  Gross-Up  Payment and  the  assumptions  to  be
utilized  in  arriving at such determination, shall  be  made  by
PricewaterhouseCoopers  or  such  other   nationally   recognized
certified  public  accounting firm as may be  designated  by  the
Executive  (the  "Accounting Firm").  The Accounting  Firm  shall
provide detailed supporting calculations both to the Company  and
the  Executive within 15 business days of the receipt  of  notice
from  the Executive that there has been a Payment or such earlier
time  as  is  requested by the Company.  In the  event  that  the
Accounting  Firm  is  serving as accountant or  auditor  for  the
individual, entity or group effecting the Change of Control,  the
Executive  may  appoint another nationally recognized  accounting
firm   to  make  the  determinations  required  hereunder  (which
accounting firm shall then be referred to as the Accounting  Firm
hereunder).  All fees and expenses of the Accounting  Firm  shall
be  borne  solely  by  the  Company.  Any  Gross-Up  Payment,  as
determined  pursuant  to this Section 9, shall  be  paid  by  the
Company  to  the  Executive within 5 days of the receipt  of  the
Accounting  Firm's  determination.   Any  determination  by   the
Accounting  Firm  shall  be  binding upon  the  Company  and  the
Executive.  As a result of the uncertainty in the application  of
Section 4999 of the Code at the time of the initial determination
by  the  Accounting Firm hereunder, it is possible that  Gross-Up
Payments that will not have been made by the Company should  have
been  made (the "Underpayment"), consistent with the calculations
required to be made hereunder.  In the event the Company exhausts
its   remedies  pursuant  to  Section  9(c)  and  the   Executive
thereafter is required to make a payment of any Excise  Tax,  the
Accounting  Firm  shall determine the amount of the  Underpayment
that  has  occurred and any such Underpayment shall  be  promptly
paid by the Company to or for the benefit of the Executive.

     (c) The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service that, if successful,
would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable, but no
later than 10 business days after the Executive is informed in
writing of such claim.  The Executive shall apprise the Company

<PAGE>          16

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
prior to the expiration of the 30-day period following the date
on which the Executive gives 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 prior to the expiration of such period that
the Company 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,

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

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

PROVIDED,  HOWEVER, that the Company shall bear and pay  directly
all   costs  and  expenses  (including  additional  interest  and
penalties)  incurred in connection with such contest,  and  shall
indemnify and hold the Executive harmless, on an after-tax basis,
for  any  Excise  Tax  or  income  tax  (including  interest  and
penalties) imposed as a result of such representation and payment
of  costs  and  expenses.  Without limitation  on  the  foregoing
provisions  of this Section 9(c), the Company shall  control  all
proceedings  taken in connection with such contest, and,  at  its
sole  discretion, may pursue or forgo any and all  administrative
appeals,   proceedings,  hearings  and   conferences   with   the
applicable taxing authority in respect of such claim and may,  at
its  sole discretion, 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; PROVIDED, HOWEVER,  that,
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)  imposed with respect to such advance or with  respect
to  any  imputed  income  in connection with  such  advance;  and
PROVIDED,   FURTHER,  that  any  extension  of  the  statute   of
limitations relating to payment of taxes for the taxable year  of
the Executive with respect to which such contested amount is

<PAGE>          17

claimed  to  be  due is limited solely to such contested  amount.
Furthermore,  the  Company's control  of  the  contest  shall  be
limited  to  issues  with respect to which the  Gross-Up  Payment
would  be  payable hereunder, and 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.

         (d)   If, after the receipt by the Executive of an amount
advanced  by the Company pursuant to Section 9(c), the  Executive
becomes  entitled  to  receive any refund with  respect  to  such
claim,  the  Executive shall (subject to the Company's  complying
with  the  requirements  of Section 9(c))  promptly  pay  to  the
Company  the  amount of such refund (together with  any  interest
paid  or  credited thereon after taxes applicable thereto).   If,
after  the receipt by the Executive of an amount advanced by  the
Company  pursuant to Section 9(c), a determination is  made  that
the Executive shall not be entitled to any refund with respect to
such  claim  and  the Company does not notify  the  Executive  in
writing  of its intent to contest such denial of refund prior  to
the  expiration  of 30 days after such determination,  then  such
advance shall be forgiven and shall not be required to be  repaid
and  the  amount  of  such advance shall offset,  to  the  extent
thereof, the amount of Gross-Up Payment required to be paid.

         (e)   Notwithstanding any other provision of this Section 9,
the Company may, in its sole discretion, withhold and pay over to
the  Internal  Revenue  Service or any  other  applicable  taxing
authority,  for the benefit of the Executive, all or any  portion
of  the  Gross-Up Payment, and the Executive hereby  consents  to
such withholding.

         (f)   DEFINITIONS.  The following terms shall have the
following meanings for purposes of this Section 9.

         (i)   "Excise Tax" shall mean the excise tax imposed by Section
     4999 of the Code, together with any interest or penalties imposed
     with respect to such excise tax.

         (ii)  The "Net After-Tax Amount" of a Payment shall mean the Value
     of a Payment net of all taxes imposed on the Executive with
     respect thereto under Sections 1 and 4999 of the Code and
     applicable state and local law, determined by applying the
     highest marginal rates that are expected to apply to the
     Executive's taxable income for the taxable year in which the
     Payment is made.

         (iii) "Parachute Value" of a Payment shall mean the present
     value as of the date of the change of control for purposes of
     Section 280G of the Code of the portion of such Payment that
     constitutes a "parachute payment" under Section 280G(b)(2), as
     determined by the Accounting Firm for purposes of determining
     whether and to what extent the Excise Tax will apply to such
     Payment.

<PAGE>          18

         (iv)  A "Payment" shall mean any payment or distribution in the
     nature of compensation (within the meaning of Section 280G(b)(2)
     of the Code) to or for the benefit of the Executive, whether paid
     or payable pursuant to this Agreement or otherwise.

         (v)   The "Safe Harbor Amount" means the maximum Parachute Value
     of all Payments that the Executive can receive without any
     Payments being subject to the Excise Tax.

         (vi)  "Value" of a Payment shall mean the economic present value
     of a Payment as of the date of the change of control for purposes
     of Section 280G of the Code, as determined by the Accounting Firm
     using the discount rate required by Section 280G(d)(4) of the
     Code.

     10. CONFIDENTIAL INFORMATION.  The Executive shall hold in
a fiduciary capacity for the benefit of the Company all secret or
confidential  information, knowledge  or  data  relating  to  the
Company  or any of its affiliated companies, and their respective
businesses,  which  shall  have been obtained  by  the  Executive
during  the Executive's employment by the Company or any  of  its
affiliated  companies and which shall not  be  or  become  public
knowledge (other than by acts by the Executive or representatives
of   the  Executive  in  violation  of  this  Agreement).   After
termination  of the Executive's employment with the Company,  the
Executive  shall not, without the prior written  consent  of  the
Company,  communicate or divulge any such information,  knowledge
or  data to anyone other than the Company and those designated by
it.  In no event shall an asserted violation of the provisions of
this  Section 10 constitute a basis for deferring or  withholding
any  amounts  otherwise  payable  to  the  Executive  under  this
Agreement.

     11. SUCCESSORS.

         (a)   This Agreement is personal to the Executive and without
the  prior written consent of the Company shall not be assignable
by  the  Executive otherwise than by will or the laws of  descent
and  distribution.  This Agreement shall inure to the benefit  of
and be enforceable by the Executive's legal representatives.

         (b)   This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.  Except
as provided in Section 11(c), without the prior written consent
of the Executive, this Agreement shall not be assignable by the
Company.

         (c)   The Company will require any successor (whether
director or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or

<PAGE>          19

assets of the Company to assume expressly and agree to perform
this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had
taken place.  As used in this Agreement, "Company" shall mean the
Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

     12. MISCELLANEOUS.

         (a)   This Agreement shall be governed by and construed in
accordance  with  the  laws  of the State  of  Delaware,  without
reference  to  principles of conflict of laws.  The  captions  of
this  Agreement are not part of the provisions hereof  and  shall
have  no  force or effect.  This Agreement may not be amended  or
modified  otherwise than by a written agreement executed  by  the
parties   hereto  or  their  respective  successors   and   legal
representatives.

         (b)   All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party
or by registered or certified mail, return receipt. requested,
postage prepaid, addressed as follows:

          If to the Executive:

          Arthur Brown
          Hecla Mining Company
          6500 Mineral DriveCoeur d'Alene, Idaho 83815-8788

          IF TO THE COMPANY:

          Hecla Mining Company6500 Mineral DriveCoeur d'Alene,
          Idaho 83815-8788
          Attention:  Executive Vice President

          WITH A COPY TO:

          Vice President - General Counsel
          Hecla Mining Company
          6500 Mineral Drive
          Coeur d'Alene, Idaho 83815-8788

or  to such other address as either party shall have furnished to
the   other  in  writing  in  accordance  herewith.   Notice  and
communications shall be effective when actually received  by  the
addressee.

         (c)   The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

<PAGE>          20

         (d)   The Company may withhold from any amounts payable under
this  Agreement such Federal, state or local taxes  as  shall  be
required  to  be  withheld  pursuant to  any  applicable  law  or
regulation.

         (e)   The Executive's failure to insist upon strict
compliance with any provision hereof or the failure to assert any
right the Executive may have hereunder, including, without
limitation, the right to terminate employment for Good Reason
pursuant to Section 5(c)(i) - (v), shall not be deemed to be a
waiver of such provision or right or any other provision or right
thereof.

         (f)   The Executive and the Company acknowledge that, except
as may otherwise be provided under any other written agreement
between the Executive and the Company, the employment of the
Executive by the Company is "at will" and, subject to Section
1(a), prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time
prior to the Effective Date, in which case the Executive shall
have no further rights under this Agreement.  From and after the
Effective Date, this Agreement shall supersede any other
agreement between the parties with respect to the subject matter
hereof.

     IN  WITNESS  WHEREOF, the Executive has  hereunder  set  the
Executive's  hand  and,  pursuant to the authorization  from  its
Board  of Directors, the Company has caused these presents to  be
executed  in its name on its behalf, all as of the day  and  year
first above written.

EXECUTIVE                           HECLA MINING COMPANY

  /s/ Arthur Brown                  By:  /s/ Roger A. Kauffman
--------------------------             -------------------------
  Arthur Brown                        Roger A. Kauffman
  President and CEO                   Executive Vice President -
                                        Chief Operating Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]