Document:

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                                                                    Exhibit 10.2
                            DATED as of June 29, 2000
                            -------------------------

                          STANDARD BANK LONDON LIMITED
                               as Senior Creditor

                          STANDARD BANK LONDON LIMITED
                            as Subordinated Creditor

                                     and

                              HECLA MINING COMPANY
                                as Hecla Mining

                       ---------------------------------

                             SUBORDINATION AGREEMENT
                       ---------------------------------

                            ASHURST MORRIS CRISP
                              Broadwalk House
                              5 Appold Street
                              London EC2A 2HA

                            Tel:  020 7638 1111
                            Fax:  020 7972 7990
                           SJR/627S.00008/1770886

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                             SUBORDINATION AGREEMENT

THIS SUBORDINATION AGREEMENT is dated as of June 29, 2000 (this "Agreement")

AMONG:

(1)  STANDARD BANK LONDON LIMITED ("Standard Bank"), a bank organized under  the
     laws  of England and Wales, individually and as administrative agent  under
     the Senior Facility Agreement (in such capacity, the "Senior Creditor");

(2)  STANDARD  BANK LONDON LIMITED, a bank organized under the laws  of  England
     and  Wales  as  the Lender under the Subordinated Loan Agreement  (in  such
     capacity, the "Subordinated Creditor"); and

(3)  HECLA MINING COMPANY, a Delaware corporation ("Hecla Mining").

WITNESSETH:-

WHEREAS,  Hecla  Mining and its Subsidiaries (such and other  capitalized  terms
used as defined in Section 1.1) are active in the exploration and development of
precious  metals  and  industrial  minerals  in  the  United  States  and  other
jurisdictions;

WHEREAS,  Hecla Mining is party to the Facility Agreement dated March  24,  2000
(the  "Senior  Facility  Agreement") among Hecla Mining, as  borrower,  Standard
Bank,  as initial lender, Standard Bank, as collateral agent, and Standard Bank,
as administrative agent;

WHEREAS, Hecla Mining has entered into the Subordinated Loan Agreement dated  as
of  June  29, 2000 (the "Subordinated Loan Agreement") between Hecla Mining,  as
borrower, and Standard Bank, as lender;

WHEREAS,  Minera Hecla Venezolana C.A., a company organized under  the  laws  of
Venezuela  and  a  wholly owned indirect subsidiary of Hecla Mining  ("MHV")  is
willing  to  guarantee  the  obligations of Hecla  Mining  to  the  Subordinated
Creditor  arising under the Subordinated Loan Agreement and it  is  a  condition
precedent to the making of the loan thereunder that MHV execute and deliver  the
MHV Guaranty;

WHEREAS,  Standard  Bank,  as administrative agent  under  the  Senior  Facility
Agreement (acting on behalf of the Lenders thereunder) is willing to permit  the
credit  accommodations contemplated by the Subordinated Loan Agreement,  subject
to the terms and conditions of this Agreement;

WHEREAS,  the  Subordinated Creditor has agreed to subordinate its rights  under
the  Subordinated Loan Agreement to the rights of the Senior Creditor under  the
Senior Facility Agreement on terms satisfactory to the Senior Creditor; and

WHEREAS, the parties hereto have agreed to enter into this Agreement in order to
set out the arrangements described in the previous recital.

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NOW THEREFORE, for good and valuable consideration, the receipt and adequacy  of
which  is  hereby acknowledged by the Senior Creditor, each of the  Subordinated
Creditor  and Hecla Mining undertakes and agrees, for the benefit of the  Senior
Creditor, as follows:

1 .  DEFINITIONS; INTERPRETATION

1.1  Definitions.  In this Agreement (including its preamble and recitals),  the
     following capitalized terms shall have the following meanings:

     "Agreement" is defined in the preamble.

     "Default"  means,  as  the context may require, a  Default  under  (and  as
     defined  in)  the  Senior Facility Agreement and/or the  Subordinated  Loan
     Agreement.

     "Default Notice" is defined in Section 4.1.

     "Hecla Mining" is defined in the preamble.

     "Insolvency Proceeding" means, with respect to any Person, any voluntary or
     involuntary liquidation, dissolution, sale of all or substantially  all  of
     such  Person's  assets, marshalling of assets or liabilities, receivership,
     conservatorship,  assignment  for  the benefit  of  creditors,  insolvency,
     bankruptcy,  reorganization, arrangement or composition of such  person  or
     entity  (whether or not pursuant to bankruptcy, insolvency or other similar
     laws)  and  any other proceeding under laws for the protection  of  debtors
     involving such Person or any of its assets.

     "Liabilities"  means  all  indebtedness and obligations  of  Hecla  Mining,
     howsoever  created,  arising  or evidenced,  whether  created  directly  or
     acquired by assignment or otherwise whether direct or indirect, absolute or
     contingent  or now or hereafter existing, or due or to become due,  whether
     at  stated  maturity,  by  required prepayment, declaration,  acceleration,
     demand or otherwise, and whether for principal, interest, fees, expenses or
     otherwise.

     "Lien"  means  any  security  interest,  mortgage,  pledge,  hypothecation,
     assignment, encumbrance, lien (statutory or otherwise), charge  against  or
     interest  in  property  to secure payment of a debt or  performance  of  an
     obligation  or other priority or preferential arrangement of  any  kind  or
     nature whatsoever.

     "Majority Senior Lenders" means the Required Lenders under (and as  defined
     in) the Senior Facility Agreement.

     "MHV" is defined in the fourth recital.

     "MHV  Guaranty"  means  the  guaranty  granted  by  MHV  in  favor  of  the
     Subordinated Creditor.

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     "Person"   means  any  natural  person,  corporation,  partnership,   firm,
     association,  trust, government, governmental agency or any  other  entity,
     whether acting in an individual, fiduciary or other capacity.

     "Senior  Creditor" is defined in the preamble and shall mean Standard  Bank
     in  its  individual capacity and in its capacity as agent for  all  lenders
     (howsoever  denominated) party from time to time  to  the  Senior  Facility
     Agreement.

     "Senior Facility Agreement" is defined in the second recital.

     "Senior Liabilities" means all Liabilities owing from Hecla Mining  to  the
     Senior Creditor and all other lenders party from time to time to the Senior
     Facility  Agreement  arising under the Senior Facility  Agreement  and  all
     other  Senior Loan Documents executed and delivered by Hecla Mining  and/or
     any  of  its Subsidiaries.  "Senior Liabilities" shall include all  amounts
     which  would become due but for the operation of the automatic  stay  under
     Section  362(a)  of  the United States Bankruptcy Code, 11  U.S.C.  Section
     263(a),  and  the  operation of Sections 502(b) and 506(b)  of  the  United
     States Bankruptcy Code, 11 U.S.C. Section 502(b) and Section 506(b) and any
     other  similar  provisions arising under applicable law and  shall  include
     interest  accruing  after  the commencement of  any  Insolvency  Proceeding
     whether  or  not  such  interest is an allowed claim  enforceable  in  such
     Insolvency Proceeding.

     "Senior  Loan  Documents"  means  the Senior  Facility  Agreement  and  all
     documents  and  instruments delivered pursuant  thereto  or  in  connection
     therewith.

     "Standard Bank" is defined in the preamble.

     "Subordinated Loan Agreement" is defined in the third recital.

     "Subordinated Creditor" is defined in the preamble and shall mean  Standard
     Bank  in  its  individual capacity and in its capacity  as  agent  for  all
     lenders (howsoever denominated) party from time to time to the Subordinated
     Loan Agreement.

     "Subordinated Liabilities" means all Liabilities from time to time owing by
     Hecla  Mining to the Subordinated Creditor and all other lenders (howsoever
     denominated)  party  from time to time to the Subordinated  Loan  Agreement
     arising  under  the Subordinated Loan Agreement and all other  Subordinated
     Loan  Documents executed and delivered by Hecla Mining and/or  any  of  its
     Subsidiaries.   "Subordinated Liabilities" shall include all amounts  which
     would  become due but for the operation of the automatic stay under Section
     362(a)  of  the  United States Bankruptcy Code, 11 U.S.C.  263(a)  and  the
     operation of Sections 502(b) and 506(b) of the United

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     States Bankruptcy Code, 11 U.S.C. Section 502(b) and Section 506(b) and any
     other  similar  provisions arising under applicable law and  shall  include
     interest  accruing  after  the commencement of  any  Insolvency  Proceeding
     whether  or  not  such  interest is an allowed claim  enforceable  in  such
     Insolvency Proceeding.

     "Subordinated Loan Documents" means the Subordinated Loan Agreement and all
     documents  and  instruments delivered pursuant  thereto  or  in  connection
     therewith.

     "Subsidiary" means with respect to any Person, any corporation at  least  a
     majority  or  more  of  the outstanding shares of capital  stock  of  which
     having  ordinary voting power to elect a majority of the board of directors
     or  other  governing body of such corporation (irrespective of  whether  at
     the  time  capital stock of any other class or classes of such  corporation
     shall  or  might have voting power upon the occurrence of any  contingency)
     is  at  the time owned by such Person, by such Person and one or more other
     Subsidiaries of such Person, or by one or more other Subsidiaries  of  such
     Person.

     "Termination Date" means the earliest date after the date hereof  on  which
     all  Senior  Liabilities have been paid in cash and satisfied in  full  and
     neither  the  Senior Creditor nor any lender (howsoever  denominated)  then
     party  to  the  Senior  Facility Agreement has any  outstanding  commitment
     (whether or not conditioned on the satisfaction of any condition precedent)
     to  lend money or otherwise extend credit to Hecla Mining under the  Senior
     Facility Agreement.

     "Trigger Default" means the failure of Hecla Mining to pay any component of
     any  of  the Senior Liabilities as and when due and payable, whether  at  a
     stated maturity or as a result of acceleration or otherwise.

1.2  Interpretation

     Unless  the context otherwise requires or unless otherwise provided herein,
     references  in  this  Agreement to a particular  agreement,  instrument  or
     document  also  refer to and include all renewals, extensions,  amendments,
     modifications,   supplements  or  restatements  of  any   such   agreement,
     instrument  or  document (to the extent permitted by  the  terms  thereof);
     provided,  however,  that  nothing  contained  in  this  Section  shall  be
     construed to authorize any party hereto to execute or enter into  any  such
     renewal, extension, amendment, modification, supplement or restatement. The
     headings used herein are for purposes of convenience only and shall not  be
     used in construing the provisions hereof. The words "this Agreement," "this
     instrument," "herein," "hereof," "hereby" and words of similar import refer
     to  this Agreement as a whole and not to any particular subdivision  unless
     expressly  so  limited.  The  word "or" is  not  exclusive,  and  the  word
     "including" (in its various forms) means

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     "including without limitation." Pronouns in masculine, feminine and  neuter
     genders  shall be construed to include any other gender, and words  in  the
     singular  form  shall be construed to include the plural  and  vice  versa,
     unless the context otherwise requires.

2.   SUBORDINATION TERMS

2.1  Subordination of Liabilities

     (a)  The  Subordinated Creditor, individually and on behalf  of  any  other
          lenders  (howsoever  denominated) party  from  time  to  time  to  the
          Subordinated  Loan Agreement, hereby until the Termination  Date  (but
          subject  to  Section 2.3) expressly and in all respects,  subordinates
          and makes junior and inferior:

          (i)  all  Subordinated Liabilities and the payment of the Subordinated
               Liabilities, to

          (ii) the Senior Liabilities and the payment of the Senior Liabilities.

     (b)  Without the prior written consent of the Senior Creditor, prior to the
          Termination Date (but subject to Section 2.3), the Subordinated
          Creditor shall not accept, receive or collect (by set-off or other
          manner) any payment or distribution on account of, or ask for, demand
          or accelerate, directly or indirectly, any Subordinated Liability, and
          Hecla Mining shall not make any such payment, except that Hecla Mining
          may make payments of

          (i)  interest due and payable in accordance with Section 3.2 of the
               Subordinated Loan Agreement; and

          (ii) all amounts owing under Sections 4.2, 4.3, 4.4, 4.6, 9.3 and 9.4
               of the Subordinated Loan Agreement and in respect of the
               "Additional Costs Rate" thereunder,

           so  long as no Trigger Default has occurred and is continuing at  the
     time of such payment.

2.2  Subordination  of  Liens.  Except for the right  to  set  off  against  the
     Subordinated Liabilities any balances, credit, deposits accounts or  moneys
     of Hecla Mining at the banks and financial institutions that are parties to
     the  Subordinated Loan Agreement, any Liens granted by Hecla Mining or  any
     of  its Subsidiaries at any time securing the Subordinated Liabilities  are
     hereby  made,  and  will  at all times prior to the  Termination  Date  be,
     subject,  subordinate,  junior and inferior in all respects  to  all  Liens
     securing  the Senior Liabilities; provided that this Section shall  not  be
     construed  as  a consent by the Senior Creditor to any Liens prohibited  by
     the Senior Facility Agreement or any other Loan Document.

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2.3  Assets  Wrongly Received. If the Subordinated Creditor receives any payment
     or distribution of any kind (whether in cash, securities or other property)
     in  contravention of this Agreement including as a result of a payment made
     under the MHV Guaranty, it shall hold such payment or distribution in trust
     for  the  Senior Creditor, shall segregate the same from all other cash  or
     assets  it holds, and shall immediately deliver the same to Senior Creditor
     for the benefit of Senior Creditor in the form received by the Subordinated
     Creditor (together with any necessary endorsement) to be applied to or,  at
     Senior  Creditor's option held as collateral for, the payment or prepayment
     of the Senior Liabilities.

2.4  No Acceleration, Institution of Collection Proceedings or Interference with
     Senior  Creditor's  Collateral.   (a) Prior to the  Termination  Date,  the
     Subordinated Creditor shall not accelerate or collect or attempt to collect
     any  part of the Subordinated Liabilities, whether through the commencement
     or  joinder  of  an  action or proceeding (judicial  or  otherwise)  or  an
     Insolvency  Proceeding, the enforcement of any rights against any  property
     of   Hecla   Mining   (including  any  such  enforcement  by   foreclosure,
     repossession  or sequestration proceedings), making demand on MHV  pursuant
     to  the  MHV  Guaranty, or otherwise except when the Senior Creditor  shall
     either request that the Subordinated Creditor join it in bringing any  such
     proceeding  or  request  that  the Subordinated  Creditor  file  claims  in
     connection  with  any such proceeding. The restriction  described  in  this
     clause shall not apply to the Subordinated Creditor if:

          (i)  an   Insolvency  Proceeding  with  respect  to  Hecla  Mining  is
               commenced by Persons other than Subordinated Creditor; or

          (ii) the  Senior  Creditor  accelerates  the  Senior  Liabilities   or
               enforces against the collateral securing the Senior Liabilities.

     (b)  For  the  avoidance of doubt, any moneys received under  this  Section
          shall  be  subject  to the Subordinated Creditor's  obligations  under
          Sections 2.1, 2.3 and 2.5.

2.5  Insolvency Proceedings.

     (a)  Upon  any  distribution of all or any of the assets of  Hecla  Mining,
          upon  the  dissolution, winding up, liquidation or  reorganization  of
          Hecla Mining (whether or not in any Insolvency Proceeding), or upon an
          assignment  for  the benefit of creditors or any other marshalling  of
          the  assets  and  liabilities of Hecla Mining,  then  any  payment  or
          distribution  of  any  kind  (whether in  cash,  securities  or  other
          property) which otherwise would be payable or deliverable upon or with
          respect  to  the Subordinated Liabilities shall be paid and  delivered
          directly  to  the  Senior  Creditor to be applied  to  or,  at  Senior
          Creditor's option held as collateral for, the payment or prepayment of
          the Senior Liabilities.

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     (b)  During the pendency of any Insolvency Proceeding with respect to Hecla
          Mining, Subordinated Creditor shall promptly execute, deliver and file
          any  documents and instruments which Senior Creditor may from time  to
          time  request  in  order to (i) file appropriate proofs  of  claim  in
          respect of the Subordinated Liabilities in such Insolvency Proceeding,
          (ii)   instruct  any  receiver,  trustee  in  bankruptcy,  liquidating
          trustee,  agent or other Person making any payment or distribution  in
          such  Insolvency Proceeding to make all payments which might otherwise
          be  payable  or deliverable in respect of the Subordinated Liabilities
          directly  to  the  Senior  Creditor, and (iii)  otherwise  effect  the
          purposes of this Agreement.

     (c)  Cumulative  of the foregoing, the Subordinated Creditor hereby  grants
          to  the  Senior Creditor the express power and authority (which  power
          and  authority are coupled with an interest and shall be  irrevocable)
          to  do the following until the Termination Date in the name of and  on
          behalf of the Subordinated Creditor if the Subordinated Creditor fails
          to  do  so within 30 days after written request therefor by the Senior
          Creditor:

          (i)  to  file  appropriate  claims (whether  by  proofs  of  claim  or
               otherwise)  in any Insolvency Proceeding and to take  such  other
               actions in such Insolvency Proceeding as may be necessary or,  in
               the  reasonable  opinion  of the Senior  Creditor,  desirable  to
               prevent  the  waiver  or release of any claims  for  Subordinated
               Liabilities or to enforce the terms of this Agreement.

          (ii) to   prosecute  and  enforce  such  claims  in  such   Insolvency
               Proceeding,  to initiate and participate in other proceedings  to
               enforce such Subordinated Liabilities, and to collect and receive
               any  and  all  such cash or other assets which  may  be  paid  on
               account of Subordinated Liabilities in such Insolvency Proceeding
               or in any other proceeding.

          The  Senior  Creditor shall, however, have no duty to the Subordinated
          Creditor to exercise any of the foregoing power and authority, and the
          Senior Creditor may do so or decline to do so in its sole and absolute
          discretion.

2.6  Assignment   and  Marking  of  Subordinated  Liabilities.  Prior   to   the
     Termination Date,
     the Subordinated Creditor shall not without the prior consent of the Senior
     Creditor:

     (a)  transfer, assign, pledge, encumber or otherwise dispose of any  right,
          claim  or  interest in all or any part of the Subordinated Liabilities
          to  any Person other than the Senior Creditor; provided, however, that
          the  foregoing shall not apply to transfers and assignments  permitted
          and contemplated by the Subordinated Loan Agreement,

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     (b)  subordinate  any  of the Subordinated Liabilities to  any  Liabilities
          other than the Senior Liabilities.

     At  the  request  of the Senior Creditor, the Subordinated  Creditor  shall
     cause each instrument to which it is a party that evidences all or any part
     of  the  Subordinated  Liabilities to bear  upon  its  face  a  conspicuous
     statement or legend to the effect that such instrument and the indebtedness
     evidenced  thereby are subordinate to the payment of all Senior Liabilities
     pursuant to this Agreement.

2.7  Waiver.  The  Subordinated  Creditor hereby waives  promptness,  diligence,
     notice  of acceptance, and any notice (other than as specifically  provided
     in  Article  4)  with  respect to any of the Senior  Liabilities  and  this
     Agreement, and any requirement that the Senior Creditor exhaust  any  other
     right  or  take any action against the Subordinated Creditor or  any  other
     Person or any collateral.

2.8  Subrogation.

     (a)  No  payment  or  distribution to the Senior Creditor pursuant  to  the
          provisions  of this Agreement shall entitle the Subordinated  Creditor
          to  exercise any rights of subrogation in respect thereof prior to the
          Termination Date, and until such time the Subordinated Creditor  shall
          not have any right of subrogation to the Senior Creditor on account of
          this Agreement.

     (b)  After the Termination Date, and provided that no payments received  by
          the  Senior  Creditor are voidable or must otherwise be returned,  the
          Subordinated Creditor shall be subrogated to the rights of the  Senior
          Creditor to receive distributions applicable to the Senior Liabilities
          to the extent that distributions otherwise payable to the Subordinated
          Creditor  have  been applied to the payment of the Senior  Liabilities
          owing to the Senior Creditor.

     (c)  Any  distribution  made  pursuant to  this  Agreement  to  the  Senior
          Creditor  on  account of the Subordinated Liabilities owing  by  Hecla
          Mining  to  the  Subordinated Creditor, shall  not,  as  between  such
          Persons, be considered a payment of the Subordinated Liabilities.

2.9  Reinstatement.  The Subordinated Creditor agrees that this Agreement  shall
     continue  to be effective or be reinstated, as the case may be, if  at  any
     time  any  payment  (in whole or in part) of any of the Senior  Liabilities
     owing  to  it is rescinded or must otherwise be restored by the  Collateral
     Agent,  upon  an  Insolvency Proceeding or otherwise, all  as  though  such
     payment had not been made.

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2.10 Obligations  Hereunder Not Affected.  No action or inaction of  the  Senior
     Creditor or any other Person, and no change of law or circumstances,  shall
     release  or  diminish  the obligations, liabilities, agreements  or  duties
     hereunder  of Subordinated Creditor, affect this Agreement in any  way,  or
     afford  any Person any recourse against Senior Creditor.  Without  limiting
     the  generality  of  the  foregoing, none of the obligations,  liabilities,
     agreements  and  duties of the Subordinated Creditor under  this  Agreement
     shall  be  released,  diminished, impaired,  reduced  or  affected  by  the
     occurrence  of any of the following at any time or from time to time,  even
     if  occurring  without notice to or without the consent of the Subordinated
     Creditor  (any right of the Subordinated Creditor to be so notified  or  to
     require  such  consent  being  hereby  waived,  except  as  set  forth   in
     Article 5):

     (a)  the  release  (by operation of law or otherwise) of Hecla Mining  from
          its duty to pay any of the Senior Liabilities; or

     (b)  any  invalidity, deficiency, illegality or unenforceability of any  of
          the  Senior  Liabilities or the documents and instruments  evidencing,
          governing or securing the Senior Liabilities, in whole or in part, any
          bar  by any statute of limitations or other law to recovery on any  of
          the  Senior  Liabilities,  or any defense or  excuse  for  failure  to
          perform   on   account  of  force  majeure,  act  of  God,   casualty,
          impracticability or other defense or excuse with respect to the Senior
          Liabilities whatsoever; or

     (c)  the  taking or accepting by Senior Creditor of any additional security
          for or subordination to any or all of the Senior Liabilities; or

     (d)  any  release,  discharge,  surrender,  exchange,  subordination,  non-
          perfection,  impairment,  modification or  stay  of  actions  or  lien
          enforcement proceedings against, or loss of any security at  any  time
          existing with respect to, the Senior Liabilities; or

     (e)  the  modification or amendment of, or waiver of compliance  with,  any
          terms  of  the  documents  and instruments  evidencing,  governing  or
          securing the Senior Liabilities; or

     (f)  the insolvency, bankruptcy or disability of Hecla Mining or the filing
          or commencement of any Insolvency Proceeding involving Hecla Mining or
          other proceeding with respect thereto; or

     (g)  any increase or decrease in the amount of the Senior Liabilities or in
          the  time,  manner  or  terms  in accordance  with  which  the  Senior
          Liabilities   are   to   be  paid,  or  any  adjustment,   indulgence,
          forbearance,  waiver or compromise that may be granted or  given  with
          respect to the Senior Liabilities; or

<PAGE>          11

     (h)  any  neglect,  delay,  omission, failure  or  refusal  of  the  Senior
          Creditor  to  take or prosecute any action for the collection  of  the
          Senior Liabilities or to foreclose or take or prosecute any action  in
          connection with any instrument or agreement evidencing or securing all
          or part of the Senior Liabilities; or

     (i)  any  release  of the proceeds of collateral which may  come  into  the
          possession of the Senior Creditor or its affiliates; or

     (j)  any  judgment, order or decree by any court or governmental agency  or
          authority that a payment or distribution by Hecla Mining to the Senior
          Creditor  upon  the Senior Liabilities is a preference  or  fraudulent
          transfer  under  applicable  bankruptcy  or  similar  laws   for   the
          protection  of  creditors or is for any other reason  required  to  be
          refunded by the Senior Creditor or paid by the Senior Creditor to  any
          other Person; or

     (k)  any  modification of, or waiver of compliance with, any terms of  this
          Agreement with respect to any party hereto; or

     (l)  any  neglect,  delay,  omission, failure  or  refusal  of  the  Senior
          Creditor  to  take  or  prosecute any action  against  any  Person  in
          connection with this Agreement.

3.   AMENDMENTS TO DOCUMENTS

3.1  Amendments  to  Subordinated Loan Agreement. Neither Hecla Mining  nor  the
     Subordinated
     Creditor will, without the prior written consent of the Senior Creditor:

     (a)  agree  to or take any action which would increase the rate of interest
          payable  (or  accreting)  under  the Subordinated  Loan  Agreement  or
          otherwise  increase  the  cost to Hecla  Mining  of  the  Subordinated
          Liabilities  other  than  as contemplated  by  the  Subordinated  Loan
          Agreement as in effect at the date hereof;

     (b)  agree to or take any action which would postpone the Maturity Date (as
          defined  in the Subordinated Loan Agreement) as in effect at the  date
          hereof;

     (c)  agree to or take any action which would increase the Commitment Amount
          (as  defined in the Subordinated Loan Agreement) as in effect  at  the
          date hereof;

     (d)  agree  to or take any action to amend the timings and amounts  of  the
          payments  of  principal and interest in respect  of  the  Subordinated
          Liabilities as in effect at the date hereof; and

<PAGE>          12

     (e)  agree  to  or  take any action to extend or create a  Lien  (howsoever
          denominated)  over  any property of Hecla Mining or  its  Subsidiaries
          which  Lien  would  secure  or  purport  to  secure  the  Subordinated
          Liabilities.

3.2  Amendments  to  Senior Facility Agreement:  Neither Hecla  Mining  nor  the
     Senior Creditor will, without the prior written consent of the Subordinated
     Creditor:-

     (a)  agree  to or take any action which would increase the rate of interest
          payable under the Senior Facility Agreement or otherwise increase  the
          cost  to  Hecla  Mining  of  the  Senior  Liabilities  other  than  as
          contemplated by the Senior Facility Agreement as in effect at the date
          hereof;

     (b)  agree to or take any action which would postpone the Maturity Date (as
          defined  in  the Senior Facility Agreement) as in effect at  the  date
          hereof;

     (c)  agree  to  or  take  any  action which would  increase  the  Aggregate
          Commitment Amount (as defined in the Senior Facility Agreement) as  in
          effect at the date hereof;

     (d)  agree  to or take any action to amend the timings and amounts  of  the
          payments   of  principal  and  interest  in  respect  of  the   Senior
          Liabilities as in effect at the date hereof; and

     (e)  agree  to  or  take any action to extend or create a  Lien  (howsoever
          denominated)  over  any property of Hecla Mining or  its  Subsidiaries
          which  Lien  would secure or purport to secure the Senior  Liabilities
          other than in effect at the date hereof.

4.   INFORMATION AND COOPERATION

4.1  Defaults.  Upon  the  Senior  Creditor  and/or  the  Subordinated  Creditor
     becoming  aware  of  the  occurrence of any relevant  Default,  the  Senior
     Creditor  and/or  the Subordinated Creditor will use its  best  efforts  to
     promptly notify the other in writing thereof (a "Default Notice"); provided
     that   the  failure  to  give  a  Default  Notice  shall  not  impair   the
     subordination made hereby in any manner or impose any liability  on  Senior
     Creditor.

4.2  Waivers.  Upon  the  waiver or remedy of any relevant Default,  the  Senior
     Creditor  and/or  the Subordinated Creditor will use its  best  efforts  to
     promptly  notify  the other in writing of such waiver or  remedy;  provided
     that  the  failure  to give such notice shall not impair the  subordination
     made hereby in any manner or impose any liability on Senior Creditor.

<PAGE>          13

5.   CONSENT BY THE SENIOR CREDITOR

5.1  Consent  by  Senior  Creditor.  The Senior Creditor  (i)  consents  to  the
     execution  and  delivery of the Subordinated Loan  Agreement  and  the  MHV
     Guaranty,  (ii) waives any Default under Sections 7.3.2 and  7.3.3  of  the
     Senior  Facility Agreement which may arise by reason of such execution  and
     delivery  and  (iii) agrees that the Subordinated Loan  Documents  and  the
     Subordinated Liabilities shall be excluded from the provisions of  Sections
     7.3.2(k) and 7.3.3(k) of the Senior Facility Agreement.

6.   MISCELLANEOUS

6.1  Waivers, Amendments, etc. The provisions of this Agreement may from time to
     time  be  amended, modified or waived, if such amendment,  modification  or
     waiver  is  in  writing and consented to by Hecla Mining, the  Subordinated
     Creditor and the Senior Creditor.

     No  failure  or  delay  on the part of either the Senior  Creditor  or  the
     Subordinated Creditor in exercising any power or right under this Agreement
     shall operate as a waiver thereof, nor shall any single or partial exercise
     of  any  such power or right preclude any other or further exercise thereof
     or  the  exercise of any other power or right. No notice to  or  demand  on
     either  the Senior Creditor or the Subordinated Creditor in any case  shall
     entitle  it  to any notice or demand in similar or other circumstances.  No
     waiver  or  approval  by  either the Senior Creditor  or  the  Subordinated
     Creditor  under this Agreement shall, except as may be otherwise stated  in
     such  waiver  or  approval,  be applicable to subsequent  transactions.  No
     waiver or approval hereunder shall require any similar or dissimilar waiver
     or approval thereafter to be granted hereunder.

6.2  Notices. All notices and other communications provided to any party to this
     Agreement shall be in writing or by telex or by facsimile and addressed  or
     delivered  to  it at its address set forth below its signature  hereto  and
     designated as its "Address for Notices" or at such other address as may  be
     designated  by such party in a notice to the other parties. Any notice,  if
     sent  by  hand delivery or courier delivery, shall be deemed received  when
     delivered and, if transmitted by telex or facsimile, shall be deemed  given
     when  transmitted  (answerback  confirmed  in  the  case  of  telexes   and
     transmission  confirmed by the sending facsimile machine  in  the  case  of
     facsimiles).

6.3  Successors  and  Assigns. This Agreement shall be binding  upon  and  shall
     inure to the benefit of the parties hereto (and, in the case of each of the
     Senior  Creditor  and  the Subordinated Creditor, to  the  benefit  of  the
     respective  lenders and other financial institutions participating  in  the
     Senior  Facility  Agreement and the Subordinated Loan Agreement  (if  any),
     respectively,  and  their  respective successors  and  assigns);  provided,
     however,  that  Hecla  Mining may not assign  or  transfer  its  rights  or
     obligations  hereunder  without the prior written  consent  of  the  Senior
     Creditor and the Subordinated Creditor.

<PAGE>          14

6.4  Severability.  Any  provision  of this Agreement  which  is  prohibited  or
     unenforceable  in  any  jurisdiction shall, as  to  such  jurisdiction,  be
     ineffective  to the extent of such prohibition or unenforceability  without
     invalidating  the remaining provisions of this Agreement or  affecting  the
     validity or enforceability of such provision in any other jurisdiction.

6.5  Headings.  The  various  headings  of  this  Agreement  are  inserted   for
     convenience only and shall not affect the meaning or interpretation of this
     Agreement or any provisions hereof or thereof.

6.6  Governing Law; Entire Agreement.

     (a)  THIS  AGREEMENT  SHALL  BE  DEEMED TO BE A  CONTRACT  MADE  UNDER  AND
          GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     (b)  This  Agreement  constitutes  the  entire  understanding  between  the
          parties  hereto  with  respect  to  the  subject  matter  hereof   and
          supersedes  any  prior  agreements,  written  or  oral,  with  respect
          thereto.

6.7  Waiver  of  Jury Trial. THE SENIOR CREDITOR, THE SUBORDINATED CREDITOR  AND
     HECLA  MINING  HEREBY  KNOWINGLY, VOLUNTARILY AND INTENTIONALLY  WAIVE  ANY
     RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION  BASED
     HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT  OR
     ANY  COURSE  OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER  VERBAL  OR
     WRITTEN)  OR  ACTIONS OF THE SENIOR CREDITOR, THE SUBORDINATED CREDITOR  OR
     HECLA MINING.

6.8  Counterparts;  Execution by facsimile.  This Agreement  may  be  separately
     executed  in  any  number of counterparts, each of which when  so  executed
     shall  be  deemed to constitute one and the same agreement.  This Agreement
     may be duly executed by facsimile or other electronic transmission.

<PAGE>          15

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by  their  respective officers thereunto duly authorized as of the day and  year
first above written.

                              STANDARD BANK LONDON LIMITED
                              in its capacity as the Senior Creditor

                              By:  /s/  Steven Sharpe
                              Title:    Assistant General Manager

                              By:  /s/  Don M. Newport
                              Title:    Head of Mining Finance

                              Address for Notices:

                              Cannon Bridge House
                              25 Dowgate Hill
                              London EC4R 2SB
                              England
                              Facsimile No.: 44-20-7815-4284
                              Attention:

                              STANDARD BANK LONDON LIMITED
                              in its capacity as the Subordinated Creditor

                              By:  /s/  Steven Sharpe
                              Title:    Assistant General Manager

                              By:  /s/  Don M. Newport
                              Title:    Head of Mining Finance

                              Address for Notices:

                              Cannon Bridge House
                              25 Dowgate Hill
                              London EC4R 2SB
                              England
                              Facsimile No.: 44-20-7815-4284
                              Attention:

<PAGE>          16

                 ACKNOWLEDGEMENT AND AGREEMENT

The undersigned, Hecla Mining Company, hereby acknowledges receipt of a copy  of
the  foregoing Subordination Agreement, waives notice of acceptance  thereof  by
the  Senior Creditor and agrees to be bound by the terms and provisions thereof,
to  make  no  payments  or distributions contrary to the  terms  and  provisions
thereof,  and to do every other act and thing necessary or appropriate to  carry
out such terms and provisions,

                              HECLA MINING COMPANY

                              By:  /s/  Michael B. White
                              Title:  Vice President - General Counsel

                              Address for Notices:

                              Hecla Mining Company
                              6500 Mineral Drive
                              Coeur d'Alene, Idaho
                              83815-8788

                              Facsimile No.:  1-208-769-4159

Dated:  June 29, 2000Exhibit 10.94

  MAXICARE HEALTH PLANS, INC.
	1149 South Broadway Street
	Los Angeles, California 90015

	January 25, 2000

PERSONAL DELIVERY
Ms. Susan M. Blais
28 Flintlock Lane
Bell Canyon, CA. 91307

    Re:	Maxicare Health Plans, Inc. (the "Company") -
Terms of Employment

Dear Ms. Blais:

This will confirm our understanding of that terms and conditions
pursuant to which the Company has extended and you have accepted its offer
to serve as its Senior Vice President-Strategic Development are as follows:

1. 	Position, Services.  You agree to  serve as Executive Vice
President of the Company. In such capacity, you shall report to the
Company's Chief Executive Officer ("CEO").   As  Executive Vice President
for the Company you shall have such duties and responsibilities as are
normally associated with such position and such other duties and/or
responsibilities as may from time to time assigned to you by the Company's
Board of Directors or the CEO; including, but not limited to, supervision
over the Company's California, Indiana and Louisiana HMOs, Maxicare Life &
Health, and other operational aspects of the Company's business.  You
hereby accept employment hereunder and agrees to devote your full time,
energy and skill to such employment.  Notwithstanding the foregoing, you

<PAGE>
may engage in other personal business so long as the performance of such
activities does not materially interfere with the full, efficient and
timely performance of your duties hereunder.

2. 	Term.

	(a)	Your  services shall commence as of the date of this letter
agreement  (the "Agreement") and, unless otherwise terminated, shall
continue for a period of two years from the date hereof (the "Term").  The
Company may terminate yours services at any time during the Term with or
without "cause"; provided, however, in the event the termination is without
"cause" or for "good reason", as hereinafter defined,  you hereby agree
that you shall only be entitled to receive (i) your then current "Base
Salary", as such term is hereinafter defined, and benefits through the date
of termination and (ii) as your  entire severance compensation, (y) the
immediate vesting of all unvested Options, as hereinafter defined, which
Options shall remain exercisable for a period of two years commencing as of
the termination date and, (z) an additional six month's salary.  In the
event you are terminated for "cause" you shall be entitled to receive
solely your then current "Base Salary", plus any accrued and unpaid
benefits due you through the date of termination. For the purposes hereof
"cause" shall be as defined in Exhibit "A" attached hereto and made a part
hereof.

(b)	Notwithstanding the foregoing, in the event there
occurs a "Change of Control", as hereinafter defined, during the Term
hereof and you are not offered a comparable or better position at the
surviving entity with terms and conditions no less favorable than those
contained in this Agreement within ten (10) business days after the
consummation of such Change of Control, you shall be entitled to elect
within thirty (30) days thereafter to terminate your employment with the
surviving entity, if you are so employed, and receive, in lieu of any
severance or other payment from the Company or the surviving entity the
following: (y) in a lump sum a "Change of Control Payment" equal to
eighteen (18) months of your Base Salary in effect upon the consummation of
the Change of Control and (z)  the immediate vesting of all unvested
Options, as hereinafter defined, which Options shall remain exercisable for
a period of two years commencing from the occurrence of a "Change of
Control".  For the purposes hereof, "Change of Control" shall be defined as
the occurrence of any one of the following events:

<PAGE>

(i)	the Company shall merge or consolidate with any
other person or entity other than a subsidiary, and, upon the consummation
of such transaction, holders of the Common Stock immediately prior to such
transaction own less than fifty percent (50%) of the equity securities of
the surviving or consolidated entity; or

(ii)	all or substantially all of the assets of the
Company are sold or transferred to another person or entity in a single
transaction or a series of related transactions; notwithstanding the
foregoing, you agree that  the sale of all of the capital stock or
substantially all of the assets of both Maxicare Louisiana, Inc.  and
Maxicare Indiana, Inc. shall not be deemed to be Change of Control.

Notwithstanding the foregoing, a Change of Control shall not
include the filing by or on behalf of, or entering against, the Company or
its subsidiaries of (y) a petition, decree or order of bankruptcy or
reorganization, or (z) a petition, decree or order for the appointment of a
trustee, receiver, liquidator, supervisor, conservator or other officer or
agency having similar powers over the Company or its subsidiaries,
including any such petitions, orders or decrees filed or entered by federal
or state regulatory authorities.

(c)	For the purposes of this Agreement, "Good Reason" shall
be defined as any material failure by the Company to comply with its
obligations under this Agreement or  in the event you are required to
report to someone other than the CEO.

3. 	Compensation.  As compensation for all services to be
rendered by you hereunder, the Company shall pay you a base salary at the
rate of Two Hundred and Forty Thousand Dollars ($240,000) per annum (the
"Base Salary") with such increases and/or bonuses as may be determined from
time to time by the Board in its sole discretion; provided however, nothing
herein shall require that the Company pay you any bonus or increase your
Base Salary.  Said Base Salary shall be payable in equal semi-monthly
installments or in such other installments as the Company may from time to
time pay other similarly situated employees.

4. 	Benefits.

(a) 	During the term of this Agreement, in addition to the
compensation provided for in Section 3 of this Agreement, you shall have
the right to: (w) participate in any profit-sharing, pension, life, health

<PAGE>

and accident insurance, retirement or other employee benefit plans
presently adopted or which hereafter may be adopted by the Company under
terms no less favorable to those offered or available to other senior
executives of the Company of comparable or lower standing than you; (x)
participate in the Company's 401(k) Plan in accordance with the terms; (y)
a monthly automobile allowance of one thousand one hundred dollars
($1,100.00) and (z) receive, in the sole discretion of the Board,
additional stock options, restricted stock, stock appreciation rights or
other equity-based compensation ("Discretionary Compensation"). Any
Discretionary Compensation granted to you shall be subject to such terms
and conditions as the Board, in its sole discretion,  may deem appropriate
or necessary.

(b) 	You shall also be entitled to twenty (20) days annual
vacation time, during the Term of the Agreement during which time your
compensation will be paid in full.  Unused vacation days at the end of any
pay period(s) may be carried over to subsequent pay period(s), provided
that the cumulative number of vacation days accruing from and after the
date of this Agreement carried over into any subsequent pay period shall
not exceed twenty (20) days.  You shall not accrue additional vacation days
during any pay period once the total number of accumulated vacation days
equals twenty (20) days.  You shall under no circumstances be entitled to
cash in lieu of vacation days, except in the event of your termination of
employment with the Company.

(c) 	The Company agrees to grant to you, effective as of the
date hereof, options under one or more of the Company's 1990, 1995 or 1999
Stock Option Plans to purchase  up to 200,000 shares of common stock of the
Company at an exercise price equal to the closing price of the Company's
common stock on the last trading day immediately preceding the date hereof,
January 24, 2000 or $3.3125 per share(the "Options"). The Options shall
have a term of ten (10) years and shall vest as follows:

(i)  	50,000 shares shall vest as of the date
hereof and be exercisable immediately;

(ii) 	an additional 50,000 shares shall vest on
July 25, 2000;

(iii) 	an additional 50,000 shares shall vest on
January 25, 2001; and

<PAGE>

(iv) 	the remaining 50,000 shares shall vest on
July 25, 2001.

The Options shall have such other terms and conditions as set forth in the
form of Option Agreement, attached hereto and made a part hereof as Exhibit
"B".
5. 	Expenses.  The Company shall reimburse you for all
reasonable travel, hotel, entertainment and other expenses incurred by you
in the discharge of your duties hereunder, in accordance with Company
policy regarding same, only after receipt from you of vouchers, receipts or
other reasonable substantiation of such expenses acceptable to the Company

6. 	Indemnification.	In connection with your services
rendered on behalf of the Company during the term of this Agreement, the
Company agrees to indemnify you to the fullest extent permitted by Delaware
law.

7. 	Confidentiality.  You covenant and agree that you will not
at any time during or after the termination of his employment by the
Company reveal, divulge or make known to any person, firm or corporation
any information, knowledge or data of a proprietary nature relating to the
business of the Company or any of its affiliates which is not or has not
become generally known or public.  You shall hold, in a fiduciary capacity,
for the benefit of the Company, all information, knowledge or data of a
proprietary nature, relating to or concerned with, the operations,
customers, developments, strategic plans, new or potential products,
marketing, sales, business and affairs of the Company and its affiliates
which is not generally known to the public and which is or was obtained by
the you during his employment by the Company.  You recognize and
acknowledge that all such information, knowledge or data is a valuable and
unique asset of the Company, and accordingly he will not discuss or divulge
any such information, knowledge or data to any person, firm, partnership,
corporation or organization other than to the Company, its affiliates,
designees, assignees or successors or except as may otherwise be required
by the law, as ordered by a court or other governmental body of competent
jurisdiction, or in connection with the business and affairs of the
Company.

8. 	Equitable Remedies.  In the event of a breach or threatened
breach by you of any of his obligations under Section 7 hereof, you
acknowledge that the Company may not have an adequate remedy at law and
therefore it is mutually agreed between you and the Company that, in
addition to any other remedies at law or in equity which the Company may

<PAGE>
have, the Company shall be entitled to seek in a court of law and/or equity
a temporary and/or permanent injunction restraining you from any continuing
violation or breach of this Agreement.

9. 	Miscellaneous.

(a) 	This Agreement reflects the entire agreement between
the parties with respect to the subject matter hereof and shall supersede
any prior agreements or understandings whether oral or in writing with
respect thereto. This Agreement may not be modified, altered or amended
except by an instrument in writing signed by the parties hereto.

(b) 	Except as expressly set forth herein, you agree to
abide by policies, procedures, terms and conditions concerning your
employment all as set forth in the Company's Employee Manual, receipt of
which you hereby acknowledge.

(c) 	This Agreement shall be construed in accordance with
the laws of the State of California except to the extent that any provision
of Section 6  hereof may relate to an interpretation of the corporation
laws of Delaware, the state in which the Company is domiciled, in which
case such provision shall be construed in accordance with the corporation
laws of that state.

(d) 	Nothing in the Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law.  The Company's inability pursuant to court
order to perform its obligations under this the Agreement shall not
constitute a breach of this Agreement.  If any provision of this Agreement
is invalid or enforceable, the remainder of this Agreement shall
nevertheless remain in full force and effect.  If any provision is held
invalid or unenforceable with respect to particular circumstances, it
shall, nevertheless, remain in full force and effect in all other
circumstances.

(e) 	With the exception of the Company's right to enforce
the provisions found in Section 7 of this Agreement pursuant to Section 8
hereof, any and all disputes arising from your employment with or
termination from the Company including but not limited to any claim for
unlawful retaliation, wrongful termination of employment, violation of
public policy or unlawful discrimination or harassment because of race,
color, sex, national origin, religion, age, physical or mental disability
or condition, marital status, sexual orientation or other legally protected
characteristic shall be resolved by final and binding arbitration before a

<PAGE>

single arbitrator.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, THE
PARTIES AGREE THAT IF A DISPUTE OR CLAIM OF ANY KIND ARISES BETWEEN THEM,
THEY AGREE TO WAIVE ANY RIGHTS EACH MAY HAVE TO A JURY OR COURT TRIAL.

Any party hereto electing to commence an action shall give
written notice to the other party hereto of such election.  The arbitrator
shall be limited to an award of monetary damages and shall conduct the
arbitration in accordance with the California Rules of Evidence.  The
dispute shall be settled by arbitration to take place in Los Angeles
County, California, in accordance with the then rules of the American
Arbitration Association or its successor.  The award of such arbitrator may
be confirmed or enforced in any court of competent jurisdiction.  The costs
and expenses of the arbitrator including the attorney's fees and costs of
each of the parties, shall be apportioned between the parties by such
arbitrator based upon such arbitrator's determination of the merits of
their respective positions. Nothing contained in this Section shall in any
way be construed to modify, expand or otherwise alter the rights and
obligations of the Company and you contained elsewhere in this Agreement.
Any proceeding brought by the Company to enforce its rights under Sections
7 or 8  of this Agreement shall be brought in the Superior Court for the
State of California located in Los Angeles County ("Court Proceeding").
The costs and expenses of any Court Proceeding  including the attorney's
fees and costs of each of the parties, shall be apportioned between the
parties by the judge in such Court Proceeding based upon the judge's
determination of the merits of their respective positions.

(f) 	Any notice to the Company required or permitted
hereunder shall be given in writing to the Company, either by personal
service, telex, telecopier or, if by mail, by registered or certified mail
return receipt requested, postage prepaid, duly addressed to the Secretary
of the Company at its then principal place of business attention, General
Counsel.  Any such notice to you shall be given in a like manner, and if
mailed shall be addressed to you, as set forth above or in the Company's
records. For the purpose of determining compliance with any time limit
herein, a notice shall be deemed given on the fifth business day following
the postmarked date, if mailed, or the date of delivery if personally
delivered or delivered by telex or telecopier.

(g) 	A waiver by either party of any term or condition of
this Agreement or any breach thereof, in any one instance, shall not be
deemed or construed to be a waiver of such term or condition or of any
subsequent breach thereof.

<PAGE>

(h)   	You acknowledge that you have been advised that
Barry Burten and other attorneys at Jeffer, Mangels, Butler & Marmaro, LLP
have represented only the Company in connection with the negotiation of
this Agreement and that the Company has advised you to seek the advice of
separate counsel in connection with the negotiation of the terms of the
Agreement and your rights with respect to the Agreement. In connection
therewith, you hereby acknowledge that have been represented in connection
with the negotiation of the terms of this Agreement, your rights with
respect the Agreement and the execution thereof by Martin J. Foley of the
firm of Sonnenschein Nath & Rosenthal.

If the aforementioned terms and conditions accurately reflect
your understanding of our agreement, please date and execute two copies of
this Agreement in the spaces provided below and return one fully executed
copy of this Agreement to the Company.

Very truly yours,

MAXICARE HEALTH PLANS, INC.

 By:    /s/_Paul R. Dupee____________
         Paul R. Dupee, Jr.
       Chief Executive Officer

Accepted and Agreed to
this   27th    day of January, 2000

By:    /s/ Susan M. Blais__________
         Susan M. Blais

<PAGE>

       EXHIBIT "A"

To the Letter Agreement Dated January 25, 2000 between
         Maxicare Health Plans, Inc. and Susan M. Blais

  Definition of "Cause"

"Cause" means, as used with respect to the involuntary termination of Susan
M. Blais ('you"):

(a)	your continued failure or refusal to substantially perform
your duties pursuant to the terms of the Agreement;

(b) 	Your engaging in misconduct or inaction materially injurious
to the Company; or

(c) 	Your conviction of a felony or of a crime involving moral
turpitude.

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