Document:

THE CHARLES SCHWAB CORPORATION
                            1992 STOCK INCENTIVE PLAN
             (Restated to include Amendments through April 19, 2000)

Article 1.  Introduction.

         The Plan was adopted by the Board of Directors  on March 26, 1992.  The
purpose of the Plan is to promote the  long-term  success of the Company and the
creation  of  incremental  stockholder  value  by (a)  encouraging  Non-Employee
Directors and Key Employees to focus on long-range  objectives,  (b) encouraging
the  attraction and retention of  Non-Employee  Directors and Key Employees with
exceptional  qualifications  and  (c)  linking  Non-Employee  Directors  and Key
Employees  directly to  stockholder  interests.  The Plan seeks to achieve  this
purpose by providing  for Awards in the form of Restricted  Shares,  Performance
Share  Awards or  Options,  which may  constitute  incentive  stock  options  or
nonstatutory  stock  options.  The Plan shall be governed  by, and  construed in
accordance with, the laws of the State of Delaware.

Article 2.  Administration.

         2.1 The Committee. The Plan shall be administered by the Committee. The
Committee  shall  consist of two or more  Non-Employee  Directors,  who shall be
appointed by the Board.

         2.2  Committee  Responsibilities.  The  Committee  shall select the Key
Employees  who are to  receive  Awards  under the Plan,  determine  the  amount,
vesting  requirements  and other  conditions  of such Awards,  may interpret the
Plan,  and make all other  decisions  relating to the operation of the Plan. The
Committee  may  adopt  such  rules  or  guidelines  as it deems  appropriate  to
implement the Plan. The Committee's determinations under the Plan shall be final
and binding on all persons.

Article 3.  Limitations on Awards.

         The aggregate number of Restricted Shares, Performance Share Awards and
Options  awarded  under the Plan shall not exceed  29,150,000  (including  those
shares awarded prior to the amendment of the Plan).  If any  Restricted  Shares,
Performance  Share Awards or Options are forfeited,  or if any Performance Share
Awards terminate for any other reason without the associated Common Shares being
issued, or if any Options terminate for any other reason before being exercised,
then such  Restricted  Shares,  Performance  Share Awards or Options shall again
become available for Awards under the Plan.

         Subject to the overall limit on the  aggregate  shares set forth above,
the following  limitations  shall apply: (a) The maximum number of Common Shares
which may be  granted  subject  to an Option to any one  Participant  in any one
fiscal year shall be 2,250,000;  and (b) The maximum number of Restricted Shares
or Performance  Share Awards which may be granted to any one  Participant in any
one fiscal year shall be 900,000.  The  limitations  set forth in the  preceding
sentence shall be subject to adjustment pursuant to Article 10; and

         The  limitations  of this Article 3 shall each be subject to adjustment
pursuant to Article  10. Any Common  Shares  issued  pursuant to the Plan may be
authorized but unissued shares or treasury shares.

Article 4. Eligibility.

         4.1      General Rule. Key Employees and  Non-Employee  Directors shall
be eligible for  designation as  Participants  by the Committee.

         4.2  Non-Employee  Directors.  In  addition  to any awards  pursuant to
Section 4.1,  Non-Employee  Directors shall be entitled to receive the automatic
NSOs described in this Section 4.2.

           (a) Each  Non-Employee  Director  shall receive a  Non-Officer  Stock
           Option  covering 3,500 Common Shares for each Award Year with respect
           to which he or she  serves as a  Non-Employee  Director  on the grant
           date described in subsection (b) below; provided that the Non-Officer
           Stock  Option  shall  cover  2,500  shares  if  the  Exercise   Price
           determined as of the grant date, is $35 or more;

           (b) The NSO for a  particular  Award  Year  shall be  granted to each
           Non-Employee  Director as of May 15 of each Award Year, and if May 15
           is not a business  day, then the grant shall be made on and as of the
           next succeeding business day;

           (c) Each NSO shall be  exercisable  in full at all times  during  its
           term;

           (d) The term of each NSO shall be 10 years;  provided,  however, that
           any  unexercised NSO shall expire on the earlier of the date 10 years
           after the date of grant or three (3) months  following  the date that
           the Optionee  ceases to be a Non-Employee  Director or a Key Employee
           for any reason other than death or disability.  If an Optionee ceases
           to be a Non-Employee  Director or Key Employee on account of death or
           disability,  any  unexercised  NSO shall expire on the earlier of the
           date 10 years  after the date of grant or one year  after the date of
           death or disability of such Director; and

           (e) The  Exercise  Price  under  each NSO  shall be equal to the Fair
           Market  Value on the date of grant and shall be payable in any of the
           forms described in Article 6.

         4.3  Ten-Percent  Stockholders.  A Key  Employee  who owns more than 10
percent of the total combined  voting power of all classes of outstanding  stock
of the Company or any of its Subsidiaries shall not be eligible for the grant of
an ISO unless (a) the  Exercise  price under such ISO is at least 110 percent of
the Fair Market Value of a Common Share on the date of grant and (b) such ISO by
its terms is not exercisable after the expiration of five years from the date of
grant.

         4.4  Attribution  Rules.  For purposes of Section  4.3, in  determining
stock ownership, a Key Employee shall be deemed to own the stock owned, directly
or  indirectly,  by or for his or her brothers,  sisters,  spouse,  ancestors or
lineal  descendants.   Stock  owned,  directly  or  indirectly,   by  or  for  a
corporation,   partnership,  estate  or  trust  shall  be  deemed  to  be  owned
proportionately  by or for its stockholders,  partners or  beneficiaries.  Stock
with respect to which the Key Employee holds an option shall not be counted.

         4.5 Outstanding Stock. For purposes of Section 4.3, "outstanding stock"
shall include all stock actually  issued and outstanding  immediately  after the
grant of the ISO to the Key  Employee.  "Outstanding  stock"  shall not  include
treasury shares or shares authorized for issuance under outstanding options held
by the Key Employee or by any other person.

         4.6 Options Issued To Non-Employee  Directors In Lieu of Fee Deferrals.
In addition  to any awards  pursuant  to  Sections  4.1 and 4.2, a  Non-Employee
Director  who elects to defer the receipt of amounts  pursuant to Section 5.1 of
The  Charles  Schwab  Corporation  Directors'  Deferred  Compensation  Plan (the
"Directors  Deferred  Compensation Plan") and elects to receive stock options in
lieu of a Deferral  Account balance  pursuant to Section 5.4(2) of the Directors
Deferred  Compensation  Plan,  shall  be  entitled  to  receive  a grant of NSOs
hereunder on the date the amounts  would have been  payable to the  Non-Employee
Director if the Non-Employee  Director had not made such deferral election.  Any
NSOs issued  pursuant to this Section shall be issued  pursuant to the terms set
forth in subsections (c), (d) and (e) of Section 4.2 hereof.

         4.7 Performance Shares Issued To Non-Employee Directors Pursuant to Fee
Deferrals.  In  addition  to any  awards  pursuant  to  Sections  4.1 and 4.2, a
Non-Employee  Director  who elects to defer the  receipt of amounts  pursuant to
Section 5.1 of The Directors'  Deferred  Compensation Plan and elects to receive
payment  in  Shares  pursuant  to  Section  5.4(1)  of  the  Directors  Deferred
Compensation  Plan,  shall be entitled to receive a grant of Performance  Shares
hereunder on the date the amounts  would have been  payable to the  Non-Employee
Director if the Non-Employee Director had not made such deferral election.

Article 5. Options.

         5.1 Stock  Option  Agreement.  Each  grant of an Option  under the Plan
shall be  evidenced  by a Stock  Option  Agreement  between the Optionee and the
Company.  Such Option shall be subject to all applicable terms and conditions of
the Plan,  and may be subject to any other  terms and  conditions  which are not
inconsistent  with  the Plan and  which  the  Committee  deems  appropriate  for
inclusion in a Stock  Option  Agreement.  The  provisions  of the various  Stock
Option  Agreements  entered  into  under  the Plan  need not be  identical.  The
Committee  may designate all or any part of an Option as an ISO (or, in the case
of a Key Employee who is subject to the tax laws of a foreign  jurisdiction,  as
an option  qualifying for favorable tax treatment under the laws of such foreign
jurisdiction), except for Options granted to Non-Employee Directors.

         5.2 Options Nontransferability.  No Option granted under the Plan shall
be  transferable  by the Optionee  other than by will or the laws of descent and
distribution.  An Option may be  exercised  during the  lifetime of the Optionee
only by him or her. No Option or interest therein may be transferred,  assigned,
pledged or hypothecated  by the Optionee during his or her lifetime,  whether by
operation of law or otherwise,  or be made subject to  execution,  attachment or
similar process.

         5.3 Number of Shares.  Each Stock Option  Agreement  shall  specify the
number of  Common  Shares  subject  to the  Option  and  shall  provide  for the
adjustment  of such number in  accordance  with  Article  10. Each Stock  Option
Agreement shall also specify whether the Option is an ISO or an NSO.

         5.4 Exercise  Price.  Each Stock  Option  Agreement  shall  specify the
Exercise  Price.  The Exercise  Price under an Option shall not be less than 100
percent of the Fair Market Value of a Common Share on the date of grant,  except
as otherwise  provided in Section 4.3.  Subject to the preceding  sentence,  the
Exercise  Price  under any Option  shall be  determined  by the  Committee.  The
Exercise Price shall be payable in accordance with Article 6.

         5.5  Exercisability and Term. Each Stock Option Agreement shall specify
the date when all or any installment of the Option is to become exercisable. The
Stock Option Agreement shall also specify the term of the Option. The term of an
ISO shall in no event  exceed 10 years from the date of grant,  and  Section 4.3
may require a shorter  term.  Subject to the preceding  sentence,  the Committee
shall  determine when all or any part of an Option is to become  exercisable and
when such Option is to expire;  provided that, in appropriate cases, the Company
shall have the  discretion  to extend  the term of an Option or the time  within
which,  following termination of employment,  an Option may be exercised,  or to
accelerate the exercisability of an Option. A Stock Option Agreement may provide
for expiration  prior to the end of its term in the event of the  termination of
the  Optionee's  employment and shall provide for the suspension of vesting when
an  employee  is on a leave of  absence  for a period in excess of six months in
appropriate  cases, as determined by the Company;  provided that,  except to the
extent  otherwise  specified  by the  Committee  at the time of  grant,  (i) the
exercisability of Options shall be accelerated in the event of the Participant's
death or Disability and (ii) in the case of Retirement,  the  exercisability  of
all outstanding  Options shall be  accelerated,  other than any Options that had
been granted within two years of the date of the Optionee's  Retirement.  Except
as  provided  in  Section  4.2,  NSOs may also be awarded  in  combination  with
Restricted  Shares,  and such an Award  may  provide  that the NSOs  will not be
exercisable  unless the related  Restricted  Shares are forfeited.  In addition,
NSOs  granted  under  this  Section  5 may  be  granted  subject  to  forfeiture
provisions  which  provide for  forfeiture  of the Option  upon the  exercise of
tandem  awards,  the terms of which are  established  in other  programs  of the
Company.

         5.6  Limitation  on Amount of ISOs.  The  aggregate  fair market  value
(determined at the time the ISO is granted) of the Common Shares with respect to
which  ISOs are  exercisable  for the  first  time by the  Optionee  during  any
calendar year (under all incentive  stock option plans of the Company) shall not
exceed $100,000;  provided,  however, that all or any portion of an Option which
cannot be exercised as an ISO because of such limitation  shall be treated as an
NSO.

         5.7 Effect of Change in Control. The Committee (in its sole discretion)
may determine,  at the time of granting an Option, that such Option shall become
fully  exercisable  as to all Common Shares  subject to such Option  immediately
preceding any Change in Control with respect to the Company.

         5.8 Restrictions on Transfer of Common Shares. Any Common Shares issued
upon  exercise  of an  Option  shall  be  subject  to  such  special  forfeiture
conditions,  rights of  repurchase,  rights of first refusal and other  transfer
restrictions  as the Committee may  determine.  Such  restrictions  shall be set
forth in the  applicable  Stock Option  Agreement and shall apply in addition to
any general restrictions that may apply to all holders of Common Shares.

         5.9 Authorization of Replacement  Options.  Concurrently with the grant
of any Option to a  Participant  (other  than NSOs  granted  pursuant to Section
4.2),  the  Committee  may  authorize  the  grant  of  Replacement  Options.  If
Replacement  Options have been  authorized  by the  Committee  with respect to a
particular  award of Options (the  "Underlying  Options"),  the Option Agreement
with  respect  to the  Underlying  Options  shall so  state,  and the  terms and
conditions of the Replacement  Options shall be provided  therein.  The grant of
any  Replacement  Options  shall be  effective  only  upon the  exercise  of the
Underlying  Options  through the use of Common Shares pursuant to Section 6.2 or
Section 6.3. The number of Replacement  Options shall equal the number of Common
Shares used to exercise the Underlying Options,  and, if the Option Agreement so
provides,  the  number of Common  Shares  used to  satisfy  any tax  withholding
requirements  incident to the exercise of the  Underlying  Options in accordance
with Section 13.2. Upon the exercise of the Underlying Options,  the Replacement
Options shall be evidenced by an amendment to the Underlying  Option  Agreement.
Notwithstanding the fact that the Underlying Option may be an ISO, a Replacement
Option is not intended to qualify as an ISO. The Exercise Price of a Replacement
Option shall be no less than the Fair Market Value of a Common Share on the date
the  grant  of the  Replacement  Option  becomes  effective.  The  term  of each
Replacement  Option  shall  be  equal to the  remaining  term of the  Underlying
Option.  No Replacement  Options shall be granted to Optionees  when  Underlying
Options  are  exercised  pursuant  to the  terms of the Plan and the  Underlying
Option  Agreement  following  termination  of  the  Optionee's  employment.  The
Committee, in its sole discretion, may establish such other terms and conditions
for Replacement Options as it deems appropriate.

         5.10 Options Granted to Non-United States Key Employees. In the case of
Key  Employees  who are subject to the tax laws of a foreign  jurisdiction,  the
Company may issue Options to such Key Employees  that contain terms  required to
conform with any requirements for favorable tax treatment imposed by the laws of
such foreign  jurisdiction,  or as otherwise may be required by the laws of such
foreign  jurisdiction.  The terms of any such  Options  shall be governed by the
Plan,  subject to the terms of any Addendum to the Plan specifically  applicable
to such Options.

<PAGE>

Article 6.  Payment for Option Shares.

         6.1 General  Rule.  The entire  Exercise  Price of Common Shares issued
upon  exercise of Options  shall be payable in cash at the time when such Common
Shares are purchased, except as follows:

           (a) In the case of an ISO granted  under the Plan,  payment  shall be
           made only pursuant to the express  provisions of the applicable Stock
           Option  Agreement.  However,  the  Committee may specify in the Stock
           Option  Agreement that payment may be made pursuant to Section 6.2 or
           6.3.

           (b)    In the case of an NSO, the Committee may  at  any  time accept
           payment pursuant to Section 6.2 or 6.3.

         6.2  Surrender  of  Stock.  To the  extent  that  this  Section  6.2 is
applicable,  payment for all or any part of the Exercise  Price may be made with
Common Shares which are surrendered to the Company.  Such Common Shares shall be
valued at their Fair  Market  Value on the date when the new  Common  Shares are
purchased under the Plan. In the event that the Common Shares being  surrendered
are  Restricted  Shares that have not yet become vested,  the same  restrictions
shall be imposed upon the new Common Shares being purchased.

         6.3  Exercise/Sale.  To the  extent  this  Section  6.3 is  applicable,
payment may be made by the delivery (on a form  prescribed by the Company) of an
irrevocable  direction  to Charles  Schwab & Co.,  Inc.  to sell  Common  Shares
(including  the Common  Shares to be issued upon exercise of the Options) and to
deliver  all or part of the sales  proceeds  to the Company in payment of all or
part of the Exercise Price and any withholding taxes.

Article 7.  Restricted Shares and Performance Share Awards.

         7.1 Time, Amount and Form of Awards. The Committee may grant Restricted
Shares or  Performance  Share  Awards with  respect to an Award Year during such
Award Year or at any time  thereafter.  Each such Award shall be  evidenced by a
Stock Award Agreement between the Award recipient and the Company. The amount of
each Award of Restricted  Shares or Performance Share Awards shall be determined
by the Committee. Awards under the Plan may be granted in the form of Restricted
Shares  or  Performance  Share  Awards  or in any  combination  thereof,  as the
Committee  shall  determine  at its sole  discretion  at the time of the  grant.
Restricted Shares or Performance Share Awards may also be awarded in combination
with  NSOs,  and  such an  Award  may  provide  that the  Restricted  Shares  or
Performance  Share  Awards will be  forfeited in the event that the related NSOs
are exercised.

         7.2 Payment for Restricted Share Awards. To the extent that an Award is
granted in the form of Restricted Shares, the Award recipient, as a condition to
the grant of such Award,  shall be required to pay the Company in cash an amount
equal to the par value of such Restricted Shares.

         7.3 Vesting or Issuance  Conditions.  Each Award of  Restricted  Shares
shall  become  vested,  in full or in  installments,  upon  satisfaction  of the
conditions specified in the Stock Award Agreement. Common Shares shall be issued
pursuant  to  Performance   Share  Awards  in  full  or  in  installments   upon
satisfaction of the issuance conditions  specified in the Stock Award Agreement.
The  Committee  shall select the vesting  conditions  in the case of  Restricted
Shares, or issuance  conditions in the case of Performance  Share Awards,  which
may be based upon the Participant's service, the Participant's performance,  the
Company's  performance  or such  other  criteria  as the  Committee  may  adopt;
provided  that,  in the case of an Award of  Restricted  Shares where vesting is
based  entirely on the  Participant's  service  (except to the extent  otherwise
specified  by the  Committee  at the  time  of  grant),  (i)  vesting  shall  be
accelerated in the event of the Participant's  death or Disability;  (ii) in the
case of Retirement,  vesting shall be accelerated for all Restricted Shares that
had been  granted  more  than two years  prior to the date of the  Participant's
Retirement;  and (iii) vesting shall be suspended when an employee is on a leave
of  absence  for a period in  excess of six  months  in  appropriate  cases,  as
determined by the Company. The Committee, in its sole discretion, may determine,
at the time of making an Award of  Restricted  Shares,  that  such  Award  shall
become fully vested in the event that a Change in Control occurs with respect to
the Company. The Committee,  in its sole discretion,  may determine, at the time
of making a Performance Share Award,  that the issuance  conditions set forth in
such Award  shall be waived in the event that a Change in  Control  occurs  with
respect to the Company.

         7.4 Form of  Settlement  of  Performance  Share  Awards.  Settlement of
Performance Share Awards shall only be made in the form of Common Shares.  Until
a Performance  Share Award is settled,  the number of  Performance  Share Awards
shall be subject to adjustment pursuant to Article 10.

         7.5  Death of  Recipient.  Any  Common  Shares  that  are to be  issued
pursuant  to a  Performance  Share Award  after the  recipient's  death shall be
delivered or distributed to the recipient's  beneficiary or beneficiaries.  Each
recipient of a  Performance  Share Award under the Plan shall  designate  one or
more  beneficiaries  for this  purpose  by filing the  prescribed  form with the
Company. A beneficiary  designation may be changed by filing the prescribed form
with  the  Company  at any  time  before  the  Award  recipient's  death.  If no
beneficiary  was designated or if no designated  beneficiary  survives the Award
recipient,  then  any  Common  Shares  that  are  to  be  issued  pursuant  to a
Performance  Share  Award after the  recipient's  death  shall be  delivered  or
distributed to the recipient's  estate.  The Committee,  in its sole discretion,
shall  determine  the  form  and time of any  distribution(s)  to a  recipient's
beneficiary or estate.

Article 8.  Claims Procedures.

         Claims for  benefits  under the Plan shall be filed in writing with the
Committee on forms supplied by the Committee.  Written notice of the disposition
of a claim shall be furnished to the claimant  within 90 days after the claim is
filed.  If the claim is denied,  the notice of  disposition  shall set forth the
specific  reasons for the denial,  citations to the pertinent  provisions of the
Plan, and, where appropriate,  an explanation as to how the claimant can perfect
the claim. If the claimant wishes further consideration of his or her claim, the
claimant may appeal a denied claim to the Committee  (or to a person  designated
by the Committee) for further review. Such appeal shall be filed in writing with
the  Committee  on a form  supplied by the  Committee,  together  with a written
statement of the claimant's position, no later than 90 days following receipt by
the  claimant  of  written  notice  of the  denial of his or her  claim.  If the
claimant so requests,  the  Committee  shall  schedule a hearing.  A decision on
review  shall be made  after a full and fair  review  of the  claim and shall be
delivered in writing to the claimant no later than 60 days after the Committee's
receipt of the notice of appeal,  unless  special  circumstances  (including the
need to hold a hearing)  require an extension of time for processing the appeal,
in which case a written decision on review shall be delivered to the claimant as
soon as possible  but not later than 120 days after the  Committee's  receipt of
the  appeal  notice.  The  claimant  shall be  notified  in  writing of any such
extension of time. The written decision on review shall include specific reasons
for the  decision,  written  in a  manner  calculated  to be  understood  by the
claimant, and shall specifically refer to the pertinent Plan provisions on which
it is based. All  determinations  of the Committee shall be final and binding on
Participants and their beneficiaries.

Article 9.  Voting Rights and Dividends.

         9.1      Restricted Shares.

           (a) All  holders of  Restricted  Shares  who are not Named  Executive
           Officers  shall have the same voting,  dividend,  and other rights as
           the Company's other stockholders.

           (b)  During  the  period of  restriction,  Named  Executive  Officers
           holding  Restricted  Shares granted  hereunder shall be credited with
           all regular cash dividends paid with respect to all Restricted Shares
           while they are so held.  If a  dividend  is paid in the form of cash,
           such cash  dividend  shall be  credited to Named  Executive  Officers
           subject   to   the   same   restrictions   on   transferability   and
           forfeitability  as the  Restricted  Shares with respect to which they
           were paid.  If any dividends or  distributions  are paid in shares of
           Common Stock, the shares of Common Stock shall be subject to the same
           restrictions on transferability  and forfeitability as the Restricted
           Shares  with  respect  to  which  they  were  paid.  Subject  to  the
           succeeding  paragraph,  and to the  restrictions  on vesting  and the
           forfeiture  provisions,  all dividends  credited to a Named Executive
           Officer  shall  be  paid  to  the  Named  Executive   Officer  within
           forty-five  (45) days  following  the full vesting of the  Restricted
           Shares with respect to which such dividends were earned.

                  In the  event  that any  dividend  constitutes  a  "derivative
           security"  or an "equity  security"  pursuant to Rule 16(a) under the
           Exchange  Act,  such  dividend  shall be subject to a vesting  period
           equal to the  longer  of:  (i) the  remaining  vesting  period of the
           Restricted Shares with respect to which the dividend is paid; or (ii)
           six (6) months.  The Committee  shall  establish  procedures  for the
           application of this provision.

                  Named Executive  Officers holding Restricted Shares shall have
           the same voting rights as the Company's other stockholders.

         9.2 Performance  Share Awards.  The holders of Performance Share Awards
shall have no voting or dividend rights until such time as any Common Shares are
issued pursuant thereto, at which time they shall have the same voting, dividend
and other rights as the Company's other stockholders.

Article 10.  Protection Against Dilution; Adjustment of Awards.

         10.1 General.  In the event of a subdivision of the outstanding  Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend  payable  in  a  form  other  than  Common  Shares,  a  combination  or
consolidation  of  the  outstanding  Common  Shares  (by   reclassification   or
otherwise) into a lesser number of Common Shares, a recapitalization,  a spinoff
or a similar occurrence, the Committee shall make appropriate adjustments in one
or more of (a) the number of Options,  Restricted  Shares and Performance  Share
Awards  available for future  Awards under Article 3, (b) the maximum  number of
Common Shares which may be granted under Article 3 to any one Participant in any
one  fiscal  year  either  subject  to an  Option  or as  Restricted  Shares  or
Performance Share Awards, (c) the number of Performance Share Awards included in
any prior Award which has not yet been settled,  (d) the number of Common Shares
covered  by  each  outstanding  Option  or (e) the  Exercise  Price  under  each
outstanding Option.

         10.2  Reorganizations.  In the event  that the  Company is a party to a
merger or other  reorganization,  outstanding  Options,  Restricted  Shares  and
Performance  Share  Awards  shall be  subject  to the  agreement  of  merger  or
reorganization.   Such  agreement  may  provide,  without  limitation,  for  the
assumption of outstanding Awards by the surviving corporation or its parent, for
their  continuation by the Company (if the Company is a surviving  corporation),
for accelerated vesting or for settlement in cash.

         10.3  Reservation  of Rights.  Except as provided in this Article 10, a
Participant  shall have no rights by reason of any subdivision or  consolidation
of shares of stock of any class,  the payment of any stock dividend or any other
increase or decrease in the number of shares of stock of any class. Any issue by
the  Company of shares of stock of any class,  or  securities  convertible  into
shares of stock of any class,  shall not  affect,  and no  adjustment  by reason
thereof  shall be made with  respect to, the number or Exercise  Price of Common
Shares  subject to an Option.  The grant of an Award  pursuant to the Plan shall
not  affect in any way the right or power of the  Company  to make  adjustments,
reclassifications,  reorganizations  or  changes  of  its  capital  or  business
structure, to merge or consolidate or to dissolve,  liquidate,  sell or transfer
all or any part of its business or assets.

Article 11. Limitation of Rights.

         11.1  Employment  Rights.  Neither the Plan nor any Award granted under
the Plan shall be deemed to give any  individual  a right to remain  employed by
the Company or any  Subsidiary.  The Company  and its  Subsidiaries  reserve the
right to terminate the  employment of any employee at any time,  with or without
cause, subject only to a written employment agreement (if any).

         11.2 Stockholders' Rights. A Participant shall have no dividend rights,
voting or other  rights as a  stockholder  with  respect  to any  Common  Shares
covered by his or her Award prior to the issuance of such Common Shares, whether
by issuance of a certificate, book entry or other procedure. No adjustment shall
be made for cash dividends or other rights for which the record date is prior to
the date when such  certificate  is  issued,  except as  expressly  provided  in
Articles 7, 9 and 10.

         11.3 Creditors' Rights. A holder of Performance Share Awards shall have
no rights  other than those of a general  creditor of the  Company.  Performance
Share  Awards  represent  unfunded  and  unsecured  obligations  of the Company,
subject to the terms and conditions of the applicable Stock Award Agreement.

         11.4   Government   Regulations.   Any  other  provision  of  the  Plan
notwithstanding, the obligations of the Company with respect to Common Shares to
be issued  pursuant to the Plan shall be subject to all applicable  laws,  rules
and  regulations,  and such  approvals  by any  governmental  agencies as may be
required.  The Company reserves the right to restrict,  in whole or in part, the
delivery of Common Shares pursuant to any Award until such time as:

           (a) Any legal  requirements or regulations  have been met relating to
           the  issuance  of  such  Common  Shares  or  to  their  registration,
           qualification or exemption from  registration or qualification  under
           the  Securities  Act of 1933,  as amended,  or any  applicable  state
           securities laws; and

           (b)  Satisfactory  assurances  have been  received  that such  Common
           Shares,  when  issued,  will be duly  listed  on the New  York  Stock
           Exchange or any other securities  exchange on which Common Shares are
           then listed.

Article 12.  Limitation of Payments.

         12.1  Basic  Rule.   Any   provision   of  the  Plan  to  the  contrary
notwithstanding,  in the  event  that the  independent  auditors  most  recently
selected by the Board (the "Auditors") determine that any payment or transfer in
the nature of compensation to or for the benefit of a Participant,  whether paid
or payable (or transferred or  transferable)  pursuant to the terms of this Plan
or  otherwise  (a  "Payment"),  would be  nondeductible  for federal  income tax
purposes because of the provisions  concerning  "excess  parachute  payments" in
section 280G of the Code, then the aggregate present value of all Payments shall
be reduced (but not below zero) to the Reduced Amount;  provided,  however, that
the  Committee,  at the time of making an Award  under  this Plan or at any time
thereafter,  may specify in writing  that such Award shall not be so reduced and
shall not be subject to this  Article 12. For  purposes of this  Article 12, the
"Reduced  Amount"  shall be the  amount,  expressed  as a present  value,  which
maximizes  the  aggregate  present  value of the  Payments  without  causing any
Payment to be nondeductible by the Company because of section 280G of the Code.

         12.2 Reduction of Payments.  If the Auditors determine that any Payment
would be  nondeductible  because of section  280G of the Code,  then the Company
shall  promptly  give the  Participant  notice to that  effect and a copy of the
detailed  calculation thereof and of the Reduced Amount, and the Participant may
then elect,  in his or her sole  discretion,  which and how much of the Payments
shall be  eliminated or reduced (as long as after such  election,  the aggregate
present  value of the Payments  equals the Reduced  Amount) and shall advise the
Company in writing of his or her  election  within 10 days of receipt of notice.
If no such election is made by the Participant  within such 10-day period,  then
the Company may elect which and how much of the Payments  shall be eliminated or
reduced  (as long as after such  election  the  aggregate  present  value of the
Payments equals the Reduced Amount) and shall notify the Participant promptly of
such  election.  For  purposes  of this  Article  12,  present  value  shall  be
determined in accordance with section 280G(d)(4) of the Code. All determinations
made by the Auditors under this Article 12 shall be binding upon the Company and
the  Participant  and  shall be made  within  60 days of the date when a Payment
becomes  payable or  transferable.  As promptly as  practicable  following  such
determination and the elections hereunder,  the Company shall pay or transfer to
or for the benefit of the Participant such amounts as are then due to him or her
under the Plan,  and shall promptly pay or transfer to or for the benefit of the
Participant  in the  future  such  amounts as become due to him or her under the
Plan.

         12.3 Overpayments and Underpayments.  As a result of uncertainty in the
application of section 280G of the Code at the time of an initial  determination
by the Auditors  hereunder,  it is possible that Payments will have been made by
the  Company  which  should  not  have  been  made  (an  "Overpayment")  or that
additional Payments which will not have been made by the Company could have been
made (an  "Underpayment"),  consistent in each case with the  calculation of the
Reduced  Amount  hereunder.  In the  event  that the  Auditors,  based  upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Participant  which the Auditors  believe has a high  probability of success,
determine that an Overpayment has been made, such  Overpayment  shall be treated
for all purposes as a loan to the Participant which he or she shall repay to the
Company on  demand,  together  with  interest  at the  applicable  federal  rate
provided in section 7872(f)(2) of the Code;  provided,  however,  that no amount
shall be payable by the  Participant  to the  Company if and to the extent  that
such  payment  would not reduce the amount  which is subject to  taxation  under
section  4999 of the Code.  In the event  that the  Auditors  determine  that an
Underpayment  has  occurred,   such  Underpayment  shall  promptly  be  paid  or
transferred  by the Company to or for the benefit of the  Participant,  together
with interest at the applicable  federal rate provided in section  7872(f)(2) of
the Code.

         12.4  Related  Corporations.  For purposes of this Article 12, the term
"Company" shall include affiliated  corporations to the extent determined by the
Auditors in accordance with section 280G(d)(5) of the Code.

Article 13. Withholding Taxes.

         13.1  General.  To the extent  required by applicable  federal,  state,
local or foreign law, the  recipient  of any payment or  distribution  under the
Plan shall make arrangements satisfactory to the Company for the satisfaction of
any  withholding  tax  obligations  that  arise by  reason  of such  payment  or
distribution.  The  Company  shall  not be  required  to make  such  payment  or
distribution until such obligations are satisfied.

         13.2  Nonstatutory  Options,  Restricted  Shares or  Performance  Share
Awards. The Committee may permit an Optionee who exercises NSOs, or who receives
Awards of Restricted Shares, or who receives Common Shares pursuant to the terms
of a Performance  Share Award,  to satisfy all or part of his or her withholding
tax  obligations  by having the Company  withhold a portion of the Common Shares
that  otherwise  would be issued to him or her under such  Awards.  Such  Common
Shares  shall be  valued  at their  Fair  Market  Value on the date  when  taxes
otherwise  would be  withheld  in cash.  The  payment  of  withholding  taxes by
surrendering Common Shares to the Company, if permitted by the Committee,  shall
be subject to such  restrictions  as the  Committee  may impose,  including  any
restrictions required by rules of the Securities and Exchange Commission.

Article 14.  Assignment or Transfer of Award.

         14.1  General  Rule.  Any Award  granted  under  the Plan  shall not be
anticipated,  assigned,  attached,  garnished,  optioned,  transferred  or  made
subject to any creditor's  process,  whether  voluntarily,  involuntarily  or by
operation of law, except to the extent specifically permitted by Section 14.2.

         14.2  Exceptions to General Rule.  Notwithstanding  Section 14.1,  this
Plan shall not preclude (i) a Participant  from  designating  a  beneficiary  to
succeed,  after the Participant's  death, to those of the  Participant's  Awards
(including without limitation, the right to exercise any unexercised Options) as
may be determined by the Company from time to time in its sole discretion,  (ii)
a  transfer  of  any  Award  hereunder  by  will  or  the  laws  of  descent  or
distribution, or (iii) a voluntary transfer of an Award (other than an ISO) to a
trust or  partnership  for the  exclusive  benefit of one or more members of the
Participant's  family,  but only if the Participant has sole investment  control
over such trust or partnership.

Article 15.  Future of Plans.

         15.1 Term of the Plan.  The Plan,  as set forth  herein,  shall  become
effective on May 8, 1992. The Plan shall remain in effect until it is terminated
under Section 15.2, except that no ISOs shall be granted after May 7, 2002.

         15.2 Amendment or  Termination.  The Committee may, at any time and for
any reason, amend or terminate the Plan; provided,  however,  that any amendment
of the Plan shall be subject to the approval of the  Company's  stockholders  to
the extent required by applicable laws, regulations or rules.

         15.3 Effect of Amendment or  Termination.  No Award shall be made under
the Plan after the  termination  thereof.  The  termination  of the Plan, or any
amendment thereof, shall not affect any Option,  Restricted Share or Performance
Share Award previously granted under the Plan.

Article 16.  Definitions.

         16.1     "Award" means any award of an Option, a Restricted Share or  a
Performance Share Award under the Plan.

         16.2     "Award  Year" means a fiscal  year  beginning  January  1  and
ending  December 31 with respect to which an Award may be granted.

         16.3 "Board" means the Company's  Board of  Directors,  as  constituted
from time to time.

         16.4 "Change in Control"  means the  occurrence of any of the following
events after the effective date of the Plan as set out in Section 15.1:

           (a) A change in control required to be reported pursuant to Item 6(e)
           of Schedule 14A of Regulation 14A under the Exchange Act;

           (b) A change in the  composition  of the Board,  as a result of which
           fewer than  two-thirds of the  incumbent  directors are directors who
           either (i) had been  directors of the Company 24 months prior to such
           change or (ii) were elected, or nominated for election,  to the Board
           with the  affirmative  votes of at least a majority of the  directors
           who had been  directors of the Company 24 months prior to such change
           and  who  were  still  in  office  at the  time  of the  election  or
           nomination;

           (c) Any "person" (as such term is used in sections 13(d) and 14(d) of
           the  Exchange  Act)  becomes  the  beneficial   owner,   directly  or
           indirectly,  of securities of the Company  representing 20 percent or
           more of the combined  voting power of the Company's then  outstanding
           securities  ordinarily  (and apart from rights accruing under special
           circumstances)  having the right to vote at  elections  of  directors
           (the "Base Capital Stock"); provided, however, that any change in the
           relative  beneficial  ownership of securities of any person resulting
           solely from a reduction in the aggregate number of outstanding shares
           of Base Capital Stock,  and any decrease  thereafter in such person's
           ownership  of  securities,  shall be  disregarded  until such  person
           increases  in any  manner,  directly  or  indirectly,  such  person's
           beneficial ownership of any securities of the Company.

         16.5     "Code" means the Internal Revenue Code of 1986, as amended.

         16.6  "Committee"  means the  Compensation  Committee of the Board,  as
constituted from time to time.

         16.7     "Common Share" means one share of  the  common  stock  of  the
Company.

         16.8  "Company"  means  The  Charles  Schwab  Corporation,  a  Delaware
corporation.

         16.9 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

         16.10  "Exchange  Act" means the  Securities  Exchange Act of 1934,  as
amended.

         16.11 "Exercise  Price" means the amount for which one Common Share may
be purchased  upon  exercise of an Option,  as specified by the Committee in the
applicable Stock Option Agreement.

         16.12    "Fair Market Value" means the market price of  a Common Share,
determined by the committee as follows:

           (a) If the Common Share was traded on a stock exchange on the date in
           question,  then the Fair  Market  Value shall be equal to the closing
           price  reported by the applicable  composite-transactions  report for
           such date;

           (b) If the Common  Share was traded  over-the-counter  on the date in
           question and was classified as a national market issue, then the Fair
           Market Value shall be equal to the last  transaction  price quoted by
           the NASDAQ system for such date;

           (c) If the Common  Share was traded  over-the-counter  on the date in
           question but was not classified as a national market issue,  then the
           Fair  Market  Value  shall  be equal  to the  mean  between  the last
           reported  representative  bid and asked  prices  quoted by the NASDAQ
           system for such date; and

           (d) If none of the foregoing provisions is applicable,  then the Fair
           Market Value shall be  determined  by the  Committee in good faith on
           such basis as it deems appropriate.

         16.13    "ISO" means an incentive stock  option  described  in  section
422(b) of the Code.

         16.14    "Key Employee" means a key common-law employee of the  Company
or any Subsidiary, as determined by the Committee.

         16.15 "Named Executive Officer" means a Participant who, as of the date
of vesting of an Award is one of a group of "covered  employees,"  as defined in
the Regulations promulgated under Code Section 162(m), or any successor statute.

         16.16 "Non-Employee  Director" means a member of the Board who is not a
common-law employee.

         16.17    "NSO" means an employee stock option not described in sections
422 through 424 of the Code.

         16.18  "Option"  means an ISO or NSO or, in the case of a Key  Employee
who is subject to the tax laws of a foreign  jurisdiction,  an option qualifying
for  favorable tax treatment  under the laws of such  jurisdiction,  including a
Replacement Option,  granted under the Plan and entitling the holder to purchase
one Common Share.

         16.19    "Optionee" means an individual, or his or her  estate, legatee
or heirs at law that holds an Option.

         16.20 "Participant"  means a Non-Employee  Director or Key Employee who
has received an Award.

         16.21  "Performance Share Award" means the conditional right to receive
in the future one Common Share, awarded to a Participant under the Plan.

         16.22    "Plan" means this 1992 Stock  Incentive  Plan  of  The Charles
Schwab  Corporation,  as it may be amended from time to time.

         16.23  "Replacement  Option"  means an Option  that is  granted  when a
Participant  uses a Common  Share held or to be acquired by the  Participant  to
exercise an Option and/or to satisfy tax  withholding  requirements  incident to
the exercise of an Option.

         16.24 "Restricted  Share" means a Common Share awarded to a Participant
under the Plan.

         16.25 "Stock Award Agreement"  means the agreement  between the Company
and the  recipient  of a  Restricted  Share or  Performance  Share  Award  which
contains the terms,  conditions and  restrictions  pertaining to such Restricted
Share or Performance Share Award.

         16.26 "Stock Option  Agreement" means the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to his or her option.

         16.27  "Subsidiary"  means  any  corporation  or other  entity,  if the
Company  and/or one or more other  Subsidiaries  own not less than 50 percent of
the total  combined  voting  power of all classes of  outstanding  stock of such
corporation (or ownership interest of such other entity). A corporation or other
entity that attains the status of a  Subsidiary  on a date after the adoption of
the Plan shall be considered a Subsidiary commencing as of such date.

         16.28.  "Retirement"  shall mean any  termination  of  employment of an
Optionee  for any reason  other than  death at any time after the  Optionee  has
attained  fifty  (50),  but  only  if,  at the  time  of such  termination,  the
Participant has been credited with at least seven (7) Years of Service under the
Charles Schwab Profit Sharing and Employee Stock  Ownership  Plan. The foregoing
definition shall apply to all Stock Option  Agreements  entered into pursuant to
the Plan,  irrespective of any definition to the contrary  contained in any such
Stock Option Agreement.

         16.29  "Disability"  means the  inability to engage in any  substantial
gainful  activity   considering  the  Participant's   age,  education  and  work
experience by reason of any medically  determined  physical or mental impairment
that has continued without  interruption for a period of at least six months and
that can be expected  to be of long,  continued  and  indefinite  duration.  All
determinations  as to whether a Participant  has incurred a Disability  shall be
made by the Employee  Benefits  Administration  Committee  of the  Company,  the
findings of which shall be final, binding and conclusive.

<PAGE>

                                   ADDENDUM A

                  The provisions of the Plan, as amended  by  the  terms of this
Addendum A, shall apply to the grant of Approved  Options to Key U.K. Employees.

                  1.       For  purposes  of  this  Addendum  A,  the  following
definitions  shall apply in addition to those set out in section 16 of the Plan:

                  Approved Option Means a stock option designed to qualify as an
                  approved executive share option under the Taxes Act;

                  Inland Revenue means the Board of the Inland  Revenue  in  the
                  United Kingdom.

                  Key U.K.  Employee  means a  designated  employee of Sharelink
                  Investment  Services  plc or any  subsidiary  (as that term is
                  defined in the  Companies Act 1985 of the United  Kingdom,  as
                  amended)  of  which  Sharelink  Investment  Services  plc  has
                  control for the purposes of section 840 of the Taxes Act;

                  Taxes Act means the Income and  Corporation  Taxes Act 1988 of
                  the United Kingdom.

                  2. An  Approved  Option  may  only be  granted  to a Key  U.K.
                  Employee who:

                           (i)      is employed on a full-time basis; and

                           (ii)     does  not  fall  within  the  provisions  of
                                    paragraph 8 of Schedule 9 to the Taxes Act.

                  For  purposes  of this section 2(i) of Addendum A, "full-time"
shall mean an employee who is required to work 20 hours per week, excluding meal
breaks.

                  3. No Approved Option may be granted to a Key U.K. Employee if
it would cause the aggregate of the exercise  price of all  subsisting  Approved
Options granted to such employee under the Plan, or any other subsisting options
granted to such  employee  under any other share option  scheme  approved  under
Schedule 9 of the Taxes Act and  established  by the  Company  or an  associated
company,  to exceed the higher of (a) one hundred  thousand  pounds sterling and
(b) four times such employee's  relevant emoluments for the current or preceding
year of  assessment  (whichever  is  greater);  but where there were no relevant
emoluments for the previous year of assessment, the limit shall be the higher of
one hundred  thousand  pounds  sterling or four times such  employee's  relevant
emoluments  for the period of twelve months  beginning with the first day during
the  current  year  of  assessment  in  respect  of  which  there  are  relevant
emoluments.  For the  purpose  of this  section  3 of  Addendum  A,  "associated
company"  means an associated  company  within the meaning of section 416 of the
Taxes Act;  "relevant  emoluments"  has the meaning given by paragraph  28(4) of
Schedule 9 to the Taxes Act and "year of  assessment"  means a year beginning on
any April 6 and ending on the following April 5.

                  4.       Common  Shares  issued  pursuant  to  the exercise of
Approved  Options must satisfy the conditions  specified in paragraphs  10 to 14
of Schedule 9 to the Taxes Act.

                  5.  Notwithstanding the provisions of Section 5.4 of the Plan,
the exercise  price of an Approved  Option shall not be less than 100 percent of
the closing  price of a Common Share as reported in the New York Stock  Exchange
Composite Index on the date of grant.

                  6. No Approved  Option may be  exercised  at any time by a Key
U.K.  Employee  when that Key U.K.  Employee  falls  within  the  provisions  of
paragraph 8 of  Schedule 9 to the Taxes Act. If at any time the shares  under an
Approved  Option cease to comply with the  conditions  in paragraphs 10 to 14 of
Schedule 9 to the Taxes Act, then all Approved  Options then  outstanding  shall
lapse and cease to be  exercisable  from the date of the  shares  ceasing  so to
comply,  and no optionee  shall have any cause of action  against  the  Company,
Sharelink  Investment Services plc or any subsidiary of the Company or any other
person in respect thereof.

                  7. An Approved Option may contain such other terms, provisions
and conditions as may be determined by the Committee  consistent  with the Plan,
provided that the approved option  otherwise  complies with the requirements for
approved executive option schemes specified in Schedule 9 of the Taxes Act.

                  8. In  relation  to an Approved  Option,  notwithstanding  the
terms of section  10.1 of the Plan,  no  adjustment  shall be made  pursuant  to
section 10.1 of the Plan to any outstanding  Approved  Options without the prior
approval of the Inland Revenue.

                  9. In  relation to an  Approved  Option any Key U.K.  Employee
shall make arrangements  satisfactory to the Company for the satisfaction of any
tax withholding or deduction -- at -- source obligations that arise by reason of
the grant to him or her of such option, or its subsequent exercise.

                  10. In  relation  to an  Approved  Option,  in addition to the
provisions  set out in section 15.2 of the Plan, no amendment  which affects any
of the  provisions of the Plan  relating to Approved  Options shall be effective
until approved by the Inland Revenue,  except for such amendment as are required
to obtain and maintain the approval of Inland Revenue  pursuant to Schedule 9 to
the Taxes Act.<PAGE>          1

                                                                    Exhibit 10.1

                               AS OF JUNE 29, 2000
                              --------------------

                              HECLA MINING COMPANY
                                   as Borrower

                          STANDARD BANK LONDON LIMITED
                                    as Lender

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

                           SUBORDINATED LOAN AGREEMENT
                          ----------------------------

                              ASHURST MORRIS CRISP
                                 Broadwalk House
                                 5 Appold Street
                                 London EC2A 2HA
                               Tel: 020 7638 1111
                               Fax: 020 7972 7990
                              TCW/627S00008/1769431

<PAGE>          2

                                      INDEX

1.  DEFINITIONS; INTERPRETATION                                             1
1.1 Defined Terms                                                           1
1.2 Use of Defined Terms                                                   11
1.3 Accounting and Financial Determinations                                11
1.4 Change in Accounting Principles                                        11
1.5 General Provisions as to Certificates and Opinions, etc.               11
1.6 Interpretation                                                         12
2.COMMITMENTS AND PROCEDURES FOR MAKING THE LOAN; CONTINUATION PROCEDURES  13
2.1 Commitments; Making The Loan                                           13
2.2 Continuation Elections                                                 14
2.3 Records                                                                14
2.4 Funding                                                                14
3.PRINCIPAL PAYMENTS; INTEREST; CAPITALISATION OF INTEREST; FEES           15
3.1 Principal Payments                                                     15
3.1.1  Scheduled Repayments                                                15
3.1.2  Prepayments - Voluntary                                             15
3.1.3  Principal Payments Generally                                        15
3.2 Interest Payments                                                      15
3.2.1  Rate                                                                16
3.2.2  Post-Maturity Rate                                                  16
3.2.3  Payment Dates; Calculation of Interest                              16
3.2.4  Rate Determinations                                                 16
3.2.5  Capitalization of Interest                                          17
3.2.6  Payments Subject to Subordination                                   17
4.INCREASED COSTS; TAXES; MARKET DISRUPTIONS; GENERAL PAYMENT PROVISIONS   18
4.1 Dollars Unavailable                                                    18
4.2 Increased Costs, etc.                                                  18
4.3 Funding Losses                                                         19
4.4 Increased Capital Costs                                                19
4.5 Illegality                                                             20
4.6 Taxes                                                                  21
4.7 Mitigation                                                             21
4.8 Payments, Computations, etc.                                           22
4.9 Set-off                                                                22
4.10 Application of Proceeds                                               23
5.  CONDITIONS PRECEDENT TO MAKING LOANS                                   23
5.1 In General                                                             23
5.1.1  Resolutions, etc.                                                   23
5.1.2  Subordination Agreement; MHV Guaranty                               24
5.1.3  Borrowing Notice                                                    24
5.1.4  Process Agent Acceptance                                            24
5.1.5  Opinions                                                            24
5.1.6  Closing Expenses, etc.                                              25
5.1.7  Compliance with Warranties, No Defaults, etc.                       25

<PAGE>          3

6.  REPRESENTATIONS AND WARRANTIES                                            25
6.1 Organization, Power, Authority, etc.                                      25
6.2 Due Authorization; Non-Contravention                                      26
6.3 Validity, etc.                                                            26
6.4 Legal Status                                                              26
6.5 Financial Information                                                     26
6.6 Absence of Default                                                        27
6.7 Litigation, etc.                                                          27
6.8 Materially Adverse Effect                                                 27
6.9 Taxes and Other Payments                                                  27
6.10 Subsidiaries                                                             28
6.11 Environmental Warranties                                                 28
6.12 ERISA Liabilities                                                        28
6.13 Regulations T, U and X                                                   29
6.14 Government Regulation                                                    29
7.  COVENANTS                                                                 29
7.1 Informational and Financial Covenants                                     29
7.1.1  Financial Information, etc.                                            29
7.1.2  Defaults                                                               30
7.1.3  Miscellaneous Information                                              30
7.1.4  Books and Records; Access                                              30
7.1.5  Accuracy of Information                                                31
7.2 Affirmative Covenants                                                     31
7.2.1  Compliance with Laws, etc.                                             31
7.2.2  Maintenance of Corporate Existence                                     31
7.2.3  Payment of Taxes, etc.                                                 31
7.2.4  Use of Proceeds                                                        31
7.3 Negative Covenants                                                        32
7.3.1  Business Activities; Place of Business; Organic Documents; Fiscal Year 32
7.3.2  ERISA Plans                                                            32
7.3.3  Consolidation, Merger, etc                                             32
8.  EVENTS OF DEFAULT                                                         32
8.1 Events of Default                                                         33
8.1.2  Non-Performance of Certain Covenants                                   33
8.1.3  Non-Performance of Other Obligations                                   33
8.1.4  Breach of Representation or Warranty                                   33
8.1.5  Default on other Indebtedness                                          33
8.1.6  Bankruptcy, Insolvency, etc.                                           33
8.1.7  Impairment of Loan Documents                                           34
8.1.8  Judgments                                                              34
8.1.9  Change in Control                                                      35
8.1.10  Materially Adverse Effect                                             35
8.2 Action if Bankruptcy                                                      35
8.3 Action if Other Event of Default                                          35
9.  MISCELLANEOUS                                                             35
9.1 Waivers, Amendments, etc                                                  35
9.2 Notices                                                                   36
9.3 Costs and Expenses                                                        36

<PAGE>          4

9.4 Indemnification                                                           36
9.5 Survival                                                                  37
9.6 Severability                                                              37
9.7 Headings                                                                  37
9.8 Counterparts; Effectiveness                                               37
9.9 Governing Law; Entire Agreement                                           38
9.10 Successors and Assigns                                                   38
9.11 Sale and Transfer of the Loan; Participations in the Loan                38
9.12 Other Transactions                                                       38
9.13 Forum Selection and Consent to Jurisdiction; Waiver of Immunity          39
9.14 Waiver of Jury Trial                                                     40

<PAGE>          5

                             SCHEDULES AND EXHIBITS

SCHEDULE I  Disclosure Schedule
SCHEDULE II Additional Costs Rate
EXHIBIT A   Borrowing Notice
EXHIBIT B   Continuation Notice
EXHIBIT C   MHV Guaranty
EXHIBIT D   Subordination Agreement
EXHIBIT E-1 Opinion of Debevoise & Plimpton, New York counsel to the Lender
EXHIBIT E-2 Opinion of Michael B. White, Vice President, General Counsel and
            Secretary of Hecla Mining
EXHIBIT E-3 Opinion of Neher Von Siegmund Rengifo Diquez, Venezuelan counsel
            to MHV
EXHIBIT F   Process Agent Acceptance

<PAGE>          6

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

AMONG:-

(1)  HECLA  MINING  COMPANY,  a  Delaware corporation  ("Hecla  Mining"  or  the
     "Borrower"); and

(2)  STANDARD  BANK LONDON LIMITED, a bank organized under the laws  of  England
     ("Standard Bank"), as the lender (in such capacity, the "Lender").

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,  in  addition  to  the Indebtedness made  available  under  the  Senior
Facility  Agreement,  the  Borrower has requested that  the  Lender  make  funds
available to it for general corporate purposes and the Lender is willing to make
such  funds available to the Borrower on the terms and subject to the conditions
of this Agreement and the other Loan Documents;

WHEREAS,  Minera Hecla Venezolana, C.A., a company organized under the  laws  of
Venezuela  and  a  wholly owned indirect Subsidiary of the Borrower  ("MHV")  is
willing to guarantee the obligations of the Borrower to the Lender and it  is  a
condition  precedent to the making of the Loans hereunder that MHV  execute  and
deliver the MHV Guaranty; and

WHEREAS,  the  Standard Bank, as administrative agent under the Senior  Facility
Agreement (in such capacity, the "Senior Agent") is willing to permit the credit
accommodations  contemplated  by  this  Agreement,  subject  to  the  terms  and
conditions of the Subordination Agreement.

NOW,  THEREFORE, for good and valuable consideration, the receipt  and  adequacy
whereof  is hereby acknowledged by each party hereto, the parties hereto  hereby
agree as follows:-

<PAGE>          7

1.   DEFINITIONS; INTERPRETATION

1.1  Defined Terms

     The  following terms, when used in this Agreement, including  its  preamble
     and recitals, shall have the following meanings:

     "Additional  Costs  Rate" means, for any Interest  Period,  the  applicable
     rate determined by the Lender in accordance with Schedule II.

     "Affiliate"  of  any  Person  means any other  Person  which,  directly  or
     indirectly, controls or is controlled by or under common control with  such
     Person  (excluding any trustee under, or any committee with  responsibility
     for  administering, any compensation, welfare or similar plan).   A  Person
     shall  be  deemed  to  be "controlled by" any other Person  if  such  other
     Person possesses, directly or indirectly, power:

     (a) to  vote  twenty percent (20%) or more of the securities  (on  a  fully
          diluted  basis)  having  ordinary voting power  for  the  election  of
          directors or managing general partners of such Person; or

     (b) to  direct  or  cause the direction of the management and  policies  of
          such Person, whether by contract or otherwise.

     "Agreement" is defined in the preamble.

     "Applicable  Law"  means,  with  respect  to  any  Person  or  matter,  any
     supranational,  national,  provincial, federal, state,  regional  or  local
     statute, law, rule, treaty, convention, regulation, order, decree or  other
     requirement  relating to such Person or matter and, where  applicable,  any
     interpretation thereof by any Governmental Agency having jurisdiction  with
     respect  thereto  or  charged  with  the administration  or  interpretation
     thereof (in each case, whether or not having the force of law, but  if  not
     having  the  force of law, such statute, law, etc. being of the  type  with
     which such Person would comply in the ordinary course of business).

     "Applicable Margin" means four percent (4%) per annum.

     "Approval"  means each and every approval, authorization, license,  permit,
     consent,  filing  and  registration by or with any Governmental  Agency  or
     other  Person necessary for the execution, delivery or performance of  this
     Agreement  or any other Loan Document or for the validity or enforceability
     hereof  or  thereof, whether or not referred to in Item 1 ("Approvals")  of
     the Disclosure Schedule.

     "Authorized  Representative" means those officers  of  the  Obligors  whose
     signatures  and  incumbency shall have been certified pursuant  to  Section
     5.1.1.

<PAGE>          8

     "Borrower" is defined in the preamble.

     "Borrowing Date" means the Business Day on which the Loan is made  pursuant
     to Section 2.1.

     "Borrowing  Notice" means a loan request and certificate duly  executed  by
     an  Authorized Representative of the Borrower, substantially in the form of
     Exhibit A hereto.

     "Business Day" means:-

     (a) any  day  which is not Saturday, Sunday, a legal holiday or  any  other
          day  on  which  banks are closed in London, England or New  York,  New
          York; and

     (b) relative  to  the  making, continuing or the calculation  of  the  LIBO
          Rate,  any  day  on which dealings in Dollars are carried  on  in  the
          London interbank market.

     "Capitalized  Lease  Liabilities" means all  monetary  obligations  of  any
     Person  under any leasing or similar arrangement which, in accordance  with
     U.S.  GAAP,  would  be  classified  as capitalized  leases,  and,  for  the
     purposes  of  this Agreement, the amount of such obligations shall  be  the
     capitalized  amount thereof, determined in accordance with U.S.  GAAP,  and
     the  stated maturity thereof shall be the date of the last payment of  rent
     or  any  other  amount due under such lease prior to the  first  date  upon
     which  such  lease  may be terminated by the lessee without  payment  of  a
     penalty.

     "Change in Control" means the occurrence of any of the following events:-

     (a) any  Person  or  two  or more Persons acting as a group  shall  acquire
          beneficial  ownership  (within  the  meaning  of  Rule  13d-3  of  the
          Securities and Exchange Commission under the Securities Act  of  1934,
          and  including holding proxies to vote for the election  of  directors
          other  than  proxies  held  by  the  Borrower's  management  or  their
          designees  to be voted in favor of Persons nominated by the Borrower's
          Board  of  Directors)  of  25%  or  more  of  the  outstanding  voting
          securities  of  Borrower,  measured by voting  power  (including  both
          common  stock  and  any  preferred stock or  other  equity  securities
          entitling  the  holders  thereof to vote with the  holders  of  common
          stock in elections for directors of Borrower);

     (b) a  majority  of the directors of Borrower shall consist of Persons  not
          nominated  by  the  Borrower's Board of Directors  (not  including  as
          Board  nominees  any  directors  which  the  Board  is  obligated   to
          nominate   pursuant   to   shareholders   agreements,   voting   trust
          arrangements or similar arrangements); or

<PAGE>          9

     (c) the  failure  by  the  Borrower  to own indirectly  all  of  the  share
          capital  (howsoever denominated) of MHV, free and clear of all  Liens,
          other than arising under the LaCamorra Credit Agreement.

     "Commitment"  means the Lender's obligation to make, maintain and  continue
     its  Loan in an amount equal to the Commitment Amount in each case pursuant
     to the terms and subject to the conditions of this Agreement.

     "Commitment  Amount"  means U.S.$3,000,000, as may be reduced  pursuant  to
     Section 2.1(d).

     "Commitment  Termination  Date"  means  the  earliest  to  occur   of   the
     following:-

     (a) July 14, 2000;

     (b) the occurrence of any Enforcement Event;

     (c) the  Borrowing Date on which the Loan shall have been made pursuant  to
          Section 2.1; and

     (d) the termination of the Commitments pursuant to Section 2.1(d).

     "Contingent  Liability" means any agreement, undertaking or arrangement  by
     which   any  Person  guarantees,  endorses  or  otherwise  becomes  or   is
     contingently  liable upon (by direct or indirect agreement,  contingent  or
     otherwise,  to provide funds for payment, to supply funds to, or  otherwise
     to  invest  in,  a debtor, or otherwise to assure a creditor against  loss)
     the  indebtedness, obligation or any other liability of  any  other  Person
     (other  than  by endorsements of instruments in the course of  collection),
     or  guarantees  the  payment of dividends or other distributions  upon  the
     shares  of  any other Person.  The amount of any Person's obligation  under
     any  Contingent  Liability  shall (subject  to  any  limitation  set  forth
     therein)  be  deemed  to be the outstanding principal  amount  (or  maximum
     principal  amount,  if larger) of the debt, obligation or  other  liability
     guaranteed thereby.

     "Continuation  Notice" means a notice of continuation and certificate  duly
     executed by an Authorized Representative of the Borrower, substantially  in
     the form of Exhibit B attached hereto.

     "Contractual  Obligation" means, relative to any Person, any  provision  of
     any  security issued by such Person or of any Instrument or undertaking  to
     which  such  Person  is a party or by which it or any of  its  property  is
     bound.

     "Default"  means  any  Event of Default or any condition  or  event  which,
     after  notice,  lapse of time, the making of any required determination  or
     any combination of the foregoing, would constitute an Event of Default.

<PAGE>          10

     "Disclosure  Schedule"  means the Disclosure Schedule  attached  hereto  as
     Schedule I.

     "Dollar" and the sign "U.S.$" mean lawful money of the United States.

     "Effective Date" is defined in Section 9.8.

     "Enforcement Event" means either:-

     (a) an Insolvency Event; or

     (b) the  occurrence  of any other Event of Default and the acceleration  of
          the Obligations pursuant to Section 8.3.

     "Environmental  Law" means, with respect to any Person, any Applicable  Law
     relating  to  or  imposing  liability or standards  of  conduct  concerning
     public  health  and  safety and the protection of the environment  that  is
     applicable to such Person.

     "ERISA" means the Employee Retirement Income Security Act of 1974.

     "ERISA Affiliate" means the Borrower and all members of a controlled  group
     of  corporations  and all trades or business (whether or not  incorporated)
     under  common  control that, together with the Borrower, are treated  as  a
     single employer under Section 414 of the Internal Revenue Code.

     "ERISA  Plan" means any employee pension benefit plan subject to  Title  IV
     or  ERISA  maintained  by any ERISA Affiliate with  respect  to  which  any
     Related Person has a fixed or contingent liability.

     "Event of Default" is defined in Section 8.1.

     "Facility"  means  the Loan and the financial accommodations  made  to  the
     Borrower in connection therewith.

     "Fiscal Quarter" means any quarter of a Fiscal Year.

     "Fiscal  Year"  means  any  period of twelve  consecutive  calendar  months
     ending on December 31.

     "F.R.S. Board" means the Board of Governors of the Federal Reserve System.

     "Governmental  Agency" means any supranational, national,  federal,  state,
     regional  or  local government or governmental department or  other  entity
     charged  with  the  administration, interpretation or  enforcement  of  any
     Applicable Law.

     "Hecla Mining" is defined in the preamble.

<PAGE>          11

     "Hedging  Obligations" means, with respect to any Person,  all  liabilities
     of  such  Person  under  commodity  swap  agreements,  interest  rate  swap
     agreements,   interest  rate  cap  agreements  and  interest  rate   collar
     agreements, and all other agreements, options and arrangements designed  to
     protect  such  Person  against  fluctuations in  interest  rates,  currency
     exchange rates or metal prices.

     "Impermissible Qualification" means, relative to the opinion or  report  of
     any  independent  certified public accountant or any independent  chartered
     accountant   as  to  any  financial  statement  of  either   Obligor,   any
     qualification or exception to such opinion or report:

     (a)which is of a "going concern" or similar nature;

     (b) which  relates to any limited scope of examination of matters  relevant
          to such financial statement which has resulted from any action of such
          Obligor,  the result of which is, directly or indirectly,  to  prevent
          such  accountant from making such examination as such accountant deems
          appropriate.

     "Indebtedness" of any Person means, without duplication:

     (a) all  obligations of such Person for borrowed money or metals (including
          Gold)  and  all obligations evidenced by bonds, debentures, notes,  or
          other  similar  Instruments on which interest charges are  customarily
          paid;

     (b) all  obligations, contingent or otherwise, relative to the face  amount
          of  all  letters  of  credit,  whether  or  not  drawn,  and  bankers'
          acceptances and similar instruments, in each such case issued for  the
          account of such Person;

     (c) all  obligations of such Person as lessee under leases which have  been
          or  should  be, in accordance with U.S. GAAP, recorded as  Capitalized
          Lease Liabilities;

     (d)net payment liabilities of such Person under all Hedging Obligations;

     (e) whether  or  not  so  included as liabilities in accordance  with  U.S.
          GAAP,  all  obligations  of such Person to pay the  deferred  purchase
          price  of  property  or services, and indebtedness (excluding  prepaid
          interest  thereon)  secured  by a Lien  on  property  owned  or  being
          purchased  by  such  Person  (including  indebtedness  arising   under
          conditional sales or other title retention agreements), whether or not
          such indebtedness shall have been assumed by such Person or is limited
          in recourse; and

     (f) all  Contingent  Liabilities of such Person in respect of  any  of  the
          foregoing items which are the obligations of any other Person.

<PAGE>          12

     "Indemnified Liabilities" is defined in Section 9.4.

     "Indemnified Parties" is defined in Section 9.4.

     "Insolvency  Event"  means  the occurrence  of  any  Default  described  in
     Section 8.1.6.

     "Instrument"  means any contract, agreement, indenture, mortgage,  document
     or  writing (whether by formal agreement, letter or otherwise) under  which
     any  obligation is evidenced, assumed, or undertaken, or any Lien (or right
     or  interest therein) is granted or perfected or purported to be granted or
     perfected.

     "Interest Payment Date" is defined in Section 3.2.5(b).

     "Interest Period" means, relative to the Loan:

     (a) initially,  the  period  from  the date  such  Loan  was  made  on  the
          Borrowing  Date to the day which numerically corresponds to such  date
          one, two, three or six months thereafter (or such other date as agreed
          between the Lender and the Borrower but, subject at all times  to  the
          provisions of Section 4.1);

     (b) thereafter, each period from the last day of the immediately  preceding
          Interest  Period  applicable to the Loan to the day which  numerically
          corresponds to such date one, two, three or six months thereafter  (or
          such  other  date as agreed between the Lender and the  Borrower  and,
          subject  as  provided in clause (a)) as the Borrower  may  irrevocably
          select  in  the  relevant Continuation Notice  delivered  pursuant  to
          Section 2.2;

     provided, however, that:

     (c) absent  the  timely  selection  of an  Interest  Period  for  the  then
          outstanding  Loan, the Borrower shall be deemed to  have  selected  an
          Interest Period identical to that then in effect with respect  to  the
          Loan;

     (d) if  such  Interest Period for the Loan would otherwise  end  on  a  day
          which  is  not a Business Day, such Interest Period shall end  on  the
          next  following Business Day, unless such Business Day occurs  in  the
          next  following  calendar month, in which case  such  Interest  Period
          shall end on the immediately preceding Business Day;

     (e) the  Borrower shall not be permitted to select, and there shall not  be
          applicable, any Interest Period that would end later than the Maturity
          Date;

     (f) at  any  one  time, there shall only be permitted to  be  in  effect  a
          maximum of two Interest Periods with respect to the Loan; and

<PAGE>          13

     (g) the  Lender shall be able to select Interest Periods satisfactory to it
          pursuant  to  the terms and conditions of Section 3.2.2 or  after  any
          Enforcement Event.

     "La  Camorra Credit Agreement" means the credit agreement, dated as of June
     25,  1999,  between (1) Hecla Resources Investments Limited,  as  borrower,
     (2)  MHV,  as  additional obligor, (3) the lenders party  thereto  and  (4)
     Standard Bank, as administrative agent and collateral agent.

     "Lender" is defined in the preamble.

     "Lending  Office" means the office of the Lender designated as  such  below
     its  signature  hereto  or  such other office  of  the  Lender  as  may  be
     designated from time to time by notice from the Lender to the Borrower.

     "LIBO Rate" means:-

     (a) the  rate  (rounded upwards, if necessary, to the nearest four  decimal
          places)  which is the offered rate at or about 11.00 a.m. two Business
          Days  prior to the relevant Interest Period for Dollar deposits for  a
          period  equal  to the relevant Interest Period which  appears  on  the
          display  designated  as  the  British  Bankers'  Association  Interest
          Settlement Rate as quoted on the Reuters' Screen page no. LIBOR =  (or
          such  other page or service as may replace page no. LIBOR  =  of  such
          service  (as  the  case may be) for the purpose of so  displaying  the
          British  Bankers'  Association Interest  Settlement  Rate  for  London
          interbank  offered rates and, in the absence of any  such  replacement
          page  or service, such other page of such other service as the  Lender
          and the Borrower may agree, or

     (b) if  no relevant rate appears on Reuters' Screen page no. LIBOR = or  if
          such  Reuters'  Screen page is unavailable at the  relevant  time  the
          arithmetic  mean (rounded upwards, if necessary, to the  nearest  four
          decimal places) of the respective rates, as supplied to the Lender  at
          its  request,  quoted by the Reference Banks to  prime  banks  in  the
          London Interbank Market at or about 11.00 a.m. two Business Days prior
          to  the relevant Interest Period in an amount comparable to the amount
          of  the  Loans  and  for  a period equal to the  Interest  Period  for
          delivery on the first day of that Interest Period.

     "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.

     "Loan"  means the Lender's loan under this Agreement, whatever  outstanding
     or to be made.

<PAGE>          14

     "Loan  Documents"  means, collectively, this Agreement, the  MHV  Guaranty,
     the  Subordination  Agreement and each other  Instrument  executed  by  the
     Obligors  or  any  Affiliate  of  any thereof,  evidencing  any  obligation
     (monetary  or otherwise) in connection with and pursuant to this  Agreement
     and  the  transactions  contemplated hereby  and  representing  obligations
     incurred to any of the Finance Parties.

     "Material  Subsidiary"  means  any direct or  indirect  Subsidiary  of  the
     Borrower  designated as such in Item 3 ("Subsidiaries") of  the  Disclosure
     Schedule and any other Subsidiary of the Borrower with assets in excess  of
     U.S.$1,000,000 (or its equivalent in any other currency).

     "Materially Adverse Effect" means an effect, resulting from any  occurrence
     of  whatever  nature  (including any adverse  determination  in  any  labor
     controversy,  litigation,  arbitration  or  governmental  investigation  or
     proceeding),  which is materially adverse to the ability of either  Obligor
     to  make  any  payment  or perform any other material  obligation  required
     under any Loan Document to which it is a party.

     "Maturity"  means,  relative to the Loan, any date on  which  the  Loan  is
     stated  to  be  due and payable, in whole or in part, whether  by  required
     repayment, prepayment, declaration or otherwise.

     "Maturity Date" means June 30, 2004.

     "MHV" is defined in the fourth recital.

     "MHV  Guaranty" means the Guaranty executed by MHV in favor of the  Lender,
     substantially in the form of Exhibit C attached hereto.

     "Obligations" means all obligations of either Obligor with respect  to  the
     repayment  or  performance  of  all  obligations  (monetary  or  otherwise)
     arising under or in connection with the Facility.

     "Obligors" means, collectively, the Borrower and MHV.

     "Ordinary Rate" means the rate described in Section 3.2.1.

     "Organic  Document" means (a) in the case of the Borrower, its  certificate
     of  incorporation  and by-laws, (b) in the case of MHV, its  estatutos  and
     (c)  in  the  case  of  either Obligor, all shareholder agreements,  voting
     trusts  and similar arrangements applicable to any of its authorized shares
     of capital stock or other equity interests.

     "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.

<PAGE>          15

     "Post Maturity Rate" means the rate described in Section 3.2.2.

     "Principal  Amount"  means the principal amount of the  Loan,  which  shall
     include  for the avoidance of doubt any interest and other amounts accruing
     thereon and capitalized pursuant to Section 3.2.5.

     "Process Agent" is defined in Section 9.13.

     "Process  Agent Acceptance" means a letter from the Process  Agent  to  the
     Lender, substantially in the form of Exhibit F attached hereto.

     "Regulatory  Change" means the occurrence after the Effective Date  of  any
     change in or
     abrogation  of,  or introduction, adoption, effectiveness,  interpretation,
     reinterpretation or phase-in of any:-

     (a) statute, law, rule, or regulation applicable to the Lender, or

     (b) guideline,  interpretation, directive, consent  decree,  administrative
          order,  request or determination (whether or not having the  force  of
          law but, if not having the force of law, such guideline, etc. being of
          the type with which the Lender would comply in the ordinary course  of
          business)  applicable  to the Lender of any  court,  central  bank  or
          governmental  or regulatory authority charged with the  interpretation
          or  administration of any statute, law, rule or regulation referred to
          in  clause  (a) or of any fiscal, monetary, or other authority  having
          jurisdiction over the Lender.

     "Related Person" means the Borrower and each Material Subsidiary.

     "Requirement  of  Law" means, as to any Person, its Organic  Documents  and
     any  Applicable  Law or Contractual Obligation binding on  or  applying  to
     such Person.

     "Senior Agent" is defined in the fifth recital.

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

     "Standard Bank" is defined in the preamble.

     "Subordination  Agreement"  means  the Agreement  executed  by  the  Senior
     Agent,   Standard   Bank,  as  subordinated  lender,  and   the   Borrower,
     substantially in the form of Exhibit D attached hereto.

     "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

<PAGE>          16

     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.

     "Tax Credit" is defined in Section 4.7(b).

     "Tax Payment" is defined in Section 4.7(b).

     "Taxes"  means  any present or future income, franchise, excise,  stamp  or
     other  taxes,  fees, duties, withholdings or other charges  of  any  nature
     imposed by any taxing authority of any jurisdiction.

     "Termination  Event"  means (a) the occurrence with respect  to  any  ERISA
     Plan  of (i) a reportable event described in Sections 4043(b)(5) or (6)  of
     ERISA  or  (ii) any other reportable event described in Section 4043(b)  of
     ERISA  other than a reportable event not subject to the provision  for  30-
     day  notice  to  the  Pension Benefit Guaranty Corporation  pursuant  to  a
     waiver  by  such  corporation under Section 4043(a) of ERISA,  or  (b)  the
     withdrawal of any ERISA Affiliate from an ERISA Plan during a plan year  in
     which  it was a "substantial employer" as defined in Section 4001(a)(2)  of
     ERISA, or (c) the filing of a notice of intent to terminate any ERISA  Plan
     or  the  treatment  of  any ERISA Plan amendment  as  a  termination  under
     Section  4041 of ERISA, or (d) the institution of proceedings to  terminate
     any  ERISA  Plan by the Pension Benefit Guaranty Corporation under  Section
     4042  of  ERISA, or (3) any other event or condition which might constitute
     grounds  under  Section  4042  of ERISA for  the  termination  of,  or  the
     appointment of a trustee to administer, any ERISA Plan.

     "U.S. GAAP" is defined in Section 1.3.

1.2  Use of Defined Terms

     Unless  otherwise  defined  or the context otherwise  requires,  terms  for
     which  meanings  are  provided in this Agreement shall have  such  meanings
     when  used  in  this  Agreement  and each notice  and  other  communication
     delivered from time to time in connection therewith.

1.3  Accounting and Financial Determinations

     Unless  otherwise  specified, all accounting terms used herein  or  in  any
     other  Loan  Document  shall be interpreted, all accounting  determinations
     and  computations hereunder or thereunder shall be made, and all  financial
     statements  required  to  be delivered hereunder  or  thereunder  shall  be
     prepared  in  accordance with, generally accepted accounting principles  in
     the U.S. ("U.S. GAAP").

<PAGE>          17

1.4  Change in Accounting Principles

     If,  after the Effective Date, there shall be any material change to either
     Obligor's  Fiscal Year, or in the application of the accounting  principles
     used  in the preparation of the financial statements referred to in Section
     6.5  as  a result of the promulgation of rules, regulations, pronouncements
     or  opinions  by agencies having jurisdiction over financial reporting  and
     accounting  standards which changes result in a change  in  the  method  of
     calculation  of,  or  have  an  adverse  impact  on,  financial  covenants,
     standards,  or  terms applicable to either Obligor found in this  Agreement
     or  any other Loan Document, the Borrower and the Lender agree promptly  to
     enter  into  negotiations  in  order to  amend  such  financial  covenants,
     standards  or  terms  so  as to reflect equitably  such  changes  with  the
     desired  result that the evaluations of such Obligor's financial  condition
     shall  be the same after such changes as if such changes had not been made;
     provided,  however, that pending such agreements, such Obligor's  financial
     condition  shall continue to be evaluated on the same principles  as  those
     used  in  the  preparation  of  the financial statements  of  such  Obligor
     referred to in Section 6.5.

1.5  General Provisions as to Certificates and Opinions, etc.

     Whenever  the  delivery of a certificate is a condition  precedent  to  the
     taking  of  any action by the Lender hereunder, the truth and  accuracy  of
     the  facts  and the diligent and good faith determination of  the  opinions
     stated  in  such certificate shall in each case be conditions precedent  to
     the  right  of  the  relevant Obligor to have such action  taken,  and  any
     certificate  executed by the relevant Obligor shall be deemed to  represent
     and  warrant  that  the  facts  stated in such  certificate  are  true  and
     accurate as of the date stated.

1.6  Interpretation

     Unless  a  clear contrary intention appears, this Agreement and each  other
     Loan  Document  shall be construed and interpreted in accordance  with  the
     provisions set forth below:-

     (a)  the singular number includes the plural number and vice versa;

     (b)  reference  to any Person includes such Person's successors, executors,
          administrators, substitutes and assigns but, if applicable, only if
          such successors, executors, administrators, substitutes and assigns
          are permitted by this Agreement or such other Loan Document, and
          reference to a Person in a particular capacity excludes such Person
          in any other capacity or individually;

     (c)  reference to any gender includes any other gender;

<PAGE>          18

     (d)  reference to any agreement, document or Instrument means such
          agreement, document or Instrument as amended, supplemented, novated,
          refinanced, replaced, waived, restated or modified, and in effect
          from time to time in accordance with the terms thereof and, if
          applicable, the terms hereof;

     (e)  reference to any promissory note includes any promissory note which
          is an extension or renewal thereof or a substitute or replacement
          therefor;

     (f)  reference to any Applicable Law means such Applicable Law as amended,
          modified, codified or re-enacted, in whole or in part, and in effect
          from time to time, including rules and regulations promulgated
          thereunder;

     (g)  "hereunder", "hereof", "hereto", "herein" and words of similar import
          shall be deemed references to this Agreement or such other Loan
          Document, as the case may be, as a whole and not to any particular
          Article, Section, clause or other provision hereof or thereof;

     (h)  any reference to any particular Article, Section or clause shall be
          to such Article, Section or clause of this Agreement or such other
          Loan Document;

     (i)  "including"  means  including without limiting the generality of any
          description preceding such term;

     (j)  relative to the determination of any period of time, "from" means
          "from (and including)" and "to" means "to (but excluding)";

     (k)  any reference to a time of day is a reference to London time;

     (l)  reference to a "company" or "corporation" shall be construed as a
          reference to the analogous form of business entity used in any
          relevant jurisdiction;

     (m)  when an expression is defined, another part of speech or grammatical
          form of that expression has a corresponding meaning; and

     (n)  any  reference to the "knowledge" of either Obligor or its  Authorized
          Representative with respect to a certain matter means either such
          Person's actual knowledge with respect to such matter or that of which
          a Person, in the position of such Obligor or Authorized Representative
          and acting reasonably, would be expected to have knowledge.

<PAGE>          19

2.   COMMITMENTS AND PROCEDURES FOR MAKING THE LOAN; CONTINUATION PROCEDURES

2.1  Commitments; Making The Loan

     (a)  Subject to the terms and on the conditions of this Agreement, the
          Lender agrees that its Commitment consists of obligations to make,
          maintain and continue the Loan, in an amount not to exceed the
          Commitment Amount.  The Loan may only be made on a single Borrowing
          Date during the period from the Effective Date to the Commitment
          Termination Date.

     (b)  By delivering a Borrowing Notice to the Lender on or before 10:00 a.m.
          and at least 24 hours prior thereto, the Borrower may request on any
          Business Day during the period described in clause (a), that a single
          Loan be made by the Lender on the Borrowing Date set forth in such
          Borrowing Notice in a principal amount equal to the then Commitment
          Amount.  The Borrowing Notice, once delivered, shall not thereafter
          be revocable by the Borrower.

     (c)  Subject to the terms and conditions of this Agreement, the Loan
          requested to be made in the Borrowing Notice shall be made on the
          specified Borrowing Date.  On the Borrowing Date and subject to such
          terms and conditions, the Lender shall, on or before 10:00 a.m., make
          such funds available to the Borrower by crediting the Principal Amount
          of the Loan to such account of the Borrower as it may direct.

     (d)  The  Borrower may, from time to time on any Business Day prior to the
          Commitment Termination Date upon which there then remains any portion
          of the Commitment Amount, voluntarily reduce the Commitment Amount, as
          then in effect, in whole or, if in part, in multiples of
          U.S.$1,000,000; provided, however, that the Borrower shall give the
          Lender not less than three or nor more than five Business Days prior
          written notice (counting the date on which such notice is given) of
          any such reduction which notice shall be irrevocable once given.  On
          the Commitment Termination Date, the Commitment Amount (if still
          remaining) shall, automatically, and without any action by any Person
          be reduced to zero.

2.2  Continuation Elections

     (a)  To  continue all or part of the Loan for the same (or for a different)
          Interest Period, the Borrower must deliver a Continuation Notice to
          the Lender no later than 10.00 a.m. five Business Days prior to the
          expiration of the relevant Interest Period then in effect.  To the
          extent the Borrower wishes to issue a Continuation Notice with respect
          to part (but not all) of the Loan, such Continuation Notice must
          relate to an aggregate Principal Amount of multiples of U.S.$500,000,
          and a maximum of two Interest Periods with respect to the Loan may
          be outstanding at any one time after giving effect thereto.

<PAGE>          20

     (b)  (i)  Each  new Interest Period will commence  on  the
               expiration  of the preceding Interest Period relating  to  all or
               that portion of the Loan made pursuant to the Borrowing Notice or
               continued pursuant to a Continuation Notice.

          (ii) If the Borrower fails to deliver a Continuation Notice as and
               when required, it, subject as provided in clauses (d) and (e) of
               the definition of "Interest Period", will be deemed to have
               requested that the then current Loan be continued for an Interest
               Period that is the same as the duration of the Interest Period
               then currently in effect with respect to the Loan.

     (c)  A Continuation Notice once given shall be irrevocable.

2.3  Records

     The  Lender's Loan shall be evidenced by a loan account maintained  by  the
     Lender.  The Borrower hereby irrevocably authorizes the Lender to make  (or
     cause  to  be made) appropriate account entries, which account entries,  if
     made,  shall  evidence inter alia the date of, the type of,  the  principal
     amount  of,  any  repayments of, the interest rate  on,  and  the  Interest
     Period  applicable to, the Loan then outstanding.  Any such account entries
     indicating the outstanding Principal Amount of the Loan outstanding to  the
     Lender shall be prima facie evidence of the Principal Amount thereof  owing
     and  unpaid,  but  the failure to make any such entry shall  not  limit  or
     otherwise  affect  the  obligations  of  the  Borrower  hereunder  to  make
     payments of the amount of, or interest on, the Loan when due.

2.4  Funding

     The  Lender may, if it so elects, but subject to Applicable Law, fulfil its
     obligation  to  make,  maintain or continue any  portion  of  its  Loan  by
     causing an offshore branch, Affiliate or banking facility of the Lender  to
     make,  maintain or continue the Loan; provided, however, that in such event
     the  Loan  shall  be  deemed  to have been made  by  the  Lender,  and  the
     obligation  of  the  Borrower to repay the Loan, and pay interest  thereon,
     shall  nevertheless be to the Lender and shall be deemed to be held by  it,
     to  the  extent  of  the  Loan, for the account  of  such  foreign  branch,
     Affiliate  or  international  banking  facility;  and  provided,   further,
     however,  that the Borrower shall be under no obligation to pay any  amount
     to  the  Lender pursuant to Section 4.1, 4.2, 4.3, 4.4, 4.5  or  4.6  which
     arises  solely as a consequence of an election made by the Lender  pursuant
     to this Section.

<PAGE>          21

3.   PRINCIPAL PAYMENTS; INTEREST; CAPITALISATION OF INTEREST; FEES

3.1  Principal Payments

3.1.1     Scheduled Repayments

     (a)  The Borrower shall repay the Loan in Principal Amounts of
          U.S.$1,000,000 on each of June 30, 2003 and December 31, 2003.

     (b)  The  Borrower  shall repay the Principal Amount of the Loan  remaining
          outstanding in full on the Maturity Date.

3.1.2     Prepayments - Voluntary

     In  addition to its obligations under Section 3.1.1, the Borrower may, from
     time  to time on any Business Day (subject to Sections 3.2.6 and 4.3)  make
     a  voluntary  prepayment,  in whole or in part,  of  the  then  outstanding
     Principal Amount of the Loan; provided, however, that:

     (a)  the Borrower  shall give the Lender not less than five Business  Days'
          prior  written  notice  (counting the date on  which  such  notice  is
          given)  of  any such voluntary prepayment, which notice,  once  given,
          shall be irrevocable; and

     (b)  all such partial voluntary prepayments shall be in an aggregate
          Principal Amount of multiples of U.S.$500,000.

3.1.3     Principal Payments Generally

     (a)  Each repayment  or  prepayment  of the  Loan  made  pursuant  to  this
          Section  shall  be without premium or payment of any other  additional
          amount,  except  as may be required pursuant to Section  4.3.  Amounts
          repaid  or  prepaid may not be re-borrowed.  Except as  set  forth  in
          Section 3.2.5, any repayment or prepayment of the Principal Amount  of
          the  Loan  shall include accrued interest on the date of repayment  or
          prepayment on the Principal Amount being repaid or prepaid.

     (b) The  Loan,  as  required  to  be repaid or  prepaid  pursuant  to  this
          Section,  shall  be  paid  in Dollars. Any  amount  paid  pursuant  to
          Section   3.1.2(a)  shall  be  applied  in  reducing   the   repayment
          installments  under  Section  3.1.1 in  the  inverse  order  of  their
          maturities.

3.2  Interest Payments

     The  Borrower shall make payments of (or capitalize) interest in accordance
     with this Section.

<PAGE>          22

3.2.1     Rate

    The  Borrower  shall  pay  interest on the  Principal  Amount  of  the  Loan
    outstanding from time to time (or interest shall accrete thereon) at a  rate
    per  annum equal to the sum of (i) the LIBO Rate, (ii) the Applicable Margin
    plus (iii) the Additional Costs Rate, if relevant.

3.2.2     Post-Maturity Rate

          After  the Maturity of all or any portion of the Principal  Amount  of
    the  Loan or after any other Obligations shall have become due and not  been
    paid, the Borrower shall pay interest (after as well as before judgment)  on
    the  Principal  Amount  of  the  Loan  so  matured  or  on  any  such  other
    Obligations, at a rate per annum equal to the sum of (i) the LIBO  Rate  for
    such  Interest Periods (of a minimum of three months) as the Lender may from
    time  to time select, (ii) the Applicable Margin, (iii) the Additional Costs
    Rate (if relevant) plus (iv) two percent (2%).

3.2.3     Payment Dates; Calculation of Interest

    Interest  accrued  on the Loan shall, subject to Section 3.2.5,  be  payable
    without duplication on:

     (a)  the last day of each Interest Period with respect to the Loan (and, in
          addition to such day, if such Interest Period shall exceed three
          months, on each date which is the last day of each successive three-
          monthly period occurring during such Interest Period);

     (b)  the Maturity of the Loan; and

     (c)  with respect to any portion of the Loan repaid or prepaid pursuant  to
          Section 3.1 or 4.5 the date of such repayment or prepayment, as the
          case may be.

     In  addition, interest accrued on the Loan after the Maturity  thereof  and
     interest  on  other  overdue amounts shall be  payable  upon  demand.   The
     amount  of  accruing and accreting interest on the Loan shall be calculated
     by  the Lender on the daily outstanding Principal Amount of the Loan.   All
     interest  shall  be  computed on the basis of the  actual  number  of  days
     (including the first day but excluding the last day) during the period  for
     which  such interest is payable over a year comprised of 360 days.  Subject
     to  clauses  (d)  and (e) of the definition of "Interest Period",  whenever
     any  payment  to  be made shall otherwise be due on a day which  is  not  a
     Business  Day,  such payment shall be made on the next succeeding  Business
     Day and such extension of time shall be included in computing interest,  if
     any, in connection with such payment.

<PAGE>          23

3.2.4     Rate Determinations

    All  determinations by the Lender of the rate of interest applicable to  the
    Loan shall be conclusive absent demonstrated error.

3.2.5     Capitalization of Interest

     (a) Notwithstanding  the  interest  payment provisions  contained  in  this
          Section,  until the date on which the principal of, and  interest  on,
          the Loan shall become payable in full, whether at the Maturity Date or
          by  reason of acceleration or if the Maturity of all or any portion of
          the  Principal Amount of the Loan or after any Obligations shall  have
          become due and not been paid, the Borrower may capitalize interest  as
          provided in this Section.

     (b) To  the  extent  the  Borrower shall not make any payment  of  interest
          (including for the avoidance of doubt, the Additional Costs  Rate,  if
          relevant) on the Loan in cash on each date described in Section  3.2.3
          (other  than  the  proviso set forth in clause (a)  thereof)  or  when
          otherwise due (each such date, an "Interest Payment Date"), an  amount
          equal  to the interest payable on such Interest Payment Date  but  not
          paid  in cash shall be added to the Principal Amount payable hereunder
          and shall continue to bear interest as provided herein.

     (c) For  the  avoidance  of  doubt, the payment of  each  Principal  Amount
          described  in Sections 3.1.1(a) and Section 3.1.2 may be made  without
          payment of any interest capitalized until such date.  All interest  so
          capitalized  shall,  subject  to  this  Agreement,  be  added  to  the
          Principal  Amount  immediately outstanding after  each  such  payment,
          shall  continue to bear interest as provided herein and shall be  paid
          in  cash  at the Maturity Date or on any other date where interest  is
          actually payable.

     (d) To  the  extent the Borrower shall not make any payment of interest  on
          the  Loan  in  cash on any Interest Payment Date occurring  after  the
          Maturity of all or any portion of the Principal Amount of the Loan  or
          after  any other Obligations shall have become due and not been  paid,
          an  amount  which  bears the same proportion to the  total  amount  of
          interest  which would be payable on the remaining Principal Amount  of
          the  Loan if the Loan bore interest at the Post-Maturity Rate for  the
          period from the immediately preceding Interest Payment Date until  the
          then  current Interest Payment Date as (i) the amount of interest  due
          on the current Interest Payment Date at the Ordinary Rate but not paid
          in  cash  bears to (ii) the total amount of interest at  the  Ordinary
          Rate  payable  on such Interest Payment Date, shall be  added  to  the
          Principal Amount payable hereunder and shall bear interest as provided
          herein.

<PAGE>          24

3.2.6      Payments Subject to Subordination

     All  payments  of principal and interest shall be subject to the  terms  of
     the Subordination Agreement.
4.   INCREASED COSTS; TAXES; MARKET DISRUPTIONS; GENERAL PAYMENT PROVISIONS

4.1  Dollars Unavailable

     (a)  If, at any time that the Lender shall be required to make any
          determination of the LIBO Rate for any Interest Period and it shall
          have determined or in the case of the Loan outstanding or to be
          outstanding during such Interest Period, either (x) Dollar
          certificates of deposit or Dollar deposits, as the case may be, in the
          relevant amount and for the relevant Interest Period are not available
          to the Lender in the London interbank market, or (y) by reason of
          circumstances affecting the Lender in the London interbank market,
          adequate means do not exist for ascertaining the interest rate
          applicable hereunder to the Loan, then the Lender shall promptly give
          telephonic notice of such determination confirmed in writing to the
          Borrower (which determination shall, in the absence of demonstrated
          error, be conclusive and binding on the Borrower).

     (b)  As soon as practicable following the giving of the notice described in
          clause (a), the Lender acting reasonably and the Borrower shall
          negotiate for a period not exceeding 30 days with a view to agreeing
          to an alternative basis for making or maintaining the Loan affected by
          the circumstances described in clause (a).  During such period
          interest shall accrue on the principal amount of the affected Lender's
          affected Loan at the rate applicable to the Loan immediately prior to
          the giving of such notice.  If no such alternative basis is agreed
          within such time period, the affected Lender's affected Loan shall
          bear interest at a rate per annum equal to the sum of (i) the cost to
          the Lender of funding the Loan (as determined by the Lender which
          determination shall, in the absence of demonstrated error, be
          conclusive and binding on the Borrower), (ii) the Applicable Margin
          plus (iii) the Additional Costs Rate as in effect from time to time.

4.2  Increased Costs, etc.

     (a)  The Borrower agrees to reimburse the Lender for any increase (other
          than as specifically covered in any other Section of this Article) in
          the cost to the Lender of making, continuing or maintaining (or of its
          obligation to make, continue or maintain) the Loan, and for any
          reduction (other than as specifically covered in any other Section of
          this Article) in the amount of any sum receivable by the Lender
          hereunder in respect of making,

<PAGE>          25

          continuing or maintaining any portion of the Loan in either case, from
          time  to  time  by  reason  of any Regulatory Change  (including  with
          respect  to  Regulation  D  of  the F.R.S.  Board  but  excluding  the
          Additional  Costs Rate (if relevant)), then, in any  such  event,  the
          Lender   shall  promptly  notify  the  Borrower  thereof  stating   in
          reasonable  detail  the  reasons therefor and  the  additional  amount
          required  fully  to compensate the Lender for such increased  cost  or
          reduced  amount.   Such notice shall, in the absence  of  demonstrated
          error, be conclusive and binding on the Borrower.

     (b)  As soon as practicable following the giving of any notice described in
          clause (a), the Lender and the Borrower shall negotiate for a period
          not exceeding 30 days with a view to avoiding or minimizing the
          circumstances described in clause (a).  If no steps mutually agreeable
          to the Lender and the Borrower are decided within such 30 day period,
          the Borrower may elect either to prepay the principal amount of and
          interest on the Lender's then outstanding Loan (subject, however, to
          Section 4.3) or pay, within five days after the expiry of such 30 day
          period, any additional amount required fully to compensate the Lender
          for the increased cost or reduced amount described in clause (a).

4.3  Funding Losses

     In  the  event  that the Lender shall incur any loss or expense  (including
     any  loss  or expense incurred by reason of the liquidation or reemployment
     of  Dollar deposits or other funds acquired by the Lender to make, continue
     or  maintain any portion of the Principal Amount of the Loan) as  a  result
     of:-

     (a)  any payment or prepayment of the Principal Amount of the Loan on a
          date other than as and when required, whether pursuant to Section
          3.1 or otherwise; or

     (b)  any  action  of the Borrower resulting in the Loan not being  made  or
          continued, in accordance with the Borrowing Notice or Continuation
          Notice, as the case may be, as given therefor,

     then,  upon  the  request of the Lender to the Borrower the Borrower  shall
     pay  to the Lender such amount as will (in the reasonable determination  of
     the Lender) reimburse the Lender for such loss or expense.  A statement  as
     to  any  such loss or expense (including calculations thereof in reasonable
     detail)  shall  be submitted by the Lender and the Borrower and  shall,  in
     the  absence  of  demonstrated  error, be conclusive  and  binding  on  the
     Borrower.

<PAGE>          26

4.4  Increased Capital Costs

     (a)  If any Regulatory Change affects or would affect the amount of capital
          required to be maintained by the Lender or any Person controlling the
          Lender, and the Lender determines (in its reasonable discretion) that
          the rate of return on its or such controlling Person's capital is
          reduced to a level below that which the Lender or such controlling
          Person could have achieved but for the occurrence of any such
          Regulatory Change, then, in any such case upon notice from time to
          time by the Lender to the Borrower, the Borrower may, at its option
          (i) within five days of receipt of such notice, pay directly to the
          Lender additional amounts sufficient to compensate the Lender or such
          controlling Person for the portion of such reduction in rate of return
          which is reasonably allocable to the Facility or (ii) prepay the
          principal amount of and interest on the affected Lender's then
          outstanding Loan (subject, however, to Section 4.3).  A statement of
          the Lender as to any such additional amount or amounts (including
          calculations thereof in reasonable detail) shall, in the absence of
          demonstrated error, be conclusive and binding on the Borrower.  In
          determining such amount, the Lender may use any method of averaging
          and attribution that it (in its reasonable discretion) shall deem
          applicable.

     (b)  Notwithstanding clause (a), the Borrower shall not be obligated to pay
          any amount to the Lender in respect of any such reduction in the rate
          of return or increased cost which arises as a consequence of (i) any
          law or directive implementing the proposals for international
          convergence of capital measurement and capital standards published by
          the Basle Committee on Banking Regulations and Supervisory Practices
          in July 1988 and/or (ii) the Council of the European Communities
          Directive of April 17, 1989, on the own funds of credit institutions
          (89/299/EC) and the Council of the European Communities Directive of
          December 18, 1989, on a solvency ratio for credit institutions
          (89/647/EC) to the extent that the impact of any such law or directive
          can reasonably be calculated at the Effective Date.  In addition, the
          Lender may not make any claim for compensation in respect of any such
          reduction in return or increased cost to the extent that a
          notification of the event leading to such reduction in the rate or
          return or increased cost is not given to the Borrower within six
          months of the Lender's obtaining knowledge thereof.

4.5  Illegality

     (a)  If, as the result of any Regulatory Change, the Lender shall determine
          (which determination, in the absence of demonstrated error, shall be
          conclusive and binding on the Borrower) that it is unlawful for the
          Lender to make the Loan then the obligations

<PAGE>          27

          of  the  Lender  to make the Loan shall, upon such determination  (and
          telephonic  notice  thereof  confirmed in writing  to  the  Borrower),
          forthwith  be suspended until the Lender shall become aware  that  the
          circumstances  causing  such suspension  no  longer  exist  and  shall
          forthwith  notify  the  Borrower to such effect,  at  which  time  the
          obligation of the Lender to make the Loan shall be reinstated.

     (b)  If, as the result of any Regulatory Change, the Lender shall determine
          (which determination, in the absence of demonstrated error, shall be
          conclusive and binding on the Borrower) that it is unlawful for the
          Lender to continue its Loan, then, upon notice by the Lender to the
          Borrower, the Lender shall consult with the Borrower for a period of
          up to 30 days from the date of such notice, with a view to agreeing
          upon a mutually acceptable alternative arrangement which will avoid
          or minimize such illegality.  If, no steps mutually agreeable to the
          Lender and the Borrower are decided within such 30 day period, the
          Borrower may, at its option, to the extent not prohibited from doing
          so by the relevant illegality or unlawfulness, continue the Lender's
          then outstanding Loan or prepay, within five days after the expiry of
          such 30 day period (unless required to do so prior thereto) the
          principal amount of and interest on the Lender's then outstanding
          Loan (subject, however, to Section 4.3).

     (c)  If the  relevant illegality or unlawfulness makes it unlawful for  the
          Lender  to  maintain its Loan, then upon notice by the Lender  to  the
          Borrower,  the Borrower shall, as soon as practicable after  receiving
          such  notice,  prepay  the Principal Amount of  any  interest  on  the
          Lender's outstanding Loan (subject, however, to Section 4.3)

4.6  Taxes

     All  payments  by the Borrower of principal of, and interest on,  the  Loan
     and  all  other  amounts  payable pursuant to the relevant  Loan  Documents
     shall  be  made  free  and clear of, and without deduction  for  any  Taxes
     (other  than  franchise  taxes and taxes imposed  on  or  measured  by  the
     recipient's  net income or receipts). In the event that any withholding  or
     deduction  from any payment to be made by the Borrower hereunder  or  under
     any  other Loan Document is required in respect of any such Taxes  pursuant
     to any Applicable Law, then the Borrower will:-

     (a)  pay directly to the relevant authority the full amount to be so
          withheld or deducted;

     (b)  promptly forward to the Lender an official receipt or other
          documentation satisfactory to the Lender evidencing such payment to
          such authority; and

<PAGE>          28

     (c)  pay to the Lender entitled thereto such additional amount or amounts
          as is necessary to ensure that the net amount actually received by
          such Person will be equal to the full amount such Person would have
          received had no such withholding or deduction been required.

     Moreover,  if any such Taxes are directly asserted against the Lender  with
     respect  to  any payment received by the Lender, the Lender  may  pay  such
     Taxes   and  the  Borrower  will  promptly  pay  such  additional   amounts
     (including  any penalties, interest or expenses) as is or are necessary  in
     order  that  the  net amount received by such Person after the  payment  of
     such Taxes (including any Taxes on such additional amount) shall equal  the
     amount such Person would have received had such Taxes not been asserted.

     If  the  Borrower fails to pay any Taxes when due to the appropriate taxing
     authority or fails to remit to the Lender, the required receipts  or  other
     required documentary evidence, the Borrower shall indemnify the Lender  for
     any  incremental  Taxes, interest or penalties that may become  payable  by
     any such Person as a result of any such failure.

     The  Lender  agrees  to  co-operate with the  Borrower  in  completing  and
     delivering or filing tax-related forms which would reduce or eliminate  any
     amount  of the nature referred to in this Section; provided, however,  that
     the  Lender  shall not be under any obligation to execute and  deliver  any
     such  form if, in the reasonable opinion of the Lender, completion  of  any
     such  form  could  result in an adverse consequence  with  respect  to  the
     business or tax position of the Lender.

4.7  Mitigation

     (a)  In the event that the Borrower makes payment of any amount pursuant to
          Section 4.4 or 4.6 or that the Lender seeks payment of an amount
          pursuant to Section 4.4 or 4.6 or because of circumstances resulting
          in the 30 day negotiation period described in Section 4.1(b), 4.2(b)
          or 4.5(b), the Lender agrees that it will take such reasonable steps
          as may reasonably be open to it to mitigate the effects of the
          circumstances described in the foregoing Sections (such steps to
          include the transfer of the Lender's Lending Office to another
          jurisdiction and the application for a Tax Credit); provided, however,
          that the Lender shall not be obligated to (i) take any such steps if,
          in its opinion, such steps would require it to achieve less than its
          expected return with respect to the Facility or would have an adverse
          effect upon its assets or financial condition or (ii) achieve any
          particular result or incur any liability to the Borrower by virtue of
          any such steps resulting in less than complete mitigation of the
          relevant circumstances.

<PAGE>          29

     (b)  If, pursuant to clause (a), the Lender effectively obtains a refund of
          tax or credit (a "Tax Credit") against a payment made by the Borrower
          pursuant to Section 4.6 (a "Tax Payment"), and the Lender is able to
          identify such Tax Credit as being attributable to such Tax Payment,
          then the Lender, after actual receipt of such Tax Credit, shall
          reimburse the Borrower for such amount as the Lender shall reasonably
          determine to be the proportion of such Tax Credit as shall be
          reasonably attributable to such Tax Payment; provided, however, that
          the Lender shall not be required to make any such reimbursement which
          would cause it to lose the benefit of such Tax Credit or would
          otherwise adversely affect any matter relating to the Lender in
          connection with the assessment or payment of any Taxes. If the Lender
          shall claim any Tax Credit pursuant to this Section, it shall have
          absolute discretion in the extent, order and manner in which it does
          so.  The Lender shall not be obligated to disclose information
          regarding its tax affairs or computations to the Borrower.

4.8  Payments, Computations, etc.

     (a)  All payments by the Borrower pursuant to this Agreement or any other
          Loan Document shall be paid in Dollars.

     (b)  All payments under the Facility shall be made by the Borrower by
          delivery of Dollars in immediately available funds to an account of
          the Lender in New York City at the Lender's Lending Office, which
          account shall be designated from time to time by notice to the
          Borrower from the Lender.  All such payments shall be made, without
          setoff, deduction, or counterclaim, not later than 11:00 a.m.,
          New York City time, on the date when due.  Any payments received
          hereunder after the time and date specified in this Section shall be
          deemed to have been received by the Lender on the next following
          Business Day.

4.9  Set-off

     In  addition  to and not in limitation of any rights of any of  the  Lender
     under  Applicable Law, the Lender (or any branch thereof) shall,  upon  the
     occurrence  of  any  Enforcement Event, have the right to  appropriate  and
     apply  to  the payment of the Obligations owing to it (whether or not  then
     due),  any and all balances, credits, deposits, accounts or moneys  of  the
     Borrower  then  or  thereafter  maintained  with  the  Lender  in  whatever
     currency  (and,  as security for the Obligations owing to the  Lender,  but
     not  to the exclusion of any other rights the Lender may have, the Borrower
     hereby  grants to the Lender a continuing security interest in any and  all
     balances, etc., as aforesaid).

<PAGE>          30

4.10 Application of Proceeds

     (a)  If at any time any amount (including any proceeds received in respect
          of any sale of, collection from, or other realization upon, the MHV
          Guaranty) received by the Lender is less than the amount then due and
          payable pursuant to this Agreement or any other Loan Document such
          amount may, or at any time thereafter be applied (after payment of any
          amounts payable to the Lender pursuant to Sections 9.3 and 9.4 and
          similar provisions contained in any other Loan Document) in whole or
          in part by the Lender against, all or any part of the Obligations in
          the following order:-

          (i)  first, to amounts outstanding to the Lender under any Loan
               Document in respect of any amount other than interest on, or the
               Principal Amount of, the Loan;

          (ii) second, to amounts outstanding to the Lender under any Loan
               Document in respect of interest on the Loan; and

          (iii)third, to amounts outstanding to the Lender under any Loan
               Document in respect of the Principal Amount of the Loan.

     (b)  Any surplus of such cash or cash proceeds held by the Lender and
          remaining after payment in full of all the Obligations, and the
          termination of all Commitments (if not then already terminated),
          shall be paid over to or to whomsoever may be lawfully entitled
          to receive such surplus.

5.   CONDITIONS PRECEDENT TO MAKING LOANS

5.1  In General

     The  obligations  of the Lender to make the Loan shall be  subject  to  the
     prior  or  concurrent satisfaction of each of the conditions precedent  set
     forth  in  this Article.  Unless specifically stated to the contrary,  each
     document,  certificate  and  other Instrument delivered  pursuant  to  this
     Section  shall  be dated on, or prior to, and shall be in  full  force  and
     effect on, the Borrowing Date.

    The Lender shall have received:

5.1.1     Resolutions, etc.

     (a) a  certificate of an Authorized Representative of each Obligor  to  the
          effect  that (i) the representations of such Person set forth in  each
          Loan  Document to which it is a party shall be true and correct as  at
          the  Effective Date and after giving effect to the Loan  and  (ii)  no
          Default shall have then occurred and be continuing; and

<PAGE>          31

     (b) a  certificate of the Secretary or similar officer of each  Obligor  as
          to:

          (i)  resolutions of its Board of Directors or similar body then in
               force and effect authorizing the execution, delivery and
               performance of each Loan Document to which it is a party and any
               other document to be executed by it in connection with the
               transactions contemplated thereby;

          (ii) the incumbency and signatures of those of its officers authorized
               to act with respect to each Loan Document to which it is a party
               and any other document executed or to be executed by it; and

          (iii) its Organic Documents as then in effect,

     upon  which  certificate the Lender may conclusively rely  until  it  shall
     have received a further certificate of the Secretary or similar officer  of
     the relevant Person cancelling or amending such prior certificate.

5.1.2     Subordination Agreement; MHV Guaranty

     (a) counterparts  of  the  MHV  Guaranty, duly executed  by  an  Authorized
          Representative of MHV; and

     (b) counterparts  of  the  Subordination Agreement, duly  executed  by  the
          Senior  Agent,  Standard  Bank,  as  subordinated  creditor,  and   an
          Authorized Representative of Hecla Mining.

5.1.3     Borrowing Notice

     A  Borrowing  Notice  relating  to  the Loan,  executed  by  an  Authorized
     Representative of the Borrower.

5.1.4     Process Agent Acceptance

     The  Process Agent Acceptance, duly executed by the Process Agent, together
     with the evidence of the appointment of the Process Agent by each Obligor.

5.1.5     Opinions

     Opinions of:

     (a)  Debevoise & Plimpton, New York counsel to the Lender, substantially in
          the form of Exhibit E-1 attached hereto;

     (b)  Michael  B.  White, Vice President, General Counsel and  Secretary  to
          Hecla  Mining,  substantially  in the form  of  Exhibit  E-2  attached
          hereto; and

<PAGE>          32

     (c)  Neher  Von  Siegmund  Rengifo  Diquez,  Venezuelan  counsel  to   MHV,
          substantially in the form of Exhibit E-3 attached hereto.

5.1.6     Closing Expenses, etc.

     The  Lender  shall have received (including, to the extent necessary,  from
     the  proceeds  of the Loan to be made on the Borrowing Date)  all  expenses
     due  to the Lender (including those of the Lender's advisors then invoiced)
     and payable on or prior to such Borrowing Date.

5.1.7     Compliance with Warranties, No Defaults, etc.

     The  representations and warranties of the Borrower set forth in Article  6
     and  of  MHV in the MHV Guaranty shall be true and correct as of  the  date
     initially  made, and both immediately before and after the  making  of  the
     requested Loan:

     (a) such  representations and warranties shall be true and correct with the
          same  effect  as if then made (unless stated to relate  solely  to  an
          earlier date, in which case such representations and warranties  shall
          be true and correct as of such earlier date); and

     (b) no Default shall have then occurred and be continuing.

6.   REPRESENTATIONS AND WARRANTIES

     In  order  to induce the Lender to enter into this Agreement and  to  make,
     maintain  and  continue the Loan hereunder, the Borrower, individually  for
     itself  and  with respect to matters hereinafter relating to it, represents
     and  warrants  unto the Lender, in each case as set forth in this  Article.
     The  representations and warranties set forth in this Article shall be made
     on  the  Effective Date and upon the delivery of the Borrowing  Notice  and
     shall be deemed to be made as at the Borrowing Date.

6.1  Organization, Power, Authority, etc.

     (a)  The Borrower is a corporation duly incorporated, validly existing and
          in good standing under the laws of Delaware.

     (b)  The Borrower is qualified to do business and is in good standing
          (where such concept is applicable) as a foreign company in each
          jurisdiction where the nature of its business makes such
          qualification necessary and has full power and authority, and holds
          all requisite Approvals, to own and hold under lease its property and
          to conduct its business substantially as currently conducted by it.
          The Borrower has full power and authority to enter into and perform
          its obligations under this Agreement and the other Loan Documents
          executed or to be executed by it.

<PAGE>          33

6.2  Due Authorization; Non-Contravention

     The  execution  and  delivery by the Borrower of this  Agreement  and  each
     other  Loan  Document executed or to be executed by it and the  performance
     by  the  Borrower  of its obligations hereunder and thereunder,  have  been
     duly  authorized by all necessary corporate action on its part, do not  and
     will not require any Approval do not and will not conflict with, result  in
     any  violation  of, or constitute any default under, any provision  of  any
     Requirement  of Law or Approval binding on it, and will not  result  in  or
     require  the  creation or imposition of any Lien on any of  its  properties
     pursuant  to  the  provisions  of any Contractual  Obligation  (other  than
     pursuant to this Agreement).

6.3  Validity, etc.

     This Agreement constitutes, and each other Loan Document executed or to  be
     executed  by  the  Borrower constitutes, or on the due  execution  by  each
     party  thereto and delivery thereof will constitute, the legal,  valid  and
     binding  obligation  of  the Borrower enforceable in  accordance  with  its
     terms,  subject  as  to  enforceability, to  Applicable  Laws  relating  to
     bankruptcy  and  the enforceability of creditors' rights generally  and  by
     the fact that the availability of equitable remedies is discretionary.

6.4  Legal Status

     Neither  the  Borrower  nor any of its properties or  revenues  enjoys  any
     right  of immunity from suit, set off, attachment prior to judgment  or  in
     aid  of execution, or execution on a judgment in respect of its obligations
     under any of the Loan Documents to which it is a party.

6.5  Financial Information

     All  balance sheets and all other financial information of the Borrower and
     MHV  which have been furnished by it to the Lender for the purposes  of  or
     in  connection with this Agreement or any transaction contemplated  hereby,
     including:-

     (a)  the  consolidated balance sheet at December 31, 1999 and  the  related
          consolidated statements of operations and cashflows, loss and deficit
          and change in financial position for the Fiscal Year then ended, of
          the Borrower and its Subsidiaries in respect of  which an opinion was
          given by PricewaterhouseCoopers LLC;

     (b)  the  consolidated  balance sheet at March 31,  2000  and  the  related
          consolidated statement of profit and loss and cashflows for the Fiscal
          Quarter then ended, of the Borrower and its Subsidiaries, certified by
          the principal financial or accounting Authorized Representative of the
          Borrower;

<PAGE>          34

     (c)  the  balance sheet at December 31, 1999 and the related statements  of
          operations and cashflows, loss and deficit and change in financial
          position for the Fiscal Year then ended, of MHV; and

     (d)  the balance sheet at March 31, 2000 and the related statement of
          profit and loss and cashflows for the Fiscal Quarter then ended, of
          MHV, certified by the principal financial or accounting Authorized
          Representative of MHV,

     have  been  prepared  in accordance with U.S. GAAP (or  generally  accepted
     accounting  principles  in Venezuela, and subsequently  conformed  to  U.S.
     GAAP)  consistently  applied  throughout the periods  involved  (except  as
     disclosed  therein) and do present fairly (subject in the case  of  interim
     financial statements to year-end audit adjustments) the financial  position
     of  the  relevant Obligor as at the dates thereof and the  results  of  its
     operations for the periods then ended.  Neither Obligor on the date  hereof
     has  any  material  Contingent Liability or liability for taxes,  long-term
     leases  or unusual forward or unusual long-term commitments which  are  not
     reflected in its financial statements described in this Section or  in  the
     notes thereto.

6.6  Absence of Default

     The  Borrower is not in default in the payment of or in the performance  of
     any  material  obligation applicable to any Indebtedness  (subject  to  any
     applicable  grace period), or in default under any Requirement  of  Law  or
     the terms or conditions upon which any Approval has been granted.

6.7  Litigation, etc.

     Except  as  disclosed in Item 1 ("Litigation") of the Disclosure  Schedule,
     there  is no pending or, to the knowledge of the Borrower, threatened labor
     controversy,  litigation,  arbitration  or  governmental  investigation  or
     proceeding  against the Borrower (or any of its Subsidiaries) or  to  which
     any  of its business, operations, properties, assets or revenues is subject
     as  to which there is a reasonable likelihood of an adverse outcome to  the
     Borrower  and which, if adversely determined, would result in a  Materially
     Adverse  Effect.   In  the  case  of any litigation  described  in  Item  1
     ("Litigation")  of the Disclosure Schedule, there has been  no  development
     in such litigation which would result in a Materially Adverse Effect.

6.8  Materially Adverse Effect

     Since the date of the most recent audited financial statements referred  to
     in   Section 6.5, there have been no occurrences which, individually or  in
     the aggregate, would result in a Materially Adverse Effect.

<PAGE>          35

6.9  Taxes and Other Payments

     Except  as  disclosed in Item 2 ("Taxes") of the Disclosure  Schedule,  the
     Borrower  has filed all tax returns and reports required by any  Applicable
     Law  to  have  been  filed  by it and has paid all taxes  and  governmental
     charges  thereby shown to be owing and all claims for sums due  for  labor,
     material,  supplies,  personal property and  services  of  every  kind  and
     character  provided  with  respect to,  or  used  in  connection  with  its
     business  and  no claim for the same exists except as permitted  hereunder,
     except  (i)  any  such  taxes  and governmental  charges  which  are  being
     diligently  contested  in  good faith by appropriate  proceedings  and  for
     which  adequate reserves in accordance with U.S. GAAP shall have  been  set
     aside  on  the  books of the Borrower, (ii) any such tax  and  governmental
     charge which has not been timely invoiced as a result of the negligence  of
     the  relevant  taxing authority or (iii) in the case of any  other  claims,
     where  failure  to make payment therefor would not result in  a  Materially
     Adverse Effect with respect to the Borrower.

6.10 Subsidiaries

     All  of  the  Subsidiaries  (including the Material  Subsidiaries)  of  the
     Borrower  as  of  the Effective Date are listed in Item 3  ("Subsidiaries")
     of the Disclosure Schedule.

6.11 Environmental Warranties

     Except  as  disclosed in Item 4 ("Environmental Matters") of the Disclosure
     Schedule or except where failure of any of the following statements  to  be
     made  would  not  reasonably  be  expected to  have  a  Materially  Adverse
     Effect:-

     (a)  The Borrower is, and has at all times been, in compliance with, or has
          fully remedied any non-compliance so as to be in compliance with,  all
          Environmental Laws in all material respects and all material Approvals
          relating to Environmental Laws necessary in connection with the
          ownership and operation of its business and that of its subsidiaries
          are in full force and effect. There are no acts, omissions, events,
          states of facts or circumstances which may reasonably be expected to
          prevent or interfere with the Borrower being in substantial compliance
          with any Environmental Laws, including obtaining or being in
          substantial compliance with any material Approvals relating to
          Environmental Laws in the future, and no material investment is
          necessary to obtain or renew any material Approval relating to
          Environmental Laws.

<PAGE>          36

     (b)  There are no present or, to the Borrower's knowledge, past acts,
          omissions, events, states of facts or circumstances which have
          resulted in (or could result in) any third party (including any
          regulatory authority) taking any action or making any material claim
          against the Borrower under any Environmental Laws including remedial
          action (in particular in relation to contaminated land) or the
          revocation, suspension, variation or non-renewal of any Approval under
          any Environmental Laws and the Borrower has no notice of any
          complaints, demands, civil claims, enforcement proceedings or of any
          action required by any regulatory authority and there are no
          investigations pending or, to the Borrower's knowledge, threatened in
          relation to the failure of the Borrower to obtain any material
          Approval under, or comply with, any Environmental Laws.

6.12 ERISA Liabilities

     All currently existing ERISA Plans are listed in Item 5 ("ERISA Plans")  of
     the  Disclosure Schedule.  Except as disclosed in the Disclosure  Schedule,
     no  Termination Event has occurred with respect to any ERISA Plan  and  the
     Related Persons are in compliance with ERISA in all material respects.   No
     Related  Person is required to contribute to, or has any other absolute  or
     contingent liability in respect of, any "multiemployer plan" as defined  in
     Section 4001 of ERISA.  Except as set forth in the Disclosure Schedule:

     (a) no  "accumulated funding deficiency" (as defined in Section 4.12(a)  of
         the  Internal  Revenue Code) exists in excess of U.S.  $1,000,000  with
         respect  to  any ERISA Plan, whether or not waived by the Secretary  of
         the Treasury or his delegate; and

     (b) the  current  value of each ERISA Plan's benefits does not  exceed  the
         current value of such ERISA Plan's assets available for the payment  of
         such benefits by more than U.S.$1,000,000.

6.13 Regulations T, U and X

     The  Borrower  is  not  engaged principally, or as  one  of  its  important
     activities,  in  the  business  of extending  credit  for  the  purpose  of
     purchasing or carrying margin stock, and none of the proceeds of  the  Loan
     will  be  used for a purpose which violates or would be inconsistent  with,
     F.R.S.  Board  Regulations  T,  U and X.   Terms  for  which  meanings  are
     provided  in  F.R.S.  Board  Regulations T,  U  or  X  or  any  regulations
     substituted  therefor, as from time to time in effect,  are  used  in  this
     Section with such meanings.

<PAGE>          37

6.14 Government Regulation

     Neither  the Borrower nor any Subsidiary thereof is an "investment company"
     within  the  meaning of the Investment Company Act of 1940, or  a  "holding
     company",  or  a  "subsidiary  company"  of  a  "holding  company",  or  an
     "affiliate"  of  a  "holding  company" or of a "subsidiary  company"  of  a
     "holding  company", in each case within the meaning of the  Public  Utility
     Holding Company Act of 1935.

7.   COVENANTS

7.1  Informational and Financial Covenants

     The  Borrower  agrees  with  the Lender that, until  all  Commitments  have
     terminated  and all Obligations have been paid and performed  in  full  the
     Borrower will perform its relevant obligations set forth in this Section.

7.1.1.    Financial Information, etc.

     The  Borrower  will  deliver to the Lender copies of the following  reports
     and information:-

     (a)  promptly when available, and in any event within 90 days after the
          close of each of its Fiscal Years, its consolidated balance sheet at
          the close of such Fiscal Year and related consolidated statements of
          operations and cashflows, loss and deficit, and changes in financial
          position, as may be relevant (with comparable information at the close
          of and for the prior Fiscal Year) and reported on without
          Impermissible Qualification by an independent certified public or
          chartered accountant of recognized international standing; and

     (b)  promptly when available, and in any event within 45 days after the
          close of the first three Fiscal Quarters of each of its Fiscal Years,
          its consolidated balance sheet at the close of such Fiscal Quarter and
          related consolidated statements of operations and cashflows, loss and
          deficit, and changes in financial position, as may be relevant, for
          such Fiscal Quarter and for the period in such Fiscal Year ending on
          the last day of such Fiscal Quarter (with comparable information at
          the close of and for the corresponding Fiscal Quarter of the prior
          Fiscal Year and for the corresponding portion of such prior Fiscal
          Year) and certified by its accounting or financial Authorized
          Representative.

<PAGE>          38

7.1.2     Defaults

     As  soon  as practicable and in any event within three Business Days  after
     obtaining  knowledge of the occurrence of any Default relating to  it,  the
     Borrower  will  furnish to the Lender a statement of  its  chief  financial
     Authorized  Representative setting forth details of such  Default  and  the
     action which it has taken and proposes to take with respect thereto.

7.1.3     Miscellaneous Information

     The  Borrower  will  deliver to the Lender copies of the following  reports
     and information:-

     (a) without duplication of any other clause of this Section, notice of  the
          occurrence as soon as possible and in any event within three  Business
          Days  after  the  Borrower  knows  or  has  reason  to  know  of   any
          circumstance which has a reasonable likelihood of having a  Materially
          Adverse Effect;

     (b) as  soon  as  practicable  details of any  litigation,  arbitration  or
          administrative  proceedings, which if resolved  against  the  Borrower
          could   result  in  the  Borrower  suffering  a  loss  in  excess   of
          U.S.$1,000,000 (or the equivalent thereof in any other currency); and

     (c) all  other  information relating to its financial condition, operations
          or assets the Lender may from time to time reasonably request.

7.1.4     Books and Records; Access

     The  Borrower will keep financial records and statements reflecting all  of
     its business affairs and transactions in accordance with U.S. GAAP.

7.1.5     Accuracy of Information

     All  factual  information  hereafter furnished  by  or  on  behalf  of  the
     Borrower  in  writing to the Lender for the purposes of  or  in  connection
     with  this  Agreement or any transaction contemplated hereby will  be  true
     and  accurate  in  every  material respect on the date  as  of  which  such
     information  is  dated  or  certified and such  information  shall  not  be
     incomplete  by omitting to state any material fact necessary to  make  such
     information not misleading.

7.2  Affirmative Covenants

     The  Borrower  agrees  with  the Lender that, until  all  Commitments  have
     terminated  and all Obligations have been paid and performed in  full,  the
     Borrower will perform its relevant obligations set forth in this Section.

<PAGE>          39

7.2.1     Compliance with Laws, etc.

     The  Borrower will comply (a) in all material respects with all  Applicable
     Laws and (b) with the terms of any Loan Document to which it is a party.

7.2.2     Maintenance of Corporate Existence

     The  Borrower  will do and will cause to be done at all  times  all  things
     necessary to maintain and preserve its corporate existence and to  be  duly
     qualified  to  do business and be in good standing (where such  concept  is
     relevant)  as a foreign corporation in each jurisdiction where  the  nature
     of  its  business  requires it to be so qualified  and  where  there  is  a
     reasonable likelihood of a Material Adverse Effect if not so qualified.

7.2.3     Payment of Taxes, etc.

     The  Borrower  will  pay  and discharge, as the same  may  become  due  and
     payable,  all  taxes, assessments, fees and other governmental  charges  or
     levies against it or on any of its property, as well as claims of any  kind
     or  character (including claims for sums due for labor, material, supplies,
     personal  property  and services); provided, however,  that  the  foregoing
     shall  not  require  the  Borrower  to  pay  or  discharge  any  such  tax,
     assessment,  fee, charge or levy (i) if such tax, etc. has not been  timely
     invoiced  as  a result of the negligence of the relevant taxing  authority,
     or  so  long  as it shall be diligently contesting the validity  or  amount
     thereof  in good faith by appropriate proceedings and shall have set  aside
     on  its  books adequate reserves in accordance with U.S. GAAP with  respect
     thereto  or (ii) in the case of any such claims due, where failure to  make
     payment therefor would not result in a Materially Adverse Effect.

7.2.4     Use of Proceeds

     The  Borrower  shall apply the proceeds of the Loan strictly in  accordance
     with the terms of this Agreement, including the third recital.

7.3  Negative Covenants

     The  Borrower  agrees  with  the Lender that, until  all  Commitments  have
     terminated  and all Obligations have been paid and performed in  full,  the
     Borrower will perform its relevant obligations set forth in this Section.

<PAGE>          40

7.3.1     Business Activities; Place of Business; Organic Documents; Fiscal Year

     The Borrower shall not:-

         (i)   change its chief executive office or principal place of business;

         (ii)  amend its Organic Documents in any material respect or change its
               corporate name; or

         (iii) change its Fiscal Year.

7.3.2     ERISA Plans

     The  Borrower  will not, and will not permit any other Related  Person  to,
     incur  any obligation to contribute to any "multiemployer plan" as  defined
     in Section 4001 of ERISA.

7.3.3     Consolidation, Merger, etc

     The  Borrower  will not (a) liquidate or dissolve; or (b) if the  following
     would  result  in a Change in Control  consolidate with, or merge  into  or
     with, any other corporation.

8.   EVENTS OF DEFAULT

8.1  Events of Default

     The  term "Event of Default" shall mean any of the events set forth in this
     Section.

8.1.1     Non-Payment of Obligations

     The Borrower:-

     (a)  shall  default in the payment or prepayment when due of any  Principal
          Amount; or

     (b)  shall  default  in the payment when due of any other  Obligation  (and
          such  default shall continue unremedied for a period of three Business
          Days).

8.1.2     Non-Performance of Certain Covenants

     The Borrower shall default in the due performance and observance of any  of
     its  obligations under Section 7.2.2, 7.2.4 or 7.3 or MHV shall default  in
     the  due performance and observance of any of its obligations under Section
     4.2.2,  4.2.4 or 4.3.1 of the MHV Guaranty (other than if any such  default
     is capable of cure or remedy, such default shall

<PAGE>          41

     continue  unremedied  for  a period of 21 Business  Days  (or  such  longer
     period  as the Lender may agree, if the Lender determines that such default
     is  reasonably capable of being cured in such longer period)  after  notice
     thereof shall have been given to the Borrower by the Lender).

8.1.3     Non-Performance of Other Obligations

     Either  Obligor shall default in the due performance or observance  of  any
     term, condition, covenant or agreement, whether contained herein or in  any
     other  Loan Document executed by it (other than a default arising  pursuant
     to  Section 8.1.1 or 8.1.2) and, if capable of cure or remedy, such default
     shall  continue unremedied for a period of 21 Business Days (or such longer
     period  as the Lender may agree, if the Lender determines that such default
     is  reasonably  capable  of being cured within such  longer  period)  after
     notice  thereof  shall  have  been given to the  relevant  Obligor  by  the
     Lender.

8.1.4     Breach of Representation or Warranty

     Any  representation or warranty of either Obligor hereunder or in any other
     Loan  Document executed by it or in any other writing furnished  by  or  on
     behalf  of  such Obligor to the Lender for the purposes of or in connection
     with  this  Agreement or any such Loan Document is or  shall  be  incorrect
     when made  in any material respect.

8.1.5     Default on other Indebtedness

     A  default  shall occur in the payment when due (subject to any  applicable
     grace  period),  whether by acceleration or otherwise,  by  either  Obligor
     under  any Indebtedness (excluding Indebtedness described in Section 8.1.1)
     of  such  Obligor  having  a  principal  amount,  individually  or  in  the
     aggregate,  in excess of U.S.$1,000,000 (or the equivalent of  any  of  the
     foregoing  in any other currency), or the maturity of any such Indebtedness
     shall be accelerated.

8.1.6     Bankruptcy, Insolvency, etc.

     The Borrower or any of its Material Subsidiaries shall:-

     (a)  become  insolvent or generally fail to pay, or admit  in  writing  its
          inability to pay, debts as they become due;

     (b)  apply  for, consent to, or acquiesce in, the appointment of a trustee,
          receiver, sequestrator or other custodian for such Person, or any
          property of any thereof, or make a general assignment for the benefit
          of creditors;

<PAGE>          42

     (c)  in the absence of such application, consent or acquiescence, permit or
          suffer to exist the appointment of a trustee, receiver, sequestrator
          or other custodian for such Person or for a substantial part of the
          property of any thereof, and such trustee, receiver, sequestrator or
          other custodian shall not be discharged within 60 days, provided that
          the Borrower hereby expressly authorizes the Lender to appear in any
          court conducting any relevant proceeding during such 60-day period to
          preserve, protect and defend the rights of the Lender under the Loan
          Documents;

     (d)  permit  or  suffer  to  exist  the  commencement  of  any  bankruptcy,
          reorganization, debt arrangement or other case or proceeding under any
          bankruptcy or insolvency law, or any dissolution, winding up or
          liquidation proceeding, in respect of any Person and, if such case or
          proceeding is not commenced by such Person, such case or proceeding
          shall be consented to or acquiesced in by such Person or shall result
          in the entry of an order for relief or shall remain for 60 days
          undismissed, provided that the Borrower hereby expressly authorizes
          the Lender to appear in any court conducting any relevant proceeding
          during such 60-day period to preserve, protect and defend the rights
          of the Lender under the Loan Documents;

     (e)  suffer any comparable event to any of the foregoing in any
          jurisdiction; or

     (f)  take any corporate action authorizing, or in furtherance of, any of
          the foregoing.

8.1.7     Impairment of Loan Documents

     This  Agreement  or  any other Loan Document shall terminate  or  cease  in
     whole  or  part to be the legal, valid, binding and enforceable  obligation
     of  the  relevant Obligor party thereto, or either Obligor shall,  directly
     or  indirectly, contest in any manner such effectiveness, validity, binding
     nature or enforceability.

8.1.8     Judgments

     Any  judgment or order for the payment of money in excess of U.S.$1,000,000
     (or  the  equivalent  thereof  in any other  currency)  shall  be  rendered
     against either Obligor and either:-

     (a)  enforcement proceedings shall have been commenced by any creditor upon
          such judgment or order; or

<PAGE>          43

     (b)  there  shall be any period of 21 consecutive days during which a  stay
          of  enforcement  of  such judgment or order, by reason  of  a  pending
          appeal  or  otherwise, shall not be in effect, unless the  payment  of
          such  judgment is covered in full (subject to a customary  deductible)
          by insurance maintained with responsible insurance companies.

8.1.9     Change in Control

     Any Change in Control shall occur.

8.1.10    Materially Adverse Effect

     Any  event  (other  than  as  enumerated in any  other  provision  of  this
     Article)  shall  occur  or  condition  shall  exist  which  constitutes   a
     Materially Adverse Effect.

8.2  Action if Bankruptcy

     If  an  Insolvency  Event shall occur, the Commitment (if  not  theretofore
     terminated)  shall  automatically  terminate,  without  notice,   and   the
     outstanding  principal  amount  of  all  outstanding  Loan  and  all  other
     Obligations shall automatically be and become immediately due and  payable,
     without notice or demand.

8.3  Action if Other Event of Default

     If  any  Event of Default (other than an Insolvency Event) shall occur  for
     any  reason, whether voluntary or involuntary, and be continuing the Lender
     shall,  upon  notice or demand to the Borrower, declare all or any  portion
     of  the outstanding principal amount of the Loan to be due and payable  and
     any  or  all  other Obligations to be due and payable and/or the Commitment
     (if  not  theretofore  terminated) to be  terminated,  whereupon  the  full
     unpaid  amount  of  the Loan and any and all other such  Obligations  which
     shall  be  so declared due and payable shall be and become immediately  due
     and  payable, without further notice, demand or presentment, and/or, as the
     case may be, such Commitment shall terminate.

9.   MISCELLANEOUS

9.1  Waivers, Amendments, etc

     The  provisions  of this Agreement and of each other Loan Document  (except
     to  the  extent  expressly otherwise set forth in such Loan  Document)  may
     from  time  to  time  be amended, modified or waived,  if  such  amendment,
     modification  or waiver is in writing and consented to by the Borrower  (or
     the relevant Obligor party to such Loan Document) and the Lender.

<PAGE>          44

     No  failure or delay on the part of the Lender in exercising any  power  or
     right  under  this Agreement or any other Loan Document to which  it  is  a
     party  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  the  Borrower in any case shall entitle it  to  any  notice  or
     demand  in  similar or other circumstances.  No waiver or approval  by  the
     Lender  under this Agreement or any other Loan Document to which  it  is  a
     party  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.

9.2  Notices

     All  notices  and other communications provided to any party  hereto  under
     this  Agreement or any other Loan Document shall be in writing or by  telex
     or  by  facsimile and addressed or delivered to it at the relevant  address
     for  such party 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 the relevant Loan Document or a notice to the other parties.
     Any  notice, if sent by hand delivery or courier delivery, shall be  deemed
     received  on the Business Day when delivered and, if transmitted  by  telex
     or  facsimile,  shall be deemed given on the Business Day when  transmitted
     (answerback confirmed in the case of telexes and transmission confirmed  by
     the sending facsimile machine in the case of facsimiles).

9.3  Costs and Expenses

     (a)  Without prejudice to similar obligations of the Borrower under any
          other Loan Document, the Borrower agrees to pay on demand all
          reasonable out-of-pocket expenses (inclusive of United Kingdom Value
          Added Tax or any other similar tax to the extent not recoverable by
          the Lender) of the Lender for the negotiation, preparation, execution
          and delivery of this Agreement and each other Loan Document, including
          schedules and exhibits, and any amendments, waivers, consents,
          supplements or other modifications to this Agreement or any other Loan
          Document as may from time to time hereafter be required (including the
          reasonable fees and expenses of counsel and designated local counsel
          to the Lender from time to time incurred in connection therewith),
          whether or not the transactions contemplated hereby are consummated,
          and all expenses (inclusive as aforesaid) of the Lender (including
          reasonable fees and expenses of counsel and designated local counsel
          to the Lender and any stamp or other taxes) incurred in connection
          with the preparation and review of the form of any Instrument relevant
          to this Agreement or any other Loan Document, the consideration of
          legal questions relevant hereto and thereto

<PAGE>          45

          and  the  filing,  recording, refiling or  re-recording  of  any  Loan
          Document and all amendments or supplements to any thereof and any  and
          all other documents or Instruments of further assurance required to be
          filed or recorded or refiled or re-recorded by the terms hereof or  of
          any other Loan Document.

     (b)  The Borrower agrees to reimburse the Lender upon demand for all
          reasonable out-of-pocket expenses (including attorneys' fees and
          expenses and inclusive of United Kingdom Value Added Tax or any other
          similar tax) incurred by the Lender in connection with (i) the
          negotiation of any restructuring or "work-out", whether or not
          consummated, of any Obligations and (ii) the enforcement of any such
          Obligations.

9.4  Indemnification

     In  consideration  of the execution and delivery of this Agreement  by  the
     Lender  and  the  extension  of  the  Commitments,  the  Borrower  (without
     prejudice  to  any similar obligations of either Obligor  pursuant  to  any
     applicable  Loan  Document) hereby indemnifies, exonerates  and  holds  the
     Lender   and   each  of  the  Lender's  Affiliates,  officers,   directors,
     shareholders,   employees  and  agents  (collectively,   the   "Indemnified
     Parties")  free  and harmless from and against any and all actions,  causes
     of  action,  suits, losses, costs, liabilities and damages and expenses  in
     connection  therewith,  in  each case arising  from  the  claims  of  third
     parties  including  reasonable  attorneys'  fees  and  disbursements   (the
     "Indemnified Liabilities"), incurred by the Indemnified Parties or  any  of
     them as a result of, or arising out of, or relating to:-

     (a)  any transaction financed or to be financed in whole or in part,
          directly or indirectly, with the proceeds of the Loan;

     (b)  the entering into and performance of this Agreement and any other Loan
          Document by any of the Indemnified Parties,

     except  for any such Indemnified Liabilities arising for the account  of  a
     particular Indemnified Party by reason of the relevant Indemnified  Party's
     gross  negligence or wilful misconduct, and if and to the extent  that  the
     foregoing  undertaking may be unenforceable for any  reason,  the  Borrower
     hereby  agrees  to  make  the  maximum  contribution  to  the  payment  and
     satisfaction  of  each of the Indemnified Liabilities  for  which  each  is
     liable hereunder and which is permissible under Applicable Law.

9.5  Survival

     The  obligations of the Borrower under Sections 4.2, 4.3, 4.4, 4.6, 9.3 and
     9.4,  shall, in each case, survive any termination of this Agreement.   The
     representations and warranties made by each Obligor in this  Agreement  and
     in  each  other  Loan  Document to which it is a party  shall  survive  the
     execution  and  delivery  of  this  Agreement  and  each  such  other  Loan
     Document.

<PAGE>          46

9.6  Severability

     Any  provision  of  this  Agreement or any other  Loan  Document  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  such  other  Loan  Document or  affecting  the  validity  or
     enforceability of such provision in any other jurisdiction.

9.7  Headings

     The  various headings of this Agreement and of each other Loan Document are
     inserted  for  convenience  only  and  shall  not  affect  the  meaning  or
     interpretation  of  this  Agreement or such  other  Loan  Document  or  any
     provisions hereof or thereof.

9.8  Counterparts; Effectiveness

     This   Agreement  may  be  executed  by  the  parties  hereto  in   several
     counterparts, each of which shall be deemed to be an original  and  all  of
     which  shall  constitute  together but one and the  same  agreement.   This
     Agreement  shall become effective on the date (the "Effective  Date")  when
     counterparts  hereof  executed on behalf of the Borrower  shall  have  been
     received by the Lender.

9.9  Governing Law; Entire Agreement

     (a)  THIS  AGREEMENT  AND, UNLESS OTHERWISE SPECIFIED THEREIN,  EACH  OTHER
          LOAN  DOCUMENT  SHALL EACH BE DEEMED TO BE A CONTRACT MADE  UNDER  AND
          GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     (b)  This  Agreement  and  the other Loan Documents constitute  the  entire
          understanding  among the parties hereto with respect  to  the  subject
          matter  hereof and thereof and supersede any prior agreements, written
          or oral, or document with respect thereto.

9.10 Successors and Assigns

     This Agreement shall be binding upon and shall inure to the benefit of  the
     parties  hereto  and  their respective successors  and  assigns;  provided,
     however, that:

     (a)  the  Borrower  may  not assign or transfer its rights  or  obligations
          without the prior written consent of the Lender; and

     (b)  the rights of sale, assignment, and transfer of the Lender are subject
          to Section 9.11.

<PAGE>          47

9.11 Sale and Transfer of the Loan; Participations in the Loan

     The  Lender  may assign, or sell participations in, its Loan and Commitment
     in  accordance with this Section.  The Lender, with notice to the Borrower,
     may  assign and delegate (or grant participations) to any of its Affiliates
     or  to  one  or more commercial banks a constant and not varying percentage
     of  the  Lender's Loan and/or Commitment, in a minimum aggregate amount  of
     U.S.$1,000,000.   To  the extent the Lender wishes to make  any  assignment
     and  delegation  of  (or  sell  participations  in)  the  Loan  and/or  its
     Commitment,  the  parties hereto agree to execute such documents  and  make
     such  amendments  to  the Loan Documents as are necessary  to  reflect  the
     participation of more than one financial institution in the  Facility.   In
     no  event  shall the Borrower be required to pay any amount  under  any  of
     Sections  4.2, 4.3, 4.4, 4.5 and 4.6 existing at the time of  any  proposed
     assignment  or  participation  which would otherwise  be  payable  if  such
     assignment took place.

9.12 Other Transactions

     Nothing  contained herein shall preclude the Lender from  engaging  in  any
     transaction,  in  addition to those contemplated by this Agreement  or  any
     other  Loan Document, with the Borrower or any of its Affiliates  in  which
     the  Borrower or such Affiliate is not restricted hereby from engaging with
     any other Person.

9.13 Forum Selection and Consent to Jurisdiction; Waiver of Immunity

     ANY  LITIGATION  BASED HEREON, OR ARISING OUT OF, UNDER, OR  IN  CONNECTION
     WITH,  THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT,
     COURSE  OF  DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR  ACTIONS  OF
     THE  LENDER OR THE BORROWER MAY BE BROUGHT AND MAINTAINED IN THE COURTS  OF
     THE  STATE  OF  NEW  YORK OR IN THE UNITED STATES DISTRICT  COURT  FOR  THE
     SOUTHERN  DISTRICT  OF  NEW  YORK AND IN ADDITION  IN  THE  COURTS  OF  ANY
     JURISDICTION WHERE ANY COLLATERAL OR OTHER PROPERTY OF THE BORROWER MAY  BE
     FOUND.   THE  BORROWER  HEREBY  EXPRESSLY AND IRREVOCABLY  SUBMITS  TO  THE
     JURISDICTION  OF  THE COURTS OF THE STATE OF NEW YORK  AND  OF  THE  UNITED
     STATES  DISTRICT  COURT  FOR THE SOUTHERN DISTRICT  OF  NEW  YORK  FOR  THE
     PURPOSE  OF  ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY  AGREES
     TO  BE BOUND BY ANY FINAL JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH
     LITIGATION.   THE BORROWER HEREBY IRREVOCABLY APPOINTS THE  CT  CORPORATION
     WITH  OFFICES ON THE DATE HEREOF AT 1633 BROADWAY, NEW YORK, NEW YORK 10019
     (THE  "PROCESS  AGENT") AS ITS AGENT FOR SERVICE OF PROCESS  IN  NEW  YORK.
     SERVICE  OF  PROCESS MAY BE MADE UPON THE BORROWER BY MAILING OR DELIVERING
     A  COPY  OF SUCH PROCESS TO IT IN CARE OF THE PROCESS AGENT AT THE  PROCESS
     AGENT'S  ADDRESS  AND THE BORROWER HEREBY FURTHER IRREVOCABLY  CONSENTS  TO
     THE  SERVICE  OF  PROCESS  IN ANY SUIT, ACTION OR PROCEEDING  IN  NEW  YORK
     ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY THE MAILING  OF
     COPIES OF SUCH PROCESS TO IT AT ITS ADDRESS FOR NOTICES SET FORTH

<PAGE>          48

     BELOW  ITS SIGNATURE HERETO.  THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY
     WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT  MAY
     HAVE  OR  HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH  LITIGATION
     BROUGHT  IN  ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT  ANY  SUCH
     LITIGATION  HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  TO THE EXTENT  THAT
     THE  BORROWER  HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM  JURISDICTION
     OF  ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE,
     ATTACHMENT  PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE)
     WITH  RESPECT  TO  ITSELF OR ITS PROPERTY, THE BORROWER HEREBY  IRREVOCABLY
     WAIVES  SUCH  IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER  THIS  AGREEMENT
     AND THE OTHER LOAN DOCUMENTS.

9.14 Waiver of Jury Trial

     THE   LENDER   AND   THE   BORROWER  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 OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT,
     COURSE  OF  DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS  OF
     THE  LENDER  OR THE BORROWER.  THIS PROVISION IS A MATERIAL INDUCEMENT  FOR
     THE LENDER ENTERING INTO THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT.

<PAGE>          49

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.

                               HECLA MINING COMPANY
                               as the Borrower

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

                               Address for Notices:

                               6500 Mineral Drive
                               Coeur d'Alene
                               Idaho 83815-8788
                               U.S.
                               Facsimile No.: 1-208-709-7612
                               Attention:   Chief Operating Officer

Commitment Amount :  U.S.$3,000,000     STANDARD BANK LONDON LIMITED
                                        as Lender

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

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

                              Lending Office:

                              Standard Bank London Limited
                              Cannon Bridge House
                              25 Dowgate Hill
                              London  EC4R 2SB

                              Address for Notices:

                              Standard Bank London Limited
                              Cannon Bridge House
                              25 Dowgate Hill
                              London EC4R 2SB
                              Facsimile No.: 44-020 7815-4284
                              Attention:     Steven Sharpe

<PAGE>          50

                                   SCHEDULE I

                               DISCLOSURE SCHEDULE

Item 1 - Litigation

Pertinent  litigation  matters are described in Hecla  Mining  Company's  annual
report on Form 10-K for the 1999 Fiscal Year, as follows:

Item 3 - Legal Proceedings
Note 5 - Notes to Consolidated Financial Statements
Note 8 - Notes to Consolidated Financial Statements

Item 2 - Taxes

N/A

Item 3 - Subsidiaries

  Name                                                Ownership  Jurisdiction
  CoCa Mines Inc.                                          100%   Colorado
  Creede Resources, Inc.                                   100%   Colorado
  Southern San Luis Valley Railroad Company                100%   Colorado
  Eastmaque Gold Mines (U.S.) Corp.                        100%   Nevada
  Hecla International Mining, Inc.                         100%   Delaware
  Kentucky-Tennessee Clay Company*                         100%   Delaware
  K-T Feldspar Corporation*                                100%   North Carolina
  MWCA, Inc.                                               100%   Idaho
  Nevada Mine Properties, Inc.                             100%   Nevada
  Southeastern Land Resources Corporation                  100%   Delaware
  Compania Minera Hecla Chile Limitada                     100%   Chile
  Constructora Hecla, S.A. de C.V.                         100%   Mexico
  Equinox Resources (Canada) Inc.                          100%   Canada
  Hecla do Brasil Empreendimentos e Participacoes Ltda.    100%   Brazil
  Duque de Caxias Mineracao Ltda.                          100%   Brazil
  Hecla Mining Company of Canada Ltd.                      100%   Canada
  Hecla Resources Investments Ltd.                         100%   Bermuda
  Industrias Hecla, S.A. de C.V.                           100%   Mexico
  K-T Clay de Mexico, S.A. de C.V.*                        100%   Mexico
  Minera Hecla S.A. de C.V.*                               100%   Mexico

<PAGE>          51

  Minera Hecla del Peru S.A.                               100%   Peru
  Mineracao Hecla do Brasil Ltda.                          100%   Brazil
  Minera Hecla Venezolana, C.A.*                           100%   Venezuela
  Recursos Minerales del Norte, S.A. de C.V.               100%   Mexico
  ConSil Corp.                                           78.45%   Idaho
  The Rosebud Mining Company, L.L.C.                        50%   Delaware

* Designates Material Subsidiaries

Item 4 - Environmental Matters

Pertinent  environmental matters are described in Hecla Mining Company's annual
report on Form 10-K for the 1999 Fiscal Year, as follows:

Item 1 - Business
Item 3 - Legal Proceedings
Note 5 - Notes to Consolidated Financial Statements
Note 8 - Notes to Consolidated Financial Statements

Item 5 - ERISA Plans

The  benefit plans put in place by Hecla Mining for its employees and  those  of
certain  of  its subsidiaries are as follows.  Such plans are more  particularly
described in Note 9 to the Consolidate Financial Statements in the Form 10-K for
the fiscal year ended December 31, 1999.

     Company                           Benefit Plan
     Hecla Mining Company              Lucky Friday Pension Plan
     Hecla Mining Company              Lucky Friday Hourly Savings Plan
     Hecla Mining Company              PBGC Premium Payments
     Hecla Mining Company              Travel Accident Plan (515)
     Hecla Mining Company              Long Term Disability Plan (514)
     Hecla Mining Company              Lucky Friday Layoff Plan (510)

<PAGE>          52

     Hecla Mining Company              Lucky Friday Non-Occupational Disability
                                       Plan (509)
     Hecla Mining Company              Lucky Friday Group Dental Plan (508)
     Hecla Mining Company              Lucky Friday Medical Insurance Plan (507)
     Hecla Mining Company              Supplemental Ret. and Death
                                       Benefit Plan (505)
     Hecla Mining Company              Non-Occupational Disability Plan (504)
     Hecla Mining Company              Group Dental Plan (503)
     Hecla Mining Company              Group Medical Insurance Plan (502)
     Hecla Mining Company              Lucky Friday Group Life Insurance Plan
                                       (506)
     Hecla Mining Company              Group Life Insurance Plan (501)
     Hecla Mining Company              Retirement Plan (001)
     Hecla Mining Company              Capital Accumulation Plan (004)
     K-T Feldspar Corporation          PBGC Premium Payments
     Kentucky-Tennesse Clay            Hourly Employees Pension Fund (001)
     K-T Feldspar Corporation          Hourly Pension Plan (002)

<PAGE>          53

                                   SCHEDULE II
                              ADDITIONAL COSTS RATE

1.   The  Additional Costs Rate applicable to an Interest Period  shall  be  the
     rate determined by the Lender to be equal to the following formula:

                                    A x 0.01%
                                    ---------
                                       300

     where,  in  each  case, on the day of application of that  formula  by  the
     Lender:

     A     is  the  rate  of  charge  payable by the  Lender  to  the  Financial
           Services Authority under paragraph 2.02 or 2.03 (as the case may  be)
           of  the Fees Regulations (but where, for this purpose, the figures at
           paragraph  2.02(b)  and  2.03(b) of the  Fees  Regulations  shall  be
           deemed to be zero) and expressed in pounds per 1 million of the  Fee
           Base of the Lender.

2.   For the purposes of this Schedule:-

     "Eligible  Liabilities" and "Special Deposits" have the meanings  given  to
     those  terms under the Bank of England Act 1998 or by the Bank  of  England
     (as may be appropriate), on the day of the application of the formula;

     "Fee  Base"  has  the meaning given to that term for the purposes  of,  and
     shall be calculated in accordance with, the Fees Regulations;

     "Fees Regulations" means, as appropriate, either:

     (a) the Banking Supervision (Fees) Regulations 1998; or

     (b) such  regulations as from time to time may be in force relating to  the
         payment   of  fees  for  banking  supervision  in  respect  of  periods
         subsequent to 28 February 1999.

         (i)  The Additional Costs Rate applicable to a Loan for an Interest
              Period shall be calculated at or about 11.00 am on the first day
              of that Interest Period and shall be payable on the date on which
              interest is payable in respect of that Loan under this Agreement.

         (ii) The Lender shall determine the Additional Costs Rate by
              application of the formula set out in paragraph 1 above on the
              first day of each Interest Period.

<PAGE>          54

If  there  is  any change in applicable law or regulation, or the interpretation
thereof,  by any governmental authority charged with the administration thereof,
or  in  the  nature  of  any request or requirement by  the  Financial  Services
Authority,  the  Bank  of  England, or other applicable banking  authority,  the
effect of which is to impose, modify or deem applicable any fees or any reserve,
special  deposit, liquidity or similar requirements against assets held  by,  or
deposits  in, or for the account of, or advances by the Lender, or in any  other
respect whatsoever, the Lender shall be entitled to vary the formula set out  in
paragraph 1 above so as (but only so as) to restore the Lender's position  -  in
terms  of  overall  return to the Lender - to that which prevailed  before  that
change  became  necessary.  The Lender shall notify the  Borrower  of  any  such
necessary variation to the formula and the formula, as so varied, shall  be  the
formula  for  the  purposes  of this Agreement with  effect  from  the  date  of
notification.

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