Document:

Exhibit 4D

THIRTY-_________

 

SUPPLEMENTAL INDENTURE

 

FROM

 

 

WISCONSIN PUBLIC SERVICE

CORPORATION

 

TO

 

U.S. BANK, NATIONAL ASSOCIATION

(Successor to Firstar Bank, National Association,

Successor to Firstar Trust Company,

Formerly Known as First Wisconsin Trust Company)

TRUSTEE

 

______________

 

DATED AS OF __________________

 

______________

 

SUPPLEMENTAL

To

First Mortgage and Deed of Trust

Dated as of January 1, 1941

WISCONSIN PUBLIC SERVICE CORPORATION

THIRTY-_________ SUPPLEMENTAL INDENTURE

 

Dated as of ________________

TABLE OF CONTENTS

____________

		
      

PAGE

    

	Parties	
      1

	Recitals	1
	Form of Bond of Collateral Series ____	3
	Form of Trustee's Certificate	5
	Form of Prepayment Record	8
	Further Recitals	8
		

		
      Article I

Form of Execution of Bonds of New Series
	
			
	Sec. 1.01	 Terms of bonds of new series	9
	Sec. 1.02 	 Limitation of new series to $____,000,000	9
	Sec. 1.03	 Optional redemption of bonds of new series by Company	9
	Sec. 1.04	 Notice of, and selection of bonds of new series for,
            redemption	10
	Sec. 1.05	Redemption in event of default under section 6.01 of
            the Senior Indenture	11
	Sec. 1.06	 Partial redemption and payments of redemption price
            without presentation of bonds and new series	11
	Sec. 1.07	 Company not obligated to make any transfer of bonds of
            new series for fifteen days before any interest payment date	11
	Sec. 1.08	 Charges for transfer of bonds of new series	11
	Sec. 1.09	 Bonds of new series may be signed by facsimile
            signatures of Company officers	11
	Sec. 1.10	 Payment dates falling on Saturday, Sunday or legal
            holiday	12
	Sec. 1.11 	 Bonds of new series redeemed or paid not
      reissuable,
            but may be basis for issuance of bonds of different series, credits
            or cash withdrawals	12
			
		
      Article II

Confirmation of Lien
	
			
	Sec. 2.01	 Granting clauses and habendum	12
			
		
      Article III

Particular Covenants of the Company
	
			
	Sec. 3.01	 Duly authorized by law to execute and deliver
            Supplemental Indenture and issue bonds	13
	Sec. 3.02 	 Covenant of lawful possession, right to mortgage
            property and to maintain lien of Indenture	13
	Sec. 3.03	 Payment of principal and interest	13
	Sec. 3.04	 Nonliability of Trustee 	13
			
		
      Article IV

Miscellaneous
	
			
	Sec. 4.01 	 Recitals not made by Trustee. No representations made
            by Trustee. Trust accepted subject to terms and conditions of
            Indenture	13
	Sec. 4.02	 Supplemental Indenture to be construed as part of
            Indenture 	14
	Sec. 4.03(a)	 References to either party to Supplemental Indenture
            includes successors or assigns	14
	
      (b)  
	 Table of contents and descriptive headings of articles not to
            affect meaning	14
	Sec. 4.04(a) 	 Trust Indenture Act requirements control	14
	
      (b)  
	 Severability of Supplemental Indenture provisions and bond

            provisions	14
	Sec. 4.05	 Provisions for execution in counterparts	14
	Sec. 4.06	 Supplemental Indenture effective on execution and
            delivery	14
	Sec. 4.07	 Names and addresses of debtor and secured party	14
			

  
    
      
        
          
             

          

        

      

    

  

        Thirty-________ Supplemental Indenture, made as of the 1st day of
___________, by and between Wisconsin Public Service Corporation, a corporation
duly organized and existing under and by virtue of the laws of the State of
Wisconsin, having its principal office in the City of Green Bay in said State
(hereinafter sometimes called the "Company"), party of the first part,
and U.S. Bank, National Association, (successor to Firstar Bank, National
Association, successor to Firstar Trust Company, formerly known as First
Wisconsin Trust Company), a national banking association duly organized and
existing under and by virtue of the laws of the United States, having its
Corporate Trust Services Office in the City of St. Paul in the State of
Minnesota, as Trustee (hereinafter sometimes called the "Trustee"),
party of the second part.

        Whereas, the Company has heretofore executed and delivered to the predecessor
of the Trustee its First Mortgage and Deed of Trust made as of
January 1, 1941 (hereinafter referred to as the "1941
Mortgage") and has heretofore executed and delivered to the predecessor of
the Trustee supplemental indentures dated and hereinafter referred to as
follows:

	
      Supplemental Indenture

      Dated (as of)      

    	
      Hereinafter referred to as

      
	
      November 1, 1947
	
      First Supplemental Indenture*

	
      August 1, 1948
	
      Second Supplemental Indenture

	
      September 1, 1949
	
      Third Supplemental Indenture

	
      November 1, 1950
	
      Fourth Supplemental Indenture*

	
      May 1, 1953
	
      Fifth Supplemental Indenture*

	
      January 1, 1954
	
      Sixth Supplemental Indenture

	
      October 1, 1954
	
      Seventh Supplemental Indenture

	
      December 1, 1957
	
      Eighth Supplemental Indenture

	
      November 1, 1959
	
      Ninth Supplemental Indenture

	
      October 1, 1963
	
      Tenth Supplemental Indenture

	
      June 1, 1964
	
      Eleventh Supplemental Indenture

	
      November 1, 1967
	
      Twelfth Supplemental Indenture

	
      April 1, 1969
	
      Thirteenth Supplemental Indenture

	
      August 1, 1970
	
      Fourteenth Supplemental Indenture

	
      May 1, 1971
	
      Fifteenth Supplemental Indenture

	
      August 1, 1973
	
      Sixteenth Supplemental Indenture*

	
      September 1, 1973
	
      Seventeenth Supplemental Indenture

	
      October 1, 1975
	
      Eighteenth Supplemental Indenture

	
      February 1, 1977
	
      Nineteenth Supplemental Indenture

	
      July 15, 1980
	
      Twentieth Supplemental Indenture

	
      December 1, 1980
	
      Twenty-First Supplemental Indenture*

	
      April 1, 1981
	
      Twenty-Second Supplemental Indenture

	
      February 1, 1984
	
      Twenty-Third Supplemental Indenture

	
      March 15, 1984
	
      Twenty-Fourth Supplemental Indenture

	
      October 1, 1985
	
      Twenty-Fifth Supplemental Indenture

	
      December 1, 1987
	
      Twenty-Sixth Supplemental Indenture*

	
      September 1, 1991
	
      Twenty-Seventh Supplemental Indenture

	
      July 1, 1992
	
      Twenty-Eighth Supplemental Indenture

	
      October 1, 1992
	
      Twenty-Ninth Supplemental Indenture

	
      February 1, 1993
	
      Thirtieth Supplemental Indenture

	
      July 1, 1993
	
      Thirty-First Supplemental Indenture

	
      November 1, 1993
	
      Thirty-Second Supplemental Indenture

	
      December 1, 1998
	
      Thirty-Third Supplemental Indenture

	
      August 1, 2001
	
      Thirty-Fourth Supplemental Indenture

 

_________________

*Includes amendments to or modifications of
certain provisions of the 1941 Mortgage.

 

(said 1941 Mortgage, as supplemented, amended or modified by the aforesaid
Supplemental Indentures, being hereinafter referred to as the
"Indenture", except as such term is differently defined and used in
and for the purposes of the Form of Bond of Collateral Series ____ and the Form
of Trustee's Certificate hereinafter set forth), whereby the Company granted,
bargained, sold, warranted, released, conveyed, assigned, transferred,
mortgaged, pledged, set over and confirmed unto the Trustee, and to its
respective successors in trust, upon the terms, conditions and trusts therein
set forth, all the property as therein described, real, personal and mixed, then
owned or thereafter acquired by the Company, with certain exceptions as in the
granting clauses and definitions of the Indenture set forth, to be held by the
Trustee in trust, under the terms and subject to the conditions of the
Indenture, as security for the bonds of the Company issued and to be issued
thereunder in accordance with the provisions of the Indenture; and

    Whereas, Section 2.01 of the 1941 Mortgage provides that bonds may be issued
thereunder in one or more series, each series to have such distinctive
designation as the Board of Directors of the Company may select for such series;
and

    Whereas, the Company has heretofore issued and there are now outstanding, in
accordance with the provisions of the 1941 Mortgage and said Supplemental
Indentures bonds of several series designated "First Mortgage Bonds, 6-1/8%
Series due October 1, 2005", "First Mortgage Bonds, 7.30%
Series due October 1, 2002", "First Mortgage Bonds, 6.80%
Series due February 1, 2003", "First Mortgage Bonds, 7-1/8%
Series Due July 1, 2023" First Mortgage Bonds Due
February 1, 2013, "First Mortgage Bonds Collateral Series A"
and "First Mortgage Bonds Collateral Series B; and

    Whereas, the Company has agreed to issue $___________ in aggregate principal
amount of Senior Notes ______% Series Due ____________ (the "Related
Securities") pursuant to an Indenture, dated as of December 1, 1998,
between the Company and a predecessor of U.S. Bank, National Association, as
trustee (the "Senior Trustee") as supplemented; and

    Whereas, in order to secure the Company's obligations to pay principal,
premium, if any, and interest on the Related Securities, the Company is desirous
of providing for the issuance under the Indenture of bonds of a new series
designated as "First Mortgage Bonds, Collateral Series ____", in an
aggregate principal amount of not more than $___________, the bonds of said
series to be issued as registered bonds without coupons in any denominations
that the Company may from time to time execute and deliver, the bonds of said
series, the Trustee's Certificate, and the Form of Prepayment Record to be
substantially in the tenor following:

(Form
of Bond of Collateral Series ____)

Wisconsin Public Service Corporation

 

(Incorporated under the laws of the State of Wisconsin)

First Mortgage Bond, Collateral Series ____

No._____________                                                                                                           
$

THE FIRST MORTGAGE BONDS, COLLATERAL SERIES ____ (HEREINAFTER,
"COLLATERAL BONDS"), REPRESENTED BY THIS CERTIFICATE ARE BEING ISSUED
AND DELIVERED BY THE COMPANY TO U.S. BANK, NATIONAL ASSOCIATION, AS TRUSTEE (IN
SUCH CAPACITY, THE "SENIOR TRUSTEE") UNDER AN INDENTURE, DATED AS OF
DECEMBER 1, 1998, BETWEEN THE COMPANY AND A PREDECESSOR OF THE SENIOR
TRUSTEE, AS PREVIOUSLY SUPPLEMENTED AND AS SUPPLEMENTED BY THE __________
SUPPLEMENTAL INDENTURE THERETO DATED AS OF _______________ (AS SO SUPPLEMENTED,
THE "SENIOR INDENTURE"). THE COLLATERAL BONDS ARE TO BE HELD IN TRUST
AS COLLATERAL FOR THE BENEFIT OF THE HOLDERS OF $___________ AGGREGATE PRINCIPAL
AMOUNT OF SENIOR NOTES, ______% SERIES DUE _________________ (THE "RELATED
SECURITIES") ISSUED PURSUANT TO THE SENIOR INDENTURE.

THE COLLATERAL BONDS MAY NOT BE SOLD OR OTHERWISE TRANSFERRED (EXCEPT TO A
SUCCESSOR SENIOR TRUSTEE) UNTIL THE EARLIER OF THE RELEASE DATE (AS DEFINED
BELOW) OR THE PRIOR RETIREMENT OF THE RELATED SECURITIES THROUGH REDEMPTION,
REPURCHASE OR OTHERWISE.

THE COMPANY SHALL MAKE PAYMENTS OF THE PRINCIPAL OF, AND PREMIUM, IF ANY, AND
INTEREST ON, THE COLLATERAL BONDS, TO THE SENIOR TRUSTEE, WHICH PAYMENTS SHALL
BE APPLIED BY THE SENIOR TRUSTEE TO THE SATISFACTION OF OBLIGATIONS ON THE
RELATED SECURITIES.

THE MATURITY DATE SPECIFIED ABOVE IS ALSO THE MATURITY DATE OF THE RELATED
SECURITIES.

        Wisconsin Public Service Corporation, a corporation organized and existing
under the laws of the State of Wisconsin (hereinafter called the Company), for
value received, hereby promises to pay to U.S. BANK, NATIONAL ASSOCIATION, as
trustee for the benefit of the holders of the Related Securities, or registered
assigns (in such capacity, the "Senior Trustee"), at the Corporate
Trust Services Office of U.S. Bank, National Association, in Saint Paul,
Minnesota, on the 1st day of ___________, the sum of
_________________________________ DOLLARS ($___________) in lawful money of the
United States of America, and to pay interest thereon from the date hereof at
the rate of _________________ per cent (______%) per annum, in like money, until
the principal hereof becomes due and payable, said interest being payable on the
1st day of _________ and on the 1st day of _________ in
each year commencing ______________. The principal and interest so payable on
any _________ 1 or _________ 1 will be paid to the person or entity in
whose name this bond is registered, at the address thereof as it appears on the
Company's books for registration and registration of transfer.

        The provisions of this bond are continued on the reverse hereof or attached
pages and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

        This bond shall not be valid or become obligatory for any purpose unless and
until U.S. Bank, National Association, (successor to First Wisconsin Trust
Company), as Trustee under the Indenture, or its successors thereunder, shall
have signed the certificate of authentication endorsed hereon.

        In Witness Whereof, Wisconsin Public Service Corporation has caused this bond
to be signed in its name by the manual or facsimile signature of its President
or a Vice President and its corporate seal or a facsimile thereof to be hereto
affixed and attested by the manual or facsimile signature of its Secretary or an
Assistant Secretary.

Dated as of:

 

 

  
    
      
                          WISCONSIN PUBLIC SERVICE CORPORATION,

                           

                           

                          By:_________________________________

                                     
                          ______ President

      

    

  

Attest:

_____________________________

____________ Secretary

 

(Form
of Trustee's Certificate)

        This bond is one of the bonds of the series designated therein, described in
the within mentioned Indenture and Supplemental Indenture.

 

  
    
      
        
          
                          U.S. Bank, National Association,

                          As Trustee

                           

                          By:_________________________________

                          Authorized Signature

            
              
                
                  
                    
                      
                        
                           

                           

                        

                      

                    

                  

                

              

            

          

        

      

    

  

(Text appearing on reverse side of bond or attached pages)

 

        This bond is one of a duly authorized issue of bonds of the Company, known as
its First Mortgage Bonds, of the series and designation indicated on the face
hereof, which issue of bonds consists, or may consist, of several series of
varying denominations, dates and tenors, all issued and to be issued under and
equally secured (except in so far as a sinking fund, or similar fund,
established in accordance with the provisions of the Indenture, may afford
additional security for the bonds of any specific series) by a First Mortgage
and Deed of Trust (herein called the "Indenture") dated as of
January 1, 1941, executed by the Company to First Wisconsin Trust
Company (subsequently succeeded by U.S. Bank, National Association, herein
called the Trustee), as Trustee, to which Indenture and all instruments
supplemental thereto reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security, the rights of the
holders of the bonds as to such security, and the terms and conditions upon
which the bonds may be issued under the Indenture and any instruments
supplemental thereto and are secured. The principal hereof may be declared or
may become due on the conditions, in the manner and at the time set forth in the
Indenture, upon the happening of a completed default as in the Indenture
provided. This bond is one of a series created by a Supplemental Indenture
(herein called the "Supplemental Indenture") dated as of ____________,
between the Company and the Trustee, which is supplemental to the Indenture.

        The Senior Trustee has agreed pursuant to the Senior Indenture to hold the
Bonds of this Series as collateral for the benefit of the holders of the Related
Securities under all circumstances and not to transfer (except to a successor
trustee) such Bonds until the earlier of the Release Date or the prior
retirement of the Related Securities through redemption, repurchase or
otherwise. "Release Date" means the date on which all First Mortgage
Bonds of the Company issued and outstanding under the Indenture, other than the
Bonds of this Series and other Bonds pledged as security for Securities issued
under the Senior Indenture (collectively "Collateral Bonds"), have
been retired (at, before or after the maturity thereof) through payment,
redemption or otherwise, provided that no default or event of default has
occurred and is continuing under the Senior Indenture. On the Release Date, the
Senior Trustee shall deliver to the Company for cancellation all Collateral
Bonds, and the Company shall cause the Senior Trustee to provide notice to all
holders of Related Securities of the occurrence of the Release Date. As a
result, on the Release Date, the Bonds of this Series shall cease to secure the
Related Securities. Following the Release Date, the Company shall cause the
Indenture to be discharged, and the Company shall not issue any additional
Collateral Bonds thereunder, and from and after the Release Date, the Company's
obligations in respect of the Collateral Bonds shall be satisfied and
discharged.

        With the consent of the Company and to the extent permitted by and as
provided in the Indenture and/or any instruments supplemental thereto, the
rights and obligations of the Company and/or of the holders of the bonds, and/or
terms and provisions of the Indenture and/or of any instruments supplemental
thereto may be modified or altered by consent of the holders of at least seventy
percent (70%) in principal amount of the bonds then outstanding under the
Indenture and any instruments supplemental thereto (excluding bonds challenged
and disqualified from voting by reason of the interest of the Company or of
certain related persons therein as provided in the Indenture); provided that no
such modification or alteration shall permit the extension of the maturity of
the principal of this bond or the reduction in the rate of interest hereon or
any other modification in the terms of payment of such principal or interest or
the taking of certain other action as more fully set forth in the Indenture
without the consent of the holder hereof.

        The Company and the Trustee may deem and treat the person in whose name this
bond is registered as the absolute owner hereof for the purpose of receiving
payment of or on account of the principal hereof and interest hereon and for all
other purposes, and shall not be affected by any notice to the contrary.

        [The bonds of this Series are subject to redemption, prior to maturity, at
the option of the Company in whole at any time or in part from time to time,
upon payment of a redemption price equal to __ ].

        [Notice of any such redemption shall be hand delivered or mailed not less
than thirty (30) days prior to the redemption date to the registered owner of
the bonds so to be redeemed, at its address as the same shall appear on the
Company's books for registration and registration of transfer, all subject to
the conditions and as more fully set forth in the Indenture and in the
Supplemental Indenture, except that no newspaper publication shall be required.]

        In the event that an event of default under Section 6.01 of the Senior
Indenture has occurred and is continuing, and the Senior Trustee has declared
the principal of all of the Related Securities then outstanding immediately due
and payable (or such principal has become ipso facto immediately due and
payable) under Section 6.02 of the Senior Indenture, then the Company shall call
for redemption and redeem all of the bonds of this series then outstanding at a
price equal to 100% of the principal amount thereof, together with accrued
interest thereon to the redemption date. The redemption date shall be the
accelerated maturity date of the Related Securities, and no prior notice of such
redemption to the Trustee or the Senior Trustee shall be required.

        This bond is nontransferable except to the Senior Trustee and successor
trustees thereto. To the extent that it is transferable, it is transferable by
the registered owner hereof in person or by attorney duly authorized in writing,
on books of the Company to be kept for that purpose at the corporate trust
services office of the Trustee at Saint Paul, Minnesota, upon surrender hereof
for cancellation at said office and upon presentation of a written instrument of
transfer duly executed. Thereupon the Company shall issue in the name of the
transferee, and the Trustee shall authenticate and deliver, a new registered
bond or bonds without coupons of the same maturity and interest rate and of
equal aggregate principal amount. Any such transfer shall be subject to the
terms and conditions specified in the Indenture and the Supplemental Indenture.

        No recourse shall be had for the payment of principal of, premium, if any, or
interest on this bond, or any part thereof, or of any claim based hereon or in
respect hereof or of the Indenture or any instrument supplemental thereto,
against any incorporator, or any past, present or future stockholder, officer or
director of the Company or of any predecessor or successor corporation, either
directly or through the Company, or through any such predecessor or successor
corporation, or through any receiver or a trustee in bankruptcy, whether by
virtue of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as a part of the consideration for the issue hereof, expressly waived
and released, as more fully provided in the Indenture.

(End of text of bond)

 

(Form of Prepayment Record)

PREPAYMENT RECORD

 Principal Amount Of Bond $__________

 Date of maturity: ________________

 

	
      Prepayments on Principal
	 	 
	
      Amount
	
      Date
	
      Balance

      Outstanding

    	
      Signature of Authorized

      Officer and Title

    
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

and

        Whereas, the 1941 Mortgage provides that the Company and the Trustee may
enter into indentures supplemental thereto for the purposes, among others, of
providing the terms and conditions of the issue of the bonds of any new series;
and

        Whereas, the Company is presently engaged within the States of Wisconsin and
Michigan in conveying, distributing, supplying and serving electricity and gas
and intends that this Supplemental Indenture shall be received for record and
for filing in the appropriate public offices of said States or of any other
jurisdiction in which there may be located from time to time properties intended
to be subject to the lien of the Indenture in the manner and with the effect
provided by their respective laws in respect to mortgages by, and security
interests in existing and hereafter acquired properties of, a corporation so
engaged; and

        Whereas, the execution and delivery of this Supplemental Indenture and the
issue of bonds as in this Supplemental Indenture and the Indenture provided have
been duly authorized by a resolution adopted by the Board of Directors of the
Company; and

        Whereas, all things necessary to make the bonds of Collateral Series ____,
when duly issued and executed by the Company, and authenticated and delivered by
the Trustee, valid, binding and legal obligations of the Company, and to make
the Indenture and this Supplemental Indenture valid, binding and legal
instruments for the security thereof, have been done and performed and the issue
of said bonds, as in this Supplemental Indenture and the Indenture provided, has
been in all respects duly authorized;

        Now, Therefore, This Supplemental Indenture Witnesseth: Wisconsin Public
Service Corporation, in consideration of the premises and of one dollar to it
duly paid by the Trustee at or before the ensealing and delivery of these
presents, the receipt whereof is hereby acknowledged, does hereby covenant and
agree to and with U.S. Bank, National Association, as Trustee, as follows:

Article I.

Form And Execution Of Bonds
Of New Series

        SECTION 1.01. There is hereby created, for issuance under the Indenture on
the date of authentication and delivery of the Related Securities, a series of
bonds designated as Collateral Series ____ (herein sometimes referred to as the
bonds of Collateral Series ____), each of which shall bear the descriptive
title "First Mortgage Bond, Collateral Series ____". The bonds of
said series shall be issued only in the form of registered bonds without coupons
and shall be substantially of the tenor and purport, and in the form,
hereinbefore recited. The bonds of said series shall mature on _______________,
and shall be issued in any denominations that the Company may execute and
deliver. The bonds of said series shall bear interest at the rate of
____________ percent (______%) per annum, payable semiannually on
_________ 1 and _________ 1 of each year commencing _______________.
Bonds of said series issued prior to _______________ shall be dated as of
_______________ and bonds of said series issued on and after _______________
shall be dated as provided in Section 2.09 of the 1941 Mortgage. Principal and
interest will be payable to the registered owner of the bonds of said series,
and at the address thereof, appearing on the Company's books for registration
and registration of transfer. Said bonds will be nontransferable except to the
Senior Trustee and successors thereto, if any.

        SECTION 1.02. The aggregate principal amount of all bonds of Collateral
Series __ which may at any time be certified, issued and outstanding shall
be limited to $_____________, and bonds of said series may be executed,
authenticated, delivered and issued hereunder from time to time subject to the
restrictions and provisions contained in this Supplemental Indenture and in the
1941 Mortgage.

        SECTION 1.03. [The bonds of Collateral Series __ are subject to
redemption prior to maturity at the option of the Company, in whole at any time
or in part from time to time, at a redemption price equal to: .]

        SECTION 1.04. In the event that the Company shall desire to exercise its
right to redeem and pay all or any part of the bonds of Collateral
Series ____ pursuant to Section 1.03, it shall, except as modified herein,
comply with the terms and conditions of Article XI of the Indenture with regard
to the redemption of bonds of any series secured thereby, and such redemption
shall be made under and subject to the terms and provisions of said Article XI
and in the manner and with the effect stated therein; provided, however, (a) the
Company shall specify, in accordance with the provisions of this Supplemental
Indenture, those bonds of Collateral Series ____ which are to be redeemed
if only a part thereof are to be redeemed, and payments in redemption of bonds
of Collateral Series ____ shall be made directly by the Company to the
registered owners of the bonds entitled thereto; and (b) the provisions of
Section 11.03(b) of the 1941 Mortgage shall not be applicable to any such
redemption. The Company shall not exercise any option to redeem on any date all
or any part of the bonds of Collateral Series ____ unless it shall give a
valid direction under the Senior Indenture for the redemption on such date of an
equal amount of Related Securities. Notice of each such redemption shall be hand
delivered or mailed, by certified mail, with return receipt requested, at least
forty-five (45) days prior to the redemption date, to the registered owner of
the bonds which are to be redeemed at its address appearing on the Company's
books for registration and registration of transfer. Such delivery or mailing
(but not the receipt thereof or the return of the receipt so requested) shall be
a condition to the redemption of the bonds. All bonds so redeemed shall
forthwith be delivered to the Trustee and cancelled, but only when the
principal, premium, if any, and accrued interest thereon is paid in full. The
Trustee, when required to select bonds of Collateral Series ____ for redemption,
shall promptly notify the Company, and the Company, when selecting bonds of
Collateral Series ____ for redemption, shall promptly notify the Trustee,
in writing of the distinctive numbers of the bonds selected for redemption in
whole or in part. For the purpose only of complying with the Indenture
(particularly Section 11.02 thereof) in connection with the redemption of bonds
of Collateral Series ____, for each $1,000 principal amount of bonds
authenticated and delivered hereunder there shall be assigned a number in such
manner and at such time as the Trustee or the Company shall deem appropriate.

        SECTION 1.05. The Company shall call for redemption all of the bonds of the
Collateral Series ____ then outstanding, and shall on the redemption date
therefor redeem the same at a price equal to 100% of the principal amount
thereof, together with accrued interest to the redemption date, in the event
that an event of default has occurred and is continuing under Section 6.01 of
the Senior Indenture, and the Senior Trustee has declared the principal of all
Related Securities then outstanding immediately due and payable (or such
principal has become ipso facto immediately due and payable) pursuant to Section
6.02 of the Senior Indenture. The redemption date shall be the accelerated
maturity date of the Related Securities; provided, however, that such
requirement of redemption shall be deemed to be waived if prior to the date
fixed for such redemption of the bonds of Collateral Series ____, the
acceleration of the Related Securities is waived or annulled. Any provision of
Article XI of the Indenture notwithstanding, no prior notice of such
redemption of the bonds of Collateral Series ____ to the Trustee or the
Senior Trustee shall be required.

        SECTION 1.06. Subject to the provisions of Section 1.04, Bonds of Collateral
Series ____ may be redeemed in part, but the portion of any such bond so
redeemed in part shall be One Thousand Dollars ($1,000) or an integral multiple
thereof. In case any bond shall be redeemed in part only, payment of the
redemption price of such portion of the bond of Collateral Series ____ shall be
made by the Company (or Trustee, as the case may be) to the registered owner
thereof, at its address appearing on the Company's books for registration and
registration of transfer of bonds of Collateral Series ____ without presentation
or surrender thereof, provided there is on file with the Company and Trustee
(and not theretofore rescinded by written notice from such registered owner to
the Company and Trustee) a written commitment from such registered owner to the
effect that (1) payments will be so made, and (2) such registered owner will
make notations on such bond or a paper attached thereto of the portion thereof
so redeemed. Prior to any transfer by the registered owner of any bond of
Collateral Series ____, the same shall be surrendered to the Company or Trustee
for appropriate notation thereon of, or in exchange for a new bond or bonds for,
the unredeemed balance of the principal amount thereof. The Trustee shall not be
under any duty to determine that any of the notations mentioned herein have been
made or be liable in any manner with respect thereto.

        SECTION 1.07. The Company shall not be obligated to make any transfer of
bonds of Collateral Series ____ for a period of fifteen (15) calendar days next
preceding any interest payment date, or next preceding any selection by lot of
bonds to be redeemed. The Company shall not be obligated to make transfers of
any bonds called or being called for redemption.

        SECTION 1.08. No charge shall be made to any registered owner of any bond of
Collateral Series ____ for any transfer of bonds of said series except for any
tax or other governmental charge required to be paid in connection therewith.

        SECTION 1.09. The signatures of the President or a Vice President and of the
Secretary or an Assistant Secretary upon the bonds of Collateral Series ____ may
be facsimile signatures imprinted or otherwise reproduced on such bonds. Any
such facsimile signature shall have the same effect and shall be subject to the
same provisions set forth in Section 2.13 of the 1941 Mortgage as to signatures
upon bonds generally.

        SECTION 1.10. In the event that an interest payment or maturity date or a
date fixed for redemption of any bond of Collateral Series ____ shall be a
Saturday, Sunday or a legal holiday or a day on which banking institutions in
the city of location of the registered address of the owner are authorized by
law to close, then payment of interest or principal (and premium, if any) need
not be made on such date, but may be made on the next succeeding business day
not a Saturday, Sunday or a legal holiday or a day upon which banking
institutions in the city of location of the registered address of the owner are
authorized by law to close, with the same force and effect as if made on the
date of maturity, interest date, or the date fixed for redemption, and no
interest shall accrue for the period after such date.

        SECTION 1.11. Bonds of Collateral Series ____ which have been redeemed or
have been paid at maturity shall not be reissued as bonds of said series, but
may be made the basis for the issuance of additional bonds of any series
hereafter created, or credits may be taken or cash withdrawn on the basis
thereof under any applicable provisions of the 1941 Mortgage or any future
supplemental indenture.

Article II.

Confirmation of Lien

        SECTION 2.01. The Company, in order to record the description of, and confirm
unto the Trustee, certain property acquired after the execution and delivery of
the 1941 Mortgage and now subject to the lien thereof by virtue of the
provisions of the 1941 Mortgage conveying to the Trustee property acquired after
its execution and delivery, by these presents does grant, bargain, sell,
warrant, release, convey, assign, transfer, mortgage, pledge, set over and
confirm unto U.S. Bank, National Association, as Trustee, and to its respective
successors in said trust forever, subject to the rights reserved by the Company
in and by other provisions of the Indenture and this Supplemental Indenture, all
of the property described and mentioned or enumerated or referred to in a
schedule hereto annexed and marked Schedule A, reference to said schedule
for a description and enumeration of the property therein described and
enumerated being hereby made with the same force and effect as if the same were
incorporated herein at length;

        Together with all and singular the tenements, hereditaments and appurtenances
belonging or in any wise appertaining to the aforesaid property or any part
thereof with the reversion and reversions, remainder and remainders, tolls,
rents and revenues, issues, income, product and profits thereof, and all the
estate, right, title and interest and claim whatsoever, at law as well as in
equity, which the Company now has or may hereafter acquire in and to the
aforesaid property and every part and parcel thereof;

        To have and to hold all said properties, mortgaged, pledged or conveyed by
the Company as aforesaid, or intended so to be, unto the Trustee and its
successors and assigns forever, subject, however, to permissible encumbrances as
defined in the 1941 Mortgage; but in trust, nevertheless, for the same purposes
and upon the same conditions as are fully set forth in the Indenture, which is
hereby referred to.

Article III.

Particular Covenants Of The
Company

        In addition to the covenants contained in the Indenture, the Company hereby
covenants as follows:

        SECTION 3.01. That it is duly authorized under the laws of the State of
Wisconsin and under all other applicable provisions of law to create and issue
the bonds of Collateral Series ____, and to execute and deliver this
Supplemental Indenture, and that all corporate action on its part for the
creation and issue of said bonds and the execution of this Supplemental
Indenture has been duly and effectually taken, and that said bonds when issued
and delivered to the owners thereof are and will be valid and enforceable
obligations of the Company, and that the Indenture is and always will be a valid
mortgage and deed of trust to secure the payment of said bonds.

        SECTION 3.02. That it is lawfully possessed of all the property mortgaged and
pledged by the Indenture; that it will maintain and preserve the lien of the
Indenture on the property mortgaged and pledged thereby in accordance with the
terms thereof and hereof so long as any of the bonds issued thereunder are
outstanding; and that it has good right and lawful authority to mortgage and
pledge the property mortgaged and pledged thereby as provided in and by the
Indenture; and that the same is free and clear of all liens and encumbrances,
except permissible encumbrances as defined in the Indenture.

        SECTION 3.03. That the Company will duly and punctually pay to the registered
owner of bonds of Collateral Series ____ issued under and secured by the
Indenture and this Supplemental Indenture the principal and interest of said
bonds at the dates and place and in the manner mentioned in such bonds.

        SECTION 3.04. That the Trustee shall not incur any liability by reason of any
default, failure or delay on the part of the Company to observe or perform its
covenants contained in this Article III.

Article IV.

Miscellaneous

        SECTION 4.01. The recitals of fact herein and in the bonds hereby created
contained (except the Trustee's Certificate) shall be taken as statements of the
Company and shall not be construed as made or warranted by the Trustee. The
Trustee makes no representations as to the validity of this Supplemental
Indenture or of the bonds issued under the Indenture by virtue hereof. Except as
herein otherwise provided, no duties, responsibilities or liabilities are
assumed, or shall be construed to be assumed, by the Trustee by reason of this
Supplemental Indenture other than as set forth in the Indenture; and this
Supplemental Indenture is executed and accepted on behalf of the Trustee,
subject to all the terms and conditions set forth in the Indenture, as fully to
all intents as if the same were herein set forth at length.

        SECTION 4.02. This Supplemental Indenture shall be construed in connection
with and as a part of the Indenture.

        SECTION 4.03.(a) Whenever
in this Supplemental Indenture either of the parties hereto is named or referred
to, such reference shall be deemed to include the successors or assigns of such
party, and all the covenants and agreements in this Supplemental Indenture
contained by or on behalf of the Company or by or on behalf of the Trustee shall
bind and inure to the benefit of the respective successors and assigns of such
parties, whether so expressed or not.

        (b) The table of contents and the descriptive headings of the several
Articles of this Supplemental Indenture were formulated, used and inserted in
this Supplemental Indenture for convenience only and shall not be deemed to
affect the meaning or construction of any of the provisions hereof.

        SECTION 4.04. (a)
If any
provision of this Supplemental Indenture limits, qualifies, or conflicts with
another provision of this Supplemental Indenture or of the Indenture required or
deemed to be included in indentures qualified under the Trust Indenture Act of
1939 (as enacted prior to the date of this Supplemental Indenture) by any of
Sections 310 to 317, inclusive, of the said Act, such required provisions shall
control.

        (b) In case any one or more of the provisions contained in this Supplemental
Indenture or in the bonds, issued hereunder and under the Indenture should be
invalid, illegal, or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected, impaired, prejudiced or disturbed thereby.

        SECTION 4.05. This Supplemental Indenture may be executed in several
counterparts, and all said counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

        SECTION 4.06. This Supplemental Indenture shall be effective and binding from
and after the time of actual execution and delivery thereof, notwithstanding the
fact that such execution and delivery may occur prior or subsequent to
_______________.

        SECTION 4.07. The debtor and its mailing address is
WISCONSIN PUBLIC SERVICE CORPORATION, 700 North Adams Street, P.O. Box 19001,
Green Bay, WI 54307. The secured party and its address, from which information
concerning the security interest hereunder may be obtained, is U.S. BANK,
NATIONAL ASSOCIATION, Corporate Trust Services, 180 East Fifth Street, Suite
200, SPTF0210, Saint Paul, MN 55101.

        In Witness Whereof, the party of the first part has caused its corporate name
and seal to be hereunto affixed and this Supplemental Indenture to be signed by
its President or Vice President, and attested by its Secretary or an Assistant
Secretary, for and in its behalf, and the party of the second part has caused
its corporate name and seal to be hereunto affixed, and this Supplemental
Indenture to be signed by its President, a Vice President or an Assistant Vice
President, and attested by its Secretary or an Assistant Secretary or Trust
Officer, for and in its behalf, all done as of the first day of _____________.

  
    
      
        
                          Wisconsin Public Service Corporation,

                          _____________________________

                          _____________________________

                          _____________________________

          

          
            
              
                
                  
                    
                      
                        
                          
                           

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

  

(SEAL)

Attest:

___________________________

___________________________

___________________________

Executed by Wisconsin Public Service

Corporation, in presence of:

___________________________

___________________________

 

  
    
      
        
                          U.S. Bank, National Association,

                            As Trustee,

          By:_____________________________

          _______________________________

          _______________________________

          

        

      

    

  

(SEAL)

Attest:

___________________________

___________________________

___________________________

Executed by U.S. Bank, National Association

in presence of:

__________________________

__________________________

 

State Of Wisconsin }

                             
} ss.

Brown County       }

 

        Personally came before me this ______ day of __________, A.D. ______,
__________________, to me known to be the _________________________________, and
__________________, to me known to be the Secretary of the above-named Wisconsin
Public Service Corporation, the corporation described in and which executed the
foregoing instrument, and to me known to be the persons who as such officers
executed the foregoing instrument in the name and behalf of said corporation,
and acknowledged the same, and acknowledged that the seal affixed to said
instrument is the corporate seal of said corporation, and that they signed,
sealed and delivered said instrument in the name and behalf of said corporation
by authority of its Board of Directors and said __________________ and
__________________ then and there acknowledged said instrument to be the free
act and deed of said corporation by each of them voluntarily executed.

        Given under my hand and notarial seal this ______ day of
__________, A.D. ______.

 

  
    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                           

                          
                          

                        

                      

                    

                  

                

              

            

                          ___________________________________

                          ___________________________________

                          Notary Public, Brown County, Wisconsin

                          My commission expires :________________

          

        

      

    

  

(Notarial Seal)

 

 

State Of Minnesota }

                             
} ss.

Ramsey County      }

        Personally came before me this ______ day of __________, A.D. ______,
__________________, to me known to be a _________________________________, and
__________________, to me known to be a _________________________________ of the
above-named U.S. Bank, National Association, the corporation described in and
which executed the foregoing instrument, and to me known to be the persons who
as such officers executed the foregoing instrument in the name and behalf of
said corporation, and acknowledged the same, and acknowledged that the seal
affixed to said instrument is the corporate seal of said corporation, and that
they signed, sealed and delivered said instrument in the name and behalf of said
corporation by authority of its Board of Directors and said __________________
and __________________ then and there acknowledged said instrument to be the
free act and deed of said corporation by each of them voluntarily executed.

        Given under my hand and notarial seal this ______ day of
__________, A.D. ______.

 

  
    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                           

                          
                          

                        

                      

                    

                  

                

              

            

                          ________________________________

                          ________________________________

                          Notary Public, Ramsey County, Minnesota

                          My commission expires :

          

        

      

    

  

(Notarial Seal)

 

This instrument was drafted by Attorney Michael S. Nolan of the law firm of
Foley & Lardner, Milwaukee, Wisconsin.

 

A-1

SCHEDULE A

        The property referred to in Article II of the foregoing Supplemental
Indenture from Wisconsin Public Service Corporation to U.S. Bank, National
Association (successor to Firstar Bank, National Association, successor to
Firstar Trust Company, formerly known as First Wisconsin Trust Company),
Trustee, dated as of ___________ is that herein specifically described and
enumerated or referred to in this Schedule A.<PAGE>     1

                                                          Exhibit 4.3

                      HECLA MINING COMPANY
             KEY EMPLOYEE DEFERRED COMPENSATION PLAN

<PAGE>     2

                      HECLA MINING COMPANY
             KEY EMPLOYEE DEFERRED COMPENSATION PLAN

                         TABLE OF CONTENTS

ARTICLE I.	DEFINITIONS
                Section 1.1.	Definitions

ARTICLE II.	PARTICIPATING EMPLOYERS

		Section 2.1.	Eligibility
		Section 2.2.	Participation Requirements
		Section 2.3.	Recordkeeping and Reporting
		Section 2.4.	Termination of Participation
		Section 2.5.	Separate Accounting

ARTICLE III.	ELIGIBILITY AND PARTICIPATION

		Section 3.1.	Eligibility
		Section 3.2.	Participation
		Section 3.3.	Suspension of Eligibility

ARTICLE IV.	BENEFITS

		Section 4.1.	Deferred Compensation
		Section 4.2.	Form and Effectiveness of Deferral Elections
		Section 4.3.	Matching Amounts
		Section 4.4.	Discretionary Amounts
		Section 4.5.	Participant Accounts

ARTICLE V.	DISCOUNTED STOCK OPTIONS

		Section 5.1.	Determination of Stock Options
		Section 5.2.	Deferred Amount
		Section 5.3.	Form and Effectiveness of an Election
		Section 5.4.	Option Allocation

ARTICLE VI.	VESTING

		Section 6.1.	Vested Benefit
		Section 6.2.	Limitation on Benefits

ARTICLE VII.	DISTRIBUTIONS AND EXERCISE OF OPTIONS

		Section 7.1.	Distributable Events
		Section 7.2.	Distribution of Benefits and Exercise of Options
                Section 7.3.    Early Withdrawals
		Section 7.4.	Distributions As a Result of Tax Determination
		Section 7.5.	No Parachute Payment
		Section 7.6.	Distribution Upon Termination For Cause

ARTICLE VIII.	VALUATION OF BENEFITS

		Section 8.1.	Deferred Compensation Account, Company Stock
                                Account and Company Matching Stock Account
		Section 8.2.	Hypothetical Accounts

<PAGE>     3

ARTICLE IX.	NONTRANSFERABILITY

                Section 9.1.    Anti-Alienation of Benefits
		Section 9.2.	Incompetent Participants
		Section 9.3.	Designated Beneficiary

ARTICLE X.	WITHHOLDING

		Section 10.1.	Determination of Tax Withholding
		Section 10.2.	Withholding

ARTICLE XI.	VOTING

		Section 11.1.	Voting of Company Stock With Respect to Accounts
		Section 11.2.	Voting With Respect to Options

ARTICLE XII.	ADMINISTRATION OF THE PLAN

		Section 12.1.	Administrator
		Section 12.2.	Authority of Administrator
		Section 12.3.	Operation of Plan and Claims Procedures
                Section 12.4.   Participant's Address
		Section 12.5.	Conflict of Interest
		Section 12.6.	Service of Process
		Section 12.7.	Errors in Computations

ARTICLE XIII.	MISCELLANEOUS PROVISIONS

		Section 13.1.	No Employment Rights
		Section 13.2.	Participants Should Consult Advisors
		Section 13.3.	Unfunded and Unsecured
		Section 13.4.	The Trust
		Section 13.5.	Plan Provisions
		Section 13.6.	Severability
		Section 13.7.	Applicable Law
		Section 13.8.	Stock Subject to Plan

ARTICLE XIV.	AMENDMENTS

		Section 14.1.	Amendment of the Plan
		Section 14.2.	Procedure for Amendment

ARTICLE XV.	TERM OF PLAN

		Section 15.1.	Term of the Plan
		Section 15.2.	Termination of Future Deferrals

EXHIBIT A      HECLA MINING COMPANY KEY EMPLOYEE DEFERRED COMPENSATION PLAN
               PARTICIPANTS

<PAGE>     4

                      HECLA MINING COMPANY
             KEY EMPLOYEE DEFERRED COMPENSATION PLAN

     Hecla Mining Company, a Delaware corporation, hereby
establishes the Hecla Mining Company Key Employee Deferred
Compensation Plan, effective as of July 18, 2002, subject to
the approval of the plan by the stockholders of Hecla Mining
Company.  The purpose of the Hecla Mining Company Key Employee
Deferred Compensation Plan is to assist Hecla Mining Company in
attracting and retaining key employees, encouraging their
long-term commitment to the success of the company, reducing cash
expenditures of Hecla Mining Company and offering key employees
an opportunity to defer compensation, increase their equity
ownership in Hecla Mining Company and participate in the increase
in value of Hecla Mining Company.

                            ARTICLE I

                           DEFINITIONS

     SECTION 1.1.  Definitions.  When used in this document with
initial capital letters, the following terms have the meanings
indicated unless a different meaning is plainly required by the
context:

     (a)  "Account" or "Accounts" means the separate bookkeeping
account or accounts established and maintained for a Participant
representing separate unfunded and unsecured general obligations
of the Company with respect to a Participant under the Plan and
to which are credited amounts pursuant to Articles IV and V of
the Plan.  A Participant's Accounts shall consist of the
Deferred Compensation Account, the Company Stock Account, the
Company Matching Stock Account and the  Investment Account.

      (b)  "Board of Directors" means the Board of Directors of Hecla
Mining Company.

      (c)  "Bonus Award" means any compensation in addition to Eligible
Compensation, paid to a Participant as an employee under any of
the Company's bonus or incentive plans.

      (d)  "Business Day" means a day on which the New York Stock
Exchange is open for trading.

      (e)  "Change in Control" means the first to occur of any of the
following events:

<PAGE>     5

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

          (ii) Individuals who, as of January 1, 2002, constitute the Board
               (the "Incumbent Board") cease for any reason to constitute at
               least a majority of the Board; provided, however, that any
               individual becoming a director subsequent to January 1, 2002,
               whose election, or nomination for election by the Company's
               shareholders, was approved by a vote of at least a majority of
               the Incumbent Directors then comprising the Board (either by
               a specific vote or by approval of the Proxy Statement of the
               Company in which such person is named as a nominee for director
               to be elected by the common shareholder, without written
               objection to such nomination) shall be considered as though
               such individual were a member of the Incumbent Board, but
               excluding, for this purpose, any such individual whose initial
               assumption of office occurs as a result of an actual or
               threatened election contest with respect to the election or
               removal of directors or other actual or threatened solicitation
               of proxies or consents by or on behalf of a Person other than
               the Board; or

        (iii)  Consummation of a reorganization, merger or consolidation (or
               similar corporate transaction) involving the Company or any
               of its subsidiaries, a sale or other disposition of all or
               substantially all of the assets of the Company or the
               acquisition of assets or stock of another entity (a "Business
               Combination"), in each case, unless, immediately following
               such Business Combination, (a) more than 60% of, respectively,
               the then outstanding shares of Common Stock and the total
               voting power of (i) the corporation resulting from such
               Business Combination (the "Surviving Corporation"), or (ii)
               if applicable, the ultimate parent corporation that directly
               or indirectly has beneficial ownership of 80% of the voting
               securities eligible to elect directors of the Surviving
               Corporation (the "Parent Corporation"), is represented

<PAGE>     6

               by Outstanding Company Common Stock and Company
               Voting Securities that were outstanding immediately
               prior to such Business Combination (or, if applicable,
               is represented by shares into which such Outstanding
               Company Common Stock or Outstanding Company Voting
               Securities, as the case may be, were converted
               pursuant to such Business Combination), and such
               beneficial ownership of Common Stock or voting power
               among the holders thereof is in substantially the
               same proportion as the beneficial ownership of
               Outstanding Company Common Stock and the voting power
               of such Company Voting Securities among the holders
               thereof immediately prior to the Business Combination,
               (b) no Person (other than any employee benefit plan or
               related trust) sponsored or maintained by the Surviving
               Corporation or the Parent Corporation is or becomes the
               beneficial owner, directly or indirectly, of 20% or more
               of the outstanding shares of Common Stock and the total
               voting power of the outstanding voting securities eligible
               to elect directors of the Parent Corporation (or, if there
               is no Parent Corporation, the Surviving Corporation), unless
               such acquisition is pursuant to a Business Combination that
               is an acquisition by the Company or a subsidiary of the Company
               of the assets or stock of another entity that is approved by
               the Incumbent Directors, following which such person owns not
               more that 40% of such outstanding shares and of voting power,
               and (c) at least a majority of the members of the Board of
               Directors of the Parent Corporation (or, if there is no Parent
               Corporation, the Surviving Corporation) following the
               consummation of the Business Combination were Incumbent
               Directors at the time of the Board's approval of the execution
               of the initial agreement providing for such Business
               Combination; or

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

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

     (f)  "Code" means the Internal Revenue Code of 1986, any
amendments thereto, and any regulations or rulings issued
thereunder.

     (g)  "Common Stock" means the Common Stock, par value $0.25 per
share, of Hecla Mining Company as such stock may be reclassified,
converted or exchanged by reorganization, merger or otherwise.

<PAGE>     7

     (h)  "Company" means Hecla Mining Company, a Delaware
corporation.

     (i)  "Company Matching Stock Account" means the Account
established and maintained for a Participant as a record of the
matching units credited to such Account pursuant to Section 4.3
of the Plan and denominated in units measured by the value of
Company Common Stock. The Account shall be hypothetical in nature
and shall be maintained for bookkeeping purposes only.

     (j)  "Company Stock Account" means the Account established and
maintained for a Participant as a record of any discretionary
amounts credited to such Account pursuant to Section 4.4 of the
Plan and amounts allocated to such Account under Article V of the
Plan and denominated in units measured by the value of Company
Common Stock.  The Account shall be hypothetical in nature and
shall be maintained for bookkeeping purposes only.

     (k)  "Compensation Committee" means the Compensation Committee of
the Board of Directors or such other committee of directors as
may be designated by the Board of Directors to administer the
Plan.  The committee administering the Plan shall be composed
solely of two or more nonemployee directors, as defined in Rule
16b-3 under the Securities Exchange Act of 1934, as amended.
Notwithstanding anything to the contrary contained herein, the
Board of Directors may, at any time and from time to time,
without any further action of the Compensation Committee,
exercise the powers and duties of the Compensation Committee
under the Plan.

     (l)  "Deferral Election Form" means such form or forms as may be
approved by the Compensation Committee from time to time for use
by a Participant to elect to defer compensation under the Plan.

     (m)  "Deferred Compensation Account" means the Account
established and maintained for a Participant as a record of the
deferred amounts credited to such Account pursuant to
Sections 4.1 and 4.2 of the Plan and denominated in units
measured by the value of Company Common Stock.  The Account shall
be hypothetical in nature and shall be maintained for bookkeeping
purposes only.

     (n)  "Disability" means a period of disability during which a
Participant qualifies for benefits under the Company's long-term
disability plan, or, if a Participant does not participate in
such a plan, a period of disability during which the Participant
would have qualified for benefits under such a plan had the
Participant been a participant in such a plan, as determined in
the sole discretion of the Compensation Committee.  If the
Company does not sponsor such a plan or discontinues to sponsor
such a plan, a Disability shall be determined by the Compensation
Committee in its sole discretion.

     (o)  "Discretionary Amounts" means the units measured by the
value of Company Common Stock credited to a Participant's Account
pursuant to Section 4.4 of the Plan.

<PAGE>     8

     (p)  "Distributable Event" means an event identified as such in
Section 7.1 of the Plan.

     (q)  "Eligible Compensation"

          (i)  The "Eligible Compensation" of a Participant for any period
               means, except as provided in the succeeding paragraphs of this
               subsection, the sum of all remuneration paid to the Participant
               during such period for service as an employee of a Participating
               Employer as base salary and wages, bonuses (other than vacation
               bonuses), sick pay and short-term disability benefits, increased
               by the amount of pre-tax contributions made on behalf of the
               Participant by a Participating Employer pursuant to the terms of
               any qualified profit sharing plan with a Section 401(k) feature
               maintained by the Participating Employer for that period and by
               the net amount of compensation reductions experienced by the
               Participant during such period under any cafeteria plan described
               in section 125 of the Code maintained by the Participating
               Employer.  Eligible Compensation will not include amounts
               deferred or paid under an agreement between the Participating
               Employer and the Participant that is not a plan qualified under
               section 401(a) of the Code except this Plan, any contributions
               made pursuant to the provisions of any qualified profit sharing
               plan with a Section 401(k) feature maintained by the
               Participating Employer, contributions made or benefits (other
               than short-term disability benefits) paid by the Participating
               Employer under any other employee benefit plan, expatriate
               premiums or amounts realized by the Participant upon the exercise
               of a nonqualified stock option, the lapse of restrictions
               applicable to restricted stock or any disposition of stock
               acquired under a qualified or incentive stock option.

          (ii) A Participant's Eligible Compensation for any year shall be
               determined without regard to section 401(a)(17) of the Code.

         (iii) Notwithstanding the provisions of paragraph (i) above,
               a Participant's Eligible Compensation will not include:

               (A)  any remuneration not paid in cash;

               (B)  the value of life insurance coverage included in the
                    Participant's wages under section 79 of the Code;

<PAGE>     9

               (C)  any car allowance or moving expense or mileage
                    reimbursement;

               (D)  severance pay;

               (E)  payments under any plan of deferred compensation except this
                    Plan;

               (F)  any benefit under any qualified or nonqualified stock option
                    or stock purchase plan; or

               (G)  any compensation in the form of a Bonus Award.

     (r)  "ERISA" means the Employee Retirement Income Security Act of
1974, any amendments thereto, and any regulations or rulings
issued thereunder.

     (s)  "Investment Account" means the Account established and
maintained for a Participant as a record of the deferred amounts
credited to such Account pursuant to Article V of the Plan and
measured in dollars pursuant to the provisions of that Article V.
The Account shall be hypothetical in nature and shall be
maintained for bookkeeping purposes only.

     (t)  "Participant" means an individual identified as such under
Article III of the Plan.

     (u)  "Participating Employer" means any employer participating in
the Plan pursuant to Article II of the Plan.

     (v)  "Plan" means the Hecla Mining Company Key Employee Deferred
Compensation Plan, as approved by the Board of Directors and the
stockholders of the Company, which is unfunded and maintained by
Hecla Mining Company and its affiliated companies primarily for
the purpose of providing deferred compensation for a select group
of management or highly compensated employees of Hecla Mining
Company.

     (w)  "Trust" means the Trust or Trusts described in Section 13.4
of the Plan.  Any such Trust shall constitute an unfunded
arrangement and shall not affect the status of the Plan as an
unfunded plan.  Participants and their beneficiaries shall have
no beneficial ownership interest in any assets of any such Trust.

     (x)  "Trustee" means the corporation or person or persons
selected by the Company to serve as Trustee for a Trust or
Trusts.

     (y)  "Vested" means an interest in the benefit described under
the Plan which may be payable to or on behalf of the Participant
in accordance with the terms of the Plan.

<PAGE>     10

                           ARTICLE II

                     PARTICIPATING EMPLOYERS

     SECTION 2.1.  Eligibility.  To be eligible to adopt and
participate in the Plan, an employer must be a member of the
"controlled group" of corporations, which shall be based upon
section 414 of the Code except that the phrase "at least 50
percent" shall be substituted for the phrase "at least 80
percent" each place it appears in sections 414 and 1563(a) of the
Code, that includes the Company.

     Section 2.2.  Participation Requirements.  The Company, the
sponsor of the Plan, and any other affiliated company that is or
becomes eligible to adopt the Plan and become a Participating
Employer pursuant to Section 2.1 of the Plan may adopt the Plan
and become a Participating Employer in the Plan provided that
such affiliated company declares in writing to be subject to the
terms and conditions of the Plan and files such declaration with
the Compensation Committee.  The date on which such eligible
company may become a Participating Employer in the Plan shall be
the date such declaration is filed with the Compensation
Committee or such later date specified in the declaration.  Each
of the Participating Employers shall be obligated for their
allocable portion of the benefits provided under the Plan to
their respective Participants.  The respective benefit
obligations of the Participating Employers are not secured in any
way.  Such obligations constitute no more than unfunded and
unsecured promises of payment and performance.  Each
Participating Employer shall be responsible for, and shall have
the obligation of, its allocable share of costs and expenses
incurred with respect to the operation and administration of the
Plan, and shall be responsible for, and have the obligation of,
any benefits payable under the Plan with respect to any employees
of such Participating Employer who are Participants in the Plan
and eligible to receive benefits under the terms of the Plan.

     Section 2.3.  Recordkeeping and Reporting.  Each
Participating Employer shall maintain records sufficient to
determine the benefits (and the compensation sources of such
benefits) which may become payable to or with respect to any
employee of such Participating Employer who is a Participant in
the Plan and to provide such Participants any reports which may
be required under the terms of the Plan or by law.

<PAGE>     11

     Section 2.4.  Termination of Participation.  A
Participating Employer, other than the Company, may withdraw from
participation in the Plan at any time by providing the Company
with thirty (30) days advance written notice of such withdrawal
from participation and the effective date of such Participating
Employer's withdrawal, which thirty (30) day notice period may be
waived by the Company.  In addition, the Company may terminate a
Participating Employer's participation in the Plan by providing
such Participating Employer with thirty (30) days advance written
notice, which thirty (30) day notice period may be waived by the
Participating Employer.  A Participating Employer which
terminates its participation in the Plan shall remain obligated
under the Plan with respect to benefits payable with respect to
employees of the Participating Employer participating in the Plan
unless otherwise expressly agreed by the Company with the Company
fully assuming such obligations.

     Section 2.5.  Separate Accounting.  The Company shall
establish and maintain separate Accounts for each of the
Participating Employers and their respective Participants.  Such
separate accounting is intended to comply with section 404(a)(5)
of the Code and section 1.404(a)-12 of the Treasury Regulations
(which provide that an employer can deduct the amounts
contributed to a nonqualified plan in the taxable year in which
an amount attributable to the contribution is includable in the
gross income of employees participating in the plan, but, in the
case of a plan in which more than one employee participates only
if separate accounts are maintained for each employee).

                           ARTICLE III

                  ELIGIBILITY AND PARTICIPATION

     SECTION 3.1.  Eligibility.  Each executive officer or key
management level employee of a Participating Employer shall be
eligible to participate in the Plan effective as of the later of
the effective date of the Plan or the date on which such
individual first becomes an executive officer or achieves a key
management level position; provided, however, that the
Compensation Committee shall determine eligibility to participate
in the Plan with respect to each such executive officer and key
management level employee.  In addition, the Compensation
Committee may by express action designate other management level
or highly compensated employees of the Participating Employers as
eligible to participate in the Plan.  If the Compensation
Committee designates a management level or highly compensated
employee of a

<PAGE>     12

Participating Employer as eligible to become a Participant in the
Plan, the Compensation Committee shall inform the employee in
writing of such designation and the date on which the employee
shall become a Participant in the Plan.

     Section 3.2.  Participation.  An individual eligible to
participate in the Plan shall become a Participant upon the
filing with the Compensation Committee of a completed Deferral
Election Form and acceptance of such form by the Compensation
Committee.  The name of each individual eligible to participate
in the Plan and the date on which such individual becomes a
Participant in the Plan shall be recorded on Exhibit A, which
exhibit is attached hereto and incorporated herein by reference
and which shall be revised by the Compensation Committee from
time to time to reflect the operation of the Plan.  Once an
individual becomes a Participant in the Plan, the individual
shall remain a Participant until the benefits which may be
payable to the individual under the Plan have been distributed to
or on behalf of the individual.

     Section 3.3.  Suspension of Eligibility.  The Compensation
Committee may in its discretion determine that a Participant will
no longer be eligible to participate in the Plan and in such
event, the Participant's compensation deferral election made in
accordance with Article IV and Article V will immediately
terminate and no additional amounts shall be credited to his or
her Accounts under subsections (a), (b) and (c) of Section 8.1
and Section 5.2 and no further options shall be granted under
Article V until such time as the individual is again determined
to be eligible to participate in the Plan by the Compensation
Committee and makes a new election under Article IV.  However,
the Accounts of such Participant shall continue to be adjusted by
the other provisions of Article VIII until fully distributed.

                           ARTICLE IV

                            BENEFITS

     SECTION 4.1.  Deferred Compensation.  Subject to the
limitations herein imposed, including, without limitation,
Sections 14.1, 14.2, 15.1 and 15.2 of the Plan, a Participant may
elect to defer receipt of any one or more of the following items
of compensation:

     (a)  Eligible Compensation; and

     (b)  Bonus Awards.

<PAGE>     13

A Participant may defer an item of compensation only to the
extent that the Participant is entitled to receive such item of
compensation.  For each calendar year a Participant may elect to
defer up to one hundred percent (100%) of any Bonus Award payable
pursuant to a bonus or incentive plan, and up to one hundred
percent (100%) of Eligible Compensation.  Upon such deferral, the
Participant will have no further right to such deferred
compensation other than as provided under the Plan.    Subject
to Article V and amounts deferred under Section 5.2 and 5.3
of the Plan and allocated to an Investment Account,
deferred compensation shall be denominated in units that shall
be measured by the value of Company Common Stock and shall be the
record of the value of such deferred compensation credited to a
Participant's Account and shall be used solely for accounting
purposes.

     Section 4.2.  Form and Effectiveness of Deferral Elections.

     (a)  Except as provided in subsections (d) and (e) of this
Section 4.2, each calendar year a Participant may elect to defer
up to one hundred percent (100%) of his or her Eligible
Compensation for the following calendar year and credited to the
Participant's Deferred Compensation Account.  Except as provided
in subsections (d) and (e) of this Section 4.2, the Participant
is required to file his or her deferral election before
December 31 specifying the portion of the Eligible Compensation
to be earned in the succeeding calendar year that is to be
deferred.

     (b)  Except as provided in subsections (d) and (e) of this
Section 4.2, an election by a Participant to defer a portion of
his or her Eligible Compensation pursuant to subsection (a) of
this Section 4.2 must be made by the Participant for the calendar
year beginning after the calendar year in which occurs the date
of said election and the amounts so deferred shall be paid only
as provided in this Plan.  Such an election must be irrevocable
and must be made in the form and manner prescribed by the
Compensation Committee and shall not be effective unless
confirmed and approved by the Compensation Committee.  The
Participant may change the amount of, or suspend, future
deferrals with respect to Eligible Compensation otherwise payable
to him or her for calendar years beginning after the date of
change or suspension as he or she may specify by written notice
to the Compensation Committee.  If a Participant elects to change
the amount of, or suspend, deferrals, the Participant may make a
new deferral election provided that any new election to defer
payment of Eligible Compensation must be made before the
beginning of the period of service for which the Eligible
Compensation is payable, which period is the calendar year.  The
election to defer shall be irrevocable as to the deferred
Eligible Compensation for the period for which the election is
made and shall not be effective unless confirmed and approved by
the Compensation Committee.

<PAGE>     14

     (c)  In addition to amounts deferred by a Participant pursuant to
subsections (a) and (b) of this Section 4.2, and except as
provided in subsections (d) and (e) of this Section 4.2, each
calendar year a Participant may elect to defer all one hundred percent
(100%) or a portion of any Bonus Award that would otherwise be payable
to the Participant under a bonus or incentive plan and credited to the
Participant's Deferred Compensation Account.  Except as provided
in subsections (d) and (e) of this Section 4.2, an election by a
Participant to defer any such Bonus Award that would otherwise be
payable under a bonus or incentive plan must be made before the
first day of the calendar year in which occurs the end of the
fiscal year of the Participant's Participating Employer for which
such a Bonus Award is determined.  Such a deferral election is
irrevocable and must be made in the form and manner prescribed by
the Compensation Committee and shall not be effective unless
confirmed and approved by the Compensation Committee.  The period
of deferral and form of distribution of an award shall be
determined in accordance with the elections made under this
subsection (c) and in accordance with the provisions of this
Plan.

     (d)  In the first year in which a Participant becomes eligible to
participate in the Plan, the newly eligible Participant may make
an election to defer Eligible Compensation for services to be
performed subsequent to the election within thirty (30) days
after the date the employee becomes eligible and may make an
election to defer any Bonus Award that would otherwise be payable
under a bonus or incentive plan with respect to services to be
performed subsequent to the election for which the bonus would be
payable, provided, however, that the bonus has not yet become
determinable or payable and the election is made at least six (6)
months before the bonus would otherwise be payable and within
thirty (30) days after the date the employee becomes eligible.
This subsection (d) shall apply, however, only with respect to an
eligible Participant who becomes a Participant in the Plan on a
date other than the first day of the calendar year.

     (e)  In the year in which the Plan is first implemented, an
eligible Participant may make an election to defer Eligible
Compensation for services to be performed subsequent to the
election and any Bonus Award that would otherwise be payable
under a bonus or incentive plan with respect to services to be
performed subsequent to the election for which the bonus would
otherwise be payable, provided, however, that any such election
is made within thirty (30) days after the date the Plan is
effective for eligible employees, and that with respect to
elections regarding Bonus Awards, the bonus has not yet become
determinable or payable, and the election is made at least six
(6) months before any such bonuses would otherwise be payable.

     (f)  Any elections made pursuant to Section 4.1 and this
Section 4.2 shall be subject to the limitations imposed under the
Plan, including, without limitation, the provisions of
Sections 14.1, 14.2, 15.1 and 15.2.

<PAGE>     15

     Section 4.3.  Matching Amounts.  Subject to the limitations
imposed under the Plan, including, without limitation, the
provisions of Sections 14.1, 14.2, 15.1 and 15.2, if for any
calendar year a Participant makes an election under Section 4.2
to defer Eligible Compensation or any Bonus Award pursuant to the
provisions of Section 4.2, then, for such year, the Compensation
Committee shall credit the Participant's Company Matching Stock
Account with matching amounts, which:  (i) shall be denominated
in units that shall be measured by the value of Company Common
Stock, and (ii) shall be equal to ten percent (10%), or such
other greater amount as determined by the Compensation Committee
from time to time in its sole discretion, of the sum of the
amounts of Eligible Compensation deferred by the Participant and
credited to the Participant's Deferred Compensation Account for
that calendar year and the amounts of any Bonus Award deferred
by the Participant and credited to the Participant's Deferred
Compensation Account for that year.

     Section 4.4.  Discretionary Amounts.  In addition to
amounts deferred by a Participant under Section 4.2 and the
matching amounts determined under Section 4.3, the Compensation
Committee may from time to time, in its sole discretion, credit a
Participant's Company Stock Account with amounts, which shall be
denominated in units that shall be measured by the value of
Company Common Stock.  Such additional amounts shall be
authorized pursuant to and in accordance with the requirements of
the Delaware General Corporation Law and Rule 16b-3 under
Section 16 of the Securities Exchange Act of 1934 for such
purpose or purposes as the Compensation Committee may deem
appropriate, including, without limitation, as mirror employer
matching contributions or contributions made by a Participating
Employer with respect to a qualified plan maintained by the
Participating Employer.

     Section 4.5.  Participant Accounts.  A Company Stock
Account shall be established and maintained for each Participant
to the extent amounts are credited under Section 4.4 or under
Article V, a Deferred Compensation Account and a Company Matching
Stock Account shall be established and maintained for each
Participant with respect to amounts deferred under Section 4.2
and matching amounts credited under Section 4.3 and an Investment
Account shall be established and maintained for each Participant
with respect to amounts deferred under Article V.  The Deferred
Compensation Account, the Company Stock Account and the Company
Matching Stock Account shall be credited with amounts which shall
be denominated in units that shall be measured by the value of
the shares of Company Common Stock.  The Investment Account shall
be credited with amounts which shall be measured in dollars.

<PAGE>     16

                            ARTICLE V

                    DISCOUNTED STOCK OPTIONS

     SECTION 5.1.  Determination of Stock Options.  In the sole
and absolute discretion of the Compensation Committee, the
Compensation Committee shall determine for each year whether to
grant discounted stock options with respect to Company Common
Stock under this Plan.  In the event the Compensation Committee
determines to grant discounted stock options under the Plan, the
Compensation Committee shall, for each year such determination is
made, determine in its sole and absolute discretion:

     (a)  the terms and conditions of the stock options, including,
without limitation, terms and conditions of exercise of such
stock options granted pursuant to this Article V; and

     (b)  any limitations or restrictions that may apply with respect
to the exercise of the options granted.

Each stock option granted pursuant to this Article V shall be
evidenced by a written agreement containing the terms and
conditions of the stock option, which agreement shall be approved
in advance by the Compensation Committee.

Unless the Compensation Committee otherwise objects in writing,
the discount to be applied shall be elected by the Participant;
provided, however, that the discount shall be at least ten
percent (10%) to the extent the stock price is equal to or below
ten dollars ($10.00) and one dollar ($1.00) if the stock price is
above ten dollars ($10.00) but the discount shall not exceed
fifty percent (50%) of the stock price.

     Section 5.2.  Deferred Amount.

     (a)  Subject to any limitations which may be imposed under
Sections 14.1, 14.2, 15.1 and 15.2 of the Plan and subject to and
in accordance with Section 5.3 of the Plan, a Participant may
elect to defer a certain portion or all of his or her Eligible
Compensation and/or Bonus Award for the year under this Article V
and have such deferred amount credited to an Investment Account
by completing a form provided by the Compensation Committee that
specifies the portion of Eligible Compensation to be earned in
the succeeding calendar year and the portion of any Bonus Award
to be determined in accordance with a bonus or incentive plan to
be subject to such election and filing such completed form with
the Compensation Committee.  Any such election must be made in
the form and in the manner approved by the Compensation
Committee.

<PAGE>     17

     (b)  If a Participant elects to defer compensation in accordance
with this Article V, such deferred amount shall be allocated to
an Investment Account, measured in dollars equal to such deferred
amount, and credited to the Investment Account as of the close of
business on the date that such deferred amount would have
otherwise been paid to the Participant.  Subject to
subsection (c) of this Section 5.2, as of the close of the last
day of each calendar quarter, an additional amount shall be
credited to each Participant's Investment Account equal to the
product of:  (i) the average daily balance of the Investment
Account for the quarter, multiplied by (ii) one-fourth of the
annual prime rate for corporate borrowers quoted at the beginning
of the quarter by the Wall Street Journal (or such other
comparable interest rate as the Compensation Committee may
designate from time to time).

     (c)  If an amount has been deferred by a Participant and
allocated to an Investment Account, the Participant may allocate
an amount credited to the Investment Account to either:  (i) the
Company Stock Account and have such amount measured by the value
of Company Common Stock, or (ii) the opportunity to have the
amount payable in the form of a discounted stock option under the
provisions of this Article V.  An election to have the amounts
allocated to either the Company Stock Account or the opportunity
to have the amount payable in the form of a discounted stock
option is irrevocable and may be made once for each fiscal
quarter of the fiscal year of the Company and if an election is
made, it must be made within a ten (10) day period following the
public release of the Company's financial results for that fiscal
quarter for which an election is made.  The election must be made
in the form and manner prescribed by the Compensation Committee.
To the extent an amount credited to the Investment Account is so
allocated under this subsection (c), such allocated amount shall
not be credited with interest under Section 5.2(b).

     (d)  Pursuant to and in accordance with subsection (c) of this
Section 5.2, a Participant may make an irrevocable election to
have a portion or all of the deferred compensation allocated to
the Participant's Investment Account allocated to the Company
Stock Account and measured by the value of Company Common Stock.
If such an irrevocable election is made, the Participant's
Company Stock Account shall be credited with that number of units
(including fractions thereof) equal to the number of shares
(including fractions thereof) of Common Stock that could have
been purchased with the dollar amount of such allocated amount
determined as of the last Business Day of the election period
that shall be within a ten (10) day period following the public
release of the Company's financial results for the fiscal quarter
of the Company's fiscal year for which the election is made at
the stock price per share based upon the closing price as
reported on the New York Stock Exchange for such date.  Each unit
credited to the Company Stock Account shall be measured by the
value of one share of Company Common Stock and treated as though
invested in such a share of Company Common Stock.  The liability

<PAGE>     18

for the benefit payable with respect to the units credited to the
Company Stock Account shall be satisfied only in shares of
Company Common Stock.  Alternatively, the Participant may make an
irrevocable election pursuant to subsection (c) of this
Section 5.2 to have an amount allocated to the Investment Account
allocated to the opportunity to have the benefit payable in the
form of a discounted stock option.  If such an irrevocable
election is made, the benefit payable with respect to such an
amount so allocated shall be payable in the form of a discounted
stock option.

     (e)    The elections made under this Section 5.2 shall be
irrevocable and must be made in the form and manner prescribed by
the Compensation Committee, and will not be effective unless
accepted by the Compensation Committee.  A Participant's request
to allocate amounts pursuant to this Section 5.2 must be in
writing on an allocation request form in such increments as the
Compensation Committee may require.  All such requests are
subject to confirmation and approval by the Compensation
Committee.

     (f)  Benefits attributable to the value of the Investment Account
at the time of a Distributable Event under Section 7.1 of the
Plan shall be delivered to the Participant in cash.

     Section 5.3.  Form and Effectiveness of an Election.

     (a)  If a Participant is permitted to make an election under this
Article V, the Participant may elect to defer up to one hundred
percent (100%) of his or her Eligible Compensation for the
following calendar year, determined as a maximum amount and
taking into account any amounts deferred under Article IV of the
Plan, and allocated to an Investment Account pursuant to this
Article V.  Pursuant to the provisions of this Article V, amounts
credited to a Participant's Investment Account may be allocated
to the Participant's Company Stock Account or the opportunity to
have the amounts payable in the form of a discounted stock option
under the terms of this Article V.  Except as provided in
subsections (d) and (e) of this Section 5.3, the Participant is
required to file his or her deferral election before December 31
specifying the portion of the Eligible Compensation to be earned
in the succeeding calendar year that is to be subject to such
election.

     (b)  Except as provided in subsections (d) and (e) of this
Section 5.3, an election by a Participant under subsection (a) of
this Section 5.3 must be made by the Participant for the calendar
year beginning after the calendar year in which occurs the date
of said election and the amounts subject to such election shall
be paid only as provided in this Plan.  Such an election must be

<PAGE>     19

irrevocable and must be made in the form and manner prescribed by
the Compensation Committee and shall not be effective unless
confirmed and approved by the Compensation Committee.

     (c)  If a Participant is permitted to make an election under this
Article V, then, in addition to any election made pursuant to
subsections (a) and (b) of this Section 5.3, the Participant may
elect to defer up to one hundred percent (100%) of any Bonus
Award that would otherwise be payable to the Participant under
any bonus or incentive plan, determined as a maximum amount and
taking into account any amounts deferred under Article IV of the
Plan, and allocated to an Investment Account pursuant to this
Article V.  Pursuant to the provisions of this Article V, amounts
credited to a Participant's Investment Account may be allocated
to the Participant's Company Stock Account or the opportunity to
have the amounts payable in the form of a discounted stock option
under the terms of this Article V.  Except as provided in
subsections (d) and (e) of this Section 5.3, a deferral election
by a Participant under this subsection (c) must be made before
the first day of the calendar year in which occurs the end of the
fiscal year of the Participant's Participating Employer for which
such Bonus Award is determined.  Such an election is irrevocable
and must be made in the form and manner prescribed by the
Compensation Committee and shall not be effective unless
confirmed and approved by the Compensation Committee.

     (d)  In the first year in which a Participant becomes eligible to
participate in the Plan, the newly eligible Participant may make
an election to defer Eligible Compensation for services to be
performed subsequent to the election within thirty (30) days
after the date the employee becomes eligible and may make an
election to defer any Bonus Award that would otherwise be payable
under a bonus or incentive plan with respect to services to be
performed subsequent to the election for which the bonus would be
payable, provided, however, that the bonus has not yet become
determinable or payable and the election is made at least six (6)
months before the bonus would otherwise be payable and within
thirty (30) days after the date the employee becomes eligible.
This subsection (d) shall apply, however, only with respect to an
eligible Participant who becomes a Participant in the Plan on a
date other than the first day of the calendar year.

     (e)  In the year in which the Plan is first implemented, an
eligible Participant may make an election to defer Eligible
Compensation for services to be performed subsequent to the
election and any Bonus Award that would otherwise be payable
under a bonus or incentive plan with respect to services to be
performed subsequent to the election for which the bonus would
otherwise be payable, provided, however, that any such election
is made within thirty (30) days after the date the Plan is
effective for eligible employees, and that with respect to

<PAGE>     20

elections regarding Bonus Awards, the bonus has not yet become
determinable or payable, and the election is made at least six
(6) months before any such bonuses would otherwise be payable.

     Section 5.4.  Option Allocation.

     (a)  If a Participant makes an election under this Article V, and
the amounts allocated to the Participant's Investment Account are
allocated to the opportunity to have the amounts payable in the
form of a discounted stock option for a year pursuant to
Section 5.3, then, for the period for which such election is in
effect, the Participant will be granted an option, as of the last
Business Day of the election period that shall be within a ten
(10) day period following the public release of the Company's
financial results for the fiscal quarter for which the election
is made (the "determination date") to purchase shares of the
Company's Common Stock at the stock price per share determined
after the application of the discount and based upon the closing
price as reported on the New York Stock Exchange for such
Business Day, with the number of shares made available to the
Participant as of such determination date based upon the result
of:  (i) the amount subject to the election divided by (ii) the
discount (or "spread," the difference between the fair market
value of the Company Common Stock as of the determination date
and the value of the Company Common Stock after the discount is
applied as of the determination date).  (For example, if the
Participant elects to have the value of $1,000 allocated to the
opportunity to have such amount payable in the form of a
discounted stock option, the fair market value of the Common
Stock as of the determination date is $1.00, and the discount is
15%, the Participant will be granted an option, as of the
determination date, to purchase 6,666 shares of the Company's
stock at $0.85 per share.)

     (b)  The manner in which the provisions of this Section 5.4 and
the provisions of Article V are interpreted and administered
shall be determined solely in the discretion of the Compensation
Committee.

     (c)  The grant of any discounted option shall be subject to the
availability of sufficient shares of Company Common Stock
authorized for issuance under Section 13.8 of the Plan.

                           ARTICLE VI

                             VESTING

     SECTION 6.1.  Vested Benefit.  A Participant shall be
considered to be 100% Vested in the units and amounts credited to
his or her

<PAGE>     21

Accounts under the Plan and any stock options granted pursuant to
Article V of the Plan subject to any restrictions or limitations
that may be imposed by the Compensation Committee under
Article V.

     Section 6.2.  Limitation on Benefits.  The benefits that
may be payable to or on behalf of a Participant under the Plan
shall not exceed a distribution of that number of shares of
Common Stock equal to the number of units credited to the
Participant's Accounts (with any fractional unit being rounded to
the next highest whole unit) and any stock options granted
pursuant to Article V of the Plan.

                           ARTICLE VII

        DISTRIBUTION OF BENEFITS AND EXERCISE OF OPTIONS

     SECTION 7.1.  Distributable Events.  A Participant's
Distributable Event with respect to the Participant's Accounts
shall be the first to occur of the following events:

     (a)  Disability (as defined in Section 1.1(n));

     (b)  the Participant's death;

     (c)  the first date on which the Participant is no longer an
employee of any Participating Employer;

     (d)  the effective date of the termination of the Plan pursuant
to Section 15.1;

     (e)  termination for cause subject to and in accordance with
Section 7.6; or

     (f)  such other date as elected and specified by the Participant
in the Distribution of Benefits Form, which date must be no
earlier than a date thirteen (13) months after the date on which
occurs the effective date of such election and, with respect to
amounts credited or allocated to the Company Stock Account under
Section 4.4 of the Plan or Article V of the Plan, such amounts
may not be distributed until the later of six (6) months after
the date on which such allocation was made or the first day of
the calendar year following the calendar year in which such
allocation occurred; furthermore, an election made pursuant to
this subsection (f) shall be subject to the acceptance of and
approval by the Compensation Committee and

<PAGE>     22

shall be made only at the time of the Participant's initial
elections on such form and if the election is accepted and
approved, it shall be irrevocable.

     Section 7.2.  Distribution of Benefits and Exercise of Options.

     (a)  Distribution Commencement Date.  Except any withdrawals made
pursuant to Section 7.3 which shall be distributed in accordance
with that section, distribution of a Participant's Plan benefit
shall be made as of the first day of the second calendar month
immediately following the calendar month in which the
Participant's applicable Distributable Event occurs.

     (b)  Form of Distribution.  Benefits attributable to the value of
the Deferred Compensation Account, the Company Stock Account and
the Company Matching Stock Account shall be delivered to the
Participant in the form of shares of Common Stock.  Benefits
attributable to the value of the Investment Account at the
time of a Distributable Event shall be delivered to the
Participant in the form of cash.  The distribution and
delivery of shares of Common Stock shall be subject to all
federal or state securities laws or other rules and regulations
as determined by the Company to be applicable.

     (c)  Exercise of Stock Options.  Company Common Stock options
granted under Article V shall be subject to such limitations and
restrictions as may be determined to be necessary and appropriate
to comply with any applicable federal and state securities rules
and regulations.  Specifically, however, with respect to any
option granted under Article V:  (i) each option shall not be
transferable otherwise than be transferred by will or by the laws
of descent and distribution, and the Participant shall have no
right to sell, assign, or pledge (as collateral for a loan, or as
security for the performance of an obligation, or for any other
purpose) his or her interest in such option to any person; and
(ii) each option shall not be exercisable until the later of:
(A) six (6) months after the grant date, or (B) the first day of
the calendar year following the calendar year in which occurs the
grant date.

     (d)  Payment With Respect to Accounts.  In the event a
Participant becomes eligible to receive a payment of benefits
under the Plan with respect to the units credited to the
Participant's Deferred Compensation Account, the Company Stock
Account, and the Company Matching Stock Account, and the
amounts credited to the Participant's Investment Account
as of the date on which occurs a Distributable Event, the benefits
payable to the Participant or, in the event of the Participant's
death, to the Participant's designated beneficiary under the Plan
shall be paid in the form of a lump sum distribution.

     (e)  Application for Distribution.  A Participant shall not be
required to make application to receive payment.  Distribution
shall not be made to any beneficiary, however, until such
beneficiary shall have filed a written application for benefits

<PAGE>     23

in a form acceptable to the Compensation Committee and such
application shall have been approved by the Compensation
Committee.

     Section 7.3.  Early Withdrawals.  Notwithstanding any
provision in this Plan to the contrary, a Participant may
request, by providing a written request to the Compensation
Committee, a withdrawal prior to the distribution date under the
Plan of all or any portion of his or her benefits from any of his
or her Accounts under the Plan in increments of twenty-five
percent (25%) of aggregate Account value (except, however, no
such request shall apply with respect to benefits determined
under Article V and the options that may be granted under
Article V).  If such a request is accepted and approved by the
Compensation Committee, which decision by the Compensation
Committee shall be made in its sole and absolute discretion on a
case by case basis, a distribution of such benefits may be made
to the Participant subject to a penalty for such an early
withdrawal at any point equal to a six-month period of
nonparticipation (during which no additional amounts will be
credited to the Participant's Accounts under subsections (a), (b)
and (c) of Section 8.1 and Article V of the Plan) for each
twenty-five percent (25%) increment withdrawn.  The
nonparticipation period would begin as of the date on which the
request made by the Participant is accepted and approved by the
Compensation Committee.  As a result, a Participant withdrawing
his or her entire benefit from all of his or her Accounts would
be excluded from eligibility to participate in the Plan for a
24-month period beginning as of the date of such acceptance and
approval by the Compensation Committee.  In addition, a penalty
of ten percent (10%) of the value of the amount withdrawn will be
imposed on any withdrawal made pursuant to this Section 7.3.

     Section 7.4.  Distributions As a Result of Tax Determination.
Notwithstanding any provision in this Plan to the
contrary, if, at any time, a court or the Internal Revenue
Service determines that any amounts or units credited to a
Participant's Accounts under the Plan or Trust are includable in
the gross income of the Participant and subject to tax, the
Compensation Committee may, in its sole discretion, permit a lump
sum distribution of an amount equal to the amounts or units
determined to be includable in the Participant's gross income.

     Section 7.5.  No Parachute Payment.  An event described in
subsections (d), (e) and (g) of Section 7.1 shall not constitute
a Distributable Event if the Compensation Committee in its
reasonable discretion following consultation with appropriate tax
and/or legal advisors reasonably determines that such

<PAGE>     24

distribution will likely constitute a parachute payment for
purposes of section 280G of the Code.  Furthermore, if such event
occurs subsequent to a Change in Control, the Compensation
Committee shall, at the Company's expense, promptly request a
written opinion of the "independent auditor" with respect to the
applicability of such section 280G and such event shall not
constitute a Distributable Event unless and until the independent
auditor delivers its written unqualified opinion, a copy of which
shall be provided to the Participant, to the effect that a
distribution of benefits as a result of such event will not
constitute a parachute payment under section 280G of the Code.
As used in this Section 7.5, the term "independent auditor" means
the firm of certified public accountants which at the time of the
Change in Control had been most recently engaged by the Company
or such other comparable and nationally recognized firm of
certified public accountants as may be selected by the
Compensation Committee in its reasonable discretion.

     Section 7.6.  Distribution Upon Termination For Cause.  In
the event that a Participant is terminated for  "cause" (as
defined below), the Compensation Committee may, in its
discretion, treat such termination or any date subsequent thereto
as a Distributable Event.  For purposes of this Plan, termination
for "cause" means termination based on any of the following:

     (a)  the willful and continued failure by the Participant to
substantially perform the Participant's duties with a
Participating Employer (other than any such failure resulting
from the Participant's incapacity due to physical or mental
illness) after a written demand for substantial performance is
delivered to the Participant specifically identifying the manner
in which the Participant has not substantially performed the
Participant's duties;

     (b)  the engaging by the Participant in willful misconduct which
is demonstrably injurious to any one or more of the Participating
Employers monetarily or otherwise; or

     (c)  the conviction of the Participant of a felony.

<PAGE>     25

                          ARTICLE VIII

                      VALUATION OF BENEFITS

     SECTION 8.1.  Deferred Compensation Account, Company Stock
                   Account and Company Matching Stock Account.

     (a)  Deferred Amounts.  If a Participant elects to defer
compensation in accordance with Section 4.2, such deferred
compensation shall be measured by the value of Company Common
Stock as provided in this subsection (a).  The Participant's
Deferred Compensation Account shall be credited with that number
of units (including fractions thereof) equal to the number of
shares (including fractions thereof) of Common Stock that could
have been purchased with the dollar amount of such deferred
compensation determined as of the last Business Day of each
calendar quarter, based on the average of the closing prices as
reported on the New York Stock Exchange for each day during that
quarter, in which such compensation would have otherwise been
paid to the Participant.  Each unit credited to the Deferred
Compensation Account shall be measured by the value of one share
of Common Stock and treated as though invested in a share of
Common Stock.  The liability of a benefit payable under the Plan
with respect to the units credited to the Deferred Compensation
Account shall be satisfied only in shares of Company Common
Stock.

     (b)  Discretionary Amount.  When a Participant's Company Stock
Account is to be credited with a Discretionary Amount, it shall
be credited with that number of units (including fractions
thereof) equal to the number of shares (including fractions
thereof) of Common Stock that could have been purchased with the
dollar amount of the Discretionary Amount as of such date or
dates as determined by the Compensation Committee, based upon the
closing price on such date or dates as reported on the New York
Stock Exchange for such date or dates.  The liability of a
benefit payable under the Plan with respect to the units credited
to the Company Stock Account shall be satisfied only in shares of
Company Common Stock.

     (c)  Company Matching Stock Account.  When a Participant's
Company Matching Stock Account is to be credited with matching
units pursuant to Section 4.3, it shall be credited with that
number of units (including fractions thereof) equal to the number
of shares (including fractions thereof) of Common Stock that
could have been purchased with the dollar amount of such matching
units as of the last Business Day of each calendar quarter, based
on the average of the closing prices as reported on the New York

<PAGE>     26

Stock Exchange for each day during that quarter.  The liability
of a benefit payable under the Plan with respect to the units
credited to the Company Matching Stock Account shall be satisfied
only in shares of Company Common Stock.

     (d)  Dividends.  A Participant's Deferred Compensation Account,
Company Stock Account and Company Matching Stock Account shall be
credited on each Common Stock dividend payment date with that
number of units equal to the number of shares that could have
been acquired based upon the dividends paid by the Company on
shares of Common Stock equal to the number of units credited to
the Participant's Deferred Compensation Account, Company Stock
Account and Company Matching Stock Account, respectively, as of
the record date for such dividend.

     (e)  Stock Dividends.  The number of units credited to a
Participant's Deferred Compensation Account, Company Stock
Account and Company Matching Stock Account shall be adjusted to
reflect any change in the outstanding Common Stock by reason of
any stock dividend or split, recapitalization, merger,
consolidation, combination or exchange of shares or other similar
corporate change.

     (f)  Transfer Upon Change in Control.  In the event of a Change
in Control, effective as of the close of business on the date of
the Change in Control, and if a Trust has been established under
Section 13.4 of the Plan, the number of units (including
fractions thereof) equal to the number of shares (including
fractions thereof) of Common Stock credited to each Participant's
Deferred Compensation Account, Company Stock Account and Company
Matching Stock Account shall be determined based upon the fair
market value of the Company Common Stock on such date and shall
be credited to accounts established for the benefit of each such
Participant under the terms of such Trust, and the number of
shares (including fractions thereof) of Common Stock equal to
such units (including fractions thereof) shall be contributed to
such Trust if so permitted or required under the Trust.

     Section 8.2.  Hypothetical Accounts.  The Accounts
established under this Plan shall be hypothetical in nature and
shall be maintained for bookkeeping purposes only.  Neither the
Plan nor any of the Accounts (or subaccounts) shall hold or be
required to hold any actual funds or assets.

<PAGE>     27

                           ARTICLE IX

                       NONTRANSFERABILITY

     SECTION 9.1.  Anti-Alienation of Benefits.  Any benefits
which may be credited to a Participant's Accounts under the Plan,
any options which may be granted under Article V, and any rights
or privileges pertaining thereto, may not be anticipated,
alienated, sold, transferred, assigned, pledged, encumbered or
subjected to any charge or legal process; and no interest or
right to receive a benefit may be taken, either voluntarily or
involuntarily, for the satisfaction of the debts of, or other
obligations or claims against, such person or entity, including
claims for alimony, support, separate maintenance and claims in
bankruptcy proceedings.

     Section 9.2.  Incompetent Participants.  If any person who
may be eligible to receive a payment under the Plan has been
legally declared incompetent and a conservator or other person
legally charged with the care of such person or of his or her
estate has been appointed, any payment under the Plan to which
the person is eligible to receive shall be paid to such
conservator or other person legally charged with the care of the
person or his or her estate.  Any such payment shall be a payment
for the account of such person and a complete discharge of any
liability of the Participating Employers and the Plan therefor.

     Section 9.3.  Designated Beneficiary.  In the event of a
Participant's death prior to the payment of all or a portion of
any benefits which may be payable with respect to the Participant
under the Plan, the payment of any benefits payable on behalf of
the Participant under the Plan shall be made to the Participant's
beneficiary designated on a "Beneficiary Designation Form," which
form shall be accepted and approved by the Compensation
Committee.  If no such beneficiary has been designated, payment
shall be made as required under the Participant's will; or, in
the event that there shall be no functioning will under
applicable state law, then to such persons as, at the date of the
Participant's death, would be entitled to share in the
distribution of such deceased Participant's personal estate under
the provisions of the applicable statute then in force governing
the decedent's intestate property, in the proportions specified
in such statute.

<PAGE>     28

                            ARTICLE X

                           WITHHOLDING

     SECTION 10.1. Determination of Tax Withholding.  The
Participating Employer or the Company shall have the authority,
duty and power to determine, withhold and report the amount of
any applicable federal, state or local taxes as required under
applicable law.

     Section 10.2. Withholding.  The amounts payable pursuant to
the Plan shall be reduced by the amount of any federal, state or
local taxes required by law to be withheld by the Participating
Employer or the Company under applicable law with respect to such
payments.  The Company is authorized to automatically withhold
that number of shares of Company Common Stock, determined by the
fair market value of the shares at the date of distribution of
shares of Company Common Stock to a Participant from his or her
Deferred Compensation Account, Company Matching Stock Account or
Company Stock Account or on the date of exercise of a stock
option granted pursuant to Article V of the Plan, as the case may
be, required to pay the applicable withholding taxes in
connection with such distribution or exercise of stock option
(with the remainder of any fractional share to be paid in cash to
the Participant), unless prior to the Distributable Event or the
exercise of the option, as the case may be, the Company receives
written notice, addressed to the Secretary of the Company, from
the Participant indicating that the Participant elects to pay the
tax withholding amount related to the distribution of shares from
the Deferred Compensation Account, Company Matching Stock Account
or Company Stock Account, or the issuance of shares upon exercise
of a stock option granted pursuant to Article V, in cash, and the
Company promptly receives such cash payment following the date of
the Distributable Event or upon exercise of the stock option, as
the case may be.

                           ARTICLE XI

                             VOTING

     SECTION 11.1. Voting of Company Stock With Respect to
Accounts.  No Participant shall be entitled to any voting rights
with respect to any units credited to his or her Deferred
Compensation Account, Company Stock Account or Company Matching
Stock Account.

<PAGE>     29

     Section 11.2. Voting With Respect to Options.  No
Participant shall be entitled to any voting rights with respect
to any stock options granted pursuant to Article V of the Plan.

                           ARTICLE XII

                   ADMINISTRATION OF THE PLAN

     SECTION 12.1. Administrator.  The administrator of the Plan
shall be the Company.  However, the Compensation Committee shall
act on behalf of the Company with respect to the administration
of the Plan.

     Section 12.2. Authority of Administrator.  The Compensation
Committee shall have the authority, duty and power to interpret
and construe the provisions of the Plan as it deems appropriate,
to adopt, establish and revise rules, procedures and regulations
relating to the Plan, to determine the conditions subject to
which any benefits may be payable, to resolve all factual and
legal questions concerning the status and rights of the
Participants and others under the Plan, including, but not
limited to, eligibility for benefits and to make any other
determinations which it believes necessary or advisable for the
administration of the Plan.  Benefits under this Plan will be
payable only if the Compensation Committee decides in its
discretion that the applicant is entitled to them under the Plan.
The Company shall have the duty and responsibility of maintaining
records, making the requisite calculations and disbursing
payments hereunder.  The determinations, interpretations and
regulations of the Compensation Committee and the calculations of
the Company shall be final and binding on all persons and parties
concerned.  The Secretary of the Company shall be the agent of
the Plan for the service of legal process in accordance with
section 502 of ERISA.

     Section 12.3. Operation of Plan and Claims Procedures.  The
Company shall be responsible for the general operation and
administration of the Plan and for carrying out the provisions
thereof.  The Company shall be responsible for the expenses
incurred in the administration of the Plan.  The Company shall
also be responsible for determining eligibility for payments and
the amounts payable pursuant to the Plan.  The Company shall be
entitled to rely conclusively upon all tables, valuations,
certificates, opinions and reports furnished by any

<PAGE>     30

actuary, accountant, controller, counsel or other person employed
or engaged by the Company with respect to the Plan.  The
procedures for filing claims for payments under the Plan are
described below.  For claims procedures purposes, the "Claims
Manager" shall be the Company.

     (a)  Claims Forms.  It is the intent of the Company that benefits
payable under the Plan shall be payable without the Participant
having to complete or submit any claims forms.  However, a
Participant who believes he or she is entitled to a payment under
the Plan may submit a claim for payments in writing to the
Company.  Any claim for payments under the Plan must be made by
the Participant or his or her beneficiary in writing and state
the claimant's name and the nature of benefits payable under the
Plan on a form acceptable to the Company.  If for any reason a
claim for payments under the Plan is denied by the Company, the
Claims Manager shall deliver to the claimant a written
explanation setting forth the specific reasons for the denial,
specific references to the pertinent provisions of the Plan on
which the denial is based, a description of any additional
material or information necessary for the claimant to perfect the
claim and an explanation of why such material or information is
necessary, and information on the procedures to be followed by
the claimant in obtaining a review of his or her claim, all
written in a manner calculated to be understood by the claimant.
For this purpose:

          (i)  the claimant's claim shall be deemed to be filed when
               presented orally or in writing to the Claims Manager;

          (ii) the Claims Manager's explanation shall be in writing
               delivered to the claimant within ninety (90) days of
               the date the claim is filed.

     (b)  Review.  The claimant shall have sixty (60) days following
his or her receipt of the denial of the claim to file with the
Claims Manager a written request for review of the denial.  For
such review, the claimant or the claimant's representative may
review pertinent documents and submit written issues and
comments.

     (c)  Decision on Review.  The Claims Manager shall decide the
issue on review and furnish the claimant with a copy within sixty
(60) days of receipt of the claimant's request for review of the
claimant's claim.  The decision on review shall be in writing and
shall include specific reasons for the decision, written in a
manner calculated to be understood by the claimant, as well as
specific references to the pertinent provisions in the Plan on
which the decision is based.  If a copy of the decision is not so
furnished to the claimant within such sixty (60) days, the claim
shall be deemed denied on review.  In no event may a claimant
commence legal action for benefits the claimant believes

<PAGE>     31

are due the claimant until the claimant has exhausted all of the
remedies and procedures afforded the claimant by this
Section 12.3.

     (d)  Disability Claims.  Effective for claims filed on or after
January 1, 2002, any review of an appeal of a determination with
respect to the Participant's Disability must meet the following
standards:  the review does not afford deference to the initial
adverse determination; the review is conducted by an appropriate
person who is neither the party who made the initial adverse
benefit determination that is the subject of the appeal nor a
subordinate of such party; the review provides for the
appropriate person to consult with health care professionals with
appropriate training and experience in the field of medicine
involved in the medical judgment in deciding the appeal of an
adverse benefit determination that is based in whole or in part
on a medical judgment; and the review provides for the
identification of the medical or vocational experts whose advice
was obtained in connection with the claimant's adverse benefit
determination, without regard to whether the advice was relied
upon in making the determination.  Furthermore, effective for
claims filed on or after January 1, 2002, the ninety (90) day
period described in these procedures shall be reduced to
forty-five (45) days in the case of a claim of the Participant's
Disability.  The forty-five (45) day period may be extended by
thirty (30) days if the Claims Manager determines the extension
is necessary to circumstances outside the control of the Plan,
and the claimant is notified prior to the end of the forty-five
(45) day period.  If prior to the end of the thirty (30) day
extension period, the Claims Manager determines that additional
time is necessary, the period may be extended for a second thirty
(30) day period, provided the claimant is notified prior to the
end of the first thirty (30) day extension period and such notice
specifies the circumstances requiring the extension and the date
as of which the Plan expects to render a decision.  Effective for
claims filed on or after January 1, 2002, the sixty (60) day
period described in these procedures shall be reduced to
forty-five (45) days with respect to the appeal of the denial of
the Participant's claim of Disability.  The forty-five (45) day
period may be extended by an additional forty-five (45) days if
the Claims Manager determines the extension is necessary to
circumstances outside the control of the Plan, and the claimant
is notified prior to the end of the initial forty-five (45) day
period.

     (e)  General Rules.  No inquiry or question shall be deemed to be
a claim or a request for a review of a denied claim unless made
in accordance with the claims procedure.  The Claims Manager may
require that any claim for benefits and any request for a review
of a denied claim be filed on forms to be furnished by the Claims
Manager upon request.  The Claims Manager may, in its discretion,
hold one or more hearings on a claim or a request for a review of
a denied claim.  Claimants may be represented by a

<PAGE>     32

lawyer or other representative at their own expense, but the
Claims Manager reserves the right to require the claimant to
furnish written authorization.  A claimant's representative shall
be entitled to copies of all notices given to the claimant.

     (f)  Deadline to File Claim.  To be considered timely under the
Plan's claim and review procedure, a claim must be filed with the
Company within one (1) year after the claimant knew or reasonably
should have known of the principal facts upon which the claim is
based.

     (g)  Exhaustion of Administrative Remedies.  The exhaustion of
the claim and review procedure is mandatory for resolving every
claim and dispute arising under this Plan.  As to such claims and
disputes:

          (i)  no claimant shall be permitted to commence any legal action
               to recover Plan benefits or to enforce or clarify rights under
               the Plan under section 502 or section 510 of ERISA or under any
               other provision of law, whether or not statutory, until the claim
               and review procedure set forth herein have been exhausted in
               their entirety; and

          (ii) in any such legal action all explicit and all implicit
               determinations by the Company (including, but not limited to,
               determinations as to whether the claim, or a request for a review
               of a denied claim, was timely filed) shall be afforded the
               maximum deference permitted by law.

     (h)  Deadline to File Legal Action.  No legal action to recover
Plan benefits or to enforce or clarify rights under the Plan
under section 502 or section 510 of ERISA or under any other
provision of law, whether or not statutory, may be brought by any
claimant on any matter pertaining to this Plan unless the legal
action is commenced in the proper forum before the earlier of:

          (i)  thirty (30) months after the claimant knew or reasonably
               should have known of the principal facts on which the claim is
               based; or

          (ii) six (6) months after the claimant has exhausted the claim
               and review procedure.

     (i)  Knowledge of Facts by Participant Imputed to Beneficiary.
Knowledge of all facts that a Participant knew or reasonably
should have known shall be imputed to every claimant who is or
claims to be a beneficiary of the Participant or otherwise claims
to derive an entitlement by reference to the Participant for the
purpose of applying the previously specified periods.

<PAGE>     33

     Section 12.4. Participant's Address.  Each Participant
shall keep the Company informed of his or her current address and
the current address of his or her beneficiary.  The Company shall
not be obligated to search for any person.  If the location of a
Participant is not made known to the Company within three (3)
years after the date on which payment of the Participant's
benefits payable under the Plan may be made, payment may be made
as though the Participant had died at the end of the three-year
period.  If, within one (1) additional year after such three-year
period has elapsed, or, within three (3) years after the actual
death of a Participant, the Company is unable to locate any
designated beneficiary of the Participant, then neither the
Company nor any other Participating Employer shall have any
further obligation to pay any benefit under the Plan to or on
behalf of such Participant or designated beneficiary and such
benefit shall be irrevocably forfeited.

     Section 12.5. Conflict of Interest.  If any individual to
whom authority has been delegated or redelegated hereunder shall
also be a Participant in this Plan, such Participant shall have
no authority with respect to any matter specifically affecting
such Participant's individual interest hereunder or the interest
of a person superior to him or her in the Company or
Participating Employer (as distinguished from the interests of
all Participants and their beneficiaries or a broad class of
Participants and beneficiaries), all such authority being
reserved exclusively to other individuals as the case may be, to
the exclusion of such Participant, and such Participant shall act
only in such Participant's individual capacity in connection with
any such matter.

     Section 12.6. Service of Process.  In the absence of any
designation to the contrary by the Company, the Compensation
Committee is designated as the appropriate and exclusive agent
for the receipt of service of process directed to the Plan in any
legal proceeding, including arbitration, involving the Plan.

     Section 12.7. Errors in Computations.  The Company, any
Participating Employer or the Compensation Committee shall not be
liable or responsible for any error in the computation of any
Account or the determination of any benefit payable to or with
respect to any Participant resulting from any misstatement of
fact made by the Participant or by or on behalf of any survivor
to whom such benefit shall be payable, directly or indirectly, to
the Company, any Participating Employer or the Compensation
Committee and used in determining the benefit.  The Company, any
Participating Employer, or the Compensation Committee shall not

<PAGE>     34

be obligated or required to increase the benefit payable to or
with respect to such Participant which, on discovery of the
misstatement, is found to be understated as a result of such
misstatement of the Participant.  However, the benefit of any
Participant which is overstated by reason of any such
misstatement or any other reason shall be reduced to the amount
appropriate in view of the truth (and to recover any prior
overpayment).

                          ARTICLE XIII

                    MISCELLANEOUS PROVISIONS

     SECTION 13.1. No Employment Rights.  Neither the Plan nor
any action taken under the Plan shall be construed as providing
any Participant any right to be retained in the service or employ
of any Participating Employer.

     Section 13.2. Participants Should Consult Advisors.
Neither any Participating Employer, nor their respective
directors, officers, employees or agents makes any representation
or warranty with respect to the federal, state or other tax,
financial, estate planning, or the securities or other legal
implications of participation in the Plan.  Participants should
consult with their own tax, financial and legal advisors with
respect to their participation in the Plan.

     Section 13.3. Unfunded and Unsecured.  The Plan shall at
all times be considered entirely unfunded both for tax purposes
and for purposes of Title I of the Employee Retirement Income
Security Act of 1974, as amended, and no provision shall at any
time be made with respect to segregating assets of the Company or
any Participating Employer for payment of any amounts under the
Plan.  Any funds invested under the Plan shall continue for all
purposes to be part of the respective general assets of the
Company or any Participating Employer and available to general
creditors in the event of a bankruptcy (involvement in a pending
proceeding under the Federal Bankruptcy Code) or insolvency
(inability to pay debts as they mature) of the Company or a
Participating Employer.  The Company shall promptly notify the
Trustee and the applicable Participants of such bankruptcy or
insolvency.  No Participant or any other person shall have any
interests in any particular assets of the Company or any
Participating Employer by reason of the right to receive a
benefit under the Plan and to the extent the Participant or any
other person acquires a right to receive benefits under the Plan,
such right shall be no greater than the right of any general
unsecured creditor.  The Plan constitutes a mere promise by the

<PAGE>     35

Company and any other Participating Employer for the payment of
benefits payable under the Plan to the Participants in the
future.  Nothing contained in the Plan shall constitute a
guaranty by any Participating Employer or any other person or
entity that any funds in any trust or the assets of the Company
or any Participating Employer will be sufficient to pay any
benefit under the Plan.  Furthermore, no Participant shall have
any right to a benefit under the Plan except in accordance with
the terms of the Plan.

     Section 13.4. The Trust.

     (a)  Establishment of Trust.  To fulfill the obligations to the
Participants and their beneficiaries under the Plan, a Trust may
be established by a trust agreement with a third party, the
Trustee, to which cash or other property may be contributed,
including securities issued by the Company, to provide for the
benefit payments under the Plan.  The Trustee for such Trust will
have the duty to hold such property or to invest the Trust assets
and funds in accordance with the terms of such Trust.  All rights
associated with the assets of such Trust will be exercised by the
Trustee of the Trust or the person designated by such Trustee,
and will in no event be exercisable by or rest with Participants
or their beneficiaries.  Such Trust shall provide that in the
event of the insolvency of the employer that established such
Trust, the Trustee shall hold the assets for the benefit of the
general creditors of the employer.  The Trust shall be based on
the model trust contained in Internal Revenue Service Revenue
Procedure 92-64.

     (b)  Contribution Upon Change in Control.  If as of the close of
business on the date of a Change in Control, the aggregate value
of the Participant Accounts exceeds the value of the assets held
in a Trust established under subsection (a), then within thirty
(30) days of such Change in Control, each Participating Employer
shall have the obligation for providing to such Trust assets
having a value at least equal to the amount of such excess.

     Section 13.5. Plan Provisions.  Except when otherwise
required by the context, any singular terminology shall include
the plural.

     Section 13.6. Severability.  If a provision of the Plan
shall be held to be illegal or invalid, the illegality or
invalidity shall not affect the remaining parts of the Plan and
the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

<PAGE>     36

     Section 13.7. Applicable Law.  To the extent not preempted
by the laws of the United States, the laws of the state of
Delaware shall apply with respect to the Plan.

     Section 13.8. Stock Subject to Plan.  Subject to and in
accordance with the terms of the Plan, the maximum number of
shares of Common Stock that shall be made available for purposes
of satisfying the obligations of the Company under the Plan is
6,000,000 shares, subject to adjustment by reason of any stock
dividend or split, recapitalization, merger, consolidation,
combination or exchange of shares or other similar corporate
change.  For purposes of counting shares of Company Common Stock
available under this Section 13.8 for distribution from Deferred
Compensation Accounts, Company Matching Stock Accounts and
Company Stock Accounts and for issuance upon exercise of stock
options granted pursuant to Article V of the Plan, the number of
shares covered by units credited to such Accounts shall be
counted on the date units are credited to an Account and the
number of shares covered by stock options granted pursuant to
Article V of the Plan shall be counted on the date of grant.

                           ARTICLE XIV

                           AMENDMENTS

     SECTION 14.1. Amendment of the Plan.  The Board of
Directors reserves the power to alter, amend or wholly revise the
Plan at any time and from time to time and the interest of each
Participant is subject to the powers so reserved; provided,
however, that no amendment made subsequent to a Change in Control
shall be effective to the extent that it would have a materially
adverse impact on a Participant's reasonably expected economic
benefit attributable to compensation deferred by the Participant
prior to the Change in Control.

     Section 14.2. Procedure for Amendment.  An amendment shall
be authorized by the Board of Directors and shall be stated in an
instrument in writing signed in the name of the Company by a
person or persons authorized by the Board of Directors.  After
the instrument has been so executed, the Plan shall be deemed to
have been amended in the manner therein set forth, and all
parties interested herein shall be bound thereby.  No amendment
to the Plan may alter, impair or reduce the benefits credited to
any Accounts prior to the effective date of such amendment
without the written consent of any affected Participant.

<PAGE>     37

                           ARTICLE XV

                          TERM OF PLAN

     SECTION 15.1. Term of the Plan.  The Company may at any
time terminate the Plan by action of the Board of Directors with
such termination being effective as of the date that all
Participant Accounts have been distributed to Participants in
accordance with and subject to the provisions of Article VII of
the Plan including, without limitation, Section 7.5 of the Plan,
and options granted pursuant to Article V of the Plan.  Effective
as of the date of such Board of Directors action (or such later
date as may be specified therein) all Section 4.1 and Article V
compensation deferral elections will terminate, no further
options shall be granted under Article V, and no further amounts
shall be credited to any Accounts of any Participant under
subsections (a), (b) and (c) of Section 8.1 and Article V after
such date.  However, the Participants' Accounts shall continue to
be adjusted by the other provisions of Article V and Article VIII
until all benefits are distributed to the Participants or to the
Participants' beneficiaries.

     Section 15.2. Termination of Future Deferrals.  The Company
shall not permit any deferrals under Sections 4.1 and 4.2 of the
Plan and shall not credit any Accounts under Sections 4.3 and 4.4
and of Article V of the Plan and no further options shall be
granted under Article V on or after the date on which no further
shares of Company Common Stock are available for purposes of
satisfying the obligations of the Company and any other
Participating Employer under the Plan.

     Dated as of this 18th day of July, 2002.

                                   HECLA MINING COMPANY

                                   By: Phillips S. Baker, Jr.
                                      --------------------------

                                   Title:  President
                                         -----------------------

<PAGE>     38

                            EXHIBIT A

                      HECLA MINING COMPANY
      KEY EMPLOYEE DEFERRED COMPENSATION PLAN PARTICIPANTS

  Name of Individuals     Date of Participation        Date of
Eligible to Participate        Eligibility          Participation
-----------------------   ---------------------   ------------------

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