Document:

Hecla Mining Company Exhibit 10.2(c) to form 10-K

Exhibit 10.2(c)  

HECLA MINING COMPANY
STOCK PLAN FOR NONEMPLOYEE DIRECTORS
as amended July 18,
2002, February 25, 2004 and May 6, 2005 

        1.
 Name of Plan.  This plan shall be known as the “Hecla Mining Company
Stock Plan for Nonemployee Directors” and is hereinafter referred to as the
“Plan.” 

        2.
 Purpose of Plan.  The purpose of the Plan is to enable Hecla
Mining Company, a Delaware corporation (the “Corporation”), to attract
and retain qualified persons to serve as directors, to enhance the equity
interest of directors in the Corporation, and to solidify the common interests
of its directors and shareholders in enhancing the value of the
Corporation’s common stock, par value $.25 per share (the “Common
Stock”). The Plan seeks to encourage the highest level of director
performance by providing such directors with a proprietary interest in the
Corporation’s performance and progress by crediting them with Common Stock
annually as part of their annual retainer. 

        3.
 Effective Date and Term.  The Plan shall be effective as of
the date it is approved by at least a majority of the outstanding shares of
Common Stock present or represented and entitled to vote at a meeting of
shareholders of the Corporation not later than May 30, 1995, and shall remain in
effect until July 17, 2012. 

        4.
 Eligible Participants.  Each member of the Board from time to
time who is not a full-time employee of the Corporation or any of its
subsidiaries shall be a participant (“Participant”) in the Plan. Each
credit of shares of Common Stock pursuant to the Plan shall be evidenced by a
written agreement duly executed and delivered by or on behalf of the Corporation
and a Participant, if such an agreement is required by the Corporation to assure
compliance with all applicable laws and regulations. 

        5.
 Credit of Shares.  (a)   Commencing May 30, 1995, as part of the
retainer payable to each Participant for service on the Board, each Participant
shall become entitled to receive shares of Common Stock subject to any
applicable restrictions set forth in Section 6 hereof. Subject to paragraph (b)
below, each Participant shall be credited each year for service on the Board
with a number of shares of Common Stock determined by dividing $24,000 by the
average closing price for the Common Stock on the New York Stock Exchange (or if
not listed on such exchange on any other national securities exchange on which
the shares of Common Stock are listed) for the prior calendar year (the
“Stock Retainer”). The Stock Retainer for each year shall be credited
as of May 30 of each year during the term of the Plan, commencing May 30, 1995.

        (b)
      Any person who becomes a nonemployee director following May 30 of any year
during the term of the Plan, whether by appointment or election as a director or
by change in status from a full-time employee, shall be credited, on becoming a
nonemployee director, as a portion of the compensation to be paid to such
Participant until the next Annual Meeting of Shareholders, with a number of
shares of Common Stock equal to the product of the number of shares determined
pursuant to 5(b) above times a fraction, the numerator of which is the number of
full weeks remaining until May 30 of the following year and the denominator of
which is 52; provided that no fractional shares shall be credited and the number
of shares of Common Stock to be credited pursuant to this paragraph (b) shall be
rounded up to the next whole number. 

1 

        6. 
Delivery
of Shares.  (a)   All Stock Retainers credited to a
Participant, together with the “Dividend Equivalent Amount” (as
defined in paragraph (c) below) with respect thereto, shall be delivered to the
Participant or the Participant’s estate or legal guardian on, or beginning
on, the Delivery Date (as defined in paragraph (b) below), in accordance with
this Section 6. 

        (b)
      The “Delivery Date” means the first date upon which one of the
following events occurs:  

	(i)  	  	Death
of the Participant;  

	(ii)   	  	Disability
of the Participant preventing continued service on the Board;  

	(iii)  	  	Retirement
of the Participant from service as a Director of the Corporation in
                    accordance with the Corporation’s By-Laws then in effect;  

	(iv) 	  	Cessation
of service as a Director for any reason other than those specified in
subsections (b)(i), (ii) and (iii) of this Section 6; or 

	(v)  	  	Change
in Control (as hereinafter defined);  

	(vi)  	  	At
anytime upon the election of any Participant provided that the delivery under
such election shall be limited to that portion of the Stock Retainer and related
Dividend Equivalent Amount credited to each Participant under the Plan for at
least 24 months prior to delivery. 

        (c)
      The
“Dividend Equivalent Amount” with respect to any Stock Retainer means
(i) the amount of cash, plus the fair market value as determined by the
Committee (as defined in Section 12) on the date of distribution of any
property, other than stock of the Corporation, plus (ii) any shares of stock of
the Corporation, in each case which the Participant would have received as
dividends or other distributions with respect to the Stock Retainer, if the
Stock Retainer had been delivered to the Participant at the time it was credited
to the Participant under this Plan, plus (iii) interest on the amount described
in clause (i) at a rate equal to the Corporation’s cost of funds, from the
date or date(s) such dividends or other distributions would have been received
through the date the Stock Retainer is delivered. 

2 

        (d)
      If a Participant’s Delivery Date is
described in clause (iv) or clause (v) of paragraph (b), all Stock Retainers and
all Dividend Equivalent Amounts with respect thereto shall be delivered at one
time, as soon as practicable after the Delivery Date. If a Participant’s
Delivery Date is described in clause (i), clause (ii) or clause (iii) of
paragraph (b), the Stock Retainers and the Dividend Equivalent Amounts with
respect thereto shall be delivered at one time, as soon as practicable after the
Delivery Date, unless the Participant has in effect a valid Installment Delivery
Election pursuant to paragraph (e) below to have the Stock Retainers and
Dividend Equivalent Amounts delivered in yearly installments over five, ten or
fifteen years (the “Applicable Delivery Period”). If the Participant
does have in effect a valid Installment Delivery Election, then the Stock
Retainers, together with the Dividend Equivalent Amounts with respect thereto,
shall be delivered in equal yearly installments over the Applicable Delivery
Period, with the first such installment being delivered on the first anniversary
of the Delivery Date; provided, that if in order to equalize such installments,
fractional shares would have to be delivered, such installments shall be
adjusted by rounding to the nearest whole share; and provided, further, that for
purposes of determining the Dividend Equivalent Amounts with respect to Stock
Retainers being delivered in installments, Stock Retainers shall be deemed to be
distributed in the order they were credited to the Participant (i.e., on a
first-in, first-out (FIFO) basis). If any Stock Retainers and Dividend
Equivalent Amounts of a Participant are to be delivered after the Participant
has died or become legally incompetent, they shall be delivered to the
Participant’s estate or legal guardian, as the case may be, in accordance
with the foregoing schedules; provided, that if the Participant dies with a
valid Installment Delivery Election in effect, and the legal representatives of
the Participant’s estate so request, the Committee (as defined in Section
12 below) may (but shall not be obligated to) deliver all remaining undelivered
Stock Retainers and Dividend Equivalent Amounts to the Participant’s estate
immediately. References to the Participant in this Plan shall be deemed to refer
to the Participant’s estate or legal guardian, where appropriate.

        (e)
      An Installment Delivery Election means a
written election by a Participant, on such form as may be prescribed by the
Committee (as defined in Section 12 below), to receive delivery of Stock
Retainers and Dividend Equivalent Amounts in installments over a period of five,
ten or fifteen years, as more fully described in paragraph (d) above. Once made,
an Installment Delivery Election may be superseded by another Installment
Delivery Election or revoked in writing by a Participant. However, in order for
any initial or superseding Installment Delivery Election or revocation thereof
to be valid, it must be received by the Committee (i) before a Delivery Date
described in clause (i) of paragraph (b) above, (ii) at least one year before a
Delivery Date described in clause (ii) of paragraph (b) above, and (iii) at
least three years before a Delivery Date described in clause (iii) of paragraph
(b) above. In the case of multiple Installment Delivery Elections and/or
revocations by any Participant, the most recent valid Installment Delivery
Election or revocation in effect as of the Delivery Date shall be controlling.

3 

        (f)
      The Corporation may, but shall not be
required to, create a grantor trust or utilize an existing grantor trust (in
either case, the “Trust”) to assist it in accumulating the shares,
cash and other property needed to fulfill its obligations under this Section 6.
On each date when a Stock Retainer is credited to a Participant, the Corporation
shall contribute such Stock Retainer to the Trust. However, Participants shall
have no beneficial or other interest in the Trust and the assets thereof, and
their rights under the Plan shall be as general creditors of the Corporation,
unaffected by the existence or nonexistence of the Trust, except that deliveries
of Stock Retainers and payments of cash and other property to Participants from
the Trust shall, to the extent thereof, be treated as satisfying the
Corporation’s obligations under this Section 6. 

        7.
 Share Certificates; Voting and Other Rights.  The certificates
for shares delivered to a Participant or the trustee of the Trust, if any (the
“Trustee”), pursuant to Section 6 above shall be issued in the name of
the Participant or the Trustee, as the case may be, and the Participant or the
Trustee, as the case may be, shall be entitled to all rights of a shareholder
with respect to Common Stock for all such shares issued in his name, including
the right to vote the shares, and the Participant or the Trustee, as the case
may be, shall receive all dividends and other distributions paid or made with
respect thereto. 

        8.
 Change in Control.  A “Change in Control” shall be
deemed to have occurred if any of the following events shall have happened:

	  	(i)  	  	An
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”))
(a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding
shares of Common Stock of the Corporation (the “Outstanding Corporation Common Stock”)
or (2) the combined voting power of the then outstanding voting securities of the
Corporation entitled to vote generally in the election of directors (the “Outstanding
Corporation Voting Securities”); excluding, however, the following: (1) Any
acquisition directly from the Corporation, other than an acquisition by virtue of the
exercise of a conversion privilege unless the security being so converted was itself
acquired directly from the Corporation, (2) Any acquisition by the Corporation, (3) Any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by
the Corporation or any corporation controlled by the Corporation, or (4) Any acquisition
by any corporation pursuant to a transaction which complies with clauses (1), (2) and (3)
of subsection (iii) of this Section 8; or  

	  	(ii)  	  	A
change in the composition of the Board such that the individuals who, as of the effective
date of the Plan, constitute the Board (such Board shall be hereinafter referred to as
the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided however, for purposes of this Section 8, that any individual who
becomes a member of the Board subsequent to the effective date of the Plan, whose
election, or nomination for election by the Corporation’s shareholders, was approved
by a vote of at least a majority of those individuals who are members of the Board and
who were also members of the Incumbent Board (or deemed to be such pursuant to this
proviso) shall be considered as though such individual was a member of the Incumbent
Board; but, provided further, that any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual
or threatened solicitation of proxies or consents by or on behalf of a Person other than
the Board shall not be so considered as a member of the Incumbent Board; or  

4 

	  	(iii)  	  	The
consummation by the shareholders of the Corporation of a reorganization, merger
or consolidation or sale or other disposition of all or substantially all of the
assets of the Corporation (“Corporate Transaction”) or, if
consummation of such Corporate Transaction is subject, at the time of such
approval by shareholders, to the consent of any government or governmental
agency, obtaining of such consent (either explicitly or implicitly by
consummation); excluding however, such a Corporate Transaction pursuant to which
(1) all or substantially all of the individuals and entities who are the
beneficial owners, respectively, of the Outstanding Corporation Common Stock and
Outstanding Corporation Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 60% of,
respectively, the outstanding shares of common stock, and the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from
such Corporate Transaction (including, without limitation, a corporation which
as a result of such transaction owns the Corporation or all or substantially all
of the Corporation’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Corporation
Common Stock and Outstanding Corporation Voting Securities, as the case may be,
(2) no Person (other than the Corporation, any employee benefit plan (or related
trust) of the Corporation or such corporation resulting from such Corporate
Transaction) will beneficially own, directly or indirectly, 20% or more of,
respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in
the election of directors except to the extent that such ownership existed prior
to the Corporate Transaction and (3) individuals who were members of the
Incumbent Board will constitute at least a majority of the members of the board
of directors of the corporation resulting from such Corporate Transaction; or

	  	(iv)  	  	The
approval by the shareholders of the Corporation of a complete liquidation or
               dissolution of the Corporation.  

5 

        9. 
General Restrictions.  (a)  Notwithstanding any other provision
of the Plan or agreements made pursuant thereto, the Corporation shall not be
required to issue or deliver any certificate or certificates for shares of
Common Stock under the Plan prior to fulfillment of all of the following
conditions: 

	(i)    	  	Listing
or approval for listing upon notice of issuance of such shares on the New York
Stock Exchange, Inc., or such other securities exchange as may at the time be
the principal market for the Common Stock; 

	(ii)  	  	Any
registration or other qualification of such shares of the Corporation under any
state or federal law or regulation, or maintaining in effect any such
registration or other qualification which the Committee shall, in its absolute
discretion upon the advice of counsel, deem necessary or advisable; and

	(iii)  	  	Obtaining
any other consent, approval, or permit from any state or federal governmental
agency which the Committee shall, in its absolute discretion after receiving the
advice of counsel, determine to be necessary or advisable. 

        (b)
      Nothing contained in the Plan shall prevent
the Corporation from adopting other or additional compensation arrangements for
the Participants. 

        10.
 Shares Available.  Subject to Section 11 below, the maximum number
of shares of Common Stock which may be credited as Stock Retainers pursuant to
the Plan is 1,000,000. Shares of Common Stock issuable under the Plan shall be
taken from authorized but unissued shares or from treasury shares of the
Corporation as shall from time to time be necessary for issuance pursuant to the
Plan. 

        11.
 Change in Capital Structure.  In the event of any change in
the Common Stock by reason of any stock dividend, stock split, combination of
shares, exchange of shares, warrants or rights offering to purchase Common Stock
at a price below its fair market value, reclassification, recapitalization,
merger, consolidation or other change in capitalization, appropriate adjustment
shall be made by the Committee (as defined in Section 12 below) in the number
and kind of shares subject to the Plan and any other relevant provisions of the
Plan, whose determination shall be binding and conclusive on all persons.

6 

        12.
 Administration; Amendment.  (a)  The Plan shall be administered by a
committee consisting of the Chief Executive Officer, the Treasurer, the
Controller, and the General Counsel of the Corporation (the
“Committee”), which shall have full authority to construe and
interpret the Plan, to establish, amend and rescind rules and regulations
relating to the Plan, and to take all such actions and make all such
determinations in connection with the Plan as it may deem necessary or
desirable. 

        (b)
      The Board may from time to time make such
amendments to the Plan as it may deem proper and in the best interest of the
Corporation without further approval of the Corporation’s shareholders,
provided that to the extent required to qualify transactions under the Plan for
exemption under Rule 16b-3 promulgated under the Exchange Act (“Rule
16b-3”), no amendment to the Plan shall be adopted without further approval
of the Corporation’s shareholders in the manner prescribed in Section 3
hereof and, provided further, that if and to the extent required for the Plan to
comply with Rule 16b-3, no amendment to the Plan shall be made more than once in
any six-month period that would change the amount, price or timing of the grants
of Common Stock hereunder other than to comport with changes in the Internal
Revenue Code of 1986, as amended, the Employee Retirement Income Security Act of
1974, as amended, or the regulations thereunder. 

        (c)
      The Board may terminate the Plan at any
time.  

        (d)
      Notwithstanding any other provision of the
Plan, neither the Board nor the Committee shall be authorized to exercise any
discretion with respect to the selection of persons eligible to receive grants
under the Plan or concerning the amount or timing of grants under the Plan.

        13.
 Miscellaneous.  (a)  Nothing in the Plan shall be deemed to create any
          obligation on the part of the Board to nominate any director for reelection by
          the Corporation’s shareholders or to limit the rights of the shareholders
          to remove any director.  

        (b)
      The Corporation shall have the right to
require, prior to the issuance or delivery of any shares of Common Stock
pursuant to the Plan, payment by a Participant of any taxes required by law with
respect to the issuance or delivery of such shares. 

        14.
 Governing Law.  The Plan and all actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of
Delaware. 

7Hecla Mining Company Exhibit 10.2(d) to form 10-K

Exhibit 10.2(d)  

HECLA MINING COMPANY
KEY EMPLOYEE DEFERRED
COMPENSATION PLAN
(Amended and Restated
Effective January 1, 2005) 

HECLA MINING COMPANY

 KEY EMPLOYEE DEFERRED COMPENSATION PLAN
(Amended and Restated
Effective January 1, 2005)

TABLE OF CONTENTS 

			Page
	 
	ARTICLE I.	PURPOSE AND INTENT	1
	 
		Section 1.1.      Purpose of Plan	
		Section 1.2.      Intent and Construction	
	 
	ARTICLE II.	DEFINITIONS	2
	 
		Section 2.1.      Definitions	
		Section 2.2.      Rules of Interpretation	
	 
	ARTICLE III.	PARTICIPATING EMPLOYERS	8
	 
		Section 3.1.      Eligibility	
		Section 3.2.      Participation Requirements	
		Section 3.3.      Recordkeeping and Reporting	
		Section 3.4.      Termination of Participation	
		Section 3.5.      Separate Accounting	
	 
	ARTICLE IV.	ELIGIBILITY AND PARTICIPATION	10
	 
		Section 4.1.      Eligibility	
		Section 4.2.      Participation	
		Section 4.3.      Suspension of Eligibility	
	 
	ARTICLE V.	BENEFITS	10
	 
		Section 5.1.      Deferred Compensation	
		Section 5.2.      Deferral Elections	
		Section 5.3.      Matching Amounts	
		Section 5.4.      Discretionary Amounts	
		Section 5.5.      Stock Options	
	 
	ARTICLE VI.	VALUATION OF BENEFITS	15
	 
		Section 6.1.      Investment Account	
		Section 6.2.      Company Stock Account	
		Section 6.3.      Discounted Stock Option	

i 

	ARTICLE VII.	VESTING OF ACCOUNTS	18
	 
		Section 7.1.      Vested Benefit	
		Section 7.2.      Nature of Accounts	
	 
	ARTICLE VIII.	DISTRIBUTION AND EXERCISE OF OPTIONS	18
	 
		Section 8.1.      Distributable Events	
		Section 8.2.      Distribution of Benefits	
		Section 8.3.      Designation of Beneficiaries	
		Section 8.4.      Death Prior to Full Distribution	
		Section 8.5.      Facility of Payment	
		Section 8.6.      Form of Distribution	
		Section 8.7.      Payment With Respect to Accounts	
		Section 8.8.      Application for Distribution	
		Section 8.9.      Limitation on Payment	
		Section 8.10.    Tax Withholding	
	 
	ARTICLE IX.	NONTRANSFERABILITY AND VOTING RIGHTS	25
	 
		Section 9.1.      Anti-Alienation of Benefits	
		Section 9.2.      Voting of Company Stock With Respect to Accounts	
		Section 9.3.      Voting With Respect to Options	
	 
	ARTICLE X.	ADMINISTRATION OF THE PLAN	26
	 
		Section 10.1.    Administrator	
		Section 10.2.    Authority of Administrator	
		Section 10.3.    Operation of Plan and Claims Procedures	
		Section 10.4.    Participant’s Address	
		Section 10.5.    Conflict of Interest	
		Section 10.6.    Service of Process	
		Section 10.7.    Errors in Computations	
	 
	ARTICLE XI.	MISCELLANEOUS PROVISIONS	30
	 
		Section 11.1.    No Employment Rights	
		Section 11.2.    Participants Should Consult Advisors	
		Section 11.3.    Unfunded and Unsecured	
		Section 11.4.    Plan Provisions	
		Section 11.5.    Severability	
		Section 11.6.    Applicable Law	
		Section 11.7.    Stock Subject to Plan	

ii 

	ARTICLE XII.	AMENDMENT OF THE PLAN	31
	 
		Section 12.1.    Amendment of the Plan	 
		Section 12.2.    Procedure for Amendment	 
	 
	ARTICLE XIII.	TERMINATION OF PLAN	32
	 
		Section 13.1.    Termination of the Plan	 
		Section 13.2.    Procedure for Amendment to Terminate the Plan	33
	 
	EXHIBIT A —	HECLA MINING COMPANY KEY EMPLOYEE DEFERRED COMPENSATION PLAN PARTICIPANTS	A-1
	 
	EXHIBIT B — 	HECLA MINING COMPANY KEY EMPLOYEE DEFERRED COMPENSATION PLAN PARTICIPATING EMPLOYERS	B-1

iii 

HECLA MINING COMPANY
KEY EMPLOYEE DEFERRED
COMPENSATION PLAN
(Amended and Restated
Effective January 1, 2005) 

ARTICLE I 

PURPOSE AND INTENT 

        
Section 1.1    Purpose of Plan. On ____________, HECLA MINING COMPANY, a taxable
corporation organized under the laws of the State of Delaware, established a deferred
compensation plan, 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, which approval occurred on ____________. The purpose of the plan was
to assist Hecla Mining Company in attracting and retaining high-ranking executive officers
and key high-ranking management personnel, encouraging their long term commitment to the
success of Hecla Mining Company and providing an opportunity for them to participate in
the increase in the value of Hecla Mining Company. Pursuant to the authority and power of
Hecla Mining Company reserved to it in Section 14.1 of the plan instrument, Hecla Mining
Company has determined to amend the plan, in the form of a restatement of the plan
instrument, effective January 1, 2005, to maintain accounts to which amounts of
compensation were deferred and credited and the right to which was earned and vested (as
defined in paragraph (a)(2) of Section 1.409A-6 of the Proposed Treasury Regulations or
the corresponding provision in future guidance issued by the Department of the Treasury)
as of December 31, 2004, to permit no additional amounts to be credited to those accounts,
other than to adjust such accounts based upon earnings and losses and to require those
amounts which are earned and vested as of December 31, 2004, and any earnings thereon to
be governed by the terms and conditions of the plan instrument in effect as of December
31, 2004.  

        Section
1.2.   Intent and Construction. This written
instrument is intended to be an unfunded and unsecured plan maintained by Hecla Mining
Company primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees. The instrument is further intended to be
construed and administered in conformance with the applicable requirements of section
409A of the Internal Revenue Code, the guidance issued by the Department of the Treasury
with respect to the application of section 409A, the Employee Retirement Income Security
Act of 1974, as amended, and to be maintained by Hecla Mining Company pursuant to this
written instrument for the purpose of providing deferred compensation for the
Participant. This instrument shall be administered and construed in a manner consistent
with said intent and according to the laws of the State of Delaware to the extent that
such laws are not preempted by the laws of the United States of America.  

1 

ARTICLE II  

DEFINITIONS 

        Section
2.1    Definitions. When used in this document with initial capital letters, the terms
defined in this Section 2.1 shall have the meanings respectively ascribed to them
unless a different meaning is plainly required by the context.  

	  	(a)  	  	Account
or Accounts. “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 amounts shall be credited pursuant to the Plan.
The Account or Accounts of a Participant shall consist of the Company Stock Account and
the Investment Account.  

	  	(b)  	  	Beneficiary.
“Beneficiary” means the person, persons or trust designated by a Participant to
receive any benefits which may become payable under the Plan by reason of the death of
the Participant.  

	  	(c)  	  	Board
of Directors. “Board of Directors” means the Board of Directors of Hecla
Mining Company.  

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

	  	(e)  	  	Change
in Control. “Change in Control” means, for purposes of the
interpretation of this Plan in conformance with section 409A of the Code and the
applicable guidance issued by the Department of the Treasury with respect to the
application of section 409A, with respect to a Plan Participant, a Change in
Control event must relate to: (i) the corporation for which the Participant is
performing services at the time of the Change in Control event, (ii) the
corporation that is liable for the payment of the deferred compensation (or all
corporations liable for the payment if more than one corporation is liable), or
(iii) a corporation that is a majority shareholder of a corporation identified
in part (i) or part (ii) above, or any corporation in a chain of corporations in
which each corporation is a majority shareholder of another corporation in the
chain, ending in a corporation identified in part (i) or part (ii) above. For
purposes of this provision, a majority shareholder is a shareholder owning more
than fifty percent (50%) of the total fair market value and total voting power
of such corporation. Also, for purposes of this provision, section 318(a) of the
Code applies to determine stock ownership. Additionally, for purposes of this
provision and in conformance with section 409A and the applicable guidance
issued by the Department of the Treasury with respect to the application of
section 409A, a change in the ownership of a corporation or a change in the
effective control of a corporation is determined in accordance with the
provisions described below in this definition. 

2 

	  	  	(i)  	  	A
change in the ownership of a corporation shall occur on the date that any one person, or
more than one person acting as a group, in one transaction or a series of transactions,
directly or indirectly, acquires ownership of stock of the corporation that, together
with stock held by such person or group, constitutes more than fifty percent (50%) of the
total fair market value or total voting power of the stock of the corporation. However,
if any one person or more than one person acting as a group, is considered to own more
than fifty percent (50%) of the total fair market value or total voting power of the
stock of the corporation, the acquisition of additional stock by the same person or
persons shall not be considered to cause a change in the ownership of the corporation (or
to cause a change in the effective control of the corporation). An increase in the
percentage of stock owned by any one person, or persons acting as a group, as a result of
a transaction, in one transaction or a series of transactions, directly or indirectly, in
which the corporation acquires its stock in exchange for property shall be treated as an
acquisition of stock for purposes of this provision.  

	  	  	(ii)  	  	For
purposes of paragraph (i) above, persons will not be considered to be acting as a group
solely because they purchase or own stock of the same corporation at the same time, or as
a result of the same public offering. However, persons will be considered to be acting as
a group if they are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the corporation.
If a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a
corporation prior to the transaction giving rise to the change and not with respect to
the ownership interest in the other corporation.  

	  	  	(iii)  	  	A
change in the effective control of a corporation shall occur on the date that
                    either:  

	  	  	  	(A)  	  	any
one person, or more than one person acting as a group, in one transaction or a
series of transactions, directly or indirectly, acquires (or has acquired during
the 12-month period ending on the date of the most recent acquisition by such
person or persons) ownership of stock of the corporation possessing thirty-five
percent (35%) or more of the total voting power of the stock of the corporation;
or 

	  	  	  	(B)  	  	a
majority of members of the board of directors of the corporation is replaced
during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of the board of directors of the
corporation prior to the date of the appointment or election, provided that for
purposes of this subparagraph (B) the term “corporation” shall be
determined in accordance with the requirements of section 409A of the Code and
the applicable guidance issued by the Department of the Treasury with respect to
the application of section. 

3 

	  	  	(iv)  	  	A
change in the ownership of a substantial portion of the assets of a corporation
shall occur on the date that any one person, or more than one person acting as a
group acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) assets from the
corporation that have a total gross fair market value equal to or more than
forty percent (40%) of the total gross fair market value of all of the assets of
the corporation immediately prior to such acquisition or acquisitions. For this
purpose, gross fair market value means the value of the assets of the
corporation, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets. 

	  	  	(v)  	  	The
provisions of this subsection (e) regarding the definition of the term
“Change in Control,” shall be determined and administered in
accordance with section 409A and the applicable guidance issued by the
Department of the Treasury with respect to the application of section 409A.

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

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

	  	(h)  	  	Company.
“Company” means the Hecla Mining Company, a Delaware corporation.

	  	(i)  	  	Company
Stock Account. “Company Stock Account” means the Account
established and maintained as a record for a Participant with respect to which
amounts of Eligible Compensation and Performance-Based Compensation may be
credited pursuant to Section 5.1 and 5.2, any matching amounts may be credited
pursuant to Section 5.3, any discretionary amounts may be credited pursuant to
Section 5.4, and any value of the exercise proceeds determined upon the exercise
of any discounted stock options pursuant to Section 5.5, which shall be
denominated in units and measured by the value of Company Common Stock; the
Account shall be maintained for bookkeeping purposes only. 

	  	(j)  	  	Compensation
Committee. “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 non-employee
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. 

4 

	  	(k)  	  	Deferral
Election Form. “Deferral Election Form” means the form approved by
the Compensation Committee from time to time for use by a Participant to elect
to defer compensation under the Plan. 

	  	(l)  	  	Disability.
“Disability” means, with respect to a Participant, the Participant is:
(i) unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than twelve (12) months; (ii) by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected
to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three (3) months under
an accident and health plan covering employees of the Company; or (iii)
determined to be totally disabled by the Social Security Administration.

	  	(m)  	  	Discretionary
Amount. “Discretionary Amount” means an amount denominated in
units that are measured by the value of Company Common Stock credited to the
Account of a Participant pursuant to the Plan. 

	  	(n)  	  	Distributable
Event. “Distributable Event” means an event identified as such in
Section 8.1 of the Plan. 

	  	(o)  	  	Eligible
Compensation. “Eligible Compensation” means, with respect to a
Participant, remuneration for services performed during a taxable year as
defined herein and as determined for purposes of the interpretation of the Plan:

	  	  	(i)  	  	except
as provided herein and in the succeeding paragraphs of this subsection, Eligible
Compensation means wages within the meaning of section 3401(a) of the Code (for
purposes of income tax withholding) but determined without regard to any rules
that limit the remuneration included in wages based on the nature or location of
the employment or the services performed or the limitations imposed on
tax-qualified plans described in section 401(a) of the Code, and shall include
any elective deferral as defined in section 402(g)(3) of the Code and any amount
which is contributed or deferred by a Participating Employer at the election of
the Participant by reason of section 125 of the Code, section 134(f) of the
Code, section 403(b) of the Code, or section 457 of the Code; 

5 

	  	  	(ii)  	  	Eligible
Compensation shall be further determined in accordance with the following rules
and requirements: 

	  	  	  	(A)  	  	Eligible
Compensation shall be determined by including bonuses (other than vacation
bonuses), sick pay and short-term disability benefits; 

	  	  	  	(B)  	  	Eligible
Compensation shall not include: any remuneration not paid in cash; the value of
life insurance coverage included in the Participant’s wages under
section 79 of the Code; any car allowance or moving expense or mileage
reimbursement; severance pay; amounts deferred under any plan of deferred
compensation except this Plan; any benefit under any qualified or nonqualified
stock option or stock purchase plan or deferred compensation plan; expatriate
premiums; amounts realized 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; or any compensation
in the form of Performance-Based Compensation. 

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

	  	(q)  	  	Investment
Account. “Investment Account” means the Account established and
maintained for a Participant as a record of any deferred amounts that may be
credited to the account of the Participant pursuant to the Plan and measured in
dollars pursuant to the provisions of the Plan. The Account shall be maintained
for bookkeeping purposes only. 

	  	(r)  	  	Participant.
“Participant” means an individual who has satisfied the eligibility
and participation requirements of Article III of the Plan and is determined to
be a Participant pursuant to and in accordance with Article III of the
Plan, which individual shall be identified as a Participant on Exhibit A
attached hereto and made a part hereof by reference. 

	  	(s)  	  	Participating
Employer. “Participating Employer” means an employer that has
satisfied the eligibility and participation requirements of Article II of the
Plan and is determined to be a Participating Employer pursuant to and in
accordance with Article II of the Plan, which Participating Employer shall be
identified as a Participating Employer on Exhibit B attached hereto and made a
part hereof by reference. 

	  	(t)  	  	Performance-Based
Compensation. “Performance-Based Compensation” means compensation
where the amount of, or entitlement to, the compensation is contingent on the
satisfaction of preestablished organizational or individual performance criteria
relating to a performance period of at least twelve (12) consecutive months in
which the Participant performs services. Organizational or individual
performance criteria are considered preestablished if established in writing by
not later than ninety (90) days after the commencement of the period of service
to which the criteria relates, provided that the outcome is substantially
uncertain at the time the criteria are established (Performance-Based
Compensation may include payments based on performance criteria that are not
approved by the Compensation Committee of the Board of Directors or by
stockholders of the Company). 

6 

	  	(u)  	  	Plan.
“Plan” means the “HECLA MINING COMPANY KEY EMPLOYEE DEFERRED
COMPENSATION PLAN,” as amended and restated effective as of January 1,
2005, and as approved and adopted by the Board of Directors and the stockholders
of the Company, which is unfunded and maintained by Hecla Mining Company and
certain of 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 or another Participating Employer.

	  	(v)  	  	Unforeseeable
Emergency. “Unforeseeable Emergency” means a severe financial
hardship of the Participant or Beneficiary resulting from an illness or accident
of the Participant or Beneficiary, the spouse of the Participant or Beneficiary,
or of a dependent (as defined in section 152(a) of the Code) of a Participant or
Beneficiary; loss of the Participant’s or Beneficiary’s property due
to casualty; or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant or
Beneficiary; whether a Participant or Beneficiary is faced with an Unforeseeable
Emergency permitting a distribution under the Plan shall be determined based on
the relevant facts and circumstances of each case, but, in any case, a
distribution shall not be allowed to the extent that such emergency is or may be
relieved through reimbursement or compensation from insurance or otherwise, by
liquidation of the Participant’s assets to the extent the liquidation of
such assets would not cause a severe financial hardship or by cessation of
deferrals under the Plan. The amount of a distribution on account of an
Unforeseeable Emergency shall be limited to the amount reasonably necessary to
satisfy the emergency need, plus amounts necessary to pay any federal, state or
local income taxes or penalties reasonably anticipated to result from the
distribution. 

	  	(y)  	  	Vested.
“Vested” means, for purposes of determining the benefit that may be
payable to or on behalf of a Participant under the Plan, an interest in the
benefit described under the Plan which may be payable to or on behalf of the
Participant in accordance with and subject to the terms of the Plan.

7 

        Section
2.2.   Rules of Interpretation. An individual shall be considered to have attained a given age on
the individual's birthday for that age (and not on the day before). The birthday of any individual born on a February 29 shall be
deemed to be February 28 in any year that is not a leap year. Notwithstanding any other provision of this Plan or any election or
designation made under the Plan, any individual who feloniously and intentionally kills the Participant or Beneficiary shall be
deemed for all purposes of this Plan and all elections and designations made under this Plan to have died before the Participant
or Beneficiary. A final judgment of conviction of felonious and intentional killing is conclusive for the purposes of this
Section 2.2. In the absence of a conviction of felonious and intentional killing, Company shall determine whether the killing
was felonious and intentional for the purposes of this Section 2.2. Whenever appropriate, words used herein in the singular
may be read in the plural, or words used herein in the plural may be read in the singular; the masculine may include the feminine
and the feminine may include the masculine; and the words “hereof,” “herein” or “hereunder” or other
similar compounds of the word “here” shall mean and refer to this entire Plan and not to any particular paragraph or
section of this Plan unless the context clearly indicates to the contrary. The titles given to the various sections of this Plan
are inserted for convenience of reference only and are not part of this Plan, and they shall not be considered in determining the
purpose, meaning or intent of any provision hereof. Any reference in this Plan to a statute or regulation shall be considered also
to mean and refer to any subsequent amendment or replacement of that statute or regulation. This document shall, except to the
extent that federal law is controlling, be construed and enforced in accordance with the laws of the State of Delaware.

ARTICLE III  

PARTICIPATING EMPLOYERS 

Section 3.1.    Eligibility. To be
eligible to adopt and participate in the Plan, an employer must be a member of a controlled group of corporations as determined in
accordance with section 1563(a)(1), (2) and (3) of the Code for purposes of determining a controlled group of corporations under
section 414(b) of the Code, except however that the language “at least fifty percent” is used instead of “at least
eighty percent” in each place it appears in section 1563(a)(1), (2) and (3) of the Code, and in applying section 1.414(c)-2
of the Treasury Regulations for purposes of determining trades or businesses (whether or not incorporated) that are under common
control for purposes of section 414(c) of the Code, the language “at least fifty percent” is used instead of “at
least eighty percent” in each place it appears in section 1.414(c)-2. For purposes of this provision, the term “member
of a controlled group” means two or more corporations connected through stock ownership described in section 1563(a)(1), (2),
or (3), whether or not such corporations are “component members of a controlled group” within the meaning of section
1563(b) of the Code. 

        Section
3.2.   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 3.1 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, files such declaration with the Compensation Committee, and the
participation is accepted and approved in writing by the Compensation Committee. The
date on which such eligible company may become a Participating Employer in the Plan
shall be the date determined by the Compensation Committee.  

8 

Each Participating Employer shall be
obligated for its allocable portion of the benefit provided under the Plan with respect to
any employee of the Participating Employer who is a Participant in the Plan and eligible
to receive a benefit under the terms of the Plan. The benefit obligations of a
Participating Employer are not secured in any way. The obligations of a Participating
Employer constitute no more than an unfunded and unsecured promise by the Participating
Employer of payment and performance. A 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
3.3.   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.  

        Section
3.4.   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 the withdrawal of the Participating Employer,
which thirty (30) day notice period may be waived by the Company. In addition, the Company
may terminate the participation of a Participating Employer 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
3.5.   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).  

9 

ARTICLE IV  

ELIGIBILITY AND
PARTICIPATION 

        Section
4.1.   Eligibility. Eligibility to participate in the Plan shall be
limited and selective; only a select group of high-ranking executive officers and key
high-ranking management personnel of a Participating Employer shall be eligible to
participate in the Plan. Eligibility shall be determined by the Compensation
Committee acting on behalf of the Board of Directors of the Company, and such
determination shall be final, conclusive and binding upon all parties in interest.  

        Section
4.2.   Participation. A high-ranking executive officer
or a key high-ranking management person determined to be eligible to participate in the
Plan by the Compensation Committee pursuant to Section 4.1 of the Plan shall become a
Participant in the Plan as of the date on which the Compensation Committee determines
such eligible individual to be a Participant in the Plan. If the Compensation Committee
determines that a high-ranking executive officer or a key high-ranking management person
is eligible to become a Participant in the Plan, the Compensation Committee shall inform
that individual in writing of the determination of eligibility and participation and the
date on which the individual shall become a Participant in 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
4.3.   Suspension of Eligibility. Notwithstanding any provision
apparently to the contrary in the Plan document or in any written communications,
summary, resolution or document or oral communication, in the event the Compensation
Committee determines that a Participant will no longer be eligible to actively
participate in the Plan, then, subject to the rules and requirements of section
409A of the Code and applicable guidance issued by the Department of the Treasury,
the compensation deferral elections made by that individual in accordance with
the provisions of the Plan will be terminated and no additional amounts shall be
deferred and credited to an Account of that individual under the Plan 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 the provisions of the Plan;
except, however, that the amounts or units credited to the Accounts of such individual
shall continue to be adjusted by the other provisions of the Plan until fully distributed.  

ARTICLE V  

BENEFITS 

        Section
5.1.   Deferred Compensation. Subject to the conditions
and restrictions imposed under the Plan, a Participant may elect to defer receipt of
Eligible Compensation and Performance-Based Compensation. Compensation may only be
deferred to the extent that the Participant is or may be entitled to receive such
compensation. For each calendar year a Participant may elect to defer up to one hundred
percent (100%) of any Performance-Based Compensation 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. Unless an allocation is made to another Account under
the terms of the Plan, any Eligible Compensation and Performance-Based Compensation
deferred under the Plan by a Participant shall be credited to the account of the
Participant and allocated to the Investment Account or the Company Stock Account of the
Participant pursuant to the direction of the Participant.  

10 

        Section
5.2.   Deferral Elections. Compensation for services performed by a
Participant during a calendar year may be deferred at the election of the Participant
and credited to the Investment Account or the Company Stock Account of the Participant
only if the election is made pursuant to the rules and requirements of this Section 5.2.  

	  	(a)  	  	The
General Rule. Except as otherwise provided in this Section 5.2,
Eligible Compensation for services performed by a Participant during a calendar
year may be deferred at the election of the Participant only if the election to
defer such Eligible Compensation is made and becomes irrevocable not later than
the last day of the calendar year immediately preceding the calendar year during
which services are to be performed. A deferral election shall remain in effect
until terminated or modified by the Participant as of the last day of the
calendar year immediately preceding the calendar year during which services are
to be performed for which such modification or termination of an election is to
apply. 

	  	(b)  	  	Performance-Based
Compensation. In the case of Performance-Based Compensation based upon a
performance period of at least twelve (12) months, provided that the Participant
performs services continuously from a date no later than the date upon which the
performance criteria are established through a date no earlier than the date
upon which the Participant makes an initial deferral election, an initial
deferral election may be made with respect to the Performance-Based Compensation
no later than the date that is six (6) months before the end of the performance
period, provided that in no event may an election to defer Performance-Based
Compensation be made after such compensation has become both substantially
certain to be paid and readily ascertainable. For purposes of this provision,
the performance criteria shall be established in writing no later than ninety
(90) days after the commencement of the performance period. 

	  	(c)  	  	First
Year of Eligibility. In the case of the first year in which a Participant
becomes eligible to participate in the Plan, the Participant may make an initial
deferral election within thirty (30) days after the date the Participant becomes
eligible to participate in the Plan (as defined in section 1.409A-1(c) of the
Proposed Treasury Regulations or the corresponding provision in subsequent
guidance issued by the Department of the Treasury to include any other plan that
would be considered together with this Plan as the same plan), with respect to
Eligible Compensation paid for services to be performed subsequent to the
election. For Eligible Compensation or Performance-Based Compensation that is
earned based upon a specified performance period, where a deferral election is
made in the first year of eligibility but after the beginning of the service
period for which such compensation is earned, unless the election period for
Performance-Based Compensation described in subsection (b) of this Section 5.2
otherwise applies as permitted under section 409A of the Code and guidance
issued by the Department of the Treasury with respect to the application of
section 409A, the election will be deemed to apply to compensation paid for
services performed subsequent to the election provided that the election applies
to the portion of the compensation equal to the total amount of the compensation
for the service period multiplied by the ratio of the number of days remaining
in the performance period after the election over the total number of days in
the performance period. 

11 

        Section
5.3.   Matching Amounts. Subject to the limitations imposed under the Plan, if a Participant
elects to defer Eligible Compensation or Performance-Based Compensation for a calendar year and to have all or a portion of such
deferred compensation credited to the Company Stock Account of the Participant for that calendar year, the Compensation Committee
shall credit the Company Stock Account of the Participant with a matching amount equal to ten percent (10%), unless another
percentage is determined to apply by the Compensation Committee for the calendar year, of the sum of the Eligible Compensation and
the Performance-Based Compensation deferred by the Participant for that calendar year and credited to the Company Stock Account
for that calendar year. The matching amount shall be denominated in units and measured by the value of the Company Common Stock,
and the Company Stock Account of the Participant shall be credited with that number of units (including fractions thereof) equal
to the number of shares (including fractions thereof) of Company Common Stock that could have been purchased with the dollar
amount of such matching units as of the last Business Day of the calendar quarter with respect to which amounts deferred would
have been credited to the Account of the Participant, based on the average of the closing prices as reported on the New York Stock
Exchange for each day during that quarter. The liability of a benefit payable under the Plan with respect to the whole units
credited to the Company Stock Account shall be satisfied only in shares of Company Common Stock and partial units shall be
satisfied in cash. 

        Section
5.4.   Discretionary Amounts. Irrespective of any Eligible Compensation or Performance-Based
Compensation that may be deferred by a Participant for a calendar year or any matching amounts that may be credited to the Company
Stock Account of a Participant for the calendar year, the Compensation Committee may at any time and from time to time, in its
sole and absolute discretion, determine to credit the Company Stock Account of a Participant with an amount determined by the
Compensation Committee in its sole and absolute discretion, which amount shall be denominated in units and measured by the value
of Company Common Stock. The credit of such a discretionary amount to the Company Stock Account of a Participant 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. The discretion of the Compensation Committee as to whether a discretionary amount may be credited to the Company
Stock Account of a Participant and, if so, the amount to be credited, shall be separately exercised with respect to each
Participant. An amount may, therefore, differ from Participant to Participant both as to the amount and as to the percentage of
compensation. When a Company Stock Account of a Participant 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 Company
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 whole units credited to the
Company Stock Account shall be satisfied only in shares of Company Common Stock and partial units shall be satisfied in cash.

12 

        Section
5.5.   Stock Options. The Compensation Committee may at
any time and from time to time, in its sole and absolute discretion, determine to grant a
discounted stock option with respect to Company Common Stock under this Plan. If a stock
option is granted under the Plan, an election made by a Participant with respect to the
time of payment upon the exercise of the stock option granted under the Plan must be made
not later than the last day of the calendar year immediately preceding the calendar year
during which such grant of a discounted stock option is made. If no election is made, a
lump sum payment shall be made as of the last business day of the first month following
the month in which such discounted stock option is first eligible to be exercised by the
Participant or is deemed to be exercised pursuant to subsection (c) of this Section 5.5,
and there is no longer a substantial risk of forfeiture, subject to applicable securities
laws. The grant of a discounted stock option, the exercise of the stock option and an
election to defer the compensation related to the exercise of the stock option are
governed by this Section 5.5 and Section 6.3. The grant of any discounted option shall be
subject to the availability of sufficient shares of Company Common Stock authorized for
issuance under the Plan.  

	  	(a)  	  	In
the event the Compensation Committee determines to grant a discounted stock
option under the Plan, the stock option granted pursuant to this Section 5.5
shall be evidenced by a written agreement which shall be approved in advance by
the Compensation Committee and which shall be incorporated herein and made a
part of this Plan, and which shall state, with respect to such determination:

	  	  	(i)  	  	the
terms and conditions of the stock option, including, without limitation, the
          terms and conditions regarding the manner in which the stock option may be
          exercised and accounted for under the Plan; and  

	  	  	(ii)  	  	whether
any limitations or restrictions may apply with respect to the timing of           the
vesting and exercise of the stock option.  

	  	(b)  	  	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. 

13 

	  	(c)  	  	A
stock option granted pursuant to this provision shall be deemed to be exercised
as of the close of the ten (10) day window period described in Section 6.3 of
the Plan after a distributable event as determined under Section 8.1 of the Plan
unless determined to be exercised as of an earlier date pursuant to the terms of
the written agreement, and no provision in the Plan shall be deemed to alter the
terms and conditions of an option granted under this Plan. 

	  	(d)  	  	Upon
the exercise of a stock option, the value of the exercise proceeds, if any,
shall be credited to the Company Stock Account as of the date on which occurs
the exercise of the stock option and no shares of Company Common Stock shall
actually be delivered to the Participant at that time. 

	  	(e)  	  	As
of the exercise date of a stock option granted under this Section 5.5, the value
of the difference between the following amounts (but not less than zero) shall
be credited to the Company Stock Account of the Participant in the form of stock
units and measured by the value of the Company Common Stock: 

	  	  	(i)  	  	the
number of shares of Company Common Stock that would be obtained by the exercise
of the stock option; and 

	  	  	(ii)  	  	the
number of shares of Company Common Stock or cash required to pay both the
exercise price of the stock option, and any required foreign, federal, state, or
local tax withholding. 

	  	(f)  	  	In
the event of any change in the outstanding shares of Company Common Stock by
reason of any stock split, reverse stock split, or stock dividend in the form of
a split, the Company shall adjust the number of stock units credited to the
Company Stock Account of the Participant attributable to the value of stock
units credited to the Company Stock Account pursuant to this Section 5.5 so that
the number equals the number of stock units credited to the Company Stock
Account prior to the event, multiplied by a fraction, the denominator of which
is the number of stock units credited to the Company Stock Account prior to the
event, and the numerator of which is the number of shares of Company Common
Stock the Participant would have had after the event if the Participant had
shares of Company Common Stock immediately prior to the event equal in number to
the number of stock units credited to the Company Stock Account of the
Participant immediately prior to the event. 

	  	(g)  	  	In
the event of any dividend (other than a stock dividend in the form of a split),
recapitalization, merger, consolidation, spin-off, reorganization, combination
or exchange of shares or other similar corporate change, then, if the Board of
Directors of the Company shall determine, in its sole and absolute discretion,
that such change equitably requires an adjustment in the number of stock units
then credited to the Company Stock Account of the Participant attributable to
the value of stock units credited to the Company Stock Account pursuant to this
Section 5.5, such adjustment shall be made by the Board of Directors and such
determination and adjustment shall be conclusive and binding for all purposes of
the Plan with respect to all interested parties. 

14 

	  	(h)  	  	The
number of stock units credited to the Company Stock Account of a Participant
shall be automatically increased as of each dividend payment date of Company
Common Stock in an amount equal to the number of shares of Company Common Stock
that could be purchased on such dividend payment date with the cash dividends
that would be paid on a number of shares of Company Common Stock equal to the
number of stock units credited to the Company Stock Account of the Participant
on the record date for such dividend. 

	  	(i)  	  	The
value of the stock units credited to the Company Stock Account of a Participant
pursuant to this Section 5.5 shall be distributed in accordance with Section
8.1, and the liability of a benefit payable under the Plan with respect to the
value of the whole units shall be satisfied only in shares of Company Common
Stock and partial units shall be satisfied in cash. 

	  	(j)  	  	A
stock option granted pursuant to this Section 5.5 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, with respect to each stock option granted under this
provision: (i) each stock option shall not be transferable, 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
stock 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. Stock issued upon
the exercise of an option may only be sold pursuant to an effective registration
statement or an exemption from such registration, to be determined by counsel to
the Company, and certificates representing shares of stock shall be
appropriately legended. 

ARTICLE VI  

VALUATION OF BENEFITS 

        Section
6.1.   Investment Account. In accordance with the terms and conditions
of the Plan, for the purpose of providing the basis on which earnings and losses may
be attributed or credited to the Investment Account of a Participant under the
Plan, the value of Eligible Compensation and Performance-Based Compensation deferred
by a Participant under the Plan and credited to the Investment Account of the
Participant shall be determined as provided in this Section 6.1.  

15 

	  	(a)  	  	As of the close of the last day of each calendar month, an
additional amount shall be credited to the Investment Account of the Participant equal to the product of: (i) the average
daily balance of the Investment Account for the month, multiplied by (ii) 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). 

	  	(b)  	  	Benefits attributable to the value of the Investment Account at
the time of a Distributable Event under Section 8.1 of the Plan shall be measured in dollars and delivered to the Participant
in cash. 

	  	(c)  	  	A Participant may elect, pursuant to the conditions and
limitations of Section 6.2 or Section 6.3, whichever may apply based upon the election made, to allocate an amount allocated to
the Investment Account of the Participant to either: (i) the Company Stock Account and have such amount denominated in stock
units and measured by the value of Company Common Stock, or (ii) the opportunity to have the amount measured by the value of
the exercise proceeds determined by the exercise of a discounted stock option granted pursuant to the provisions of Section 5.5;
an election to have an amount allocated to either the Company Stock Account or the opportunity to have the amount measured by the
value of the exercise proceeds determined by the exercise of a discounted stock option may be made once for each fiscal quarter of
the fiscal year of the Company and if such 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, and once made, such an
election shall be irrevocable. 

	  	(d)  	  	Any election made pursuant to this Section 6.1 must be made in the
form and manner prescribed by the Compensation Committee and to the extent an amount credited to the Investment Account is
allocated pursuant to subsection (c) of this Section 6.1, such allocated amount shall not be credited with interest under
subsection (a). 

        Section
6.2.   Company Stock Account. The value of Eligible Compensation and Performance-Based
Compensation deferred by a Participant under the Plan, matching amounts and discretionary amounts credited to the Company Stock
Account and stock units allocated to the Company Stock Account of a Participant under the Plan shall be measured by the value of
Company Common Stock. Compensation for services performed by a Participant during a calendar year deferred at the election of the
Participant and credited to the Company Stock Account pursuant to section 5.2, matching amounts credited to the Company Stock
Account pursuant to Section 5.3, and discretionary amounts credited to the Company Stock Account pursuant to
Section 5.4, shall be denominated in units and measured by the value of Company Common Stock and credited to the Company
Stock Account as of the close of the last Business Day of each calendar quarter based upon the number of shares (including
fractions thereof) of Company Common Stock that could have been purchased with the dollar amount of such amounts or units as of
the last Business Day of the calendar quarter with respect to which such amounts or units would have been credited to the Account
of the Participant, based on the average of the closing prices as reported on the New York Stock Exchange for each day during that
quarter. If an amount credited to the Investment Account is allocated to the Company Stock Account, at the election of the
Participant pursuant to Section 6.1, the amount credited to the Company Stock Account shall be denominated in units and measured
by the value of Company Common Stock and credited to the Company Stock Account based upon the number of shares (including
fractions thereof) of Company Common Stock that could have been purchased with the dollar amount allocated to the Company Stock
Account, determined as of the last Business Day 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 credit or allocation is made at the stock
price per share based upon the closing price as reported on the New York Stock Exchange for such date. 

16 

For purposes of the interpretation and operation of the Plan, “fair
market value” shall mean, as of any given date, the mean between the highest and lowest reported sales prices of the Common
Stock on the New York Stock Exchange Composite Tape, or if not listed on such exchange, on any other national securities exchange
on which the Company Common Stock is listed or on the NASDAQ Stock Market. If there is no regular public trading market for such
Company Common Stock, the “fair market value” of the Company Common Stock shall be determined in good faith by the
Compensation Committee of the Board of Directors of the Company in a manner consistent with guidance issued by the Department of
Treasury and the Securities and Exchange Commission. 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
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. 

	  	(a)  	  	In
the event of any change in the outstanding shares of Company Common Stock by
reason of any stock split, reverse stock split, or stock dividend in the form of
a split, the Company shall adjust the number of stock units allocated to the
Company Stock Account of the Participant attributable to the value of stock
units credited to the Company Stock Account pursuant to this Section 6.3 so that
the number equals the number of stock units credited to the Company Stock
Account prior to the event, multiplied by a fraction, the denominator of which
is the number of stock units credited to the Company Stock Account prior to the
event, and the numerator of which is the number of shares of Company Common
Stock the Participant would have had after the event if the Participant had
shares of Company Common Stock immediately prior to the event equal in number to
the number of stock units credited to the Company Stock Account of the
Participant immediately prior to the event. In the event of any dividend (other
than a stock dividend in the form of a split), recapitalization, merger,
consolidation, spin-off, reorganization, combination or exchange of shares or
other similar corporate change, then if the Board of Directors of the Company
shall determine, in its sole and absolute discretion, that such change equitably
requires an adjustment in the number of stock units then credited to the Company
Stock Account of the Participant, such adjustment shall be made by the Board of
Directors and such determination and adjustment shall be conclusive and binding
for all purposes of the Plan with respect to the interested parties.

	  	(b)  	  	The
number of stock units credited to the Company Stock Account of a Participant
shall be automatically increased as of each dividend payment date of Company
Common Stock in an amount equal to the number of shares of Company Common Stock
that could be purchased on such dividend payment date with the cash dividends
that would be paid on a number of shares of Company Common Stock equal to the
number of stock units credited to the Company Stock Account of the Participant
on the record date for such dividend. The number of units credited to a Company
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. 

17 

        Section
6.3.   Discounted Stock Option. Subject to the terms and
conditions of Section 5.5, if a Participant makes an irrevocable election to have an
amount allocated to the Investment Account allocated to the opportunity to have the
amount measured by the value of the exercise proceeds determined by the exercise of a
discounted stock option granted pursuant to Section 5.5, 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”(in effect, determine the value of the allocation election) shares of
Company 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 for
purposes of this election 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 valued based upon
the exercise proceeds of the exercise of a discounted stock option, the fair market value
of the common stock as of the determination date was $1.00, and the discount was 15%, the
Participant would be granted an option, as of the determination date, to “purchase” (i.e.,
determine the value of the allocation election) 6,666 shares of the Company’s stock
at $.85 per share, which value would be allocated to the Company Stock Account.  

ARTICLE VII  

VESTING OF ACCOUNTS 

        Section
7.1.   Vested Benefit. A Participant shall be considered to be 100%
Vested in the stock units and amounts credited to the Accounts of the Participant under
the Plan.  

        Section
7.2.   Nature of Accounts. The Accounts established under the Plan
shall be maintained for bookkeeping purposes only. Neither the Accounts nor the Plan
shall be required to hold any actual funds, shares of Company Common Stock or other
assets.  

ARTICLE VIII  

DISTRIBUTION OF
BENEFITS AND EXERCISE OF OPTIONS 

        Section 8.1.
   Distributable Events. The amount credited to the Account or Accounts of the Participant under this
Plan may be distributed only on account of one or more of the distribution events specified in this Section 8.1. In the event the
Participant becomes eligible to receive a benefit under the Plan, then, except as otherwise provided in this Section 8.1 and
Section 8.2 of the Plan, the amount credited to the Accounts shall be distributable as of the date on which occurs the earliest of
the dates specified in this Section 8.1. 

18 

	  	(a)  	  	The
date on which the Participant incurs a separation from service with the Company
and all corporations or entities with whom the Company would be considered a
single employer under subsections (b) and (c) of section 414 of the Code;
except, however, that if the Participant is a “specified employee” (a
“specified employee” means a key employee as defined in section 416(i)
of the Code of a publicly traded company, determined as of December 31 of each
calendar year and applied as of the April 1 following such determination in
accordance with section 409A of the Code and the guidance issued by the
Department of the Treasury with respect to the application of section 409A) who
separates from service, then the payment of the benefit payable under the Plan
shall be made as of the first day of the seventh month following the date of
separation from service, determined in conformance with section 409A of the Code
and the guidance issued by the Department of the Treasury with respect to the
application of section 409A. 

	  	(b)  	  	The
date on which the Participant incurs a separation from service with the Company
and all corporations or entities with whom the Company would be considered a
single employer under subsections (b) and (c) of section 414 of the Code due to
Disability, determined in conformance with section 409A of the Code and the
guidance issued by the Department of the Treasury with respect to the
application of section 409A. 

	  	(c)  	  	The
date on which occurs the death of the Participant.  

	  	(d)  	  	Except
as otherwise provided with respect to the election made pursuant to subsection
(b) of Section 8.2 of the Plan, the date or time (or pursuant to a fixed
schedule) specified under and in accordance with the provisions of subsection
(b) of Section 8.2 of the Plan. 

	  	(e)  	  	The
date on which occurs a determination and payment based upon an Unforeseeable
Emergency in accordance with subsection (c) of Section 8.2. 

	  	(f)  	  	The
date on which occurs a Change in Control, effecting a change in the ownership or
in the effective control of Company or a change in the ownership of a
substantial portion of the assets of the Company, determined in conformance with
subsection (e) of Section 2.1 of the Plan and section 409A of the Code and the
guidance issued by the Department of the Treasury with respect to the
application of section 409A. 

        Section
8.2.   Distribution of Benefits. The manner in which benefits shall be
distributed shall be determined in accordance with this Section 8.2.  

19 

	  	(a)  	  	Distribution
Without Scheduled Date. As of the date on which occurs a distributable event pursuant
to Section 8.1 of the Plan, then, except as otherwise determined in subsections (b) and
(c) of this Section 8.2 or as otherwise provided in subsection (a) of Section 8.1, the
benefit payable to or on behalf of a Participant in accordance with the terms of the Plan
shall be payable as of the first day of the first calendar month immediately following
the close of the ten (10) day window period described in Section 6.3 following such
distributable event.  

	  	(b) 	  	Distribution
With Scheduled Date. The Participant may elect a scheduled distribution date
for a distribution of the benefit payable under the Plan, which election should
provide whether the scheduled distribution date shall be effective even if that
distribution date is not the earliest to occur of the dates specified in Section
8.1 of the Plan, and if the distribution election does not specifically provide
that the scheduled distribution date is effective even if that distribution date
is not the earliest to occur of the dates specified in Section 8.1, then the
earliest to occur of the dates specified in Section 8.1 shall govern the
distribution of the benefit. The distribution of the benefit payable to or on
behalf of the Participant in accordance with the terms of the Plan shall be made
in accordance with the distribution election made pursuant to this subsection
(b) and the rules regarding that distribution election. The scheduled date must
be objectively determinable as required under section 409A of the Code and the
guidance issued by the Department of the Treasury with respect to the
application of section 409A. The Participant may elect to change the time of
distribution subject to certain requirements. This subsequent election shall be
made in conformance with section 409A of the Code and the guidance issued by the
Department of the Treasury with respect to the application of section 409A. A
subsequent election to delay the timing of distribution shall be effective only
if the following conditions are met: 

	  	  	(i)  	  	an
election related to a distribution to be made upon a specified time may not           be
made less than twelve (12) months before the date of the first scheduled
          payment,  

	  	  	(ii)  	  	the
election shall not take effect until at least twelve (12) months after the           date
on which the election is made, and  

	  	  	(iii)  	  	except
in the case of elections relating to distributions on account of death,
          Disability, or an Unforeseeable Emergency, the additional deferral with respect
          to which such election is made is for a period of not less than five (5) years
          from the date such payment would otherwise have been made.  

	  	(c) 	  	Unforeseeable
Emergency. If the Participant or Beneficiary experiences an Unforeseeable
Emergency, the Participant or Beneficiary may make a request to the Compensation
Committee, by submitting a form acceptable to the Compensation Committee, to
receive a distribution of all or a portion of the amount allocated to the
Account or Accounts of the Participant in accordance with the provisions and
requirements of this subsection (c). 

20 

	  	
Except as otherwise  provided  herein,  a request by a Participant
or Beneficiary will be considered by the Compensation Committee only if the Participant
has obtained all distributions, including hardship distributions, and all nontaxable (at
the time of the loan) loans currently available under all qualified and other nonqualified
plans of deferred compensation maintained by Company or any other entity affiliated with
the Company. If the request for a distribution is approved, the compensation deferral
elections of the Participant under the Plan will immediately terminate, and a distribution
based upon an Unforeseeable Emergency shall be made in the form of a lump sum as of the
first day of the first calendar month immediately following the calendar month in which
the date occurs of the approval by the Compensation Committee. The Participant may not
again elect to defer compensation under the Plan until the enrollment period for the
calendar year that begins at least twelve (12) months after such distribution. 

        Section
8.3.   Designation of Beneficiaries.  

	  	(a)  	  	Right
to Designate. The Participant may designate, upon forms to be furnished by
and filed with the Compensation Committee, one or more primary Beneficiaries or
alternative Beneficiaries to receive all or a specified portion of any benefits
which may be payable with respect to the Participant under the Plan in the event
of the Participant’s death. The Participant may change or revoke any such
designation from time to time without notice to or consent from any Beneficiary.
No such designation, change or revocation shall be effective unless executed by
the Participant and received and accepted by the Compensation Committee during
the lifetime of the Participant. 

	  	(b)  	  	Failure
of Designation. If a Participant fails to designate a Beneficiary,
designates a Beneficiary and thereafter revokes such designation without naming
another Beneficiary, or designates one or more Beneficiaries and all such
Beneficiaries so designated fail to survive the Participant, then the benefits
which may be payable with respect to the Participant under the Plan, or the part
thereof as to which such Participant’s designation fails, as the case may
be, shall be payable to the first class of the following classes of automatic
Beneficiaries with a member surviving the Participant and (except in the case of
surviving issue) in equal shares if there is more than one member in such class
surviving the Participant: 

	  	  	(i)  	  	the
surviving spouse of the Participant;  

	  	  	(ii)  	  	the
surviving issue per stirpes and not per capita;  

	  	  	(iii)  	  	the
surviving parents           of the Participant;  

	  	  	(iv)  	  	the
surviving brothers and sisters of the Participant;  

21 

	  	  	(v)  	  	the
representative of Participant’s estate.  

	  	(c)  	  	Disclaimers
by Beneficiaries. A Beneficiary entitled to a distribution of all or a
portion of the benefits which may be payable with respect to the Participant
under the Plan may disclaim an interest therein subject to the following
requirements. To be eligible to disclaim, a Beneficiary must be a natural
person, must not have received a distribution of all or any portion of the
benefits which may be payable with respect to the Participant under the Plan at
the time such disclaimer is executed and delivered, and must have attained at
least age twenty-one (21) years as of the date of the Participant’s death.
Any disclaimer must be in writing and must be executed personally by the
Beneficiary before a notary public. A disclaimer shall state that the
Beneficiary’s entire interest in the undistributed benefits payable with
respect to the Participant under the Plan is disclaimed or shall specify what
portion thereof is disclaimed. To be effective, duplicate original executed
copies of the disclaimer must be both executed and actually delivered to the
Compensation Committee after the date of the Participant’s death but not
later than one hundred eighty (180) days after the date of the
Participant’s death. A disclaimer shall be irrevocable when delivered to
the Compensation Committee. A disclaimer shall be considered to be delivered to
the Compensation Committee only when actually received and acknowledged by the
Compensation Committee shall be the sole judge of the content, interpretation
and validity of a purported disclaimer. Upon the filing of a valid disclaimer,
the Beneficiary shall be considered not to have survived the Participant as to
the interest disclaimed. A disclaimer by a Beneficiary shall not be considered
to be a transfer of an interest in violation of the provisions of this Plan and
shall not be considered to be an assignment or alienation of benefits in
violation of federal law prohibiting the assignment or alienation of benefits
under this Plan. No other form of attempted disclaimer shall be recognized by
the Compensation Committee. 

	  	(d)  	  	Definitions.
When used herein and, unless the Participant has otherwise specified in the
Participant’s Beneficiary designation, when used in a Beneficiary
designation, “issue” means all persons who are lineal descendants of
the person whose issue are referred to, including legally adopted descendants
and their descendants but not including illegitimate descendants and their
descendants; “child” means an issue of the first generation; “per
stirpes” means in equal shares among living children of the person whose
issue are referred to and the issue (taken collectively) of each deceased child
of such person, with such issue taking by right of representation of such
deceased child; and “survive” and “surviving” mean living
after the death of the Participant. 

22 

	  	(e)  	  	Special
Rules. Unless the Participant has otherwise specified in the           Beneficiary
designation, the following rules shall apply:  

	  	  	(i)  	  	if
there is not sufficient evidence that a Beneficiary was living at the time of
          the death of the Participant, it shall be deemed that the Beneficiary was not
          living at the time of the death of the Participant;  

	  	  	(ii)  	  	the
automatic Beneficiaries specified in subsection (b) of this
Section 8.3 and the Beneficiaries designated by the Participant shall
become fixed at the time of the Participant’s death so that, if a
Beneficiary survives the Participant but dies before the receipt of all payments
due such Beneficiary hereunder, such remaining payments shall be payable to the
representative of such Beneficiary’s estate; 

	  	  	(iii)  	  	if
the Participant designates as a Beneficiary the person who is the spouse of the
Participant on the date of the designation, either by name or by relationship,
or both, the dissolution, annulment or other legal termination of the marriage
between the Participant and such person shall automatically revoke such
designation; except, however, that the foregoing shall not prevent the
Participant from designating a former spouse as a Beneficiary on a form executed
by the Participant and received by the Compensation Committee after the date of
the legal termination of the marriage between the Participant and such former
spouse, and during the lifetime of the Participant; 

	  	  	(iv)  	  	any
designation of a Beneficiary by name that is accompanied by a description of
          relationship to the Participant shall be given effect without regard to whether
          the relationship to the Participant exists either then or at the
          Participant’s death;  

	  	  	(v)  	  	any
designation of a Beneficiary only by statement of relationship to the
Participant shall be effective only to designate the person or persons standing
in such relationship to the Participant at the Participant’s death.

	  	(f)  	  	Validity
of Designation. A Beneficiary designation is permanently void if it either
is executed or is filed by a Participant who, at the time of such execution or
filing, is then a minor under the law of the state of the legal residence of the
Participant. The Compensation Committee shall be the sole judge of the content,
interpretation and validity of a purported Beneficiary designation. 

	  	(g)  	  	No
Beneficiary Rights. Prior to the death of the Participant, no person
designated to be a Beneficiary shall have any rights or interest in the benefits
credited under this Plan including, but not limited to, the right to be the sole
Beneficiary or to consent to the designation of Beneficiaries (or the changing
of designated Beneficiaries) by the Participant. 

23 

        Section
8.4.   Death Prior to Full Distribution. If, at the death of the
Participant, any payment to the Participant was due or otherwise distributable but
not actually paid, the amount of such payment shall be included in the Accounts which
is payable to the Beneficiary (and shall not be paid to the Participant’s estate).  

        Section
8.5.   Facility of Payment. In case of Disability of the Participant or
Beneficiary eligible to receive distribution of a benefit payable under the terms
of the Plan, such benefit shall be paid if the Compensation Committee shall be
advised of the existence of such condition:  

	  	(a)  	  	to
the duly appointed guardian, conservator or other legal representative of           such
Participant or Beneficiary, or  

	  	(b)  	  	to
a person or institution entrusted with the care or maintenance of the
incompetent or disabled Participant or Beneficiary, provided such person or
institution has satisfied the Compensation Committee that the payment will be
used for the best interest and assist in the care of such Participant or
Beneficiary, and provided further, that no prior claim for said payment has been
made by a duly appointed guardian, conservator or other legal representative of
such Participant or Beneficiary. 

Any payment made in accordance with
the foregoing provisions of this section shall constitute a complete discharge of any
liability or obligation of the Plan, the Company and any other Participating Employer
therefor. 

        Section
8.6.   Form of Distribution. The liability of a benefit payable under the Plan with respect to
the whole units credited to the Company Stock Account shall be satisfied and delivered to the Participant or Beneficiary only in
shares of Company Common Stock and partial units shall be satisfied and delivered to the Participant or Beneficiary in cash. The
liability of a benefit payable under the Plan with respect to the amounts credited to the Investment Account at the time of a
distributable event shall be satisfied and delivered to the Participant or Beneficiary only in the form of cash. The distribution
and delivery of shares of Company 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.  

        Section
8.7.   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 Company Stock Account and the amounts credited
to the 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 payment.  

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

24 

        Section
8.9.   Limitation On Payment. Notwithstanding any provision in the Plan
to the contrary, the payment of a benefit payable under the Plan to a Participant or
Beneficiary may be deferred or limited in order to comply with applicable securities
laws, tax laws, judicial determinations or orders, bank covenants, or any other
applicable law as permitted or required under section 409A of the Code and
applicable guidance issued by the Department of the Treasury with respect to the
application of section 409A.  

        Section
8.10.   Tax Withholding. The Company shall have the
authority, duty and power to determine, withhold and report the amount of any applicable
employment taxes and any applicable federal, state, or local taxes as may be required
under section 409A of the Code, guidance issued by the Department of the Treasury with
respect to the application of section 409A, and any other applicable law with respect to
any amount payable under this Plan. Amounts payable or shares of Company Common Stock
distributable pursuant to the Plan may be reduced by the amount of any federal, state or
local taxes required by law to be withheld by the Company pursuant to and in accordance
with applicable law with respect to such payments and, if required by law, the Participant’s
share of Federal Insurance Contributions Act (“FICA”) taxes, and any other
employment taxes. Amounts required to be includable in income shall be reported on the
Form W-2 for the year includable in income.  

ARTICLE IX  

NONTRANSFERABILITY AND
VOTING RIGHTS 

        Section
9.1.   Anti-Alienation of Benefits. The amounts and
stock units which may be credited to the Accounts of a Participant under the Plan, any
options which may be granted under the Plan, 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.   Voting of Company Stock With Respect to Accounts. No Participant
shall be entitled to any voting rights with respect to any stock units credited to any
Account under the Plan.  

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

25 

ARTICLE X  

ADMINISTRATION OF THE
PLAN 

        Section
10.1.   Administrator. The administrator of the Plan shall be the
Company. However, except as otherwise provided herein, the Compensation Committee
shall act on behalf of the Company with respect to the administration of the Plan and
the performance of functions generally assigned to the Company.  

        Section
10.2.   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
10.3.   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 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: 

26 

	  	  	(i)  	  	the
claimant’s claim shall be deemed to be filed when presented 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. In no event may a claimant commence legal action for benefits
the claimant believes are due the claimant until the claimant has exhausted all
of the remedies and procedures afforded the claimant by this Section 10.3.

	  	(d)  	  	Disability
Claims. 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, 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. 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. 

27 

	  	(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 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: 

28 

	  	  	(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. 

        Section
10.4.   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 one (1) year after
the date on which payment of the Participant's benefit payable under the Plan may be
made, no payment shall be made, and 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
10.5.  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
10.6.   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 10.7.
   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 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). 

29 

ARTICLE XI  

MISCELLANEOUS
PROVISIONS 

        Section
11.1.   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
11.2.   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 foreign, 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
11.3.   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 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
11.4.   Plan Provisions. Except when otherwise required by the context,
any singular terminology shall include the plural.  

30 

        Section
11.5.   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.  

        Section
11.6.   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
11.7.   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 11.7 for distribution from the Accounts under the Plan
and for issuance upon exercise of stock options granted pursuant to 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 the Plan shall be counted on the date of grant.  

ARTICLE XII  

AMENDMENT OF THE PLAN 

        Section
12.1.  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
12.2.   Procedure for Amendment. An amendment shall be
authorized by the Board of Directors of the Company 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 Vested
benefit payable under the Plan as determined prior to the effective date of such
amendment without the written consent of the Participant.  

31 

ARTICLE XIII  

TERMINATION OF PLAN 

        Section
13.1.   Termination of the Plan. The Plan shall permit an acceleration of
the time and form of a payment of the benefits payable under the Plan in accordance with
one of the events described herein.  

	  	(a)  	  	In
the event of a complete liquidation and dissolution of the Company, the Company
shall terminate the Plan within twelve (12) months of the liquidation and
dissolution of the Company and the value of the benefit payable under the Plan
to the Participant shall be determined as of that date and shall be distributed
to the Participants or their Beneficiaries; provided, however, that the benefits
payable under the Plan are included in the gross income of the Participants or
their Beneficiaries in the latest of: (i) the calendar year in which the Plan
termination occurs; (ii) the calendar year in which the amount is no longer
subject to a substantial risk of forfeiture; or (iii) the first calendar year in
which the payment is administratively practicable. 

	  	(b)  	  	The
Company may, at its sole and absolute discretion, determine to terminate the
Plan, provided that: (i) all arrangements sponsored by the Company that would be
aggregated with the Plan pursuant to section 1.409A-1(c) of the Proposed
Treasury Regulations or the corresponding provision in future guidance issued by
the Department of the Treasury if the same Participant participated in all of
the arrangements are terminated; (ii) no payments other than the payments that
would be payable under the terms of the arrangements if the termination had not
occurred are made within twelve (12) months of the termination of the
arrangements; (iii) all payments are made within twenty-four (24) months of the
termination of the arrangements; and (iv) the Company does not adopt a new
arrangement that would be aggregated with any terminated arrangement under
section 1.409A-1(c) or the corresponding provision in future guidance issued by
the Department of the Treasury if the same Participant participated in both
arrangements, at any time within five (5) years following the date of
termination of the arrangement. 

	  	(c)  	  	An
acceleration of the time of the payment of the value of the benefit payable
under the Plan to the Participant shall also be allowed at any time the Plan
fails to meet the requirements of section 409A and the regulations issued
thereunder. However, the payment made based upon the acceleration for the
failure to meet the requirements of section 409A and the regulations issued
thereunder may not exceed the amount required to be included in income as a
result of the failure to comply with the requirements of section 409A and the
regulations issued thereunder. 

32 

	  	(d)  	  	This
Section 13.1 shall be construed and administered in a manner consistent with
sections 409A of the Code and section 1.409A-3(h)(2) of the Proposed Treasury
Regulations or the corresponding provision in future guidance issued by the
Department of the Treasury. 

        Section
13.2.   Procedure for Amendment to Terminate the Plan. An amendment to
terminate the Plan shall be authorized by the Board of Directors of the Company 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.  

        Dated
as of this ____ day of ____________, ____. 

		HECLA MINING COMPANY
	 
	 
		
	By:   	
 
	
	 
	 	
	Title:   	
 

33 

EXHIBIT A 

HECLA MINING COMPANY
KEY EMPLOYEE DEFERRED
COMPENSATION PLAN PARTICIPANTS 

        Name
of Participants 

A-1 

EXHIBIT B 

HECLA MINING COMPANY
KEY EMPLOYEE DEFERRED
COMPENSATION PLAN 

PARTICIPATING EMPLOYERS  

	  	1. 	  	Hecla
Mining Company, a Delaware corporation  

	  	2. 	  	Minera
Hecla Venezolana, C.A., a Venezuelan corporation (January 1, 2003)  

	  	3. 	  	Minera
Hecla, S.A. de C.V., a Mexican corporation (January 1, 2003)  

B-1

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