NEWMONT EMPLOYEE PERFORMANCE INCENTIVE COMPENSATION PAYROLL PRACTICE

Exhibit 10.2

NEWMONT

EMPLOYEE PERFORMANCE INCENTIVE COMPENSATION

PAYROLL PRACTICE

(Effective and restated January 1, 2006)

TABLE OF CONTENTS

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NEWMONT

EMPLOYEE PERFORMANCE INCENTIVE COMPENSATION

PAYROLL PRACTICE

(Effective as of January 1, 2006)

PURPOSE

The purpose of the payroll practice is to provide to Employees of Newmont Mining and its Affiliated Entities that participate in this payroll practice a more direct interest in the success of the operations of Newmont Mining. Employees of Newmont Mining and participating Affiliated Entities will be rewarded in accordance with the terms and conditions described below.

DEFINITIONS

The capitalized terms used in this payroll practice shall have the same meaning as the capitalized terms in the Annual Incentive Compensation Payroll Practice. In addition, the terms set forth in this Section shall have the meaning set forth below.

1.1 “ Common Stock ” means the $1.60 par value common stock of Newmont Mining Corporation.

1.2 “ EPI Bonus ” means the bonus payable to an eligible Employee in the form of Restricted Stock or Restricted Stock Units under this payroll practice with respect to a Performance Period (or portion thereof as provided in Section 3.2), which shall be determined by multiplying the eligible Employee’s Bonus Eligible Earnings by the product of (a) the Targeted Payout Percentage as set forth in Schedule A for the eligible Employee’s grade for the Performance Period (or portion thereof) times (b) the Aggregate Payout Percentage calculated in accordance with Section 3.4 of the Annual Incentive Compensation Payroll Practice. Beginning in 2006, the EPI bonus will begin a three-year look back weighted calculation that will be phased in over a period of two years. In 2006, all EPI Bonus will be calculated and based upon 2006 results, since the look back provision is not retroactive. In 2007, EPI bonus will be calculated using 40% weighting of 2006 results and 60% weighting of 2007 results. In 2008, the three-year weighted EPI bonus calculation will go into effect, and will remain going forward. The three-year weighted EPI bonus calculation is comprised of 20% weighting for the first year (two years ago), 30% weighting for the second year (one year ago), and 50% weighting for the third year (the current year). In addition, the EPI Bonus may be increased based upon the Total Shareholder Return Modifier, as defined and explained in this document. Restricted Stock or Restricted Stock Units awarded as an EPI Bonus shall have terms and conditions, and shall be subject to such restrictions as defined by the Compensation Committee.

1.3 “ Fair Market Value ” means, with respect to a share of Common Stock as of a given date, the fair market value calculated in accordance with the Newmont Mining stock plan from which such shares are to be issued.

1.4 “ Performance Period ” means the calendar year over which the Aggregate Performance Percentage shall be calculated for purposes of determining the amount of an EPI Bonus. The Performance Period shall be the calendar year.

1.5 “ Total Shareholder Return Modifier ” means Newmont’s leverage to gold price as a multiple of total annual return to gold price appreciation. Payout percentage will be in accordance to Schedule B.

1.6 “ Restricted Stock Units ” means the right to receive Common Stock under terms and conditions defined in a Restricted Stock Unit Agreement, as defined by the Compensation Committee.

1.7 “ Targeted Payout Percentage ” means the percentage of an eligible Employee’s Bonus Eligible Earnings taken into account when calculating the EPI Bonus with respect to a Performance Period, as specified in Schedule A. If the Pay Grade of an eligible Employee changes during a Performance Period, the Targeted Payout Percentage applicable to such eligible Employee shall be prorated based upon the number of days spent in each Pay Grade during the Performance Period.

ELIGIBILITY

All Employees of Newmont Mining and/or a Participating Employer in an executive grade level are eligible to receive an EPI Bonus under this payroll practice, provided (i) they are on the payroll of Newmont Mining and/or a Participating Employer as of the last day of the relevant Performance Period, and at the time the award is granted, or (ii) they are a Terminated Eligible Employee with respect to such calendar year. Employees who are on sho