NON-QUALIFIED STOCK OPTION AGREEMENT      EXHIBIT 10.9
                         Option Granted January 25, 1996
                      Under the 1986 Stock Incentive Program
                                        of
                            The Interlake Corporation

           WHEREAS, (hereinafter called the "Optionee"), is
an employee of The Interlake Corporation (hereinafter called the "Corporation")
or a subsidiary thereof;

       WHEREAS, the 1986 Stock Incentive Program of the Corporation ("Program")
authorizing the granting to officers and to other key employees of the
Corporation and its subsidiaries of options to buy from the Corporation shares
of common stock, par value $1 a share, has been duly adopted by the
Corporation; and

      WHEREAS, the execution of a stock option agreement in the form hereof has
been authorized by a resolution of the Compensation Committee of the Board of
Directors of the Corporation duly adopted on January 25, 1996;

     NOW, THEREFORE, the Corporation hereby grants to the Optionee an option to
purchase               shares of common stock, par value $1 per share, of the
Corporation (or any security into which such shares may be changed by reason of
any transaction or event described in Paragraph 16(a) of the Program) at the
price of Four Dollars ($4.00) per share, upon the terms and conditions
hereinafter set forth.

           1. Until terminated, as hereinafter provided, this option may be
exercised in whole or in part from time-to-time as follows:

            (a) In full, upon a "change in control," as hereinafter defined,
                while the Optionee is employed by the Corporation and/or any 
                subsidiary;

            (b) Unless exercisable in full by reason of a change in control, to
              the extent of 30 percent of the number of shares specified above
              immediately, and to the extent of the following aggregate 
              percentages of the number of shares specified above after each of
              the periods ending on the dates set forth below during which the 
              Optionee shall have been in the continuous employ of the 
              Corporation or one or more of its subsidiaries:

                  January 25, 1997                             60 percent
                  January 25, 1998                            100 percent
                  
             (c) If an Optionee's employment terminates by reason of retirement
              on or after the Optionee's 60th birthday or "disability," as 
              hereinafter defined, or by reason of death, and if an installment
              would have become exercisable within one year subsequent to such 
              event had the Optionee remained in the continuous employ of the 
              Corporation and/or any subsidiary, this option may be exercised 
              to the extent of the sum of the number of shares purchasable 
              pursuant to the preceding sub-paragraph and such additional 
              installment.

    Upon the exercise of this option when fewer than all installments set forth
in sub-paragraph (b) and (c) are exercisable, any fractional share shall be
rounded down to the nearest whole share.

         2.  The option price may, at the election of the Optionee, be paid (i)
in cash or by check acceptable to the Corporation or (ii) by transfer to the
Corporation of shares of common stock of the Corporation having a value (such
shares to be valued, for purposes of this paragraph, at the average of the high
and low prices quoted on the New York Stock Exchange Composite Transactions for
the date upon which the Optionee's exercise of stock option is received) equal
to the total option price, or (iii) any combination of whole shares and funds
equal to the total option price.  Upon receipt of the payments referred to in
the preceding sentence, the Corporation agrees to cause certificates for any
shares purchased hereunder to be delivered to the Optionee.

         3. This option shall terminate on the earliest of the following dates:

              (a)  On the date upon which the Optionee ceases to be an employee
              of the Corporation or a subsidiary by reason of termination of
              employment for cause;

              (b)  Three months after the Optionee ceases to be an employee of
              the Corporation or a subsidiary, unless he ceases to be an 
              employee by reason of death, retirement on or after the 
              Optionee's 60th birthday, disability, or as described in (a) 
              above;

              (c) Two years after the death of the Optionee if the Optionee 
              dies while an employee of the Corporation or a subsidiary;

              (d)  Two years after the termination of the Optionee's employment
              by reason of retirement on or after the Optionee's 60th birthday 
              or "disability" as hereinafter defined; or

                  (e)  January 25, 2006.

         In the event the Optionee shall intentionally commit an act materially
inimical to the interests of the Corporation or a subsidiary, this option shall
terminate upon a finding by the Compensation Committee of the Board of
Directors of the Corporation to that effect, notwithstanding any other
provision of this agreement.  Nothing contained in this option shall limit
whatever right the Corporation or a subsidiary might otherwise have to
terminate the employment of the Optionee.

          4. This option is not transferrable by the Optionee otherwise than by
will or the laws of descent and distribution, and is exercisable, during the
lifetime of the Optionee, only by him or by his legal guardian or legal
representative.

          5. This option shall not be exercisable if such exercise would 
involve a violation of any applicable federal or state securities laws.  The
Corporation hereby agrees to make reasonable efforts to comply with any
applicable securities laws.

          6.  The Compensation Committee of the Board of Directors of the
Corporation shall make or provide for such adjustments in the number of shares
of common stock covered by outstanding stock options granted hereunder, in the
option price applicable to such stock options, and in the kind of securities
covered thereby, as the Committee in its sole discretion, exercised in good
faith, determines is equitably required to prevent dilution or enlargement of
the rights of Optionees that otherwise would result from (a) any stock
dividend, stock split, combination of shares, recapitalization or other change
in the capital structure of the Corporation, or (b) any merger, consolidation,
spin-off, reorganization, partial or complete liquidation, repurchase or
exchange of shares, issuance of rights or warrants to purchase securities, or
(c) any other corporate transaction or event having an effect similar to any of
the foregoing.  The Committee shall also make or provide for such adjustments
in the number of shares reserved for issuance as specified in Paragraph 16 of
the Program as the Committee in its sole discretion, exercised in good faith,
determines is appropriate to reflect any transaction or event described in the
preceding sentence.  No adjustment provided in this Paragraph 6 shall require
the Corporation to sell any fractional shares.

          7.  The term "subsidiary," as used in this agreement, means any
corporation of which the securities having a majority of the ordinary voting
power needed to elect its board of directors are, at the time as of which any
determination is being made, owned by the Corporation either directly or
through one or more subsidiaries.  For purposes of this agreement, the
continuous employ of the Optionee with the Corporation or a subsidiary shall
not be deemed interrupted, and the Optionee shall not be deemed to have ceased
to be an employee of the Corporation or any subsidiary, by reason of the
transfer of his employment among the Corporation and its subsidiaries.

          8. The term "disability," as used in this agreement, means the
termination of an Optionee's employment under such circumstances as entitle him
to Long Term Disability Benefits under the Corporation's Salaried Employees
Group Insurance Plan, or a long term disability plan of the subsidiary by which
he is employed, and in which he participates at the time the disability occurs.
If an Optionee does not participate in a long term disability plan,
"disability" means the termination of an Optionee's employment under such
circumstances as would entitle him to long term disability benefits if he were
a participant in the Corporation's Salaried Employees Group Insurance Plan.

          9. The term "change in control," as used in this agreement, means the
occurrence of any of the following events while the Optionee is employed by the
Corporation or a subsidiary:

              (a) The Corporation is merged or consolidated or reorganized into
              or with another corporation or other legal person and as a result
              of such merger, consolidation or reorganization less than 75% of 
              the outstanding voting securities or other capital interests of 
              the surviving, resulting or acquiring corporation or other legal 
              person are owned in the aggregate by the stockholders of the 
              Corporation immediately prior to such merger, consolidation or 
              reorganization;

              (b) The Corporation sells all or substantially all of its 
              business and/or assets to any other corporation or other legal 
              person, less than 75% of the outstanding voting securities or 
              other capital interests of which are owned in the aggregate by 
              the stockholders of the Corporation, directly or indirectly, 
              immediately prior to or after such sale;

              (c) There is a report filed on Schedule 13D or Schedule 14D-1 (or
              any successor schedule, form or report) each as promulgated 
              pursuant to the Securities Exchange Act of 1934 (the "Exchange 
              Act") disclosing that any person (as the term "person" is used in
              Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has 
              become the beneficial owner (as the term "beneficial owner" is 
              defined under Rule 13d-3 or any successor rule or regulation 
              promulgated under the Exchange Act) of 25% or more of the issued 
              and outstanding shares of voting securities of the Corporation;or

              (d) During any period of two consecutive years, individuals who 
              at the beginning of any such period constitute the directors of 
              the Corporation cease for any reason to constitute at least a 
              majority thereof unless the election, or the nomination for 
              election by the Corporation's stockholders, of each new director 
              of the Corporation was approved by a vote of at least two-thirds 
              of such directors of the Corporation then still in office who 
              were directors of the Corporation at the beginning of any such 
              period.

          10.  This option is intended to be a non-qualified stock option and
shall not be treated as an incentive stock option within the meaning of the
Internal Revenue Code of 1986, as the same has been heretofore or may hereafter
be amended.

          Executed at Lisle, Illinois, as of January 25, 1996.

                                          THE INTERLAKE CORPORATION



                                          By____________________________
                                               Stephen R. Smith
                                               Vice President, Secretary
                                                and General Counsel
                                                


Receipt Acknowledged and Non-Qualified Stock Option Agreement Accepted this
 day of        ________________, 1996.



                                          Signed:                              
        

                                          Name: