<PAGE>
                                                                   EXHIBIT 10.13

                         INTERNATIONAL WIRE GROUP, INC.
                           KEY EMPLOYEE RETENTION PLAN

                             PRELIMINARY STATEMENTS

     A. On March 24, 2004 (the "Commencement Date"), International Wire Group,
Inc. (the "Company") and certain of its direct and indirect subsidiaries
(collectively, the "Debtors") filed voluntary petitions for relief under Chapter
11 of the United States Bankruptcy Code in the United States Bankruptcy Court
for the Southern District of New York.

     B. The purpose of the Company's Key Employee Retention Plan (the "Plan") is
to retain key employees of the Debtors by providing them with competitive
compensation and meaningful incentives for continued service.

                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATIONS

         Section 1.01 Definitions. Capitalized terms used in this Plan shall
have the following respective meanings, except as otherwise provided or as the
context shall otherwise require:

         "Bankruptcy Court" shall mean the United States Bankruptcy Court for
     the Southern District of New York having jurisdiction over the Debtors'
     Chapter 11 cases and, to the extent of the withdrawal of any reference
     under section 157 of title 28 of the United States Code, the United States
     District Court for the Southern District of New York.

         "Benefit Plan" shall mean any employee benefit plan (including any
     employee benefit plan within the meaning of Section 3(3) of ERISA),
     program, arrangement or practice maintained, sponsored or provided by the
     Company or any other Debtor, including those relating to compensation,
     bonuses, profit-sharing, stock option, or other stock related rights or
     other forms of incentive or deferred compensation, vacation benefits,
     insurance coverage (including any self-insured arrangements), health or
     medical benefits, disability benefits, workers' compensation, supplemental
     unemployment benefits, severance benefits and post-employment or retirement
     benefits (including compensation, pension, health, medical or life
     insurance or other benefits).

         "Board" shall mean the Board of Directors of the Company.

         "Cause" shall mean (i) in the event such Participant is a party to a
     written employment agreement with any of the Debtors and such agreement
     provides a definition of "Cause", such definition as set forth therein or
     (ii) in all other cases, fraud, dishonesty, competition with any Debtor,
     unauthorized use of any of the

<PAGE>





     Debtor's trade secrets or confidential information, or failure to properly
     perform the duties assigned to the Participant, in the reasonable judgment
     of the Company. A determination of the existence of Cause shall be made by
     the Board in its sole discretion.

         "Commencement Date" shall have the meaning set forth in the Preliminary
     Statements to this Plan.

         "Debtors" shall have the meaning set forth in the Preliminary
     Statements to this Plan.

         "Disability" shall mean, when used with reference to any Participant,
     long term disability as established under the applicable long term
     disability plan maintained by any of the Debtors under which the
     Participant is covered.

         "Discretionary Bonus Pool" shall have the meaning set forth in Section
     3.03.

         "Dispute Notice" shall have the meaning set forth in Section 4.01.

         "Effective Date" shall mean the effective date of a Plan of
     Reorganization.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
     as amended, and the rules and regulations promulgated thereunder.

         "Good Reason" shall mean, when used with reference to any Participant,
     any of the following actions or failures to act, but in each case only if
     it occurs while such Participant is employed by any Debtor and then only if
     it is not consented to by such Participant in writing:

             (i)    a material adverse change in such Participant's reporting
                    responsibilities, title(s) or elected or appointed office(s)
                    in effect immediately prior to the effective date of such
                    change;

             (ii)   a material reduction in such Participant's base salary and
                    bonus opportunity in effect immediately prior to the
                    effective date of such reduction, not including any
                    reduction resulting from changes in the market value of
                    securities or other instruments paid or payable to such
                    Participant; or

             (iii)  any change of more than 50 miles in the location of the
                    principal place of employment of such Participant
                    immediately prior to the effective date of such change.

                                       2

<PAGE>





                    For purposes of this definition, none of the actions
                    described in clauses (i) and (iii) above shall constitute
                    "Good Reason" with respect to any Participant if it was an
                    isolated and inadvertent action not taken in bad faith by
                    the Company and if it is remedied by the Company within
                    fifteen (15) days after receipt of written notice thereof
                    given by such Participant (or, if the matter is not capable
                    of remedy within fifteen (15) days, then within a reasonable
                    period of time following such fifteen (15) day period,
                    provided that the Company has commenced such remedy within
                    said fifteen (15) day period); provided that "Good Reason"
                    shall cease to exist for any action described in clauses (i)
                    through (iii) above on the thirty (30th) day following the
                    later of the occurrence of such action or the Participant's
                    knowledge thereof, unless such Participant has given the
                    Company written notice thereof prior to such date.

         "Incentive Bonus" has the meaning set forth in Section 3.02.

         "Participants" shall mean those employees of the Company or any of the
     Debtors who are from time to time designated as Participants in accordance
     with Section 2.01.

         "Plan" shall mean this International Wire Group, Inc. Key Employee
     Retention Plan, as amended, supplemented or modified from time to time in
     accordance with its terms.

         "Plan of Reorganization" shall mean a plan of reorganization pursuant
     to Chapter 11 of the United States Bankruptcy Code in any of the Debtors'
     Chapter 11 cases.

         "Retention Bonus" has the meaning set forth in Section 3.01.

         "TTM EBITDA" shall mean Consolidated EBITDA (as such term is defined in
the Financing Agreement, dated as of March 25, 2004, by and among International
Wire Group, Inc. and its Subsidiaries Named Therein as Borrowers, as debtors and
debtors in possession, as Borrowers, the Subsidiaries of International Wire
Group, Inc. Named Therein as Guarantors, as debtors and debtors in possession,
as Guarantors, the Financial Institutions from Time to Time Party Thereto, as
Lenders, and Highbridge/Zwirn Special Opportunities Fund, L.P., as Collateral
Agent and as Administrative Agent) for the trailing twelve month period.

         Section 1.02 Interpretation. In this Plan, unless a clear contrary
intention appears, (a) the words "herein," "hereof" and "hereunder" refer to
this Plan as a whole and not to any particular Article, Section or other
subdivision, (b) reference to any Article or Section, means such Article or
Section hereof and (c) the words "including" (and with correlative meaning
"include") means including, without limiting the generality


                                       3

<PAGE>





of any description preceding such term. The Article and Section headings herein
are for convenience only and shall not affect the construction hereof.

                                   ARTICLE II

                            ELIGIBILITY AND BENEFITS

         Section 2.01 Eligible Employees.


         (a) This Plan shall be for the benefit of (i) the initial Participants
     named on Schedule A, (ii) persons designated by the Board as Participants
     pursuant to Section 2.01(b) below, and (iii) such other persons designated
     as Participants by the Chief Executive Officer of the Company as eligible
     to receive a bonus from the Discretionary Bonus Pool from time to time in
     accordance with Section 2.01(c) below, in each case until such
     Participant's employment is terminated. No other employees, personnel,
     consultants or independent contractors shall be eligible to participate in
     this Plan or to receive any rights or benefits hereunder.

         (b) In the event that the employment of a Participant is terminated,
     resulting in a forfeiture of the Retention Bonus or Incentive Bonus or
     portion thereof, the Board shall have the authority to designate as a
     Participant any individual who is hired or otherwise promoted to replace
     such terminated Participant.

         (c) The Chief Executive Officer of the Company shall be authorized from
     time to time after the date this Plan is effective to designate as
     Participants for the purpose of participation in the Discretionary Bonus
     Pool one or more employees of the Company or the other Debtors (including
     new hires) who are not listed on Schedule A or otherwise designated
     pursuant to Section 2.01(b). The bonus due to such Participants designated
     pursuant to this Section 2.01(c) and the terms and conditions thereof shall
     be determined by the Chief Executive Officer of the Company and shall be
     generally consistent with the benefits received by similarly situated
     Participants. All such payments to such additional Participants shall be
     payable from the Discretionary Bonus Pool.

                                  ARTICLE III

                                     BONUSES

         Section 3.01 Retention Bonus. Each Participant identified on Schedule A
hereto shall be entitled to the retention bonus set forth opposite such
Participant's name on Schedule A hereto (the "Retention Bonus").

         Section 3.02 Incentive Bonus. Each Participant identified on Schedule A
hereto shall be entitled to the earned portion of the incentive bonus set forth
opposite



                                       4

<PAGE>





such Participant's name on Schedule A hereto (the "Incentive Bonus"), as
calculated and payable in accordance with Section 3.05.

         Section 3.03 Discretionary Bonus Pool. The Discretionary Bonus Pool
shall consist of $250,000 (the "Discretionary Bonus Pool"). The Discretionary
Bonus Pool may be allocated in the discretion of the Chief Executive Officer of
the Company to those Participants who are so designated in accordance with the
provisions of Section 2.01(c). In the event a Participant forfeits any portion
of the benefit payable pursuant to this Section 3.03, the amount of such benefit
shall be restored to the Discretionary Bonus Pool and shall be available for
grant pursuant to this Section 3.03.

         Section 3.04 Payment of Retention Bonus. Except as otherwise provided
in Section 3.06 below, the Company shall pay the Retention Bonus to each
Participant as follows:

         (a) First Payment Date: Twenty-five percent (25%) of the Retention
     Bonus two (2) months after the Commencement Date;

         (b) Second Payment Date: Thirty-seven and one-half percent (37.5%) of
     the Retention Bonus upon the earlier to occur of (i) six (6) months after
     the Commencement Date or (ii) the Effective Date; and

         (c) Final Payment Date: Thirty-seven and one-half percent (37.5%) six
     (6) months after the Effective Date; provided, however, that with respect
     to each of the three employees of the Company who are also affiliated with
     Hanley Partners, Inc. (the "Hanley Employees") and employed by the Company
     on the Effective Date, the third payment will be made on the earlier of (a)
     six (6) months after the Effective Date or (b) the date upon which such
     employee's employment with the Company terminates, other than for "cause"
     (as defined in such employees' respective employment agreements).

     Except as otherwise provided in this Section 3.04 or in Section 3.06 below,
     to be eligible to receive a Retention Bonus payment, a Participant must be
     actively employed with any of the Debtors and in good standing with respect
     to all employment policies of the applicable Debtor, including, without
     limitation, policies relating to confidentiality and noncompetition, on the
     date the applicable payment becomes due and payable pursuant to this
     Section 3.04.

         Section 3.05 Payment of Incentive Bonus. Except as otherwise provided
in Section 3.06 below, the Company shall pay the Incentive Bonus to each
Participant as follows:

         (a) First Payment Date: No later than one (1) month after the Company
     releases its operating results for the six months ended June 30, 2004,
     one-half (1/2) of the Incentive Bonus multiplied by the applicable
     percentage earned as determined in accordance with Schedule B; and


                                       5
<PAGE>


         (b) Second Payment Date: No later than one (1) month after the Company
     releases its operating results for the twelve months ended December 31,
     2004, one-half (1/2) of the Incentive Bonus multiplied by the applicable
     percentage earned as determined in accordance with Schedule B.

         Section 3.06 Termination of Employment.

         (a) Upon a termination of a Participant's employment by any Debtor for
     any reason other than Cause or termination arising from the Participant's
     Disability or death, the Company shall pay to such Participant the full
     amount of such Participant's Retention Bonus and, at such times as are
     provided in Section 3.05, the Company shall pay to such Participant such
     Participant's Incentive Bonus to the extent it would have been earned
     pursuant to Section 3.02 of this Plan. A voluntary termination of a
     Participant's employment for Good Reason, other constructive termination as
     provided by the terms of any employment or severance agreement applicable
     to any such Participant or in the case of any of the Hanley Employees, any
     termination on or after the Effective Date shall, in each case, be treated
     for purposes of this Plan as a termination by the Debtors other than for
     Cause.

         (b) Upon a termination of a Participant's employment by any Debtor for
     Cause, or if a Participant voluntarily terminates employment with any
     Debtor for any reason, other than for Good Reason, such Participant shall
     forfeit his or her entire right to any Retention Bonus and Incentive Bonus
     (in each case, to the extent unpaid) under this Plan.

                                   ARTICLE IV

                               DISPUTE RESOLUTION

         Section 4.01 Negotiation. In case a claim, dispute or controversy shall
arise between any Participant (or any person claiming by, through or under any
Participant) and the Company (including the Board) relating to or arising out of
this Plan, either disputant shall give written notice to the other disputant
("Dispute Notice") that it wishes to resolve such claim, dispute or controversy
by negotiations, in which event the disputants shall attempt in good faith to
negotiate a resolution of such claim, dispute or controversy. All negotiations
pursuant to this Section 4.01 shall be held at the Company's principal offices
in St. Louis, Missouri (or such other place on which the disputants shall
mutually agree) and shall be treated as compromise and settlement negotiations
for the purposes of the federal and state rules of evidence and procedure.

         Section 4.02 Arbitration. Any claim, dispute or controversy arising out
of or relating to this Plan which has not been resolved by negotiations in
accordance with Section 4.01 within thirty (30) days of the effective date of
the Dispute Notice shall, upon the written request of either disputant, be
finally settled by binding arbitration by a single arbitrator selected and
conducted expeditiously in accordance with the commercial




                                       6

<PAGE>





arbitration rules of the American Arbitration Association regarding resolution
of employment-related disputes. Each party shall be entitled to depose up to
three (3) relevant witnesses and shall be entitled to reasonable access to
relevant documents. Each party shall be entitled to make an oral presentation at
the hearing. The arbitrator may, without limitation, award injunctive relief,
but shall not be empowered to award damages in excess of compensatory damages
and each disputant shall be deemed to have irrevocably waived and relinquished
any claim for damages in excess of compensatory damages, such as punitive
damages. Notwithstanding the foregoing, the arbitrator's fees shall be assessed
against the losing party. The arbitrator's decision shall be final and legally
binding on the Company and its successors and assigns and a Participant and his
or her personal or legal representatives, executors, administrators, heirs and
permitted assigns, and judgment on the arbitrator's decision may be entered in
any court of competent jurisdiction. Each party shall pay its own fees,
disbursements, and costs relating to or arising out of any arbitration. All
arbitration conferences and hearings shall be held within a thirty (30) mile
radius of St. Louis, Missouri.

                                   ARTICLE V

                            MISCELLANEOUS PROVISIONS

         Section 5.01 Cumulative Benefits. The rights and benefits provided to
any Participant under this Plan are cumulative of, and are in addition to, all
of the other rights and benefits provided to such Participant under any Benefit
Plan or any agreement between such Participant and any Debtor.

         Section 5.02 No Mitigation. No Participant shall be required to
mitigate the amount of any payment provided for in this Plan by seeking or
accepting other employment following a termination of his or her employment with
a Debtor or otherwise. The amount of any payment provided for in this Plan shall
not be reduced by any compensation or benefit earned by a Participant as the
result of employment by another employer or by retirement benefits. The
Company's obligations to make payments to any Participant required under this
Plan shall not be affected by any setoff, counterclaim, recoupment, defense or
other claim, right or action that the Company may have against such Participant.

         Section 5.03 Amendment or Termination. Subject to the approval of the
Bankruptcy Court prior to the Effective Date, the Board may amend or terminate
the Plan at any time; provided, however, that (i) no such amendment may
adversely affect any rights of the Participants who were Participants prior to
the date of such amendment (and may only adversely affect the rights of any
Participants who become Participants on or following the date of such amendment
or termination) and (ii) any such termination of the Plan may not abridge the
rights of any Participant to receive the full bonus previously granted pursuant
to Articles II and III. Notwithstanding the foregoing, the Plan shall terminate
when all of the obligations to Participants hereunder have been satisfied in
full.



                                       7



<PAGE>





         Section 5.04 Administration. The Board shall have full and final
authority to make determinations with respect to the administration of this
Plan, to construe and interpret its provisions and to take all other actions
deemed necessary or advisable for the proper administration of this Plan, but
such authority shall be subject to the provisions of this Plan. The Board shall
have no authority to change or modify the level of benefits provided for
Participants under this Plan. No discretionary action by the Board shall amend
or supersede the express provisions of this Plan.

         Section 5.05 Successors and Assigns. This Plan shall be binding upon
and inure to the benefit of the Company and its successors and assigns. This
Plan and all rights of each Participant shall inure to the benefit of and be
enforceable by such Participant and his or her personal or legal
representatives, executors, administrators, heirs and permitted assigns. If any
Participant should die while any amounts are due and payable to such Participant
hereunder, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Plan to such Participant's devisees, legatees
or other designees or, if there be no such devisees, legatees or other
designees, to such Participant's estate. No payments, benefits or rights arising
under this Plan may be assigned or pledged by any Participant, except under the
laws of descent and distribution.

         Section 5.06 Notices. All notices and other communications provided for
in this Plan shall be in writing and shall be sent, delivered or mailed,
addressed as follows: (a) if to the Company, at the Company's principal office
address or such other address as the Company may have designated by written
notice to all Participants for purposes hereof, directed to the attention of the
General Counsel, and (b) if to any Participant, at his or her residence address
on the records of the Company or to such other address as he or she may have
designated to the Company in writing for purposes hereof. Each such notice or
other communication shall be deemed to have been duly given or mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
except that any change of notice address shall be effective only upon receipt.

         Section 5.07 Tax Withholdings. The Company shall have the right to
deduct from any payment hereunder all taxes (federal, state or other) that the
Company is required to withhold therefrom.

         Section 5.08 No Employment Rights Conferred. This Plan shall not be
deemed to create a contract of employment between any Participant and the
Company and/or its affiliates. Nothing contained in this Plan shall (i) confer
upon any Participant any right with respect to continuation of employment with
any Debtor or (ii) subject to the rights and benefits of any Participant
hereunder, interfere in any way with the right of the Company or any Debtor to
terminate such Participant's employment at any time.

         Section 5.09 Entire Plan. Except as provided in Section 5.01 of this
Plan, this Plan contains the entire understanding of the Participants and the
Debtors with respect to the retention arrangements maintained on behalf of the
Participants by the Debtors and supersedes all prior agreements, programs and
understandings (including


                                       8

<PAGE>





verbal agreements and understandings) between the Participants and any Debtor
regarding the terms and conditions of any retention arrangements.

         Section 5.10 Severability. If any provision of the Plan is, becomes or
is deemed to be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Plan shall not
be affected thereby.

         Section 5.11 Governing Law. This Plan shall be governed by and
construed in accordance with the laws of the State of Missouri, without giving
effect to its conflict of laws rules, and applicable federal law.

         Section 5.12 Condition Precedent to Plan Effectiveness. On _________,
the Debtors filed the Motion of Debtors for Order Pursuant to Sections 105(a)
and 363(b)(1) of the Bankruptcy Code Authorizing and Approving Key Employee
Retention Program and (ii) Section 365 of the Bankruptcy Code Authorizing and
Approving the Assumption of Certain Prepetition Employment Agreements (the
"Motion") in the Bankruptcy Court. The effectiveness of the Plan and the
Company's obligations thereunder are contingent on the entry of an order by the
Bankruptcy Court approving the Plan. In the event that the Bankruptcy Court does
not approve the Plan, the Plan shall be null and void, and no party shall be
entitled to enforce any rights against the Company thereunder.

           [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]



                                       9

<PAGE>





                  IN WITNESS WHEREOF, and as conclusive evidence of the adoption
of this Plan by the International Wire Group, Inc. Board, International Wire
Group, Inc. has caused this Plan to be duly executed in its name and behalf by
its proper officer thereunto duly authorized as of the date approved.

                                     INTERNATIONAL WIRE GROUP, INC.


                                      By:
                                         ---------------------------------
                                      Printed Name:
                                                   -----------------------
                                      Title:
                                            ------------------------------



                                       10

<PAGE>




                                   SCHEDULE A

            INITIAL PARTICIPANTS AND RETENTION AND INCENTIVE BONUSES

                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

              EMPLOYEE                  SALARY         %        RETENTION     POTENTIAL     INCENTIVE  POTENTIAL      POTENTIAL
              --------                  ------      -------     ----------    ----------    ---------  ----------     ---------
                                                     BONUS        BONUS       RETENTION       BONUS    INCENTIVE        TOTAL
                                                                  -----       ----------    --------  -----------       -----
                                                                                TOTAL                    TOTAL
                                                                              ----------              -----------
<S>                                   <C>           <C>         <C>           <C>           <C>       <C>             <C>
Joseph Fiamingo - CEO                   $425.0       140%          80%         $476.0          20%        $119.0        $595.0
Rodney Kent - President & COO            349.7       140%          80%          391.7          20%         97.9          489.6
David Webster - Chief                 [REDACTED]     140%          80%        [REDACTED]       20%      [REDACTED]    [REDACTED]
Restructuring Officer
Glenn Holler - SVP, CFO                  279.9       140%          80%          313.4          20%         78.4          391.8
Kelly Wetzler - Dir. Corp. Dev. &     [REDACTED]      75%         100%        [REDACTED]        0%          --        [REDACTED]
Strategic Plan
Dan Weber - General Counsel           [REDACTED]      75%         100%        [REDACTED]        0%          --        [REDACTED]
Don Dekay - VP Finance, Bare          [REDACTED]      75%         100%        [REDACTED]        0%          --        [REDACTED]
Wes Dehaven - SVP Finance                202.9        75%         100%          152.1           0%          --           152.1
Chrys Makarushka - VP Purchasing      [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Bob Emmott - VP Sales, Insulated      [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Vince Donaldson - VP Sales &          [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Marketing, Bare
Leroy Kemper - VP Operations,         [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Insulated
Paul Fox - VP Operations, Bare        [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Roger Blumer - VP Engineering,        [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Insulated
Daris Foster - VP Business Process    [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Control
Bev Terry - VP Customer Support of    [REDACTED]      50%         100%        [REDACTED]        0%          --        [REDACTED]
Operations, Insulated
</TABLE>



<PAGE>





                                   SCHEDULE B

                           INCENTIVE BONUS THRESHOLDS

                              (DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>



                                                JUNE 30, 2004                     DECEMBER 31, 2004
        (PERCENTAGE EARNED)                       TTM EBITDA                          TTM EBITDA
        -------------------                     -------------                     -----------------
<S>                                             <C>                               <C>
            100% Earned                          above $41.0                         above $43.0
             50% Earned                          40.0 - 41.0                         42.0 - 43.0
             0% Earned                            below 40.0                          below 42.0

</TABLE>