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                                                                   EXHIBIT 10.15

                              EMPLOYMENT AGREEMENT

      AGREEMENT, made and entered into as of the 11th day of November, 2002, by
and between Metallurg, Inc., a Delaware corporation (together with its
successors and assigns permitted under this Agreement, the "Company"), and Heinz
C. Schimmelbusch (the "Executive").

                              W I T N E S S E T H :

      WHEREAS, the Executive is the Chief Executive Officer of Metallurg
Holdings, Inc., the immediate parent of the Company ("MHI"); and

      WHEREAS, as of the Effective Date (as defined below), the Executive was
appointed Chief Executive Officer of the Company; and

      WHEREAS, the Company desires to enter into an employment agreement (the
"Agreement") embodying the terms of such employment; and

      WHEREAS, the Executive desires to enter into the Agreement and to accept
such employment, subject to the terms and provisions of the Agreement; and

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive (individually a
"Party" and together the "Parties") agree as follows:

      1. Definitions.

            (a) "Base Salary" shall mean the Executive's base salary in
accordance with Section 4 below.

            (b) "Board" shall mean the Board of Directors of the Company.

            (c) "Business Day" shall mean any day other than a Saturday, Sunday
or any other day on which commercial banks in New York, New York are required or
authorized to be closed.

            (d) "Cause" shall mean:

                  (1)   the Executive is convicted of (or pleads nolo contendere
                        to) a felony or crime of moral turpitude, dishonesty,
                        breach of trust or unethical business conduct involving
                        the Company;

                  (2)   the Executive engages in willful misconduct, willful or
                        gross neglect, fraud, insubordination, misappropriation
                        or embezzlement to the material and demonstrable
                        detriment of the Company; or

                  (3)   the Executive breaches in any material respect the terms
                        and provisions of this Agreement and fails to cure such
                        breach within 20 days following written notice from the
                        Company specifying such breach.

            (e) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, including applicable regulations thereunder.


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            (f) "Competitive Activity" shall mean any activity engaged in by the
Executive, whether as an employee, principal, sole proprietor, consultant,
agent, officer, director, partner or shareholder (except as a less than
one-percent shareholder of a publicly traded company or a less than five-percent
shareholder of a privately held company), which directly competes with the
Company or any Subsidiary. For this purpose, an activity which directly competes
with the Company or any Subsidiary shall mean a business that was being
conducted by the Company or any Subsidiary during the Term of Employment.
Notwithstanding anything to the contrary in this Section 1(f), an activity shall
not be deemed to be a Competitive Activity (x) solely as a result of the
Executive's being employed by or otherwise associated with a business of which a
unit is in competition with the Company or any Subsidiary but as to which unit
the Executive does not have direct or indirect responsibilities for the products
or product lines involved or (y) if the activity contributes less than 5 percent
of the revenues for the fiscal year in question of the business by which the
Executive is employed or with which he is otherwise associated.

            (g) "Disability" shall mean a disability as determined under the
Company's long-term disability plans, programs and/or arrangements in effect on
the date such disability first occurs.

            (h) "Effective Date" shall mean November 11, 2002.

            (i) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time, including applicable regulations thereunder.

            (j) "Good Reason" shall mean the occurrence of any of the following
events:

                  (1)   the material change of the Executive's authority, duties
                        and responsibilities, or the assignment to the Executive
                        of duties materially different from the Executive's
                        position or positions with the Company;

                  (2)   a reduction in Annual Salary of the Executive;

                  (3)   the failure by the Company to obtain an agreement in
                        form and substance reasonably satisfactory to the
                        Executive from any successor to the business of the
                        Company to assume and agree to perform this Agreement;
                        or

                  (4)   the Company breaches in any material respect the terms
                        and provisions of this Agreement and fails to cure such
                        breach within 20 days following written notice from the
                        Executive specifying such breach.

            (k) "Subsidiary" of the Company shall mean any corporation of which
the Company owns, directly or indirectly, more than 50 percent of the Voting
Stock or any other business entity in which the Company directly or indirectly
has an ownership interest of more than 50 percent.

            (l) "Term of Employment" shall mean the period specified in Section
2 below.

            (m) "Voting Stock" shall mean capital stock of any class or classes
having general voting power under ordinary circumstances, in the absence of
contingencies, to elect the directors of a corporation.

      2. Term of Employment.

            The Company hereby employs the Executive, and the Executive hereby
accepts such employment, for the period commencing on the Effective Date and
ending on the second anniversary of


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the Effective Date (the "Term of Employment"), subject to earlier termination of
the Term of Employment in accordance with the terms of the Agreement. The Term
of Employment shall be automatically renewed for a one-year period on the second
anniversary of the Effective Date and on each anniversary of the Effective Date
thereafter, unless either Party has notified the other Party in writing in
accordance with Section 25 below at least 90 days prior to the expiration of the
then Term of Employment that he or it does not want the Term of Employment to so
renew.

      3. Position, Duties and Responsibilities.

            The Executive, in his capacity as Chief Executive Officer, shall
faithfully perform for the Company the duties of said office and shall perform
such other duties of an executive, managerial or administrative nature as shall
be specified and designated from time to time by the Board consistent with such
office. The Executive, in carrying out his duties under this Agreement, shall
report to the Board. Notwithstanding anything in this Section 3 to the contrary,
nothing shall preclude the Executive from:

                  (1)   serving on the boards of directors of a reasonable
                        number of other corporations or the boards of a
                        reasonable number of trade associations and/or
                        charitable organizations;

                  (2)   managing the affairs of Safeguard International Fund,
                        L.P. and its portfolio companies in substantially the
                        same manner as existing on the Effective Date;

                  (3)   engaging in charitable activities and community affairs;
                        and

                  (4)   managing his personal investments and affairs;

provided, however, that such activities do not materially interfere with the
proper performance of his duties and responsibilities hereunder.

      4. Base Salary.

            From the Effective Date and during the remainder of the Term of
Employment, the Executive shall be paid an annual Base Salary, payable in
accordance with the regular payroll practices of the Company, of $525,000. The
Base Salary may be increased (but not decreased) at any time and from time to
time by action of the Board or by any committee thereof or any individual having
authority to take such action in accordance with the Company's regular
practices. Once increased, any reference to Base Salary herein shall be a
reference to such increased amount.

      5. Bonus.

            During the Term of Employment, in addition to the Base Salary, for
each fiscal year of the Company ending during the Term of Employment, the
Executive shall have the opportunity to receive an annual bonus (an "Annual
Bonus") as determined by the Board. Payment of Annual Bonus shall be made at the
same time that other senior-level executives receive their annual incentive
compensation awards.

      6. Long-Term Incentive Compensation Programs.

            The Executive shall be eligible to participate in the Company's
stock option plans applicable to senior-level executives, the terms, conditions
and eligibility of such plans to be determined by the Board.


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      7. Employee Benefit Programs.

            (a) During the Term of Employment, the Executive, to the extent he
is eligible, shall be entitled to participate in those employee pension and
welfare benefit plans, programs and/or arrangements applicable to the Executive
and made available to the Company's senior-level executives or to its employees
generally, as such plans, programs and/or arrangements may be in effect from
time to time, including, without limitation, pension, profit-sharing, savings,
medical, dental, hospitalization, short-term disability, long-term disability,
life insurance, accidental death and dismemberment protection, travel accident
insurance, and other employee pension and welfare benefit plans, programs and/or
arrangements that may be sponsored by the Company from time to time.

            (b) During the Term of Employment, the Company shall provide the
Executive with term life insurance with a death benefit of at least one million
dollars ($1,000,000). The Company shall pay all premiums with respect to such
life insurance. Such life insurance may be provided either through the Company's
group life insurance programs, by an individual policy, or by a combination of
both group and individual policies.

      8. Reimbursement of Business Expenses.

            The Executive is authorized to incur ordinary and reasonable
business expenses in carrying out his duties and responsibilities under the
Agreement, and the Company shall reimburse him for all such ordinary and
reasonable business expenses incurred in connection with carrying out the
business of the Company, subject to documentation in accordance with the
Company's policy.

      9. Perquisites.

            During the Term of Employment, the Executive shall be entitled to
participate in the Company's executive fringe benefits applicable to the
Company's senior-level executive in accordance with the terms and conditions of
such arrangements as are in effect from time to time.

      10. Vacation.

            The Executive shall be entitled to paid vacation in accordance with
the Company's vacation policy; provided, however, that the Executive shall be
entitled to not less than five weeks of vacation each year.

      11. Termination of Employment.

            (a) Termination of Employment Due to Death. In the event of the
Executive's death during the Term of Employment, the Term of Employment shall
end as of the date of the Executive's death and his estate and/or beneficiaries,
as the case may be, shall be entitled to the following:

                  (1)   Base Salary earned but not paid prior to the date of his
                        death;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of his death which has been earned but not paid;

                  (3)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;
                        and

                  (4)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.


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            (b) Termination of Employment Due to Disability. If the Executive's
employment is terminated due to Disability during the Term of Employment, either
by the Company or by the Executive, the Term of Employment shall end as of the
date of the Executive's termination of employment and the Executive shall be
entitled to the following (but in no event shall the Executive be entitled to
less than the benefits due him under any disability program of the Company for
which he becomes eligible):

                  (1)   Base Salary earned but not paid prior to the date of the
                        termination of the Executive's employment;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of the termination of the Executive's employment which
                        has been earned but not paid;

                  (3)   an amount equal to the sum of 50 percent of Base Salary,
                        at the annual rate in effect on the date of the
                        termination of the Executive's employment, payable in
                        monthly installments for a period ending on the first
                        day of the month following the month in which the
                        Executive attains age 65 or recovers from his
                        Disability, whichever occurs earlier, less the amount of
                        any disability benefits provided to the Executive under
                        the Company's disability program;

                  (4)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;

                  (5)   continued participation, as if the Executive were still
                        an employee, in the Company's medical, dental,
                        hospitalization and life insurance plans, programs
                        and/or arrangements and in those other employee plans,
                        programs and/or arrangements in which he was
                        participating on the date of the termination of his
                        employment until he attains age 65 or recovers from his
                        Disability, whichever occurs earlier; and

                        provided, however, that:

                        (X)   if the Executive is precluded from continuing his
                              participation in any employee benefit plan,
                              program or arrangement as provided in this Section
                              11(b)(5), he shall be provided with the after-tax
                              economic equivalent of the benefits provided under
                              the plan, program or arrangement in which he is
                              unable to participate for the period specified in
                              this Section 11(b)(5); and

                        (Y)   the economic equivalent of any benefit foregone
                              shall be deemed to be the lowest cost that would
                              be incurred by the Executive in obtaining such
                              benefit himself on an individual basis; and

                  (6)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.

            If the Executive is precluded from continuing his participation in
any employee benefit plan, program or arrangement as provided in Section
11(b)(6) above, he shall be provided the after-tax economic equivalent of the
benefits provided under the plan, program or arrangement in which he is unable
to participate. The economic equivalent of any benefit foregone shall be deemed
to be the lowest cost that would be incurred by the Executive in obtaining such
benefit himself on an individual basis.


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            In no event shall a termination of the Executive's employment for
Disability occur unless the Party terminating his employment gives written
notice to the other Party in accordance with Section 25 below.

            (c) Termination of Employment by the Company for Cause. A
termination of the Executive's employment by the Company for Cause shall not
take effect unless the provisions of this Section 11(c) are complied with and
the Board issues a written determination that the Executive's employment should
be terminated for Cause (a "Determination").

                  (1)   In accordance with Section 25 below, the Board shall
                        give the Executive a written notice stating his
                        intention to terminate the Executive's employment for
                        Cause (the "Cause Notice"). The Cause Notice shall:

                        (A)   state in detail the particular act or acts or
                              failure or failures to act that constitute the
                              grounds on which the proposed termination of
                              employment for Cause is based; and

                        (B)   be given within four months of the Chairman of the
                              Board learning of such act or acts or failure or
                              failures to act.

                  (2)   The Board may temporarily relieve the Executive of his
                        duties and responsibilities described in Section 3 above
                        during the period commencing on the date the Cause
                        Notice is issued by the Board and ending on the date the
                        Determination is issued by the Board (the "Determination
                        Period").

                  (3)   The Executive shall have 20 days after the date the
                        Cause Notice is actually received by him in which to
                        cure his conduct on which the termination of employment
                        for Cause is based, to the extent such cure is possible.
                        If the Executive fails to cure such conduct, he shall
                        then be entitled to a hearing before the Board. Such
                        hearing shall be held during the 20-day period following
                        the date the Executive receives the Cause Notice;
                        provided, however, that the Executive requests such
                        hearing during the 10-day period following the date the
                        Executive receives the Cause Notice. Within five days
                        following the completion of such hearing, the Board
                        shall issue a Determination stating whether, in its
                        judgment, grounds for Cause as detailed in the Cause
                        Notice exist. If the Determination states that such
                        grounds exist, the Executive's employment shall be
                        immediately terminated for Cause and the Term of
                        Employment shall end as of the date of the termination
                        of the Executive's employment.

                  (4)   If the Company terminates the Executive's employment for
                        Cause, the Executive shall be entitled to the following:

                        (A)   Base Salary earned but not paid prior to the date
                              of the termination of his employment;

                        (B)   any amounts earned, accrued or owing to the
                              Executive but not yet paid under Section 6, 7, 8,
                              9 or 10 above; and

                        (C)   other or additional benefits in accordance with
                              applicable plans, programs and/or arrangements of
                              the Company.


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                  (5)   Notwithstanding anything herein to the contrary, if,
                        following a termination of the Executive's employment by
                        the Company for Cause based upon the conviction of the
                        Executive for a felony, such conviction is overturned in
                        a final determination on appeal, the Executive shall be
                        entitled to the payments and the economic equivalent of
                        the benefits the Executive would have received if his
                        employment had been terminated by the Company without
                        Cause.

            (d) Termination of Employment by the Company Without Cause. If the
Executive's employment is terminated by the Company without Cause, other than
due to death or Disability, the Executive shall be entitled to the following:

                  (1)   Base Salary earned but not paid prior to the date of the
                        termination of his employment;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of the termination of the Executive's employment which
                        has been earned but not paid;

                  (3)   an amount equal to the aggregate Base Salary (based on
                        the Base Salary in effect on the date of the termination
                        of the Executive's employment) (the "Salary Continuation
                        Benefits") with respect to a period equal to eighteen
                        months, payable in equal monthly installments during
                        such period;

                  (4)   continued accrual of credited service through the end of
                        the Term of Employment for the purpose of any Company
                        pension plan, program or arrangement;

                  (5)   the right to purchase, at fair market value, the
                        Executive's automobile (if any) provided to him by the
                        Company under the Company's automobile perquisite
                        program for senior-level executives;

                  (6)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;

                  (7)   continued participation, as if he were still an
                        employee, in the Company's medical, dental,
                        hospitalization and life insurance plans, programs
                        and/or arrangements and in other employee benefit plans,
                        programs and/or arrangements in which he was
                        participating on the date of the termination of his
                        employment until the earlier of:

                        (A)   the end of the period used to determine the Salary
                              Continuation Benefits; or

                        (B)   the date, or dates, he receives equivalent
                              coverage and benefits under the plans, programs
                              and/or arrangements of a subsequent employer (such
                              coverage and benefits to be determined on a
                              coverage-by-coverage or benefit-by-benefit basis);

                        provided, however, that:


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                        (X)   if the Executive is precluded from continuing his
                              participation in any employee benefit plan,
                              program or arrangement as provided in Section
                              11(d)(7) above, he shall be provided with the
                              after-tax economic equivalent of the benefits
                              provided under the plan, program or arrangement in
                              which he is unable to participate for the period
                              specified in this Section 11(d)(7);

                        (Y)   the economic equivalent of any benefit foregone
                              shall be deemed to be the lowest cost that would
                              be incurred by the Executive in obtaining such
                              benefit himself on an individual basis; and

                  (8)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.

            (e) Termination of Employment by the Executive for Good Reason. The
Executive may terminate his employment for Good Reason, but only if:

                  (1)   the Executive notifies the Board during the 60-day
                        period following the date of the first occurrence of an
                        event which constitutes Good Reason (the "Good Reason
                        Event Date") of his intention to terminate his
                        employment for Good Reason;

                  (2)   the Executive terminates his employment for Good Reason
                        during the 120-day period following the Good Reason
                        Event Date;

                  (3)   the termination of employment for Good Reason does not
                        occur during a Determination Period described in Section
                        11(c)(2) above; and

                  (4)   the Good Reason first occurs before or after a
                        Determination Period, or, if the Good Reason first
                        occurs during a Determination Period, such event
                        constituting Good Reason continues to occur after the
                        Determination Period.

Upon a termination by the Executive of his employment for Good Reason, the
Executive shall be entitled to the same payments and benefits as provided in
Section 11(d) above; provided, however, that if the Executive terminates his
employment for Good Reason based on a reduction in Base Salary under Section
1(j)(2) above, then the Base Salary to be used in determining the Salary
Continuation Benefits in accordance with Section 11(d)(3) above shall be the
Base Salary in effect immediately prior to such reduction.

            (f) Termination of Employment by the Executive Without Good Reason.
If the Executive terminates his employment without Good Reason, other than a
termination of employment (i) due to death or retirement or Disability or (ii)
by the Executive during the 60-day period following the date of the Change in
Control, the Executive shall have the same entitlements as provided in Section
11(c)(4) above. A termination of the Executive's employment under this Section
11(f) shall be effective upon 30 days prior written notice to the Company and
shall not be deemed a breach of this Agreement.

            (g) Non Renewal of Agreement by Company. If the Company notifies the
Executive, pursuant to Section 2 above, that it does not want the Term of
Employment to renew, the Executive shall have the same entitlements as provided
in Section 11(d) above as if the Executive had been terminated as of the last
day of the then Term of Employment.


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            (h) No Mitigation; No Offset. If the Executive's employment
terminates under this Section 11, the Executive shall be under no obligation to
seek other employment and there shall be no offset against amounts due the
Executive under this Agreement on account of any remuneration attributable to
any subsequent employment that he may obtain except as specifically provided in
this Section 11.

            (i) Nature of Payments. Any amounts due under this Section 11 are in
the nature of severance payments considered to be reasonable by the Company and
are not in the nature of a penalty.

      12. Confidentiality: Assignment of Rights.

            (a) During the Term of Employment and thereafter, the Executive
shall not disclose to anyone or make use of any trade secret or proprietary or
confidential information of the Company, including such trade secret or
proprietary or confidential information of any customer or other entity to which
the Company owes an obligation not to disclose such information, which he
acquires during the Term of Employment, including but not limited to records
kept in the ordinary course of business, except (i) as such disclosure or use
may be required or appropriate in connection with his work as an employee of the
Company, (ii) when required to do so by a court of law, by any governmental
agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) with apparent
jurisdiction to order him to divulge, disclose or make accessible such
information, or (iii) as to such confidential information that becomes generally
known to the public or trade without violation of this Section 12(a).

            (b) The Executive hereby sells, assigns and transfers to the Company
all of his right, title and interest in and to all inventions, discoveries,
improvements and copyrightable subject matter (the "rights") which during the
Term of Employment are made or conceived by him, alone or with others, and which
are within or arise out of any general field of the Company's business or arise
out of any work he performs or information he receives regarding the business of
the Company while employed by the Company. The Executive shall fully disclose to
the Company as promptly as available all information known or possessed by him
concerning the rights referred to in the preceding sentence, and upon request by
the Company and without any further remuneration in any form to him by the
Company, but at the expense of the Company, execute all applications for patents
and for copyright registration, assignments thereof and other instruments and do
all things which the Company may deem necessary to vest and maintain in it the
entire right, title and interest in and to all such rights.

      13. Noncompetition.

            (a) The Executive covenants and agrees that during the Term of
Employment and following the termination of the Executive's employment with the
Company, for a period of eighteen months, he shall not at any time, without the
prior written consent of the Company, directly or indirectly, engage in a
Competitive Activity.

            (b) The Parties acknowledge that in the event of a breach or
threatened breach of Section 13(a) above, the Company shall not have an adequate
remedy at law. Accordingly, in the event of any breach or threatened breach of
Section 13(a) above, the Company shall be entitled to such equitable and
injunctive relief as may be available to restrain the Executive and any
business, firm, partnership, individual, corporation or entity participating in
the breach or threatened breach from the violation of the provisions of Section
13(a) above. Nothing in this Agreement shall be construed as prohibiting the
Company from pursuing any other remedies available at law or in equity for
breach or threatened breach of Section 13(a) above, including the recovery of
damages.

      14. Indemnification.


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            (a) The Company agrees that if the Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "Proceeding"), by reason of the
fact that he is or was a director, officer or employee of the Company or is or
was serving at the request of the Company as a director, officer, member,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, including service with respect to employee benefit plans,
whether or not the basis of such Proceeding is the Executive's alleged action in
an official capacity while serving as a director, officer, member, employee or
agent, the Executive shall be indemnified and held harmless by the Company to
the fullest extent legally permitted or authorized by the Company's certificate
of incorporation or bylaws or resolutions of the Company's Board of Directors
or, if greater, by the laws of the State of Delaware, against all cost, expense,
liability and loss (including, without limitation, attorney's fees, judgments,
fines, ERISA excise taxes or penalties and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Executive in connection
therewith, and such indemnification shall continue as to the Executive even if
he has ceased to be a director, member, employee or agent of the Company or
other entity and shall inure to the benefit of the Executive's heirs, executors
and administrators. The Company shall advance to the Executive all reasonable
costs and expenses incurred by him in connection with a Proceeding within 20
days after receipt by the Company of a written request for such advance. Such
request shall include an undertaking by the Executive to repay the amount of
such advance if it shall ultimately be determined that he is not entitled to be
indemnified against such costs and expenses.

            (b) Neither the failure of the Company (including the Board,
independent legal counsel or stockholders) to have made a determination prior to
the commencement of any Proceeding concerning payment of amounts claimed by the
Executive under Section 14(a) above that indemnification of the Executive is
proper because he has met the applicable standard of conduct, nor a
determination by the Company (including the Board, independent legal counsel or
stockholders) that the Executive has not met such applicable standard of
conduct, shall create a presumption that the Executive has not met the
applicable standard of conduct.

            (c) The Company agrees to continue and maintain a directors and
officers' liability insurance policy covering the Executive to the extent the
Company provides such coverage for its other executive officers.

      15. Effect of Agreement on Other Benefits.

            Except as specifically provided in this Agreement, the existence of
this Agreement shall not prohibit or restrict the Executive's entitlement to
full participation in the Company's employee benefit plans, programs and
arrangements applicable to the Company's senior-level executives.

      16. Assignability; Binding Nature.

            This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and assigns. No rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company except that such rights or obligations
may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or the sale or liquidation of all or
substantially all of the assets of the Company; provided, however, that the
assignee or transferee is the successor to all or substantially all of the
assets of the Company and such assignee or transferee assumes the liabilities,
obligations and duties of the Company, as contained in this Agreement, either
contractually or as a matter of law. The Company further agrees that, in the
event of a sale of assets or liquidation as described in the preceding sentence,
it shall take whatever action it legally can in order to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the
Company hereunder or under any other plan or benefit program referred to herein.
No rights or obligations of the Executive under this Agreement may be


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assigned or transferred by the Executive other than his rights to compensation
and benefits, which may be transferred only by will or operation of law, except
as provided in Section 22 below.

      17. Representation.

            The Company represents and warrants that it is fully authorized and
empowered to enter into this Agreement and that the performance of its
obligations under this Agreement will not violate any agreement between it and
any other person, firm or organization. The Executive represents that he knows
of no agreement between him and any other person, firm or organization that
would be violated by the performance of his obligations under this Agreement.

      18. Entire Agreement.

            This Agreement contains the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes all
prior agreements, understandings, discussions, negotiations and undertakings,
whether written or oral, between the Parties, including, without limitation, the
Existing Employment Agreement, with respect thereto.

      19. Amendment or Waiver.

            No provision in this Agreement may be amended unless such amendment
is agreed to in writing and signed by the Executive and an authorized officer of
the Company. No waiver by either Party of any breach by the other Party of any
condition or provision contained in this Agreement to be performed by such other
Party shall be deemed a waiver of a similar or dissimilar condition or provision
at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Executive or an authorized officer of the Company, as the case may
be.

      20. Severability.

            In the event that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, in whole or in
part, the remaining provisions of this Agreement shall be unaffected thereby and
shall remain in full force and effect and such provision or portion of this
Agreement shall remain in effect to the fullest extent permitted by law.

      21. Survivorship.

            The respective rights and obligations of the Parties hereunder shall
survive any termination of the Executive's employment to the extent necessary to
the intended preservation of such rights and obligations.

      22. Beneficiaries/References.

            The Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following the Executive's death by
giving the Company written notice thereof. In the event of the Executive's death
or a judicial determination of his incompetence, reference in this Agreement to
the Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

      23. Governing Law/Submission to Jurisdiction.

            This Agreement shall be governed by and construed and interpreted in
accordance with the laws of New York without reference to principles of conflict
of laws. Each of the Company and the


                                       11



<Page>


Executive hereby irrevocably and unconditionally: (i) submits for itself or
himself, as applicable, and its or his property in any legal action or
proceeding relating to this Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for
the Southern District of New York, and appellate courts from any thereof; (ii)
consents that any such action or proceeding may be brought in such courts, and
waives any objection that it or he may now or hereafter have to the venue of any
such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient forum and agrees not to plead or claim the same;
(iii) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to its or his address set
forth in or designated pursuant to Section 25 hereof; and (iv) agrees that
nothing herein shall affect the right to effect service of process in any other
manner permitted by law or shall limit the right to sue in any other
jurisdiction.

      24. Resolution of Disputes.

            Any disputes arising under or in connection with the Agreement,
other than disputes arising in connection with Sections 12 and 13 hereof, may,
at the election of the Executive or the Company, be resolved by binding
arbitration, to be held in New York City in accordance with the rules and
procedures of the American Arbitration Association. If arbitration is elected,
the Executive and the Company shall mutually select the arbitrator. If the
Executive and the Company cannot agree on the selection of an arbitrator, each
Party shall select an arbitrator and the two arbitrators shall select a third
arbitrator, and the three arbitrators shall form an arbitration panel which
shall resolve the dispute by majority vote. Judgment upon the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof. Costs
of the arbitration or litigation, including, without limitation, reasonable
attorneys' fees of both Parties, shall be borne by the Company; provided,
however, that if a dispute is resolved in favor of the Company, the Executive
shall bear his own costs of the arbitration or litigation and shall reimburse
the Company for the Executive's cost of the arbitration or litigation previously
paid by the Company. Pending the resolution of any arbitration or court
proceeding, the Company shall continue payment of all amounts due the Executive
under this Agreement and all benefits to which the Executive is entitled at the
time the dispute arises.

      25. Notices.

            Any notice given to a Party shall be in writing and shall be deemed
to have been given when delivered personally or sent by certified or registered
mail, postage prepaid, return receipt requested, duly addressed to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give such notice of:

If to the Company:                          Metallurg, Inc.
                                            6 East 43rd Street, 12th floor
                                            New York, New York 10017
                                            Attention: Chief Operating Officer

With a copy to:                             Clifford Chance LLP
                                            200 Park Avenue
                                            New York, New York 10166
                                            Attention: Samuel M. Feder

                                            If to the Executive:
                                            Heinz C. Schimmelbusch
                                            Building 400


                                       12



<Page>

                                            435 Devon Park Drive
                                            Wayne, PA 19087

      26. Headings.

            The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

      27. Counterparts.

            This Agreement may be executed in two or more counterparts.


                                       13



<Page>


      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first written above.

                                                METALLURG, INC.

                                                By: /s/ BARRY C. NUSS
                                                    ----------------------------
                                                Name: Barry C. Nuss
                                                Title: Chief Financial Officer

                                                   /s/ HEINZ C. SCHIMMELBUSCH
                                                --------------------------------
                                                      Heinz C. Schimmelbusch


                                       14



<Page>


                              EMPLOYMENT AGREEMENT

      AGREEMENT, made and entered into as of the 11th day of November, 2002, by
and between Metallurg, Inc., a Delaware corporation (together with its
successors and assigns permitted under this Agreement, the "Company"), and Athur
R. Spector (the "Executive").

                              W I T N E S S E T H :

      WHEREAS, the executive is the Executive Vice President of Metallurg
Holdings, Inc., the immediate parent of the Company ("MHI"); and

      WHEREAS, as of the Effective Date (as defined below), the Executive was
appointed Vice Chairman of the Company; and

      WHEREAS, the Company desires to enter into an employment agreement (the
"Agreement") embodying the terms of such employment; and

      WHEREAS, the Executive desires to enter into the Agreement and to accept
such employment, subject to the terms and provisions of the Agreement; and

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive (individually a
"Party" and together the "Parties") agree as follows:

      1. Definitions.

            (a) "Base Salary" shall mean the Executive's base salary in
accordance with Section 4 below.

            (b) "Board" shall mean the Board of Directors of the Company.

            (c) "Business Day" shall mean any day other than a Saturday, Sunday
or any other day on which commercial banks in New York, New York are required or
authorized to be closed.

            (d) "Cause" shall mean:

                  (1)   the Executive is convicted of (or pleads nolo contendere
                        to) a felony or crime of moral turpitude, dishonesty,
                        breach of trust or unethical business conduct involving
                        the Company;

                  (2)   the Executive engages in willful misconduct, willful or
                        gross neglect, fraud, insubordination, misappropriation
                        or embezzlement to the material and demonstrable
                        detriment of the Company; or

                  (3)   the Executive breaches in any material respect the terms
                        and provisions of this Agreement and fails to cure such
                        breach within 20 days following written notice from the
                        Company specifying such breach.

            (e) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, including applicable regulations thereunder.

            (f) "Competitive Activity" shall mean any activity engaged in by the
Executive, whether as an employee, principal, sole proprietor, consultant,
agent, officer, director, partner or shareholder (except as a less than
one-percent shareholder of a publicly traded company or a less than


                                       15



<Page>


five-percent shareholder of a privately held company), which directly competes
with the Company or any Subsidiary. For this purpose, an activity which directly
competes with the Company or any Subsidiary shall mean a business that was being
conducted by the Company or any Subsidiary during the Term of Employment.
Notwithstanding anything to the contrary in this Section 1(f), an activity shall
not be deemed to be a Competitive Activity (x) solely as a result of the
Executive's being employed by or otherwise associated with a business of which a
unit is in competition with the Company or any Subsidiary but as to which unit
the Executive does not have direct or indirect responsibilities for the products
or product lines involved or (y) if the activity contributes less than 5 percent
of the revenues for the fiscal year in question of the business by which the
Executive is employed or with which he is otherwise associated.

            (g) "Disability" shall mean a disability as determined under the
Company's long-term disability plans, programs and/or arrangements in effect on
the date such disability first occurs.

            (h) "Effective Date" shall mean November 11, 2002.

            (i) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time, including applicable regulations thereunder.

            (j) "Good Reason" shall mean the occurrence of any of the following
events:

                  (1)   the material change of the Executive's authority, duties
                        and responsibilities, or the assignment to the Executive
                        of duties materially different from the Executive's
                        position or positions with the Company;

                  (2)   a reduction in Annual Salary of the Executive;

                  (3)   the failure by the Company to obtain an agreement in
                        form and substance reasonably satisfactory to the
                        Executive from any successor to the business of the
                        Company to assume and agree to perform this Agreement;
                        or

                  (4)   the Company breaches in any material respect the terms
                        and provisions of this Agreement and fails to cure such
                        breach within 20 days following written notice from the
                        Executive specifying such breach.

            (k) "Subsidiary" of the Company shall mean any corporation of which
the Company owns, directly or indirectly, more than 50 percent of the Voting
Stock or any other business entity in which the Company directly or indirectly
has an ownership interest of more than 50 percent.

            (l) "Term of Employment" shall mean the period specified in Section
2 below.

            (m) "Voting Stock" shall mean capital stock of any class or classes
having general voting power under ordinary circumstances, in the absence of
contingencies, to elect the directors of a corporation.

      2. Term of Employment.

            The Company hereby employs the Executive, and the Executive hereby
accepts such employment, for the period commencing on the Effective Date and
ending on the second anniversary of the Effective Date (the "Term of
Employment"), subject to earlier termination of the Term of Employment in
accordance with the terms of the Agreement. The Term of Employment shall be
automatically renewed for a one-year period on the second anniversary of the
Effective Date and on each


                                       16



<Page>


anniversary of the Effective Date thereafter, unless either Party has notified
the other Party in writing in accordance with Section 25 below at least 90 days
prior to the expiration of the then Term of Employment that he or it does not
want the Term of Employment to so renew.

      3. Position, Duties and Responsibilities.

            The Executive, in his capacity as Vice Chairman, shall faithfully
perform for the Company the duties of said office and shall perform such other
duties of an executive, managerial or administrative nature as shall be
specified and designated from time to time by the Board consistent with such
office. The Executive, in carrying out his duties under this Agreement, shall
report to the Board. Notwithstanding anything in this Section 3 to the contrary,
nothing shall preclude the Executive from:

                  (3)   serving on the boards of directors of a reasonable
                        number of other corporations or the boards of a
                        reasonable number of trade associations and/or
                        charitable organizations;

                  (4)   managing the affairs of Safeguard International Fund,
                        L.P. and its portfolio companies in substantially the
                        same manner as existing on the Effective Date;

                  (3)   engaging in charitable activities and community affairs;
                        and

                  (4)   managing his personal investments and affairs;

provided, however, that such activities do not materially interfere with the
proper performance of his duties and responsibilities hereunder.

      4. Base Salary.

            From the Effective Date and during the remainder of the Term of
Employment, the Executive shall be paid an annual Base Salary, payable in
accordance with the regular payroll practices of the Company, of $475,000. The
Base Salary may be increased (but not decreased) at any time and from time to
time by action of the Board or by any committee thereof or any individual having
authority to take such action in accordance with the Company's regular
practices. Once increased, any reference to Base Salary herein shall be a
reference to such increased amount.

      5. Bonus.

            During the Term of Employment, in addition to the Base Salary, for
each fiscal year of the Company ending during the Term of Employment, the
Executive shall have the opportunity to receive an annual bonus (an "Annual
Bonus") as determined by the Board. Payment of Annual Bonus shall be made at the
same time that other senior-level executives receive their annual incentive
compensation awards.

      6. Long-Term Incentive Compensation Programs.

            The Executive shall be eligible to participate in the Company's
stock option plans applicable to senior-level executives, the terms, conditions
and eligibility of such plans to be determined by the Board.

      7. Employee Benefit Programs.


                                       17



<Page>


            (a) During the Term of Employment, the Executive, to the extent he
is eligible, shall be entitled to participate in those employee pension and
welfare benefit plans, programs and/or arrangements applicable to the Executive
and made available to the Company's senior-level executives or to its employees
generally, as such plans, programs and/or arrangements may be in effect from
time to time, including, without limitation, pension, profit-sharing, savings,
medical, dental, hospitalization, short-term disability, long-term disability,
life insurance, accidental death and dismemberment protection, travel accident
insurance, and other employee pension and welfare benefit plans, programs and/or
arrangements that may be sponsored by the Company from time to time.

            (b) During the Term of Employment, the Company shall provide the
Executive with term life insurance with a death benefit of at least one million
dollars ($1,000,000). The Company shall pay all premiums with respect to such
life insurance. Such life insurance may be provided either through the Company's
group life insurance programs, by an individual policy, or by a combination of
both group and individual policies.

      8. Reimbursement of Business Expenses.

            The Executive is authorized to incur ordinary and reasonable
business expenses in carrying out his duties and responsibilities under the
Agreement, and the Company shall reimburse him for all such ordinary and
reasonable business expenses incurred in connection with carrying out the
business of the Company, subject to documentation in accordance with the
Company's policy.

      9. Perquisites.

            During the Term of Employment, the Executive shall be entitled to
participate in the Company's executive fringe benefits applicable to the
Company's senior-level executive in accordance with the terms and conditions of
such arrangements as are in effect from time to time.

      10. Vacation.

            The Executive shall be entitled to paid vacation in accordance with
the Company's vacation policy; provided, however, that the Executive shall be
entitled to not less than five weeks of vacation each year.

      11. Termination of Employment.

            (a) Termination of Employment Due to Death. In the event of the
Executive's death during the Term of Employment, the Term of Employment shall
end as of the date of the Executive's death and his estate and/or beneficiaries,
as the case may be, shall be entitled to the following:

                  (1)   Base Salary earned but not paid prior to the date of his
                        death;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of his death which has been earned but not paid;

                  (3)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;
                        and

                  (4)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.

            (b) Termination of Employment Due to Disability. If the Executive's
employment is terminated due to Disability during the Term of Employment, either
by the Company or by the Executive,


                                       18



<Page>


the Term of Employment shall end as of the date of the Executive's termination
of employment and the Executive shall be entitled to the following (but in no
event shall the Executive be entitled to less than the benefits due him under
any disability program of the Company for which he becomes eligible):

                  (1)   Base Salary earned but not paid prior to the date of the
                        termination of the Executive's employment;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of the termination of the Executive's employment which
                        has been earned but not paid;

                  (3)   an amount equal to the sum of 50 percent of Base Salary,
                        at the annual rate in effect on the date of the
                        termination of the Executive's employment, payable in
                        monthly installments for a period ending on the first
                        day of the month following the month in which the
                        Executive attains age 65 or recovers from his
                        Disability, whichever occurs earlier, less the amount of
                        any disability benefits provided to the Executive under
                        the Company's disability program;

                  (4)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;

                  (5)   continued participation, as if the Executive were still
                        an employee, in the Company's medical, dental,
                        hospitalization and life insurance plans, programs
                        and/or arrangements and in those other employee plans,
                        programs and/or arrangements in which he was
                        participating on the date of the termination of his
                        employment until he attains age 65 or recovers from his
                        Disability, whichever occurs earlier; and

                        provided, however, that:

                        (X)   if the Executive is precluded from continuing his
                              participation in any employee benefit plan,
                              program or arrangement as provided in this Section
                              11(b)(5), he shall be provided with the after-tax
                              economic equivalent of the benefits provided under
                              the plan, program or arrangement in which he is
                              unable to participate for the period specified in
                              this Section 11(b)(5); and

                        (Y)   the economic equivalent of any benefit foregone
                              shall be deemed to be the lowest cost that would
                              be incurred by the Executive in obtaining such
                              benefit himself on an individual basis; and

                  (6)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.

            If the Executive is precluded from continuing his participation in
any employee benefit plan, program or arrangement as provided in Section
11(b)(6) above, he shall be provided the after-tax economic equivalent of the
benefits provided under the plan, program or arrangement in which he is unable
to participate. The economic equivalent of any benefit foregone shall be deemed
to be the lowest cost that would be incurred by the Executive in obtaining such
benefit himself on an individual basis.


                                       19



<Page>


            In no event shall a termination of the Executive's employment for
Disability occur unless the Party terminating his employment gives written
notice to the other Party in accordance with Section 25 below.

            (c) Termination of Employment by the Company for Cause. A
termination of the Executive's employment by the Company for Cause shall not
take effect unless the provisions of this Section 11(c) are complied with and
the Board issues a written determination that the Executive's employment should
be terminated for Cause (a "Determination").

                  (1)   In accordance with Section 25 below, the Board shall
                        give the Executive a written notice stating his
                        intention to terminate the Executive's employment for
                        Cause (the "Cause Notice"). The Cause Notice shall:

                        (A)   state in detail the particular act or acts or
                              failure or failures to act that constitute the
                              grounds on which the proposed termination of
                              employment for Cause is based; and

                        (B)   be given within four months of the Chairman of the
                              Board learning of such act or acts or failure or
                              failures to act.

                  (2)   The Board may temporarily relieve the Executive of his
                        duties and responsibilities described in Section 3 above
                        during the period commencing on the date the Cause
                        Notice is issued by the Board and ending on the date the
                        Determination is issued by the Board (the "Determination
                        Period").

                  (3)   The Executive shall have 20 days after the date the
                        Cause Notice is actually received by him in which to
                        cure his conduct on which the termination of employment
                        for Cause is based, to the extent such cure is possible.
                        If the Executive fails to cure such conduct, he shall
                        then be entitled to a hearing before the Board. Such
                        hearing shall be held during the 20-day period following
                        the date the Executive receives the Cause Notice;
                        provided, however, that the Executive requests such
                        hearing during the 10-day period following the date the
                        Executive receives the Cause Notice. Within five days
                        following the completion of such hearing, the Board
                        shall issue a Determination stating whether, in its
                        judgment, grounds for Cause as detailed in the Cause
                        Notice exist. If the Determination states that such
                        grounds exist, the Executive's employment shall be
                        immediately terminated for Cause and the Term of
                        Employment shall end as of the date of the termination
                        of the Executive's employment.

                  (4)   If the Company terminates the Executive's employment for
                        Cause, the Executive shall be entitled to the following:

                        (A)   Base Salary earned but not paid prior to the date
                              of the termination of his employment;

                        (B)   any amounts earned, accrued or owing to the
                              Executive but not yet paid under Section 6, 7, 8,
                              9 or 10 above; and

                        (C)   other or additional benefits in accordance with
                              applicable plans, programs and/or arrangements of
                              the Company.


                                       20



<Page>


                  (5)   Notwithstanding anything herein to the contrary, if,
                        following a termination of the Executive's employment by
                        the Company for Cause based upon the conviction of the
                        Executive for a felony, such conviction is overturned in
                        a final determination on appeal, the Executive shall be
                        entitled to the payments and the economic equivalent of
                        the benefits the Executive would have received if his
                        employment had been terminated by the Company without
                        Cause.

            (d) Termination of Employment by the Company Without Cause. If the
Executive's employment is terminated by the Company without Cause, other than
due to death or Disability, the Executive shall be entitled to the following:

                  (1)   Base Salary earned but not paid prior to the date of the
                        termination of his employment;

                  (2)   Annual Bonus with respect to any year prior to the year
                        of the termination of the Executive's employment which
                        has been earned but not paid;

                  (3)   an amount equal to the aggregate Base Salary (based on
                        the Base Salary in effect on the date of the termination
                        of the Executive's employment) (the "Salary Continuation
                        Benefits") with respect to a period equal to eighteen
                        months, payable in equal monthly installments during
                        such period;

                  (4)   continued accrual of credited service through the end of
                        the Term of Employment for the purpose of any Company
                        pension plan, program or arrangement;

                  (5)   the right to purchase, at fair market value, the
                        Executive's automobile (if any) provided to him by the
                        Company under the Company's automobile perquisite
                        program for senior-level executives;

                  (6)   any amounts earned, accrued or owing to the Executive
                        but not yet paid under Section 6, 7, 8, 9 or 10 above;

                  (7)   continued participation, as if he were still an
                        employee, in the Company's medical, dental,
                        hospitalization and life insurance plans, programs
                        and/or arrangements and in other employee benefit plans,
                        programs and/or arrangements in which he was
                        participating on the date of the termination of his
                        employment until the earlier of:

                        (A)   the end of the period used to determine the Salary
                              Continuation Benefits; or

                        (B)   the date, or dates, he receives equivalent
                              coverage and benefits under the plans, programs
                              and/or arrangements of a subsequent employer (such
                              coverage and benefits to be determined on a
                              coverage-by-coverage or benefit-by-benefit basis);

                        provided, however, that:


                                       21



<Page>


                        (X)   if the Executive is precluded from continuing his
                              participation in any employee benefit plan,
                              program or arrangement as provided in Section
                              11(d)(7) above, he shall be provided with the
                              after-tax economic equivalent of the benefits
                              provided under the plan, program or arrangement in
                              which he is unable to participate for the period
                              specified in this Section 11(d)(7);

                        (Y)   the economic equivalent of any benefit foregone
                              shall be deemed to be the lowest cost that would
                              be incurred by the Executive in obtaining such
                              benefit himself on an individual basis; and

                  (8)   other or additional benefits in accordance with
                        applicable plans, programs and/or arrangements of the
                        Company.

            (e) Termination of Employment by the Executive for Good Reason. The
Executive may terminate his employment for Good Reason, but only if:

                  (1)   the Executive notifies the Board during the 60-day
                        period following the date of the first occurrence of an
                        event which constitutes Good Reason (the "Good Reason
                        Event Date") of his intention to terminate his
                        employment for Good Reason;

                  (2)   the Executive terminates his employment for Good Reason
                        during the 120-day period following the Good Reason
                        Event Date;

                  (3)   the termination of employment for Good Reason does not
                        occur during a Determination Period described in Section
                        11(c)(2) above; and

                  (4)   the Good Reason first occurs before or after a
                        Determination Period, or, if the Good Reason first
                        occurs during a Determination Period, such event
                        constituting Good Reason continues to occur after the
                        Determination Period.

Upon a termination by the Executive of his employment for Good Reason, the
Executive shall be entitled to the same payments and benefits as provided in
Section 11(d) above; provided, however, that if the Executive terminates his
employment for Good Reason based on a reduction in Base Salary under Section
1(j)(2) above, then the Base Salary to be used in determining the Salary
Continuation Benefits in accordance with Section 11(d)(3) above shall be the
Base Salary in effect immediately prior to such reduction.

            (f) Termination of Employment by the Executive Without Good Reason.
If the Executive terminates his employment without Good Reason, other than a
termination of employment due to death or retirement or Disability, the
Executive shall have the same entitlements as provided in Section 11(c)(4)
above. A termination of the Executive's employment under this Section 11(f)
shall be effective upon 30 days prior written notice to the Company and shall
not be deemed a breach of this Agreement.

            (g) Non Renewal of Agreement by Company. If the Company notifies the
Executive, pursuant to Section 2 above, that it does not want the Term of
Employment to renew, the Executive shall have the same entitlements as provided
in Section 11(d) above as if the Executive had been terminated as of the last
day of the then Term of Employment.

            (h) No Mitigation; No Offset. If the Executive's employment
terminates under this Section 11, the Executive shall be under no obligation to
seek other employment and there shall be no


                                       22



<Page>


offset against amounts due the Executive under this Agreement on account of any
remuneration attributable to any subsequent employment that he may obtain except
as specifically provided in this Section 11.

            (i) Nature of Payments. Any amounts due under this Section 11 are in
the nature of severance payments considered to be reasonable by the Company and
are not in the nature of a penalty.

      12. Confidentiality: Assignment of Rights.

            (a) During the Term of Employment and thereafter, the Executive
shall not disclose to anyone or make use of any trade secret or proprietary or
confidential information of the Company, including such trade secret or
proprietary or confidential information of any customer or other entity to which
the Company owes an obligation not to disclose such information, which he
acquires during the Term of Employment, including but not limited to records
kept in the ordinary course of business, except (i) as such disclosure or use
may be required or appropriate in connection with his work as an employee of the
Company, (ii) when required to do so by a court of law, by any governmental
agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) with apparent
jurisdiction to order him to divulge, disclose or make accessible such
information, or (iii) as to such confidential information that becomes generally
known to the public or trade without violation of this Section 12(a).

            (b) The Executive hereby sells, assigns and transfers to the Company
all of his right, title and interest in and to all inventions, discoveries,
improvements and copyrightable subject matter (the "rights") which during the
Term of Employment are made or conceived by him, alone or with others, and which
are within or arise out of any general field of the Company's business or arise
out of any work he performs or information he receives regarding the business of
the Company while employed by the Company. The Executive shall fully disclose to
the Company as promptly as available all information known or possessed by him
concerning the rights referred to in the preceding sentence, and upon request by
the Company and without any further remuneration in any form to him by the
Company, but at the expense of the Company, execute all applications for patents
and for copyright registration, assignments thereof and other instruments and do
all things which the Company may deem necessary to vest and maintain in it the
entire right, title and interest in and to all such rights.

      13. Noncompetition.

            (a) The Executive covenants and agrees that during the Term of
Employment and following the termination of the Executive's employment with the
Company, for a period of eighteen months, he shall not at any time, without the
prior written consent of the Company, directly or indirectly, engage in a
Competitive Activity.

            (b) The Parties acknowledge that in the event of a breach or
threatened breach of Section 13(a) above, the Company shall not have an adequate
remedy at law. Accordingly, in the event of any breach or threatened breach of
Section 13(a) above, the Company shall be entitled to such equitable and
injunctive relief as may be available to restrain the Executive and any
business, firm, partnership, individual, corporation or entity participating in
the breach or threatened breach from the violation of the provisions of Section
13(a) above. Nothing in this Agreement shall be construed as prohibiting the
Company from pursuing any other remedies available at law or in equity for
breach or threatened breach of Section 13(a) above, including the recovery of
damages.

      14. Indemnification.

            (a) The Company agrees that if the Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a


                                       23



<Page>


"Proceeding"), by reason of the fact that he is or was a director, officer or
employee of the Company or is or was serving at the request of the Company as a
director, officer, member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is the Executive's alleged action in an official capacity while serving as a
director, officer, member, employee or agent, the Executive shall be indemnified
and held harmless by the Company to the fullest extent legally permitted or
authorized by the Company's certificate of incorporation or bylaws or
resolutions of the Company's Board of Directors or, if greater, by the laws of
the State of Delaware, against all cost, expense, liability and loss (including,
without limitation, attorney's fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if he has ceased to be a director,
member, employee or agent of the Company or other entity and shall inure to the
benefit of the Executive's heirs, executors and administrators. The Company
shall advance to the Executive all reasonable costs and expenses incurred by him
in connection with a Proceeding within 20 days after receipt by the Company of a
written request for such advance. Such request shall include an undertaking by
the Executive to repay the amount of such advance if it shall ultimately be
determined that he is not entitled to be indemnified against such costs and
expenses.

            (b) Neither the failure of the Company (including the Board,
independent legal counsel or stockholders) to have made a determination prior to
the commencement of any Proceeding concerning payment of amounts claimed by the
Executive under Section 14(a) above that indemnification of the Executive is
proper because he has met the applicable standard of conduct, nor a
determination by the Company (including the Board, independent legal counsel or
stockholders) that the Executive has not met such applicable standard of
conduct, shall create a presumption that the Executive has not met the
applicable standard of conduct.

            (c) The Company agrees to continue and maintain a directors and
officers' liability insurance policy covering the Executive to the extent the
Company provides such coverage for its other executive officers.

      15. Effect of Agreement on Other Benefits.

            Except as specifically provided in this Agreement, the existence of
this Agreement shall not prohibit or restrict the Executive's entitlement to
full participation in the Company's employee benefit plans, programs and
arrangements applicable to the Company's senior-level executives.

      16. Assignability; Binding Nature.

            This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and assigns. No rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company except that such rights or obligations
may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or the sale or liquidation of all or
substantially all of the assets of the Company; provided, however, that the
assignee or transferee is the successor to all or substantially all of the
assets of the Company and such assignee or transferee assumes the liabilities,
obligations and duties of the Company, as contained in this Agreement, either
contractually or as a matter of law. The Company further agrees that, in the
event of a sale of assets or liquidation as described in the preceding sentence,
it shall take whatever action it legally can in order to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the
Company hereunder or under any other plan or benefit program referred to herein.
No rights or obligations of the Executive under this Agreement may be assigned
or transferred by the Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of law, except as
provided in Section 22 below.


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      17. Representation.

            The Company represents and warrants that it is fully authorized and
empowered to enter into this Agreement and that the performance of its
obligations under this Agreement will not violate any agreement between it and
any other person, firm or organization. The Executive represents that he knows
of no agreement between him and any other person, firm or organization that
would be violated by the performance of his obligations under this Agreement.

      18. Entire Agreement.

            This Agreement contains the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes all
prior agreements, understandings, discussions, negotiations and undertakings,
whether written or oral, between the Parties, including, without limitation, the
Existing Employment Agreement, with respect thereto.

      19. Amendment or Waiver.

            No provision in this Agreement may be amended unless such amendment
is agreed to in writing and signed by the Executive and an authorized officer of
the Company. No waiver by either Party of any breach by the other Party of any
condition or provision contained in this Agreement to be performed by such other
Party shall be deemed a waiver of a similar or dissimilar condition or provision
at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Executive or an authorized officer of the Company, as the case may
be.

      20. Severability.

            In the event that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, in whole or in
part, the remaining provisions of this Agreement shall be unaffected thereby and
shall remain in full force and effect and such provision or portion of this
Agreement shall remain in effect to the fullest extent permitted by law.

      21. Survivorship.

            The respective rights and obligations of the Parties hereunder shall
survive any termination of the Executive's employment to the extent necessary to
the intended preservation of such rights and obligations.

      22. Beneficiaries/References.

            The Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following the Executive's death by
giving the Company written notice thereof. In the event of the Executive's death
or a judicial determination of his incompetence, reference in this Agreement to
the Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

      23. Governing Law/Submission to Jurisdiction.

            This Agreement shall be governed by and construed and interpreted in
accordance with the laws of New York without reference to principles of conflict
of laws. Each of the Company and the Executive hereby irrevocably and
unconditionally: (i) submits for itself or himself, as applicable, and its or
his property in any legal action or proceeding relating to this Agreement, or
for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of


                                       25



<Page>


the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof; (ii)
consents that any such action or proceeding may be brought in such courts, and
waives any objection that it or he may now or hereafter have to the venue of any
such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient forum and agrees not to plead or claim the same;
(iii) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to its or his address set
forth in or designated pursuant to Section 25 hereof; and (iv) agrees that
nothing herein shall affect the right to effect service of process in any other
manner permitted by law or shall limit the right to sue in any other
jurisdiction.

      24. Resolution of Disputes.

            Any disputes arising under or in connection with the Agreement,
other than disputes arising in connection with Sections 12 and 13 hereof, may,
at the election of the Executive or the Company, be resolved by binding
arbitration, to be held in New York City in accordance with the rules and
procedures of the American Arbitration Association. If arbitration is elected,
the Executive and the Company shall mutually select the arbitrator. If the
Executive and the Company cannot agree on the selection of an arbitrator, each
Party shall select an arbitrator and the two arbitrators shall select a third
arbitrator, and the three arbitrators shall form an arbitration panel which
shall resolve the dispute by majority vote. Judgment upon the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof. Costs
of the arbitration or litigation, including, without limitation, reasonable
attorneys' fees of both Parties, shall be borne by the Company; provided,
however, that if a dispute is resolved in favor of the Company, the Executive
shall bear his own costs of the arbitration or litigation and shall reimburse
the Company for the Executive's cost of the arbitration or litigation previously
paid by the Company. Pending the resolution of any arbitration or court
proceeding, the Company shall continue payment of all amounts due the Executive
under this Agreement and all benefits to which the Executive is entitled at the
time the dispute arises.

      25. Notices.

            Any notice given to a Party shall be in writing and shall be deemed
to have been given when delivered personally or sent by certified or registered
mail, postage prepaid, return receipt requested, duly addressed to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give such notice of:

If to the Company:              Metallurg, Inc.
                                6 East 43rd Street, 12th floor
                                New York, New York 10017
                                Attention: Chief Operating Officer

With a copy to:                 Clifford Chance LLP
                                200 Park Avenue
                                New York, New York 10166
                                Attention: Samuel M. Feder

                                If to the Executive:
                                Arthur R. Spector
                                Building 400
                                435 Devon Park Drive
                                Wayne, PA 19087


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<Page>


      26. Headings.

            The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

      27. Counterparts.

            This Agreement may be executed in two or more counterparts.


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<Page>


      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first written above.

                                            METALLURG, INC.

                                            By: /s/ BARRY C. NUSS
                                                --------------------------------
                                            Name: Barry C. Nuss
                                            Title: Chief Financial Officer


                                                 /s/ ARTHUR R. SPECTOR
                                            ------------------------------------
                                                     Arthur R. Spector


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