Document:

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                          SALOMON BROTHERS REALTY CORP.
                         390 Greenwich Street, 4th Floor
                            New York, New York 10013

                                                April 1, 2000

NC Capital Corporation
18400 Von Karman, Suite 1000
Irvine, California 92612
Attention:    Mr. Patrick Flanagan
              President

New Century Mortgage Corporation
18400 Von Karman, Suite 1000
Irvine, California 92612
Attention:    Mr. Brad Morrice
              Chief Executive Officer

Ladies and Gentlemen:

      This letter agreement (the "Letter Agreement") confirms the understanding
and agreements among NC Capital Corporation ("NCCC"), New Century Mortgage
Corporation ("New Century"), Salomon Brothers Realty Corp. ("SBRC") and Salomon
Smith Barney Inc. ("Salomon Smith Barney"), under the terms set forth herein,
regarding SBRC's agreement to provide an aggregation line (the "Aggregation
Line") to NCCC in connection with certain adjustable-rate and fixed-rate, first
lien mortgage loans that are originated by New Century.

            1. Mortgage Loans.

            (a) In General. NCCC hereby agrees to deliver Mortgage Loans with an
unpaid principal balance of not less than $1,000,000,000 between April 1, 2000
and March 31, 2001 through the Aggregation Line.

            (b) Servicing of the Mortgage Loans. The purchase by SBRC of a
Mortgage Loan pursuant to the Aggregation Line shall include the purchase of the
related servicing rights for such Mortgage Loan. Unless otherwise agreed to
between SBRC and NCCC, SBRC hereby covenants and agrees to hire New Century to
service; and New Century hereby covenants and agrees to service the Mortgage
Loans for a term beginning on the related Settlement Date (as defined in Section
2(a) hereof) and ending on the related repurchase date as provided for in the
Purchase and Sale Agreement (as defined in Section 2(a) hereof); provided that
if a Termination Event (as defined in Section 4(b) hereof) has occurred, New
Century shall immediately be terminated as servicer. In connection with its
servicing duties, New Century can service the Mortgage Loans itself or through
such other sub-servicer which SBRC has accepted in writing, as the sub-servicer
(the "Sub-Servicer") provided that, SBRC shall have the right to perform due
diligence on any entity appointed as servicer or sub-servicer
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 2.

of the Mortgage Loans and may require New Century to select another servicer or
sub-servicer to the extent that SBRC is not satisfied with the results of such
due diligence. The Mortgage Loans shall be serviced in accordance with the
servicing provisions specified in the Pooling and Servicing Agreement, Series
1999-NCS dated as of December 1, 1999 among Firstar Bank, N.A., U.S. Bank
National Association, Salomon Brothers Mortgage Securities VII, Inc. and New
Century. New Century or the Sub-Servicer shall enforce "due-on-sale" provisions
to the extent permitted by law, shall administer all escrow/impound deposits,
shall pay compensating interest on principal prepayments in any month up to the
amount of its servicing compensation in such month and shall make all servicing
advances on any Mortgage Loan (including advances of delinquent principal and
interest payments). New Century or the Sub-Servicer shall be required to make
advances in respect of delinquent payments of principal and interest on the
Mortgage Loans through foreclosure, subject to New Century's or the
Sub-Servicer's determination regarding recoverability. The Mortgage Loans shall
be serviced for a servicing fee equal to 0.50% per annum payable monthly on the
then-outstanding principal balance of each Mortgage Loan (the "Servicing Fee").
Any fee payable to the Sub-Servicer shall be paid by New Century without any
right of reimbursement by SBRC. Any Sub-Servicer shall execute a letter
agreement recognizing SBRC's interest in the Mortgage Loans in the form of
Exhibit A. Notwithstanding the foregoing, in the event NCCC fails to repurchase
a Mortgage Loan on the related repurchase date or if a Termination Event occurs,
New Century and any related Sub-Servicer will no longer be servicer with respect
to such Mortgage Loan or Mortgage Loans, unless the term of servicing is
extended by SBRC in its sole discretion. In such event, SBRC shall have the
right to transfer such servicing to another servicer without payment of any fee
to New Century. New Century will cooperate in good faith to effect such
servicing transfer and shall pay all costs associated with such servicing
transfer.

            (c) Conditions Precedent to Mortgage Loan Purchases. SBRC's
obligation to purchase any Mortgage Loans and related servicing rights which it
accepts for its Aggregation Line shall be subject to each of the following
conditions:

                  (i)   there shall have been delivered to SBRC a Trust Receipt
                        issued by U.S. Bank National Association ("U.S. Bank")
                        with a mortgage loan schedule attached thereto and an
                        exception report which is acceptable to SBRC in its sole
                        discretion, at least 24 hours prior to purchase;

                  (ii)  SBRC shall have had an opportunity to perform a due
                        diligence review of each Mortgage Loan and shall have
                        arranged for reappraisals of value with respect to each
                        Mortgage Loan if desired by SBRC;

                  (iii) NCCC shall have provided to SBRC such other documents
                        which are then required to have been delivered under the
                        Purchase and Sale Agreement or which are reasonably
                        requested by SBRC, which other documents may include UCC
                        financing statements, a favorable opinion or opinions of
                        counsel with respect to matters which are
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 3.

                        reasonably requested by SBRC, and/or an officer's or
                        secretary's certificate; and

                  (iv)  there shall have been delivered to SBRC a limited
                        guaranty of New Century, in the form of Exhibit B
                        hereto, by which New Century guarantees the obligations
                        of NCCC under this Letter Agreement and the Purchase and
                        Sale Agreement.

            (d) Termination Fee. To the extent that the amount of Mortgage Loans
(i) sold to SBRC, (ii) securitized using the Salomon Brothers Mortgage
Securities VII, Inc. ("SBMSVII") shelf registration or (iii) securitized using
the New Century Mortgage Securities, Inc. ("NCMSI") shelf registration so long
as Salomon Smith Barney Inc. acts as underwriter, between April 1, 2000 and
March 31, 2001 is less than $1,000,000,000, NCCC must pay the termination fee as
provided in Section 4(a)(ii) hereof. In addition, NCCC will pay to Salomon Smith
Barney promptly upon the closing of each securitization using the SBMSVII shelf
registration or the NCMSI shelf registration, an underwriting discount equal to
the product of (i) the applicable Underwriting Fee Percentage multiplied by (ii)
the aggregate unpaid principal balance of the Mortgage Loans subject to such
securitization (the "Underwriting Fee"). The "Underwriting Fee Percentage" with
respect to each securitization shall be three-eighths of one percent (0.375%).

            (e) Information. NCCC and New Century will furnish Salomon Smith
Barney with all financial and other information concerning NCCC and New Century
as Salomon Smith Barney deems reasonably appropriate in connection with the
performance of the services contemplated by this letter, including (without
limitation) "Monthly Cash Flow Projections and Sensitivity Analyses," and will
provide Salomon Smith Barney with reasonable access during normal business hours
to NCCC's and New Century's officers, directors, employees, accountants, and
other representatives. NCCC and New Century acknowledge and confirm that Salomon
Smith Barney (i) will rely on such information in the performance of the
services contemplated by this letter without independently investigating or
verifying any of it, (ii) assumes no responsibility for the accuracy or
completeness of such information and (iii) will not disclose such information to
any third party without the prior written consent of NCCC or New Century, as
applicable.

            2 Aggregation Line.

            (a) In General. Pursuant to the terms of this Aggregation Line, SBRC
shall simultaneously purchase from, and sign a forward commitment to resell to,
NCCC Mortgage Loans and the related servicing rights that are deemed acceptable
for such Aggregation Line as set forth below. The Aggregation Line shall be more
fully documented pursuant to the Mortgage Loan Purchase and Sale Agreement (the
"Purchase and Sale Agreement") to be entered into among NCCC, New Century and
SBRC, which shall be substantially similar in form to the Mortgage Loan Purchase
and Sale Agreement dated December 11, 1998 between New Century and SBRC but
shall provide for servicing provisions similar to those set forth in Section
1(b) of this Letter Agreement. Under the Purchase and Sale Agreement, NCCC will
make standard secondary market corporate representations
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 4.

and warranties as of the date such Purchase and Sale Agreement is executed and
as of any settlement date for the purchase and sale of any Mortgage Loans
pursuant to such Purchase and Sale Agreement (each such date, a "Settlement
Date") and NCCC shall make standard secondary market representations and
warranties with respect to each Mortgage Loan as of the Settlement Date on which
such Mortgage Loan is sold to SBRC. In the event that NCCC satisfies its
obligations under the terms of this Letter Agreement, the Aggregation Line shall
terminate on the last day of the calendar quarter in which NCCC satisfies its
obligations to SBRC pursuant to Section 1(a) of this Letter Agreement.

            The "Purchase Price" with respect to each Mortgage Loan and related
servicing rights which conforms to the Underwriting Standards of New Century
which were most recently reviewed and approved by SBRC and which is not a
Problem Mortgage Loan (as defined in Section 2(b) hereof) or a Non-Standard
Mortgage Loan (as defined in Section 2(c) hereof) (a "Standard Mortgage Loan")
shall be equal to 102.00% of the unpaid principal balance of such Standard
Mortgage Loan. The "Purchase Price" for each Non-Standard Mortgage Loan and
related servicing rights shall be equal to the amount determined in accordance
with the provisions of Section 2(c)(ii) hereof. Notwithstanding the foregoing,
the "Purchase Price" for each Mortgage Loan will be reduced by the amount of any
Collateral Value Deficiency paid by NCCC with respect to such Mortgage Loan.

            The repurchase price shall reflect the agreed upon return to SBRC
for providing the Aggregation Line (the "Aggregation Cost"). With respect to any
Standard Mortgage Loan, the Aggregation Cost shall equal One Month LIBOR (as
defined herein) plus 1.25%. With respect to any Non-Standard Mortgage Loan, the
Aggregation Cost shall equal One Month LIBOR plus 2.00%. NCCC shall retain
principal and interest on any Mortgage Loans subject to the Aggregation Line.

            "One Month LIBOR" means as of the related Settlement Date, the 30
day London Interbank Offered Rate as of 11:00 a.m. (London time) on such date,
as indicated on page number 3750 of the Telerate Service. If One Month LIBOR
cannot be so determined, then One Month LIBOR shall mean the rate determined by
SBRC in its sole discretion.

            The Aggregation Line at any one time shall be initially limited to
$600,000,000 in amount of Mortgage Loans which limit shall be reduced by an
amount equal to the principal balance of each Mortgage Loan (calculated at the
time such Mortgage Loan was first added to the Aggregation Line) removed from
the Aggregation Line (excluding any unfundings, Mortgage Loans repurchased for
due diligence reasons or Mortgage Loans removed for a breach of a representation
or warranty set forth on Exhibit B to the Purchase and Sale Agreement) and shall
have a term of one month. The maximum amount of Non-Standard Mortgage Loans in
the Aggregation Line shall not exceed $78,000,000 at any one time.

            NCCC shall have the right to add Mortgage Loans to the Aggregation
Line up to four times each month. Standard Mortgage Loans may be removed from
the Aggregation Line up to four times a month (one of which shall be on the roll
date). Non-Standard Mortgage Loans may be removed from the Aggregation Line with
24 hours prior written notice by NCCC to SBRC.
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 5.

            If NCCC removes any Mortgage Loan from the Aggregation Line
(excluding any unfundings, Mortgage Loans repurchased for due diligence reasons
or Mortgage Loans removed for a breach of a representation or warranty set forth
on Exhibit B to the Purchase and Sale Agreement), in addition to all other
amounts owed under this Letter Agreement, NCCC must pay to SBRC (or an affiliate
of SBRC) a termination fee equal to 0.25% times the principal balance of each
such Mortgage Loan calculated at the time such Mortgage Loan was first added to
the Aggregation Line on the date the related Mortgage Loan is removed from the
Aggregation Line; provided, however, such termination fee will not be payable if
the removed Mortgage Loans are either (i) sold to SBRC in a whole-loan sale,
(ii) securitized using the SBMSVII shelf registration or (iii) securitized using
the NCMSI shelf registration so long as Salomon Smith Barney Inc. acts as
underwriter. In addition, NCCC will pay to Salomon Smith Barney promptly upon
the closing of each securitization using the SBMSVII shelf registration or the
NCMSI shelf registration the Underwriting Fee.

            SBRC shall provide not less than twenty eight days' prior notice to
NCCC and U.S. Bank National Association (or such other warehouse lender as
directed by NCCC) in the event that SBRC elects to not renew the Aggregation
Line for any month.

            (b) Problem Mortgage Loans. A "Problem Mortgage Loan" is defined as
any Mortgage Loan (i) which is in SBRC's sole discretion of insufficient quality
to be financed as a Standard Mortgage Loan or a Non-Standard Mortgage Loan or
purchased, provided, however, that if SBRC agrees, it can finance any Mortgage
Loan rejected from a securitization or whole loan purchase as a Non-Standard
Mortgage Loan, (ii) which is missing documentation or other information and such
problem is not cured by NCCC in sixty days, (iii) which is delinquent at the
time of financing by SBRC, which becomes delinquent during such financing by
SBRC or (iv) was more than thirty days but less than sixty days delinquent on
more than one occasion in the prior twelve months and is now current. Problem
Mortgage Loans shall be financed by SBRC pursuant to the Master Loan and
Security Agreement, dated April 1, 2000, the ("Loan and Security Agreement"),
among New Century Mortgage Corporation as servicer, NC Capital Corporation as
borrower and SBRC as Lender.

      With respect to any Mortgage Loan that is a Problem Mortgage Loan based on
clause (i) or clause (ii) above, in the event that SBRC determines in its sole
discretion that such Problem Mortgage Loan has ceased to be a Problem Mortgage
Loan, such Mortgage Loan shall be treated as a Standard Mortgage Loan or a
Non-Standard Mortgage Loan, as the case may be, as of the first day of the month
following such determination.

            (c) Non-Standard Mortgage Loans. A "Non-Standard Mortgage Loan" is
defined as any Mortgage Loan (i) with an unpaid principal balance in excess of
$1,000,000; or (ii) that has a loan-to-value ratio in excess of 85.00% (up to a
maximum of 95.00%); provided, however, at its option, SBRC may deem a Mortgage
Loan with an unpaid principal balance of no more than $1,500,000 to be a
Standard Mortgage Loan. In addition, if (i) Mortgage Loans with a loan-to-value
ratio greater than 80.00% (but not more than 85.00%) have an aggregate unpaid
principal balance in excess of $120,000,000 and (ii) Mortgage Loans with unpaid
principal balances greater than
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 6.

$500,000 and less than or equal to $1,500,000 have an aggregate unpaid principal
balance in excess of $42,000,000, such excess amounts shall be deemed
"Non-Standard Mortgage Loans". No Mortgage Loan shall be subject to the terms of
the Aggregation Line if: (i) the unpaid principal balance of such Mortgage Loan
exceeds $1,500,000 or (ii) such Mortgage Loan has a loan-to-value ratio greater
than 95.00%. Non-Standard Mortgage Loans shall be subject to the following
qualifications with respect to the Aggregation Line:

            (i)   the maximum Aggregation Line with respect to Non-Standard
                  Mortgage Loans shall equal $78,000,000 (of which no more than
                  $30,000,000 shall have unpaid principal balances greater than
                  $1,000,000 and no more than $50,000,000 shall be Mortgage
                  Loans with a loan-to-value ratio in excess of 85.00% (up to a
                  maximum of 95.00%)), as of any trade date on which there was
                  formal notification of a trade by a confirmation letter or
                  trade ticket;

            (ii)  with respect to the Non-Standard Mortgage Loans, the Purchase
                  Price for the first sixty days shall be the market value of
                  such Mortgage Loans as determined by SBRC acting in good
                  faith, and thereafter, the Purchase Price shall decrease by
                  10% of such market value and by an additional 10% thereof for
                  each succeeding month.

            (d) Mark-to-Market. If with respect to any Standard Mortgage Loan or
any Non-Standard Mortgage Loan, SBRC at any time determines, in its sole
discretion, that there exists a Collateral Value Deficiency (as defined below)
and SBRC notifies NCCC in writing of such Collateral Value Deficiency, NCCC
shall, no later than one (1) Business Day after receipt of such notice, pay to
SBRC an amount equal to such Collateral Value Deficiency, such that after giving
effect to such payment, the Collateral Value Deficiency is reduced to zero. With
respect to any Mortgage Loan, a "Collateral Value Deficiency" shall mean any
time the excess, if any, of (a) the outstanding Purchase Price of such Mortgage
Loan as defined in Section 2(a) hereof over (b) the Market Value of such
Mortgage Loan. "Market Value" shall mean, as of any date in respect of any
Standard Mortgage Loan or any Non-Standard Mortgage Loan, the value of such
Mortgage Loan as determined by SBRC in its sole discretion. SBRC shall have the
right to mark-to-market any Mortgage Loan on a daily basis.

            (e) Mortgage Loan Schedule. No Mortgage Loan shall be included in
the Aggregation Line unless NCCC shall have delivered to SBRC at least 48 hours
prior to such inclusion, a magnetic tape, in a format acceptable to SBRC,
consisting of the loan characteristics agreed upon by SBRC and NCCC with respect
to each Mortgage Loan.

            (f) Marketing of Mortgage Loans. SBRC may (subject to NCCC's consent
unless a Termination Event has occurred) market the Non-Standard Mortgage Loans
on NCCC's behalf for a purchase price acceptable to NCCC and shall provide NCCC
with a copy of a trade ticket or letter of intent with respect to any commitment
to sell such Mortgage Loans.
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 7.

            (g) Hedging. NCCC will have the option to establish one or more
securities or commodities accounts at Salomon Smith Barney and to enter into
transactions in such accounts (and only in such accounts) that are intended to
hedge the interest rate risk on Mortgage Loans included in the Aggregation Line.

            3 Financing of Trigger Buybacks. SBRC shall finance under the terms
set forth in the Loan and Security Agreement mortgage loans which are
repurchased by New Century and sold or contributed to NCCC based upon trigger
buybacks in effect pursuant to the pooling and servicing agreements for SBMSVII
1997-NC1, 1997-NC2, 1997-NC3, 1998-NC5 and New Century Home Equity Loan Trust
Series 1997-NC5.

            4. Termination.

            (a) NCCC shall have the right to terminate its obligations hereunder
upon (i) any material default by SBRC of its obligations under this Letter
Agreement which is not cured within 30 days following written notice of such
default to SBRC by NCCC or (ii) the payment by NCCC to SBRC of a termination fee
equal to (1) 0.25% multiplied by (2) $1,000,000,000 minus (a) the principal
balance of all Mortgage Loans (i) sold to SBRC as whole loans, (ii) securitized
using the SBMSVII shelf registration or (iii) securitized using the NCMSI shelf
registration so long as Salomon Smith Barney Inc. acts as underwriter and (b)
the principal balance of each Mortgage Loan for which a termination fee has
already been paid pursuant to the next to last paragraph of Section 2(a) hereof.
In addition, NCCC will pay to Salomon Smith Barney promptly upon the closing of
each securitization using the SBMSVII shelf registration or the NCMSI shelf
registration, the Underwriting Fee.

            (b) SBRC shall have the right to terminate this Letter Agreement
upon the occurrence of any of the following events (each, a "Termination
Event"):

            (i)   the judgment by SBRC in good faith that a material adverse
                  change has occurred with respect to the business, properties,
                  assets or condition (financial or otherwise) of NCCC;

            (ii)  SBRC shall reasonably request, specifying the reasons for such
                  request, information, and/or written responses to such
                  requests, regarding the financial well-being of NCCC and such
                  information and/or responses shall not have been provided
                  within three business days of such request;

            (iii) Either (A) a change in control of NCCC shall have occurred
                  without the consent of SBRC, other than in connection with and
                  as a result of the issuance and sale by NCCC of registered,
                  publicly offered common stock; or (B) SBRC determines in its
                  sole discretion that any material adverse change has occurred
                  in the management of NCCC;
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 8.

            (iv)  There is (A) a material breach by NCCC of any representation
                  and warranty contained in the Purchase and Sale Agreement,
                  other than a representation or warranty relating to particular
                  Mortgage Loans, and SBRC has reason to believe in good faith
                  either that such breach is not curable within 30 days or that
                  such breach may not have been cured in all material respects
                  at the expiration of 30 days following discovery thereof by
                  NCCC or (B) a failure by NCCC to make any payment payable by
                  it under the Purchase and Sale Agreement or (C) any other
                  failure by NCCC to observe and perform in any material respect
                  its material covenants, agreements and obligations with SBRC,
                  including without limitation those contained in the Purchase
                  and Sale Agreement, and SBRC has reason to believe in good
                  faith that such failure may not have been cured in all
                  material respects at the expiration of 30 days following
                  discovery thereof by NCCC;

            (v)   There shall have occurred any outbreak or material escalation
                  of hostilities, declaration by the United States of a national
                  emergency or war or other calamity or crisis, the effect of
                  which on the financial markets is such as to make it, in the
                  judgment of SBRC, impracticable to continue the commitment; or

            (vi)  NCCC fails to provide written notification to SBRC of any
                  material change in its loan origination, acquisition or
                  appraisal guidelines or practices, or NCCC, without the prior
                  consent of SBRC (which shall not be unreasonably withheld),
                  amends in any material respect its loan origination,
                  acquisition or appraisal guidelines or practices; or

            (vii) NCCC's default in the payment of the amount of any Collateral
                  Value Deficiency for more than one (1) Business Day after
                  receipt of written notice of such Collateral Value Deficiency
                  as provided in Section 2(d) hereof;

provided, that SBRC shall have the right to dispose of any collateral held by
SBRC pursuant to this Letter Agreement. In connection with a Termination Event
under this Section 4, SBRC shall have the right to transfer servicing as
provided in Section 1(b).

            (c) Subject to the provisions of Section 4 of this Letter Agreement,
this Letter Agreement shall terminate upon the earlier of (i) satisfaction of
the $1,000,000,000 commitment and (ii) March 31, 2001; provided that the Master
Loan and Security Agreement provided for in Section 3(b) shall continue under
its terms; provided, further, that SBRC may, in its sole discretion, extend the
terms of this Letter Agreement until such time that NCCC has been able to
fulfill its commitment without payment of a termination fee.

            Notwithstanding any other provision of this Section 4, any grace or
notice period provided herein in respect of a notice to be given or action to be
taken by SBRC may be shortened
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                            Page 9.

or eliminated by SBRC if, in its sole good faith discretion, it is unreasonable
to do so under the circumstances, taking into consideration, among other things,
the volatility of the market for the Mortgage Loans involved, the extent and
nature of any Termination Event (or events which with the giving of such notice
and passage of time would constitute Termination Events) and the risks inherent
in deferring the exercise of remedies for the otherwise applicable grace or
notice period.

            5. General Provisions.

            (a) Salomon Smith Barney's Discretion. It is understood that Salomon
Smith Barney shall have absolute discretion in determining whether to accept or
reject any Mortgage Loan. Notwithstanding the foregoing, however, subject to
NCCC's representations, warranties and covenants as set forth herein and in any
related agreements, all Standard Mortgage Loans and Non-Standard Mortgage Loans
originated by New Century in accordance with the underwriting standards of New
Century which were most recently approved by SBRC shall be eligible for
financing under the Aggregation Line in accordance with the terms hereof. It is
further understood that SBRC shall have absolute discretion in determining
whether any Mortgage Loan is a Standard Mortgage Loan, Non-Standard Mortgage
Loan or Problem Mortgage Loan and SBRC shall have the right to approve or
disapprove any Mortgage Loan with an unpaid principal balance in excess of
$1,000,000 (for which such Mortgage Loans, NCCC shall have obtained two
appraisals).

            (b) Governing Law. This Letter Agreement shall be governed by and
construed in accordance with the laws of the State of New York (without regard
to its conflicts of laws principles).

            (c) Amendment or Waiver. This Letter Agreement may not be amended or
modified except in writing signed by each of the parties hereto.

            (d) Counterparts. This Letter Agreement may be executed
simultaneously in any number of counterparts. Each counterpart shall be deemed
to be an original, and all such counterparts shall constitute one and the same
instrument.

            (e) Severability Clause. Any part, provision, representation or
warranty of this Letter Agreement which is prohibited or which is held to be
void or unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof. Any part,
provision, representation or warranty of this Letter Agreement which is
prohibited or unenforceable or is held to be void or unenforceable in any
jurisdiction shall be ineffective, as to such jurisdiction, to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof. To the extent permitted by applicable law, the parties hereto
waive any provision of law which prohibits or renders void or unenforceable any
provision hereof. If the invalidity of any part, provision, representation or
warranty of this Letter Agreement shall deprive any party of the economic
benefit intended to be conferred by this Letter Agreement, the parties shall
negotiate, in good-faith, to develop a structure the economic effect of which is
nearly as possible the same as the economic effect of this Letter Agreement
without regard to such invalidity.
<PAGE>

NC Capital Corporation
New Century Mortgage Corporation
April 1, 2000                                                           Page 10.

            (f) No Partnership. Nothing herein contained shall be deemed or
construed to create a co-partnership or joint venture between the parties
hereto.

            (g) Further Agreements. NCCC and SBRC each agree to execute and
deliver to the other such reasonable and appropriate additional documents,
instruments or agreements as may be necessary or appropriate to effectuate the
purposes of this Letter Agreement.

            (h) Termination. Other than those sections intended to survive in
the letter agreement dated September 1, 1999 among New Century, NCCC, Salomon
Smith Barney and SBRC (including those sections related to indemnification),
such letter agreement is hereby terminated.

            (i) Expenses. NCCC shall pay the expenses of Thacher Proffitt &
Wood, counsel for SBRC, in connection with the Aggregation Line and any
amendment thereto, which fees and expenses will not exceed $[20,000] in
connection with the Aggregation Line and will not exceed a negotiated cap
between the parties in connection with each amendment thereto, if any.
<PAGE>

            Please confirm that the foregoing is in accordance with your
understanding by signing this letter of agreement and two enclosed copies and
returning to us the enclosed copies. The letter signed by you shall constitute a
binding agreement between us as of the date first above written.

                                          Yours sincerely,

                                          SALOMON BROTHERS REALTY CORP.

                                          By: /s/  [ILLEGIBLE]
                                             -------------------------------
                                          Name:
                                          Title:

                                          SALOMON SMITH BARNEY INC.

                                          By: /s/  [ILLEGIBLE]
                                             -------------------------------
                                          Name:
                                          Title:

ACCEPTED AND AGREED TO
AS OF THE DATE FIRST ABOVE WRITTEN:

NEW CENTURY MORTGAGE CORPORATION

By: /s/  Patrick Flanagen
   ------------------------------
Name:
Title: EVP/COO

NC CAPITAL CORPORATION

By: /s/  John Kontoulis
   ------------------------------
Name:
Title: Senior Vice President<PAGE>

                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT, dated as of April 7th, 2000 (this
"AGREEMENT"), is entered into by and between ROHN Industries, Inc., a Delaware
corporation (the "COMPANY"), and James R. Cote (the "EXECUTIVE").

                  WHEREAS, the Executive has been and is presently employed by
the Company;

                  WHEREAS, the Executive has developed an intimate knowledge of
the business affairs of the Company and possesses skills and experience that are
of value to the Company; and

                  WHEREAS, the Company desires to secure the continued services
and employment of the Executive on behalf of the Company and the Executive is
willing to render such services on the terms and conditions set forth herein.

                  NOW, THEREFORE, in consideration of the mutual covenants
contained herein, the parties hereto agree as follows:

                  1. EMPLOYMENT TERM. Subject to the terms and provisions of
this Agreement, the Company hereby agrees to employ the Executive, and the
Executive hereby agrees to be employed by the Company, for the period commencing
on the date of this Agreement and ending on the third anniversary of the date of
this Agreement, unless terminated sooner as hereinafter provided (the
"EMPLOYMENT TERM").

                  2. DUTIES. During the Employment Term the Executive shall
  serve as Vice President-Sales & Marketing of the Company, and shall perform
  such duties, services and responsibilities on behalf of the Company and its
  subsidiaries as may be determined from time to time by the President and the
  Board of Directors of the Company (the "Board") and shall have the authority
  commensurate with such position. In performing his duties hereunder, the
  Executive will report directly to the President. The Executive shall devote
  his full business time, attention and skill to the performance of such duties,
  services and responsibilities, and will use his best efforts to promote the
  interests of the Company. The Executive may engage in any civic or charitable
  activity or deliver lectures, fulfill speaking engagements or teach at
  educational institutions, provided such activities do not materially interfere
  with the performance of his duties hereunder.

                  3. COMPENSATION. In full consideration of the performance by
the Executive of the Executive's obligations during the Employment Term
(including any services by the Executive as an officer, director, employee or
member of any committee

<PAGE>

of any subsidiary or affiliate of the Company, or otherwise on behalf of
Company), the Executive shall be compensated as follows:

                           (a) BASE SALARY. The Executive shall receive a base
salary (the "BASE SALARY") at an annual rate of $160,000 per year, subject to
review by the Board from time to time in the Board's sole discretion, PROVIDED,
HOWEVER, that the Board shall review the Base Salary on or prior to March 31st
of each year during the Employment Term. The Base Salary shall be payable in
accordance with the normal payroll practices of the Company then in effect.

                           (b) SIGNING BONUS. Upon the signing of this Agreement
the Company shall pay the Executive a signing bonus of $63,000. The Signing
Bonus shall be payable in accordance with the normal payroll practices of the
Company then in effect.

                           (c) BONUS. During the Employment Term, the Executive
shall be eligible to participate in the Company's annual incentive bonus plan,
under which the maximum annual bonus opportunity available to the Executive
shall be equal to 100% of the Base Salary. At the sole discretion of the
Compensation Committee, all or a portion of the bonus payable, if any, to the
Executive may be paid in shares of the Company's common stock (the "COMMON
STOCK").

                           (d) BENEFITS. During the Employment Term, the
Executive shall be entitled to participate in any employee or executive benefit
plans, policies or programs that are provided generally to senior executives of
the Company as such plans, policies or programs may be in effect from time to
time.

                           (e) VACATIONS. During the Employment Term, the
Executive shall be entitled to the number of paid vacation days in each calendar
year determined by the Company in accordance with the Company's policies in
effect from time to time.

                           (f) TAXES. The Executive shall be solely responsible
for taxes imposed on the Executive by reason of any compensation and benefits
provided under this Agreement and all such compensation and benefits shall be
subject to applicable withholding taxes.

                  4. TERMINATION. The Executive's employment with the Company
hereunder and the Employment Term shall terminate upon the occurrence of any of
the following events (the date of termination, the "TERMINATION DATE"):

                           (a) DEATH. The death of the Executive.

                           (b) DISABILITY. The termination of employment by the
Company for Disability upon thirty (30) days written notice to the Executive,
provided the

                                     -2-

<PAGE>

Executive has not returned to work on a full-time, permanent basis prior to
the end of such thirty (30) day period.

                           (c) CAUSE. The termination of employment by the
Company for Cause. The Executive's termination for Cause shall be effective upon
delivery of written notice specifying the matter or matters the Company deems to
constitute Cause.

                           (d) WITHOUT CAUSE. The termination of employment by
the Company other than for Cause or Disability.

                           (e) GOOD REASON. The termination of employment by the
Executive for Good Reason; provided, however that (i) the Executive must deliver
a notice of termination within sixty (60) days after the occurrence of the
event(s) constituting Good Reason, and (ii) the Company shall have (30) days
following the receipt of the Executive's notice of termination within which to
cure the event(s) identified by the Executive as constituting Good Reason and,
if so cured, Good Reason shall be deemed not to have occurred.

                           (f) EXPIRATION OF AGREEMENT. The third anniversary of
the date of this Agreement.

                  In the event of termination of the Executive's employment, for
whatever reason (other than death), the Executive agrees to cooperate with the
Company, its subsidiaries and affiliates and to be reasonably available to the
Company, its subsidiaries and affiliates with respect to continuing and/or
future matters arising out of the Executive's employment hereunder or any other
relationship with the Company, its subsidiaries and affiliates, whether such
matters are business-related, legal or otherwise.

                  5.       TERMINATION PAYMENTS.

                           (a) DEATH OR DISABILITY. If the Executive's
employment with the Company is terminated by reason of the Executive's death, or
by the Company for Disability, the Company's sole obligation hereunder, shall be
to pay the Executive or his estate, as the case may be, the Accrued Compensation
and the Pro Rata Bonus Amount.

                           (b) BY COMPANY FOR CAUSE; BY EXECUTIVE WITHOUT GOOD
REASON. If the Executive's employment with the Company is terminated by the
Company for Cause or by the Executive without Good Reason, or the Executive's
employment hereunder terminates pursuant to SECTION 4(f) of this Agreement, the
Company's sole obligation hereunder shall be to pay the Executive the Accrued
Compensation.

                           (c) BY COMPANY WITHOUT CAUSE. If the Executive's
employment with the Company is terminated by the Company for any reason other
than Cause or

                                     -3-

<PAGE>

Disability, the Company's sole obligation hereunder shall be to pay the
Executive the Accrued Compensation, the Pro Rata Bonus Amount and, so long as
the Executive is not in violation of the covenants contained in SECTION 6
hereof, to continue to pay the Executive the Base Salary (at the rate in
effect on the Termination Date) in accordance with the normal payroll
practices of the Company for twelve (12) months following the Termination
Date.

                           (d) GOOD REASON. If the Executive's employment with
the Company is terminated by the Executive for Good Reason, the Company's sole
obligation hereunder shall be to pay the Executive the Accrued Compensation, the
Pro Rata Bonus Amount and to continue to pay the Executive the Base Salary (at
the rate in effect on the Termination Date) in accordance with the normal
payroll practices of the Company, for twelve (12) months following the
Termination Date.

                           (e) NO MITIGATION. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement, nor shall such amounts be reduced by any earnings or benefits that
the Executive may receive from any other source.

                           (f) INTERNAL REVENUE CODE SECTION 280G.
Notwithstanding anything contained in this Agreement to the contrary, to the
extent that any payment or distribution of any type to or for the benefit of the
Executive by the Company, any affiliate of the Company, any person who acquires
ownership or effective control of the Company or ownership of a substantial
portion of the Company's assets (within the meaning of Section 280G of the
Internal Revenue Code (the "Code"), and the regulations thereunder), or any
affiliate of such person, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (the "Total
Payments") is or will be subject to the excise tax imposed under Section 4999 of
the Code (the "Excise Tax"), then the Total Payments shall be reduced (but not
below zero) if and to the extent that a reduction in the Total Payments would
result in the Executive retaining a larger amount, on an after-tax basis (taking
into account federal, state and local income taxes and the Excise Tax), than if
the Employee received the entire amount of such Total Payments. Unless the
Executive shall have given prior written notice specifying a different order to
the Company to effectuate the foregoing, the Company shall reduce or eliminate
the Total Payments, by first reducing or eliminating the portion of the Total
Payments which are not payable in cash (other than Total Payments attributable
to stock options or other equity awards ("EQUITY AWARDS")) and then by reducing
or eliminating cash payments, in each case in reverse order beginning with
payments or benefits which are to be paid the latest in time, and then by
reducing Equity Awards in the manner which will maximize the after-tax benefit
to the Executive. Any notice given by the Executive pursuant to the preceding
sentence shall take precedence over the provisions of any other

                                     -4-

<PAGE>

plan, arrangement or agreement governing the Executive's rights and
entitlements to any benefits or compensation. The determination of whether
the Total Payments shall be reduced pursuant to the foregoing and the amount
of such reduction shall be made, at the Company's expense, by an accounting
firm selected by the Company which is one of the five largest accounting
firms in the United States (other than the Company's regular independent
auditor).

                           (g) For purposes of this SECTION 5, the Executive's
employment shall not be treated as terminated for so long as he is an employee
of the Company or any of its subsidiaries.

                  6.       EXECUTIVE COVENANTS.

                           (a) UNAUTHORIZED DISCLOSURE. The Executive agrees and
understands that in the Executive's position with the Company, the Executive has
been and will be exposed to and has and will receive information relating to the
confidential affairs of the Company, its subsidiaries and affiliates, including
but not limited to technical information, intellectual property, business and
marketing plans, strategies, customer information, other information concerning
the products, promotions, development, financing, expansion plans, business
policies and practices of the Company, its subsidiaries and affiliates, and
other forms of information considered by the Company to be confidential and in
the nature of trade secrets ("Confidential Information"). The Executive agrees
that during the Employment Term and thereafter, the Executive will not disclose
such Confidential Information, either directly or indirectly, to any third
person or entity without the prior written consent of the Company. This
confidentiality covenant has no temporal, geographical or territorial
restriction. Upon termination of the Employment Term, the Executive will
promptly supply to the Company all property, keys, notes, memoranda, writings,
lists, files, reports, customer lists, correspondence, tapes, disks, cards,
surveys, maps, logs, machines, technical data or any other tangible product or
document which has been produced by, received by or otherwise submitted to the
Executive during or prior to the Employment Term. Any material breach of the
terms of this paragraph shall be considered Cause.

                           (b) NON-COMPETITION. By and in consideration of the
Company's entering into this Agreement and the payments to be made and benefits
to be provided by the Company hereunder, and further in consideration of the
Executive's exposure to the proprietary information of the Company, the
Executive agrees that the Executive will not, during the Employment Term, and
thereafter during the "Non-competition Term" (as defined below), directly or
indirectly, own, manage, operate, join, control, be employed by, or participate
in the ownership, management, operation or control of, or be connected in any
manner with, including but not limited to holding any position as a shareholder,
director, officer, consultant, independent contractor, employee, partner, or
investor in, any

                                     -5-

<PAGE>

"Restricted Enterprise" (as defined below); PROVIDED, that in no event shall
the ownership of less than 1% of the outstanding equity securities of any
issuer whose securities are registered under the Securities and Exchange Act
of 1934, as amended, standing alone, be prohibited by this SECTION 6(b). For
purposes of this SECTION 6(b), the term "RESTRICTED ENTERPRISE" shall mean
any person, corporation, partnership or other entity that competes, directly
or indirectly, with any business or activity conducted or proposed to be
conducted by the Company or any of its subsidiaries or affiliates as of the
date of the Executive's termination of employment. Following termination of
the Employment Term, upon request of the Company, the Executive shall notify
the Company of the Executive's then current employment status. For purposes
of this Agreement, the "NON-COMPETITION TERM" shall mean the period beginning
on the Termination Date and ending on the second anniversary of such date.
Any material breach of the terms of this SECTION 6(b) shall be considered
Cause. Notwithstanding the foregoing, in the event the Executive's employment
with the Company is terminated following a Change in Control by the Company
without Cause or by the Executive for Good Reason, the Executive shall not be
subject to this SECTION 6(b), and this SECTION 6(b) shall have no force or
effect.

                           (c) NON-SOLICITATION. During the Non-competition
Term, the Executive shall not, and shall not cause any other person to,
interfere with or harm, or attempt to interfere with or harm, the relationship
of the Company, any of its subsidiaries or affiliates with, or endeavor to
entice away from the Company, any of its subsidiaries or affiliates, or hire,
any person who at any time during the Employment Term was an employee or
customer of the Company, or any of its subsidiaries or affiliates.
Notwithstanding the foregoing, in the event the Executive's employment with the
Company is terminated following a Change in Control by the Company without Cause
or by the Executive for Good Reason, the Executive shall not be subject to this
SECTION 6(c), and this SECTION 6(c) shall have no force or effect.

                           (d) REMEDIES. The Executive agrees that any breach of
the terms of this SECTION 6 would result in irreparable injury and damage to the
Company, its subsidiaries and/or affiliates for which the Company, its
subsidiaries and/or affiliates would have no adequate remedy at law; the
Executive therefore also agrees that in the event of said breach or any threat
of breach, the Company, its subsidiaries and/or affiliates, as applicable, shall
be entitled to an immediate injunction and restraining order to prevent such
breach and/or threatened breach and/or continued breach by the Executive and/or
any and all persons and/or entities acting for and/or with the Executive,
without having to prove damages, in addition to any other remedies to which the
Company, its subsidiaries and/or affiliates may be entitled at law or in equity.
The terms of this SECTION 6(d) shall not prevent the Company, its subsidiaries
and/or affiliates from pursuing any other available remedies for any breach or
threatened breach hereof, including but not limited to the recovery of damages
from the Executive. The Executive and the Company further agree that the
provisions of the covenants contained in this SECTION 6 are

                                     -6-

<PAGE>

reasonable and necessary to protect the businesses of the Company, its
subsidiaries and affiliates because of the Executive's access to Confidential
Information and his material participation in the operation of such
businesses. The Executive hereby acknowledges that due to the global aspects
of the Company's, its subsidiaries' and affiliates' businesses and
competitors it would not be appropriate to include any geographic limitation
on this SECTION 6. Should a court or arbitrator determine, however, that any
provision of the covenants contained in this SECTION 6 are not reasonable or
valid, either in period of time, geographical area, or otherwise, the parties
hereto agree that such covenants should be interpreted and enforced to the
maximum extent which such court or arbitrator deems reasonable or valid.

                  The existence of any claim or cause of action by the Executive
against the Company, its subsidiaries and/or affiliates, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of the covenants contained in this SECTION 6.

                  7. NON-WAIVER OF RIGHTS. The failure to enforce at any time
the provisions of this Agreement or to require at any time performance by any
other party of any of the provisions hereof shall in no way be construed to be a
waiver of such provisions or to affect either the validity of this Agreement or
any part hereof, or the right of any party to enforce each and every provision
in accordance with its terms.

                  8. NOTICES. Every notice relating to this Agreement shall be
in writing and shall be given by personal delivery, by a reputable same-day or
overnight courier service (charges prepaid), by registered or certified mail,
postage prepaid, return receipt requested or by facsimile to the recipient with
a confirmation copy to follow the next day to be delivered by personal delivery
or by a reputable same-day or overnight courier service; to:

                           If to the Company:       ROHN Industries, Inc.
                                                    6718 West Plank Road
                                                    Peoria, Illinois 61604
                                                    Attention: President

                           If to the Employee:      James R. Cote
                                                    201 W. Greystone
                                                    Dunlap, Illinois 61525

                  Either of the parties hereto may change their address for
purposes of notice by given notice in writing to such other party pursuant to
this SECTION 8. The date of service of such notice shall be the date such notice
is personally delivered, three business days after the date of mailing if sent
by certified or registered mail, two business days

                                     -7-

<PAGE>

after the date of delivery to the courier if sent by courier, or the next
business day after the date of transmittal if by facsimile.

                  9. BINDING EFFECT/ASSIGNMENT. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
heirs, executors, personal representatives, estates, successors (including,
without limitation, by way of merger) and assigns. Notwithstanding the
provisions of the immediately preceding sentence, the Executive shall not assign
all or any portion of this Agreement without the prior written consent of the
Company.

                  10. ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding of the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements, written or oral, between them as to such
subject matter. This Agreement may not be amended, nor may any provision hereof
be modified or waived, except by an instrument in writing duly signed by the
party to be charged.

                  11. SEVERABILITY. If any provision of this Agreement, or any
application thereof to any circumstances, is invalid, in whole or in part, such
provision or application shall to that extent be severable and shall not affect
other provisions or applications of this Agreement.

                  12. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Illinois, without
reference to the principles of conflict of laws.

                  13. HEADINGS. The headings contained herein are solely for the
purposes of reference, are not part of this Agreement and shall not in any way
affect the meaning or interpretation of this Agreement.

                  14. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument.

                  15. DEFINITIONS. As used in this Agreement, the following
terms shall have the following meanings:

                  "ACCRUED COMPENSATION" shall mean any accrued and unpaid Base
Salary as of the Termination Date, all benefits accrued under any benefit plans,
programs or arrangements in which the Executive shall have been a participant as
of the date of such termination, in accordance with the applicable terms and
conditions of such plans, programs or arrangements, and an amount equal to such
reasonable and necessary business expenses incurred by the Executive in
connection with the Executive's

                                     -8-

<PAGE>

employment on behalf of the Company on or prior to the Termination Date but
not previously paid to the Executive.

                  "CAUSE" shall mean: (i) the Executive's material breach of
this Agreement, (ii) conduct by the Executive that is fraudulent or unlawful,
(iii) gross negligence of or willful misconduct by the Executive in the
performance of his duties, or (iv) repeated failure of the Executive to perform
his duties hereunder.

                  "CHANGE IN CONTROL" shall mean the occurrence of any one of
the following events:

                           (a) An acquisition (other than directly from the
Company) of any common stock, par value $.01 per share, of the Company ("Common
Stock") or other voting securities of the Company by any "Person" (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")), immediately after which such
Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of fifty percent (50%) or more of either (i) the then
outstanding Common Stock or (ii) the combined voting power of the Company's then
outstanding voting securities entitled to vote for the election of directors
(the "Voting Securities"); PROVIDED, HOWEVER, in determining whether a Change in
Control has occurred, Common Stock or Voting Securities which are acquired in a
"Non-Control Acquisition" (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A "Non-Control Acquisition"
shall mean an acquisition by (i) an employee benefit plan (or a trust forming a
part thereof) maintained by (A) the Company or (B) any corporation or other
Person of which a majority of its voting power or its voting equity securities
or equity interest is owned, directly or indirectly, by the Company (for
purposes of this definition, a "Related Entity"), (ii) the Company or any
Related Entity, (iii) any Person in connection with a "Non-Control Transaction"
(as hereinafter defined), or (iv) the UNR Asbestos-Disease Claims Trust;

                           (b) The individuals who, as of the date of this
Agreement are members of the Board (the "Incumbent Board"), cease for any reason
to constitute at least a majority of the members of the Board; PROVIDED,
HOWEVER, that if the election, or nomination for election by the Company's
common stockholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this
Agreement, be considered as a member of the Incumbent Board; PROVIDED, FURTHER,
HOWEVER, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumed office as a result of either an actual or
threatened "Election Contest" (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on

                                     -9-

<PAGE>

behalf of a Person other than the Board (a "Proxy Contest"), including by
reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest; or

                           (c) The consummation of:

                                    (i) A merger, consolidation or
reorganization with or into the Company or in which securities of the Company
are issued (a "Merger"), unless the Merger is a "Non-Control Transaction." A
"Non-Control Transaction" shall mean a Merger if:

                                            (A) the stockholders of the Company
immediately before such Merger own directly or indirectly immediately following
the Merger at least fifty percent (50%) of the outstanding common stock and the
combined voting power of the outstanding voting securities of (x) the
corporation resulting from such Merger (the "Surviving Corporation"), if fifty
percent (50%) or more of the combined voting power of the then outstanding
voting securities of the Surviving Corporation is not Beneficially Owned,
directly or indirectly by another corporation (a "Parent Corporation"), or (y)
the Parent Corporation, if fifty percent (50%) or more of the combined voting
power of the Surviving Corporation's then outstanding voting securities is
Beneficially Owned, directly or indirectly, by a Parent Corporation;

                                            (B) the individuals who were members
of the Incumbent Board immediately prior to the execution of the agreement
providing for the Merger, constitute at least a majority of the members of the
board of directors of, (x) the Surviving Corporation, if fifty percent (50%) or
more of the combined voting power of the then outstanding voting securities of
the Surviving Corporation is not Beneficially Owned, directly or indirectly by a
Parent Corporation, or (y) the Parent Corporation, if fifty percent (50%) or
more of the combined voting power of the Surviving Corporation's then
outstanding voting securities is Beneficially Owned, directly or indirectly, by
a Parent Corporation; and

                                            (C) no Person other than (1) the
Company or another corporation that is a party to the agreement of Merger, (2)
any Related Entity, or (3) any employee benefit plan (or any trust forming a
part thereof) that, immediately prior to the Merger, was maintained by the
Company or any Related Entity, or (4) any Person who, immediately prior to the
Merger had Beneficial Ownership of fifty percent (50%) or more of the then
outstanding Common Stock or Voting Securities, has Beneficial Ownership
immediately following the Merger, directly or indirectly, of fifty percent (50%)
or more of the combined voting power of the outstanding voting securities or
common stock of (x) the Surviving Corporation, if fifty percent (50%) or more of
the combined voting power of the then outstanding voting securities of the
Surviving Corporation is not Beneficially Owned, directly or indirectly by a
Parent Corporation, or

                                     -10-

<PAGE>

(y) the Parent Corporation, if fifty percent (50%) or more of the combined
voting power of the Surviving Corporation's then outstanding voting
securities is Beneficially Owned, directly or indirectly, by a Parent
Corporation;

                                    (ii) A complete liquidation or dissolution
of the Company; or

                                    (iii) The sale or other disposition of all
or substantially all of the assets of the Company to any Person (other than a
transfer to a Related Entity or under conditions that would constitute a
Non-Control Transaction with the disposition of assets being regarded as a
Merger for this purpose or the distribution to the Company's stockholders of the
stock of a Related Entity or any other assets).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
solely because any Person (the "Subject Person") acquired Beneficial Ownership
of more than the permitted amount of the then outstanding Common Stock or Voting
Securities as a result of the acquisition of Common Stock or Voting Securities
by the Company which, by reducing the number of Common Stock or Voting
Securities then outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Persons, provided that if a Change in Control
would occur (but for the operation of this sentence) as a result of the
acquisition of Common Stock or Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional Common Stock or Voting Securities which increases the
percentage of the then outstanding Common Stock or Voting Securities
Beneficially Owned by the Subject Person, then a Change in Control shall occur.

                  "DISABILITY" shall mean the inability of the Executive to
perform his duties, services and responsibilities hereunder by reason of a
physical or mental infirmity, as reasonably determined by the Board, for a total
of 180 calendar days in any twelve-month period during the Employment Term.

                  "GOOD REASON" shall mean after a Change in Control, the
occurrence of any of the following events: (i) a material diminution in the
Executive's position, duties or responsibilities; (ii) a reduction in the
Executive's Base Salary; or (iii) a relocation of the Company's corporate
headquarters to a location that is more than 50 miles from the location of the
corporate headquarters immediately before the Change in Control.

                  "PRO RATA BONUS AMOUNT" shall mean an amount equal to the
annual bonus paid to the Executive for the year prior to the year in which the
Executive's employment is terminated, multiplied by a fraction, the numerator of
which is the number of days elapsed from the beginning of the bonus period
through and including the Termination Date, and the denominator of which is 365.

                                     -11-

<PAGE>

                  IN WITNESS WHEREOF, each of the Company has caused this
Agreement to be executed by authority of its Board of Directors, and the
Executive has hereunto set his hand, on the day and year first above written.

                                      ROHN INDUSTRIES, INC.

                                      By: /s/ Brian B. Pemberton
                                         ---------------------------------
                                         Name:
                                         Title:

                                      James R. Cote
                                         /s/ James R. Cote
                                      ------------------------------------

2128
                                     -12-

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