Document:

PREAMBLE

     This Agreement is between Century Aluminum of Kentucky, LLC, "The Company",
or its successor,  and the United  Steelworkers  of America,  AFL-CIO-CLC,  "The
International  Union",  or its  successor.  Where the term "Local Union" is used
herein  it  refers  to  United  Steelworkers  of  America,  Local  9423,  or its
successors. Where the term "Union" is used herein it refers to the International
Union, the Local Union, or both Unions depending on the context.  This Agreement
shall become effective  immediately upon the occurrence of the sale of the plant
to the Company at the Closing to be held on the future Date of Closing.

_____________________                                      _____________________
Company                                                                    Union

<PAGE>

                                   ARTICLE 1
                              PURPOSE OF AGREEMENT

     It is the intent and purpose of the parties  hereto to set forth  herein in
accordance  with and subject to the Labor  Management  Relations  Act,  1947, as
amended,  the  basic  agreement  covering  rates  of pay,  hours  of  work,  and
conditions of employment to be observed  between the parties hereto with respect
to the employees covered hereby and as hereinafter defined.

_____________________                                      _____________________
Company                                                                    Union

                                       2
<PAGE>

                                   ARTICLE 2
                               SCOPE OF AGREEMENT

The term  "employee" or "employees" as and wherever used in this Agreement shall
include  those  employees  of the  Company  at its  aluminum  plant  located  at
Hawesville,  Kentucky  ("Plant") in the following  bargaining unit for which the
United Steelworkers of America,  AFL-CIO-CLC, "the Union", was recognized as the
exclusive bargaining  representative in Case No. 26-RC-7900 as clarified in Case
No. 26-UC-176 and as further agreed during bargaining for an initial  collective
bargaining agreement:

               All production and maintenance employees excluding
               all  office  and  clerical  employees,  department
               clerks,  reduction  services/green  carbon  clerk,
               customer   service  and  traffic   representative,
               reduction/rodding clerk, team clerks and casthouse
               department clerk, clerk/typists, stores department
               clerk,   and  customer   service   representative,
               medical     assistants,     safety    coordinator,
               metallurgical technicians,  laboratory assistants,
               spectrochemical  analysts,  environmental  control
               technicians,  senior process  control  technicians
               (electrode    area),    senior   process   control
               technicians  (potline),   senior  process  control
               technicians           (inventory),           labor
               pool/telecommunications     supervisor,    process
               control technicians,  process computer technician,
               professional employees, guards, and supervisors as
               defined in the Act.

_____________________                                      _____________________
Company                                                                    Union

                                       3
<PAGE>

                                   ARTICLE 3
                         RECOGNITION AND UNION SECURITY

A.   The Company recognizes the Union as the exclusive bargaining agency for its
     employees for the purpose of  collective  bargaining in respect to rates of
     pay,  wages,  hours, or other  conditions of employment.  The provisions of
     this  Agreement  constitute  the  sole  procedure  for the  processing  and
     settlement  of any claim by an employee or the Union of a violation  by the
     Company of this  Agreement.  As the  representative  of the employees,  the
     Union may process  grievances  through the grievance  procedure,  including
     arbitration,  in  accordance  with this  Agreement  or adjust or settle the
     same.

B.   All employees shall become members of the Union on the thirty-first  (31st)
     calendar day after going to work or the effective  date of this  Agreement,
     whichever is the later, and thereafter maintain membership in good standing
     in the  Union  as a  condition  of  employment.  For the  purposes  of this
     Section, an employee shall not be deemed to have lost his membership in the
     Union in good standing until the International Treasurer of the Union shall
     have determined that the membership of such employee in the Union is not in
     good  standing and shall have given the Company a notice in writing of that
     fact.

C.   All  employees  who are hired by the Company after the date of execution of
     this Agreement shall be reported promptly to the Union by the Company,  but
     in no case will reporting be delayed beyond thirty (30) days.

D.   The Union  heretofore  has  furnished  the Company a notarized  list of its
     members  who are  employees  of the  Company,  which  list  shows the name,
     address,  department,  and badge number of each such employee. On or before
     the last day of each calendar month,  the Union shall submit to the Company
     a notarized  supplemental list showing the same information  regarding each
     employee  included in such  supplemental  list of the notarized  list first
     referred to,  covering all employees  who shall have become  members of the
     Union since the last previous list of members of the Union was furnished to
     the  Company.  For each  employee  included  in the  aforesaid  lists to be
     supplied to the Company by the Union and for whom the Company has  received
     a written  assignment,  not  irrevocable  for a period of more than one (1)
     year or beyond the  termination  date of this Agreement,  whichever  occurs
     sooner,  executed by the employee  concerned  authorizing the Company so to
     do, the Company shall deduct from the first pay of each succeeding week (if
     Company's  payroll  system  reasonably so permits and in any event from the
     second pay of such month) the Union  membership dues for the preceding week
     including if so indicated on such lists,  the initiation fee due the Union,
     as designated to the Company by the  International  Treasurer of the Union.
     The amount of such  deductions  and the conditions  applying  thereto shall
     continue  as  specified  hereinabove,  except as changes may be required to
     provide  for  continued  conformance  with  applicable  provisions  of  the
     Constitution  of the  International  Union.  All  amounts  deducted  by the
     Company  from the pay of any  employee  hereunder  shall be remitted by the
     Company monthly to the  "International  Treasurer,  United  Steelworkers of
     America, 5 Gateway Center, Pittsburgh, Pennsylvania 15222".

_____________________                                      _____________________
Company                                                                    Union

                                       4
<PAGE>

     The Company will check off dues from a lump sum vacation payment made to an
     employee for the  appropriate  number of months covered by such payment for
     which dues are not otherwise checked off.

E.   The Union hereby  indemnifies the Company and holds it harmless against any
     and all suits, claims,  demands and liabilities that shall arise out of, or
     by reason of, any action that shall be taken by the Company for the purpose
     of complying with the foregoing  provisions of this Article, or in reliance
     on any list or  certificate  which shall have been furnished to the Company
     under any of such provisions.

F.   The Company  agrees that it will not sell,  convey,  assign,  or  otherwise
     transfer,  all or  substantially  all,  of the  Plant  to any  other  party
     ("Buyer") unless the following  conditions have been satisfied prior to the
     closing  date of the  sale:  (1)  the  Buyer  shall  have  entered  into an
     agreement with the Union  recognizing  it as the bargaining  representative
     for the employees of the sold facilities;  and either:  (2) the Buyer shall
     have entered into an agreement  with the Union  establishing  the terms and
     conditions of employment to be effective as of the closing date: or (3) the
     Buyer shall,  as of the closing date,  assume this Agreement as its own and
     agree to be bound by all obligations thereunder.

_____________________                                      _____________________
Company                                                                    Union

                                       5
<PAGE>

                                   ARTICLE 4
                                  RATES OF PAY

A.   Standard Hourly Base Wage Scales

     1.   The  Standard  Hourly  Base  Wage  Scale  shall be those  set forth in
          Appendix A of this  Agreement.  The hourly rate of a Temporary  Relief
          Supervisor  under this Article shall be that hourly rate which is four
          (4) job grades higher then that of the highest hourly rate of a person
          working under his or her direct supervision,  but in no case less than
          two (2) labor grades above the employee's regular rate.

     2.   Copies of the  applicable  Wage Scale shall be made available to Local
          Union  officers.  In  addition,  at the  beginning  of  each  calendar
          quarter-year,  the Company shall supply Local Union officers with, and
          shall post on appropriate bulletin boards a list, showing by job class
          and applicable Standard Hourly Base Wage Rate, and by applicable shift
          differential  amount  per hour,  the job  number and title of all jobs
          then in effect.  Information  as to any  revisions  occurring  between
          quarterly  posting  dates shall be available  to Local Union  officers
          upon request.  It is understood  that any errors made in compiling the
          lists above referred to shall be corrected.

B.   Cost of Living Adjustments

     1.   For purposes of this Agreement:

          "Consumer  Price Index" refers to the "Consumer  Price Index for Urban
          Wage Earners and Clerical Workers (CPI-Revised W) - United States -All
          Items (1967 = 100)" published by the Bureau of Labor Statistics,  U.S.
          Department of Labor.

          "Consumer Price Index Base" shall be determined as follows:

          a.   For April 1, 2001,  July 1, 2001,  October 1, 2001 and January 1,
               2002  adjustment  dates,  the Consumer Price Index Base refers to
               the Consumer Price Index for the month of November 2000 (reported
               as 509.0), multiplied by 105.0% (534.5).

          b.   For the April 1, 2002, July 1, 2002,  October 1, 2002 and January
               1, 2003 adjustment dates, the Consumer Price Index Base refers to
               the  Consumer  Price  Index  for  the  month  of  November  2001,
               multiplied by 105.0%

          c.   For April 1, 2003,  July 1, 2003,  October 1, 2003 and January 1,
               2004  adjustment  dates,  the Consumer Price Index Base refers to
               the  Consumer  Price  Index  for  the  month  of  November  2002,
               multiplied by 105.0%.

_____________________                                      _____________________
Company                                                                    Union

                                       6
<PAGE>

          d.   For April 1, 2004,  July 1, 2004,  October 1, 2004 and January 1,
               2005  adjustment,  the  Consumer  Price  Index Base refers to the
               Consumer Price Index for the month of November  2003,  multiplied
               by 105.0%.

          e.   For April 1, 2005, July 1, 2005, October 1, 2005, January 1, 2006
               adjustment  date,  the  Consumer  Price  Index Base refers to the
               Consumer Price Index for the month of November  2004,  multiplied
               by 105.0%.

          "Adjustment  Dates" are April 1, 2001, July 1, 2001,  October 1, 2001,
          January 1, 2002, April 1, 2002, July 1, 2002, October 1, 2002, January
          1, 2003,  April 1, 2003,  July 1,  2003,  October 1, 2003,  January 1,
          2004,  April 1, 2004,  July 1, 2004,  October 1, 2004  January 1, 2005
          April 1, 2005, July 1, 2005, October 1, 2005 and January 1, 2006.

          "Change in the  Consumer  Price  Index" is  defined as the  difference
          between (1) the Consumer  Price Index Base, and (2) the Consumer Price
          Index for the second  calendar month next preceding the month in which
          the applicable adjustment date falls.

     2.   Cost-of-Living  Adjustment:  Effective  on  each  adjustment  date,  a
          cost-of-living adjustment equal to 1(cent)per hour for each full .3 of
          a point change in the  Consumer  Price Index shall be  calculated.  In
          calculating  the adjustment if any for April,  July,  October 2002 and
          January 2003, there shall be added to the calculated  amount an amount
          equal to the  cost-of-living  adjustment,  if any which was payable on
          January 2002. In calculating the adjustments, if any, for April, July,
          October 2003,  and January 2004 there shall be added to the calculated
          amount an amount equal to the cost-of-living adjustment, if any, which
          was payable on January 1, 2003. In  calculating  the  adjustments,  if
          any, for April,  July,  October 2004, and January 2005, there shall be
          added to the calculated  amount an amount equal to the  cost-of-living
          adjustment,  if  any,  which  was  payable  on  January  1,  2004.  In
          calculating the adjustments,  if any, for April 1, 2005, July 1, 2005,
          October  1,  2005 and  January  1,  2006  there  shall be added to the
          calculated amount an amount equal to the cost-of-living adjustment, if
          any which was payable on January 1, 2005.

_____________________                                      _____________________
Company                                                                    Union

                                       7
<PAGE>

          Effective on each adjustment  date, the  cost-of-living  adjustment as
          determined  above  shall  become  payable  for all hours  worked by an
          employee  until  the  next   adjustment   date.   The   cost-of-living
          adjustments  under this paragraph  shall be considered an "add-on" and
          shall not be deemed part of the employee's  standard hourly rate. Such
          adjustments  shall  be  included  with  the  hourly  rate  only in the
          calculation  of pay for hours worked  (including  overtime  hours) and
          allowed time in accordance with Article 8.

     3.   Should the monthly Consumer Price Index in its present form and on the
          same  basis  as  the  Index   published   for  November   2000  become
          unavailable,  the parties  shall attempt to adjust this section or, if
          agreement is not reached,  request the Bureau of Labor  Statistics  to
          provide  an  appropriate  conversion  of  adjustment,  which  shall be
          applicable as of the appropriate adjustment date and thereafter.

C.   Temporary Assignments

     1.   Single  rates  have been  established  for each job in the  Plant.  An
          employee assigned from his regular job to another job will receive the
          established  rate of pay for the job  performed for the time worked or
          the minimum of one (1) hour's pay whichever is greater, providing that
          the rate of pay for the job  performed  is equal to or higher than his
          current rate of pay.  Shift  premium will be paid on the upgraded rate
          of pay. An employee  assigned  to a temporary  position  where the pay
          grade is less will retain his  Standard  Hourly Base Wage Rate for his
          regular job.

     2.   If an employee is upgraded to any job for  training  purposes  and the
          job is double-staffed  with another employee  instructing the upgraded
          employee,  the upgraded  employee will continue to be paid the rate of
          the job from which he was upgraded until training is complete.

D.   New Jobs

     1.   If the Company  establishes  a new job,  combines  jobs or changes job
          content,  it will  assign  an  appropriate  wage rate to such new job,
          which will be in proper  relationship  to the wage  rates of  existing
          jobs.

     2.   The Local  Union  President  shall be notified in writing of the newly
          established  job,  combined  job or changed job and its wage rate.  If
          within thirty (30) days after such  notification,  the Union disagrees
          with the wage rate established,  the Plant Manager or his designee and
          the  Local  Union   President   will  enter  into   negotiations   for
          establishing the wage rate.

     3.   If an  agreement  on a rate  cannot  be  reached  by the  Local  Union
          President and the Plant Manager or his designee,  the Union may appeal
          this dispute to Step 3 of the grievance procedure.  At the Third Step,
          the parties  shall utilize the CWS Manual in an attempt to resolve the
          matter.  Such  negotiated  resolution  shall be without  precedent  or
          prejudice and shall not affect the rates of any other jobs.

_____________________                                      _____________________
Company                                                                    Union

                                       8
<PAGE>

     4.   If the matter  cannot be  resolved at Step 3, the Union may appeal the
          grievance to Step 4. In deciding the grievance,  the Arbitrator  shall
          utilize the CWS Manual.

E.   Job Description and Classification

     In the absence of a job  description,  or a need to review an existing  job
     description  because of an issue,  the  Company and the Union agree to meet
     within  thirty (30)  calendar  days for  discussion  and  resolution of the
     issue.

_____________________                                      _____________________
Company                                                                    Union

                                       9
<PAGE>

                                   ARTICLE 5
                    SHIFT DIFFERENTIALS AND SCHEDULE PREMIUM

Shift Differentials

     For employees hired prior to July 31, 1995:

A.   For hours worked on the afternoon  (third)  shift,  a premium rate of three
     (3) percent of the Standard  Base Wage Rate will be paid.  For hours worked
     on the night  (first)  shift,  a premium  rate of five (5)  percent  of the
     Standard  Base Wage Rate will be paid.  The 12-hour  day shift  receives no
     shift  differential.  The  12-hour  night  shift  receives  the night shift
     differential of five (5) percent of the Standard Base Wage Rate.

     For Employees hired on or after August 1, 1995:

     For hours worked on the  afternoon  (third) shift a premium of 30 cents per
     hour will be paid. For hours worked on the night (first) shift a premium of
     35 cents per hour will be paid.  The  12-hour  day shift  receives  a shift
     differential of 30 cents per hour. The 12-hour night shift receives a shift
     differential of 35 cents per hour.

B.   Extra hours  worked  prior to or beyond the hours of the shift for which an
     employee  is  scheduled  that  day,  will be paid  the  shift  differential
     applicable to the shift on which the extra hours are worked for these hours
     or the shift  differential  applicable to the shift for which scheduled and
     worked, whichever is greater.

C.   Shifts shall be identified in accordance with the following:

     1.   Day shift includes all shifts regularly  scheduled to commence between
          4:00 a.m. and 8:30 a.m., inclusive.

     2.   Afternoon  shift includes all shifts  regularly  scheduled to commence
          between 1:30 p.m. and 4:30 p.m., inclusive.

     3.   Night  shift  includes  all shifts  regularly  scheduled  to  commence
          between 6:45 p.m. and 12:30 a.m., inclusive.

D.   Should  it be  necessary,  in the  interest  of  efficient  operations,  to
     establish  schedules  departing  from the normal work week, the Company and
     the Chairman of the Grievance  Committee  shall  confer,  together with the
     Department Grievance man of the department affected,  to determine whether,
     based  upon the  facts of the  situation,  mutually  satisfactory  modified
     schedules can be arranged, but the final right to arrange working schedules
     rests with the Company, in order to avoid adversely affecting the operation
     of the Plant. This right shall not be exercised in an arbitrary fashion for
     the purpose of depriving employees of rights under this agreement.

_____________________                                      _____________________
Company                                                                    Union

                                       10
<PAGE>

E.   Any hours  worked by an  employee  on a regularly  scheduled  shift,  which
     commences at a time not  specified in paragraph C, above,  shall be paid as
     follows:

     1.   For hours worked which would fall in the  prevailing  day shift of the
          department, no shift differential shall be paid.

     2.   For hours worked which would fall in the prevailing afternoon shift of
          the department, the afternoon shift differential shall be paid.

     3.   For hours worked which would fall in the prevailing night shift of the
          department, the night shift differential shall be paid.

     4.   Where  two or more  overlapping  shifts,  exclusive  of the  regularly
          scheduled  shift which  commences at a time not specified in Paragraph
          C, above,  prevail in a department,  the prevailing day shift shall be
          deemed to be from 8:00 a.m.  to 4:00 p.m.,  the  prevailing  afternoon
          shift from 4:00 p.m. to Midnight,  and the prevailing night shift from
          Midnight to 8:00 a.m.

Schedule Premium

A.   A schedule  premium of 30 cents per hour will be paid to all  employees who
     are  assigned to work regular  schedules on days other than Monday  through
     Friday.  This  scheduled  premium  will not be paid  for  hours  worked  on
     Saturday  and/or Sunday as additional  days in the employees'  regular work
     week.

B.   Schedule premium will be added to each hour worked on:

          Holidays,
          Sixth and seventh consecutive days in a workweek, and
          Hours worked on call-in or reporting.

     Schedule  premium  will  NOT be used in the  calculation  of pay for  hours
     compensated for but not worked, such as:

          Jury or Witness service
          Funeral leave
          Holiday not worked
          Call-in or reporting pay

C.   For the purpose of this Article the term "scheduled cycle" is defined as an
     employee's  established work pattern or the number of weeks, Monday through
     Sunday,  that must lapse before the  employee's  schedule  begins to repeat
     itself.

_____________________                                      _____________________
Company                                                                    Union

                                       11
<PAGE>

D.   Employees  whose  regular  schedules  provide that half or less of the work
     weeks in a scheduled  cycle are other than  Monday  through  Friday,  shall
     receive  schedule  premium  only for hours  worked in the work weeks  which
     involve scheduled days other than Monday through Friday.

E.   Employees  on  regular  twelve  (12) hour  rotating  shifts  shall  receive
     schedule premium for all hours worked.

F.   Employees whose regular  schedule  requires them to work more than one half
     of the work weeks in a scheduled  cycle on days other than  Monday  through
     Friday shall receive schedule premium for all hours worked.

G.   Employees,  in positions  not regularly  entitled to schedule  premium pay,
     shall receive schedule premium pay for all hours worked while  substituting
     a minimum of one (1) shift for an employee  entitled  to  schedule  premium
     pay.

_____________________                                      _____________________
Company                                                                    Union

                                       12
<PAGE>

                                    ARTICLE 6
                     HOURS OF WORK, OVERTIME AND PREMIUM PAY

I.   Hours of Work

     A.   This Article is intended only to provide a basis for establishing work
          schedules and for calculating overtime and shall not be construed as a
          guarantee of hours of work per day or per week.

     B.   For the purposes of this Article,  the normal workweek consists of the
          seven consecutive days beginning at the following times:

          a.   For  employees  on twelve hour  shifts:  7:00 a.m.  Monday or the
               twelve hour shift changing nearest that time.

          b.   For all other employees, the shift changing nearest to 12:01 a.m.
               Monday.

II.  Overtime

     A.   To the extent possible all overtime shall be voluntary.

     B.   As much notice as possible will be given employees offered or assigned
          overtime.

     C.   Overtime  will be offered to the  employee  with the lowest  number of
          overtime  hours in a section and  qualified  for the job being filled.
          For this  purpose,  overtime  hours shall be measured by  accumulative
          hours worked and refused in the last calculated  period.  If the hours
          are equal,  overtime  will be offered  to the  employee  with the most
          sectional  seniority.  If the  employee  with  the  lowest  number  of
          overtime hours refuses the overtime it will be offered to the employee
          with the next lowest  number of overtime  hours worked and refused and
          so on until the overtime vacancy is filled.

          The employees refusing the overtime, as well as the employee accepting
          the  overtime,  will have the  amount of  overtime  hours  worked  and
          refused added to their accumulative amount.

          If none of the  employees  accepts  the  overtime  offered to them the
          employee with the least amount of overtime  hours will be assigned the
          overtime.

     D.   Overtime  shall be managed  according  to the  established  procedures
          within each  section of the Plant.  Established  sectional  procedures
          shall conform in all instances with paragraph C above.

_____________________                                      _____________________
Company                                                                    Union

                                       13
<PAGE>

     E.   The remedy for unequal  distribution of overtime shall be equalization
          of overtime.

     F.   The  solicitation  and  call-in  of all  overtime  shall  be the  sole
          responsibility of Management and no bargaining unit employees shall be
          involved in the solicitation and call-in process.

III. Overtime Pay

     A.   Employees who work in excess of their regularly  scheduled  workday or
          in excess of 40 hours in a payroll week shall receive  overtime pay of
          one and one half times their Standard Base Wage Rate  including  shift
          differential and schedule premium.

IV.  Sixth Consecutive Day

     A.   Employees who work on a sixth consecutive day shall receive pay of one
          and one half  times  their  Standard  Base Wage Rate  including  shift
          differential and schedule premium for all hours worked.

V.   Seventh Consecutive Day

     A.   Employees who work on a seventh  consecutive  day shall receive pay of
          two times their Standard Base Wage Rate including shift  differential,
          plus schedule premium for all hours worked.

VI.  Sundays Worked

     A.   Eight,  nine, and ten-hour  employees who work on Sunday shall receive
          pay of one and one half times  their  Standard  Base Wage Rate for all
          hours worked. As of the effective date of this Agreement,  twelve-hour
          employees shall receive pay of 1.3 times their Standard Base Wage Rate
          for  hours  worked  under 40.  Effective  April 1,  2003,  twelve-hour
          employees shall receive pay of 1.4 times their Standard Base Wage Rate
          for hours worked under 40.

VII. Work Performed on Scheduled Day Off

     A.   Employees who work on their scheduled day off shall receive pay of one
          and one half times their  Standard Base Wage Rate for all hours worked
          provided  the  employee  actually  works all of the  scheduled  shifts
          during the workweek.

_____________________                                      _____________________
Company                                                                    Union

                                       14
<PAGE>

VIII. Pay At Rate of Assigned Job

     A.   The calculation of pay pursuant to this Article for employees who work
          a higher pay rate job shall be at such higher pay rate.

IX.  No Pyramiding

     Payment of overtime  and/or  premium rates will not be  duplicated  for the
     same hours  worked,  but the higher  applicable  rates will be used.  Hours
     compensated at overtime  and/or premium rates shall not be counted  further
     for any purpose in determining  overtime and/or premium liability under the
     same or any other overtime and/or premium pay provision.

X.   Emergency Conditions

     In the event of  emergency  conditions,  employees  normally  asked to work
     eight (8) hours will be paid  straight  time for the first eight (8) hours,
     time and  one-half  will be paid over  eight (8) hours up to  sixteen  (16)
     hours,  and double-time  will be paid for all continuous  hours worked past
     sixteen  (16)  hours.  Employees  normally  asked to work  twelve (12) hour
     shifts will be paid straight time for the first twelve (12) hours, time and
     one-half  for the  next  four (4)  hours  up to  sixteen  (16)  hours,  and
     double-time will paid for all continuous hours past sixteen (16) hours. For
     example,  an  8-hour  shift  employee  is needed to stay at work due to the
     emergency for a total of forty-eight  (48) straight hours.  The first eight
     (8) hours are at  straight  time,  the next eight (8) hours are at time and
     one-half, the last thirty-two (32) hours are at double-time.

     Time  required by  employees to eat and take short naps in order to refresh
     so they  can get  back to work  will be paid  time.  Employees  who are not
     required to stay at work and were not given  substitute work are to go home
     if possible.  If they prefer to stay for their own  convenience,  they will
     not be  paid  but may  bed  down  and  are  free  to eat  whatever  food is
     available.

     If a team  member  missed  work due to the  emergency,  he will be  allowed
     vacation time or Company option. This emergency time missed shall not count
     against perfect attendance.

XI.  Pay Recipe

     A.   The  parties  shall  develop a Pay  Recipe  setting  forth in  clearly
          understandable  terms  the  calculation  of  wages  pursuant  to  this
          Agreement.

_____________________                                      _____________________
Company                                                                    Union

                                       15
<PAGE>

                                   ARTICLE 7
                            BREAKS AND MEAL ALLOWANCE

Breaks

A.   Employees shall be provided with one break in the first half of their shift
     and one break in the second half of their shift.

B.   Employees on eight hour shifts shall be provided two ten (10) minute breaks
     over the course of their shift.

C.   Employees on nine hour shifts shall be provided two ten (10) minute  breaks
     over the course of their shift.

D.   Employees  on ten hour  shifts  shall be provided  two fifteen  (15) minute
     breaks over the course of their shift.

E.   Employees  on twelve  hour shifts  shall be  provided  with two twenty (20)
     minute breaks over the course of their shift.

F.   Employees  shall be  provided  with one thirty  (30)  minute meal break per
     shift.

Meal Allowance

G.   As of the effective date of this Agreement,  a cash coupon in the amount of
     $4.50 will be provided to employees who are required to perform four (4) or
     more hours of work before or after their regular shift.  Effective December
     1, 2001, the cash coupon shall be in the amount of $5.00.

_____________________                                      _____________________
Company                                                                    Union

                                       16
<PAGE>

                                   ARTICLE 8
                             REPORT AND CALL IN TIME

1.   An employee who reports for work at his  regularly  scheduled  time without
     previous  notice  not to  report  shall  receive  four (4) hours pay at his
     Standard Base Wage Rate.

     The provisions of section 1 shall not apply in the event of:

     (a)  A  work  stoppage,  a  failure  of  utilities  occur,  an  Act  of God
          interferes with providing work;

     (b)  The employee reports unfit to work;

     (c)  The employee refuses to accept an assignment;

     (d)  The Company gives reasonable notice of a change in scheduled reporting
          time or that the employee  specifically need not report. Actual notice
          or a notice broadcast by local radio stations at least one hour before
          the scheduled starting time shall be considered reasonable notice.

2.   An  employee  who is called in to work by the Company at any time before or
     after but not  continuous  with his work shift shall be paid the greater of
     (i) one and one-half (1 1/2) times his  Standard  Base Wage Rate for actual
     hours  worked  prior to the start of his regular  shift  unless the call-in
     hours result in premium pay for working  sixth and/or  seventh  consecutive
     days,  or (ii) a minimum  of eight (8) times his  Standard  Base Wage Rate.
     "Continuous  with" as used above is not  applicable  to  employees  who are
     called out, i.e.,  actually  report in at least two (2) hours in advance of
     their regular shift.

     If no work is  available  when the  employee  arrives  at work,  he will be
     guaranteed  four (4) hours at his Standard  Base Wage Rate. If the employee
     works at an upgrade he will receive call-in pay at the upgraded rate.

     If the call-in  work  assignment  is at a higher rate of pay,  the employee
     shall receive the higher rate of pay including shift and schedule  premiums
     when applicable.

3.   An  employee  will be eligible  for the  call-in pay  provided in section 2
     above when he is called in after having left the Plant,  provided that less
     than  twenty-four  (24)  hours  notice is given and less than  ninety  (90)
     minutes  elapse from the time the  employee is  contacted  and the time the
     employee actually reports unless unusual, extenuating circumstances exist.

_____________________                                      _____________________
Company                                                                    Union

                                       17
<PAGE>

4.   Employees are usually called in for the duration of a specific job or jobs.
     The  completion of one shift or the start of another shift has no effect on
     the call-in.  The employee's  supervisor shall have the option to decide if
     the  employee  who is  called-in  will be  expected  to return for his next
     scheduled shift.

5.   An employee  called out for a specific  job may, at the  discretion  of the
     Company,  be assigned to perform  another  job  provided  the second job is
     because of a breakdown.

6.   If an  employee  is  called  in or  otherwise  works  on one or more of his
     scheduled days off resulting in a 6th and 7th day situation the call-in pay
     is not  applicable.  If the number of hours  worked on the  call-in is less
     than eight (8) hours,  a minimum of eight (8) times the Standard  Base Wage
     Rate is guaranteed.

_____________________                                      _____________________
Company                                                                    Union

                                       18
<PAGE>

                                   ARTICLE 9
                                    VACATIONS

Eligibility

     A newly hired  employee will not receive any vacation,  but will be earning
one (1) day of paid vacation for each full month that he works,  up to a maximum
often (10) days to be taken the next calendar year.  Computation for vacation is
done on December 31 of each year.

     To be eligible  for  vacation in any  calendar  year (except for first year
vacation),  an employee must (i) be on the payroll through 12/31 of the previous
year, (ii) on 12/31 of the preceding  calendar year have one (1) year or more of
continuous  service,  and (iii) have worked a minimum one thousand  (1000) hours
the preceding calendar year. In the alternative, an employee will be entitled to
a  vacation  with pay  during  the  current  calendar  year if,  at 12/31 of the
preceding year, or at any time while working between 1/l/ and 11/30,  inclusive,
of such  calendar  year,  the  employee has  completed  one (1) or more years of
continuous  service  and  has  worked  1000  or more  hours  in the  immediately
preceding 365 calendar days.

     Employees hired after 12/31/88 will be eligible for the following vacation:

     Continuous Year of Service
     As of 12/31/88                        Vacation Eligibility
     --------------------------            --------------------

     0 but less than 1                     10 days maximum (1 day per each full
                                           month service)
     1 but less than 10                    10 days (80 hours)
     10 but less than 25                   15 days (120 hours)
     25 and over                           20 days (160 hours)

     Employees hired between 1/1/83 and 12/31/88 are frozen at the levels listed
below until such time that the vacation  eligibility  listed  above  exceeds the
following levels:

     Employment Dates                      Vacation Eligibility
     ----------------                      --------------------

     1/1/83 to 12/31/84                    18 days (144 hours)
     1/1/85 to 12/31/86                    15 days (120 hours)
     1/1/87 to 12/31/88                    12 days (96 hours)

_____________________                                      _____________________
Company                                                                    Union

                                       19
<PAGE>

     Employees hired before 1/1/83 are frozen at the  eligibility  levels listed
below:

     Employment Dates                      Vacation Eligibility
     ----------------                      --------------------

     Prior to 1/1/71                       28 days (224 hours)
     1/1/71 to 12/31/75                    26 days (208 hours)
     1/1/76 to 12/31/80                    24 days (192 hours)
     1/1/81 to 12/31/82                    21 days (168 hours)

     Employees who have transferred from other Southwire facilities shall retain
any existing vacation entitlements in excess of those set forth above.

     Paid  absences  shall count as time  worked for the purpose of  determining
vacation eligibility up to a maximum of forty (40) hours weekly. These are:

     Work related disability
     Vacation
     Holidays
     Jury and witness duty
     Funeral leave

     Annual military training,  time off for Union business,  and Company option
hours  will  count  as time  worked  for the  purpose  of  determining  vacation
eligibility up to a maximum of forty (40) hours weekly.

     In addition, a day of vacation will be considered as a day worked for sixth
and seventh day purposes and for calculation of premium pay.

Vacation Pay

     Vacation pay will be the greater of:

     (i)  Employee's  current  Standard  Base Wage Rate times number of vacation
          hours; or

     (ii) Current year's gross pay (when employee has worked less than 240 hours
          this will be the previous year's gross pay) minus the pay received for
          time not worked such as vacation,  jury and witness duty,  and funeral
          leave  divided by current  year's hours worked  (previous  year's when
          less than 240 hours worked) times number of vacation hours.

Pay In Lieu of Vacation

     An  employee  may  elect  to  take  pay in lieu of  vacation.  Pay  will be
calculated as above.  Vacation pay will be calculated  the same whether for time
off or pay in lieu of time off. An employee  will be asked to decide  during the
vacation-scheduling period whether he will take his vacation days as time off or
pay in lieu of time off.

_____________________                                      _____________________
Company                                                                    Union

                                       20
<PAGE>

Vacation Scheduling

     Vacations  may be  scheduled  by the week  with a limit of two  consecutive
weeks.  Scheduling  will be by  Plant  seniority  due to  availability  within a
vacation or work group. Typically,  the most senior employee within a work group
will be asked to  schedule  vacation  first at which time the  employee  will be
allowed to schedule any or all days provided  they are scheduled  consecutively.
After the most  senior  employee  has been  given the  opportunity  to  schedule
vacation the next senior  employee  shall be given the  opportunity  to schedule
vacation.  After all employees  within a work group are given the opportunity to
schedule  vacation the most senior  employee  will be given the  opportunity  to
schedule  any and all of  their  remaining  vacation  consecutively  or elect to
schedule  any  remaining  vacation at a later date as  necessary on a first come
basis  provided  he gives  twenty-four  (24) hours  notice  prior to taking off.
Vacations may be scheduled one day at a time,  except that  employees  with less
than two (2) weeks vacation  eligibility may request vacation one day at a time,
subject to the approval of his supervisor and the Human Resources Department.

     Yearly  vacation  cannot be postponed  until another year. No more than two
(2) weeks may be  scheduled  during  prime  time,  i.e.  the period  between and
including 6/1 and 8/31, the first two (2) weeks in January, and the last two (2)
weeks in December.

_____________________                                      _____________________
Company                                                                    Union

                                       21
<PAGE>

                                   ARTICLE 10
                                    SENIORITY

A.   Definition of Seniority

     1.   Plant  Seniority:  The  Company  recognizes  Plant  seniority  as  the
          employee's length of continuous  service from the last date of hire at
          the Plant,  including  service with NSA; for benefit accrual  purposes
          only,  the Company will  recognize  an  employee's  existing  combined
          length  of  service  from the  last  date of hire  with NSA and  other
          Southwire facilities.

     2.   Sectional Seniority:  The Company recognizes sectional seniority as an
          employee's length of continuous  service in a particular section since
          the last date of entry into that section, including service with NSA.

B.   Probationary Period

     The first  sixty (60) days of actual  work  shall be deemed a  probationary
period  and  during  such  probationary  period an  employee  may be laid off or
terminated  at the  discretion  of the  Company and will  receive no  continuous
service  credit  during such  period.  Probationary  employees  continued in the
service of the  Company  subsequent  to the  sixtieth  (60th) day of actual work
after the first (lst) day worked shall receive full  continuous  service  credit
from  the  date of  first  (lst)  day  worked.  If an  employee  is laid  off or
terminated  during his  probationary  period and is rehired  within one (1) year
thereafter,  the days actually worked prior to such layoff or termination  shall
be added to the days actually  worked after rehire in determining the completion
of his probationary period.

     If,  however,  such an employee is rehired within two (2) weeks of his last
layoff or termination from employment,  his continuous  service date will be the
date of hire for his prior employment.

C.   Post-Secondary Student Employment

     When the Company  determines the need for additional  employees  during the
traditional  summer months and Christmas  holiday  breaks,  it shall give hiring
preference to the post-secondary student sons and daughters of Company employees
who are age 18 or over.  No  student  employee  shall  work past the end of such
breaks.  Student  employees shall not displace any member of the bargaining unit
or be given  preference to bargaining  unit work over a bargaining  unit member.
The  appropriate  rate of pay shall be the starting  Standard Base Wage Rate set
forth in Appendix A for a  bargaining  unit member  doing the same job.  For the
purpose  of this  Article,  time  worked  as a  student  employee  shall  not be
considered as "probationary  time" and no seniority  accrues for any purpose for
time worked as a student  employee.  The Company shall assign student  employees
with due consideration to the hazards of the jobs to be performed.

_____________________                                      _____________________
Company                                                                    Union

                                       22
<PAGE>

D.   Promotions and Transfers

     Promotions and transfers  shall be awarded to the senior  employee with the
ability, qualifications,  and the physical fitness to perform the job. Sectional
seniority will be used to fill positions within a section.  Plant seniority will
be used to bid from one section to another.

E.   Reduction in Forces

     A reduction in force is any cutback in the staffing  level on a job or in a
section which results in the  temporary or permanent  displacement  of employees
within or between  sections which does not cause a layoff.  A layoff occurs only
when employees are put out of work because work is not available.

     If a reduction in force or a temporary  reassignment becomes necessary,  it
will be undertaken by sectional seniority in each section as follows:

     1.   If a reduction  in force  occurs  within a section,  the least  senior
          employee  in the job being  reduced  will  displace  the least  senior
          employee  in the  same job  grade or any  lower  job  grades  that the
          employee's sectional seniority will allow, until the reduction in that
          section is complete,  provided  said employee in the job being reduced
          has the ability,  qualifications  and physical  fitness to perform the
          lower graded job Exception: When the realignment of a crew size in the
          Maintenance  Mechanic  or  Electrician  classification  results  in  a
          reduction in force, the displaced  employee can displace a less senior
          employee in any other Maintenance Mechanical or Electrical Maintenance
          classification, whichever is applicable.

     2.   If a reduction in force  requires that an employee be displaced out of
          his section, the employee with the least amount of sectional seniority
          will be displaced regardless of classification.  In the event that the
          affected  classification  needs  to be  staffed,  then  the  resulting
          vacancy will be filled through Job Posting procedures.

     3.   Employees being displaced from a Production  section will be placed in
          a General Helper classification.

     4.   If a reduction in force occurs within the Maintenance Department,  the
          least senior employee in the section being affected will be displaced.
          Employees being displaced from a Maintenance section will be placed in
          the Services section,  provided there is a vacancy in that section. In
          the event that there is no vacancy  available in the Services section,
          the displaced  employee has the option of using his Plant seniority to
          displace  a   Production   worker,   provided  he  has  the   ability,
          qualifications  (following receipt of proper orientation) and physical
          fitness  to  perform  the  Production  job.  Employees  who are in the
          Maintenance  Training  Program  will be  displaced  in  order of least
          amount of  credited  time in the  program  (by Plant  seniority  where
          credited  training  time  is  equal)  before  classified   Maintenance
          employees are displaced.

_____________________                                      _____________________
Company                                                                    Union

                                       23
<PAGE>

          If an employee is assigned work in a lower-graded  job or jobs because
          work is not  available in his regular job or because of a reduction in
          force,  such  employee will receive the Standard Base Wage Rate of the
          job  which  the  employee  left  for five  (5)  consecutive  scheduled
          workdays.  After completing five (5) consecutive scheduled workdays on
          a lower-graded job or jobs, the employee will receive the rate of that
          job.

     5.   If a  reduction  in force  requires an employee to be placed on layoff
          the employee with the least Plant  seniority will be placed on layoff,
          regardless of  classification,  provided  that the retained  employees
          have the ability, qualifications,  and physical fitness to perform the
          remaining jobs.

          The  Company  reserves  the right to make an  exception  to the normal
          reduction  in force  process in jobs  identified  as  critical  to the
          operation of the Plant.

          Employees  who were  exempted  from a sectional  reduction in force by
          virtue of their job being  identified  as critical  would  likewise be
          exempt from a corresponding Plant layoff.

     6.   A senior employee in the job being reduced can volunteer for a layoff.

     7.   Critical Jobs

          In the event of a reduction in force or layoff, it shall be understood
          the following jobs shall be considered critical:

          a.   Boat Operators

          b.   Rectifier Operators

          c.   Utility Operators (Water Treatment)

          d.   Electrical Technician

          e.   Cell Liner "C" Grade

          f    Scrubber Operators

          g.   Heavy Equipment Operators

          These  employees  may be retained in the event of a reduction in force
          or layoff

F.   Restoration of Forces

     An employee  who is  displaced  from his job or section  will have  "recall
rights" for  eighteen  (18)  months to that job or section,  as the case may be,
through the Job Posting  procedure.  Employees will forfeit such "recall rights"
to the job or section from which they were displaced if:

_____________________                                      _____________________
Company                                                                    Union

                                       24
<PAGE>

          -    they fail to bid on that job, regardless of shift, when posted;

          -    they  accept a job in another  section  through  the Job  Posting
               procedure;

          -    they become otherwise  ineligible because of medical restrictions
               that  cannot  be  reasonably  accommodated  as  required  by  the
               Americans With Disabilities Act, or terminations;

          -    their Plant recall has expired.

     Production  employees  on layoff from the Company  shall be recalled to the
Plant  in  order of  greatest  Plant  seniority  regardless  of  classification,
provided the employee has the ability, qualifications,  and the physical fitness
to perform the job. Maintenance  Department employees reduced from their section
shall be recalled in order of greatest sectional seniority in the classification
being recalled.

G.   Temporary Shift Trades

     Temporary shift trades may occur as long as:

          a.   A completed  "Request  for Shift  Trade" form is submitted to the
               employee's  general  supervisor  twenty-four  (24) hours prior to
               either employee working the other's shift;

          b.   Both employees are in the same job classification;

          c.   The trade does not cause either  employee to work hours in excess
               of his regularly scheduled work week;

          d.   The shift trades occur  within the same  payroll  week,  or if in
               different  payroll  weeks the Company  does not incur  additional
               overtime expense;

          e.   If the  trade  requires  that the  employee's  work more than the
               normal  amount of hours in a  twenty-four  (24) hour period (i.e.
               double  shift)  both  employees  must  agree to sign a waiver for
               daily overtime for the extra hours worked during the actual shift
               trade and

          f.   There is no adverse impact on operational requirements.

     Employees substituting under the above terms:

          a.   Are not eligible to receive  upgrades  unless all other  eligible
               members of the normal work crew refuse the upgrade.

_____________________                                      _____________________
Company                                                                    Union

                                       25
<PAGE>

          b.   Will receive the premium available for the shift.

H.   Preferential Seniority

     In the  event  of a  reduction  in  force in a  department,  the  Grievance
Committee  person may exercise  preferential  seniority  and shall remain in the
affected  department  in the lowest rated job,  provided  there are employees in
that  department  to  represent.  In the  event  of a  reduction  in  force in a
department in which the President of the Local Union is assigned,  the President
may exercise preferential  seniority Plantwide to remain in the lowest rated job
in the Plant.

     Preferential Seniority shall not be recognized for any other purpose.

I.   Leave of Absence

     1.   Employees  shall  request  a leave  of  absence  from the  Company  by
          completing the appropriate Company forms.

     2.   An employee's  request of personal  leave of absence may be granted at
          the  discretion of the Company.  Such leaves of absence may be granted
          for an  initial  period  of up to  thirteen  (13)  weeks  and shall be
          without  pay. An  extension  of leave shall be  requested  in the same
          manner as outlined in number 1 of the above and must be  requested  at
          least three (3) calendar days prior to the  expiration of the original
          leave or extension thereof.

     3.   Employees may request a medical leave of absence.  For disabilities of
          seven (7) calendar days or more for medical  reasons,  employees  must
          request a medical  leave of absence.  Certification  by a physician of
          the necessity of the leave and specifying the physical condition which
          necessitated  it and the  estimated  length of time  needed to be away
          from work may be required by the Company.

     4.   Except as otherwise  required by the Federal  Family and Medical Leave
          Act  of  1993   ("FMLA"),   a  medical  leave  of  absence  due  to  a
          non-occupational  illness  or injury  may be  granted  for a period of
          normal recovery time, with options to extend if necessary.

     5.   When an employee is  informed by his  physician  that he may return to
          work with  temporary  restrictions,  the  employee  must  apply to the
          Company Medical Department for a restricted work assignment that would
          fall  within  his  return to work  limitation.  This  restricted  work
          assignment  procedure  has been adopted to expedite the return to work
          of employees off from work due to illness or injury.  Restricted  work
          assignments are strictly temporary  positions,  the length of which is
          discretionary  with the  Company  and in no event will  exceed two (2)
          weeks  unless  extended  by the  Company.  The  availability  of  such
          positions are limited and are not guaranteed.

_____________________                                      _____________________
Company                                                                    Union

                                       26
<PAGE>

          For those employees on medical leave,  the Company  reserves the right
          to require said employees to accept such restricted work assignment if
          they are unable to perform their regular duties. These employees shall
          receive  their  regular  Standard  Base Wage Rate plus any  applicable
          premium  pay for  any  hours  worked.  Disputes  as to the  employee's
          ability to perform the  offered  job shall be subject to Third  Doctor
          Arbitration described in Article 16 D.6.b.

     6.   Any  request  for an  extension  of leave  shall be  accompanied  by a
          physician's  statement  certifying  the necessity of the extension and
          specifying the physical  condition  which  necessitates  the continued
          leave and the estimated length of time needed to be away from work.

     7.   The Company may require a medical  examination by the Company's doctor
          or a special doctor's report, at the Company's  expense,  establishing
          recovery  from the illness or accident to the extent that the employee
          is fully  able to resume  his  regular  work  without  risk of further
          injury  before  permitting  any person who has been absent  because of
          such  leave to resume  his  position.  Disputes  as to the  employee's
          ability to return to work shall be subject to Third Doctor Arbitration
          described in Article 16 D.6.b.

     8.   In every  instance,  a "Request for Leave of Absence"  form  available
          from the Human Resources  Office must be completed and returned to the
          Human  Resources  Office no later  than seven (7)  calendar  after the
          employee's  last day of work,  or in the case of  disability  no later
          than seven (7) calendar days from the first (1st) day of disability.

     9.   The  Company  and  the  Union  affirm  their   compliance   with,  and
          implementation  of,  the  FMLA.  Employees  are urged to  consult  the
          required posting as to their FMLA rights.

          In addition, the parties agree on the following:

          -    Each eligible employee may take up to twelve (12) weeks of unpaid
               FMLA leave in a 365-day period.

          -    The Company may require an employee to use up to eighty-four (84)
               hours of vacation time as FMLA time beginning with the employee's
               first (1st) FMLA request.

          -    Any medical leave of absence granted under this Article shall run
               concurrently with FMLA leave.

_____________________                                      _____________________
Company                                                                    Union

                                       27
<PAGE>

          If an employee  requests FMLA leave because of his own serious  health
          condition,  or to care for a covered  relation  with a serious  health
          condition,  he is required to provide medical  certification  from the
          relevant healthcare provider. Failure to provide medical certification
          is grounds for denial of leave.  The  Company  may require  subsequent
          re-certification  on a  reasonable  basis.  The  Company  may,  at its
          expense,  require  an  examination  by a  second  healthcare  provider
          designated  by  the  Company.  If  the  second  healthcare  provider's
          opinion,  or  the  opinion  of  the  employee's  healthcare  provider,
          conflicts with the original medical  certification,  the dispute shall
          be resolved by the Third  Doctor  Arbitration  described in Article 16
          D.6.b. This healthcare provider shall be a person approved by both the
          employee and the Company. The opinion of the third healthcare provider
          shall be binding.

          While an employee is on approved  leave of absence,  the Company  will
          continue the employee's  medical,  dental,  vision, and life insurance
          coverage  for a period  not to  exceed  twelve  (12)  months;  and the
          employee  shall  pay  his  appropriate   premiums.  If  employment  is
          terminated  while on  leave  of  absence,  eligibility  for  insurance
          benefits ceases. This coverage period begins with the employee's first
          (1st) day of approved leave.

          For the purpose of this section,  "serious health  condition"  means a
          physical or mental condition  requiring  in-patient care of continuing
          treatment by a healthcare provider.

     10.  Political Leave

          An employee  appointed to or accepting  any elective,  full-time  paid
          Federal,  State,  County or municipal  government  office shall,  upon
          appropriate  written  notice  to the  Company,  be  granted a leave of
          absence for the duration of the term of office.  Such employee may not
          accumulate continuous service in excess of one (1) term of office.

          Any employee who shall be granted a leave under this  subsection  will
          be reinstated to such position as his  qualifications  and accumulated
          seniority shall entitle him, provided he shall apply to the Company in
          writing  within  thirty (30) days after the  expiration of his term of
          office  and shall  report  for work  within  ten (10)  days  after his
          application is received by the Company.

J.   Termination of Seniority

     Seniority shall be terminated under this Agreement when:

          a.   an employee quits for any reason;

_____________________                                      _____________________
Company                                                                    Union

                                       28
<PAGE>

          b.   an employee is discharged for just cause;

          c.   an employee is laid off in excess of two (2) years;

          d.   an  employee  fails to report to work after  recall  from  layoff
               within  five  (5)   calendar   days,   excluding   weekends   and
               Company-recognized  holidays, after receiving notice by certified
               mail  at  the  last  address  furnished  to  the  Company  by the
               employee;

          e.   an  employee is  permanently  transferred  out of the  bargaining
               unit;

          f.   an  employee  is  absent  for  three  (3)  consecutive  scheduled
               workdays without good and satisfactory reason;

          g.   an employee retires;

          h.   an  employee  fails to  report  to work on the  first  (lst)  day
               following  expiration  of a leave  of  absence  without  good and
               satisfactory  reason and without  notice  prior to the  scheduled
               date of return, where such notice is reasonably possible;

          i.   an employee engages in any other regular  employment  (other than
               the employee's  "normal  moonlighting"  job, of which the Company
               was previously  aware and provided that its' performance does not
               interfere with the  employee's  return to work) while on leave of
               absence without the Company's consent;

          j.   an employee settles a Workers'  Compensation claim for disability
               and is no longer able to work;

          k.   an  employee  engages in any other  regular  employment  while on
               leave of absence for a Workers' Compensation matter or a Sick and
               Accident  matter,  without first  obtaining  permission  from the
               Company.  A "normal  moonlighting"  job, of which the Company was
               previously  aware,  shall not be construed as a violation of this
               Article,  provided that its'  performance does not interfere with
               the employee's return to work;

          l.   an employee is on medical leave for a period of two (2) years.

_____________________                                      _____________________
Company                                                                    Union

                                       29
<PAGE>

                                   ARTICLE 11
                             JOB BIDS AND TRANSFERS

Section 1      After applying,  in appropriate cases,  Section 2 below, all open
               positions  shall be posted for bidding.  Open positions  shall be
               posted on Wednesday and taken down the following  Monday,  unless
               Monday is a  holiday,  in which  case they will be taken down the
               next   recognized   workday.   Before  opening  a  job  for  bids
               plant-wide,  the  Company may elect to first post the job only in
               the department in which the job is available.

Section 2      When  an  opening  in a  particular  job  occurs,  except  in the
               potlines,  employees  in the  same job in that  section  shall be
               canvassed to  determine,  by sectional  seniority,  if they would
               like to fill the open position and subsequently  created openings
               in the same job. Only one such bid (lateral)  will be honored per
               vacancy.

Section 3      In order to be awarded a bid on a posted  job,  an  employee,  in
               addition to meeting the criteria of Article 10:

               a.   must be  licensed  if any  license is required by Federal or
                    State law or certified if any certification program for that
                    classification has been established by the Company;

               b.   must be a regular, full-time employee;

               c.   must not have accepted then  rejected,  in the first year of
                    this  Agreement,  two (2) job  offers  within  the  last 180
                    calendar days;

               d.   must not have accepted then rejected, in the remaining years
                    of this  Agreement,  one (1) job offer  within  the last 180
                    calendar days;

               e.   must be able to return to work  with a full  release  within
                    thirty  (30)  calendar  days after  selection  is made if on
                    medical  leave,  unless the new job is within the  employees
                    current department.  The thirty (30) day restriction will be
                    waived for all bids made within a section;

               f.   has  not   worked  at  the   posted   job  before  and  been
                    disqualified, unless the circumstances have changed.

Section 4      Employees  shall be  considered  for an open job in the following
               order:

               a.   Other employees presently in the job in the section,  except
                    in the potlines;

_____________________                                      _____________________
Company                                                                    Union

                                       30
<PAGE>

               b.   Employees  previously  displaced  from  the  job at  Company
                    request  within the past  eighteen (18) months who are still
                    within the section;

               c.   Other   employees  in  the  section  with  the  job  opening
                    including  employees  presently in the job classification in
                    the section desiring to change shift  configurations  when a
                    lateral bid has already occurred for the original vacancy;

               d.   Employees  previously  displaced from the section at Company
                    request within the past eighteen (18) months;

               e.   Employees elsewhere in the plant;

               f.   Probationary employees, with the Company's discretion.

               If  there  is more  than  one (1)  eligible  candidate  within  a
               category,   employees   shall  be  considered  by  the  pertinent
               seniority.

Section 5      In the event the successful bidder declines the job, then the job
               will be offered to next most senior  qualified bidder without the
               necessity of having to rebid the job.

Section 6      Unless  mutually  agreed,  transfer  within a section shall occur
               within  seven  (7)  calendar  days.   Circumstances   permitting,
               transfers   between  sections  shall  occur  within  thirty  (30)
               calendar days.

Section 7      If an employee successfully bids for a job and cannot perform the
               job  satisfactorily  within thirty (30) assigned working days, he
               will be returned to his  previous  job with no loss of  sectional
               seniority.  If the employee is returned to a former position, the
               opening created will be filled from the original bid list.

Section 8      An employee may authorize a designated Union official to submit a
               bid on his  behalf.  In the  event  the  successful  bidder is on
               vacation at the time of his selection, he shall have authorized a
               Union  official  to notify the Company on his behalf that the job
               has been accepted.

Section 9      An  employee  who bids to another  section on a  permanent  basis
               shall  lose  his  previous  sectional  seniority,   and  his  new
               sectional  seniority  shall begin from the time he is permanently
               transferred to his new section.

               The  Company  has the  right to add,  delete,  change  or  modify
               sections.

_____________________                                      _____________________
Company                                                                    Union

                                       31
<PAGE>

               If, in so doing, the Company combines  sections causing employees
               to  be  permanently  transferred,   sectional  seniority  of  the
               employees   transferred   to  the  combined   sections  shall  be
               established by merging the seniority lists from each section.  If
               two employees  have the same  sectional  seniority,  the employee
               with the most Plant  seniority shall be placed in the position of
               highest sectional seniority.

               If, in so doing,  the Company  establishes a new section to which
               employees  will be  transferred  from only one (1)  section,  the
               employees   transferred   to  that  section  shall  retain  their
               sectional seniority.

Section 10     An  employee  who removes  himself  from the  bargaining  unit by
               accepting a permanent job outside the bargaining  unit shall lose
               all  seniority  status in the  bargaining  unit.  An employee who
               accepts a temporary job assignment  outside the  bargaining  unit
               shall not lose any seniority status in the bargaining unit during
               that  temporary job  assignment.  Such  temporary job  assignment
               shall not exceed six (6) months  without mutual  agreement.  This
               maximum six (6) month period shall apply to each single temporary
               job assignment.

Area Job Bidding (Maintenance Fruit Basket)

Section 1      Maintenance employees shall be allowed to bid for area relocation
               and/or a different shift  annually.  The Company has the right to
               change the frequency and duration of the bid for specific  areas.
               The Company also has the right to change the  areas/shifts in the
               Maintenance Departments.

Section 2      By  utilizing  the  existing  area  job  bidding   process,   the
               Maintenance  employee with the most sectional  seniority shall be
               awarded his choice of area and/or shift.  After the employee with
               the most sectional seniority has been awarded his area/shift, the
               employee  with  the next  highest  sectional  seniority  shall be
               awarded his  area/shift  and so on until all areas and shifts are
               filled.  Each  Maintenance  employee must make a minimum of three
               (3) selections  with his bid. An employee will be awarded the bid
               based  on  the  ranking  of his  selections  and  the  area/shift
               available.

               At no time will the area job  bidding  allow more than 1/2 of the
               current crew to leave their  area/shift.  If more than 1/2 of the
               current crew bids to leave their area/shift, bids will be awarded
               by sectional seniority within the area/shift.  The employees with
               the least sectional  seniority will remain in the area/shift such
               that no more than 1/2 of the area/shift is changed. For Rectifier
               Operators  and for  Electrical  Technicians,  three (3) years are
               required  and  there  shall be a limit of one (1) out per year on
               Rectifier  Operator  and  two (2)  out  per  year  on  Electrical
               Technician.

Section 3      Maintenance Mechanics shall be allowed to bid for area relocation
               and/or  a  different  shift  within  the  Mechanical  Maintenance
               Department annually.

_____________________                                      _____________________
Company                                                                    Union

                                       32
<PAGE>

               Maintenance area/shifts consist of:

               Hydraulic Shop    *Fab & Field Shop (days)   *Fab Shop (evenings)
               *Potlines         *Carbon (days)             Carbon (nights)
               *Unloading        Casthouse                  *Utilities
               *Air Control      **"A" Shift                **"B" Shift
               **"C" Shift       **"D" Shift

               *The low sectional  seniority  employee in this area is a floater
               and can be moved at the discretion of the Company.

               **In these areas,  the lowest sectional  seniority  employees are
               floaters when their shift is working the day shift.

Section 4      Electricians shall be allowed to bid for area relocation and/or a
               different  shift  within  the  Electrical   Maintenance   section
               annually.

               Electric area/shifts consist of:

               Potlines               "A" Shift (319)       "C" Shift (319)
               Rectifier (3 yr. Term) "B" Shift (potlines)  "D" Shift (potlines)
               "B" Shift (319)        "D" Shift (319)       Carbon (Midnight)
               "C" Shift (potlines)   Carbon
               319 Shop (days)        "A" Shift (potlines)

               Electrical Technicians group (3 year term):

               253 Shop (Day)
               253 Shop (A, B, C, D)

               Note:  The  Electrician  in each area  with the  least  sectional
               seniority  is a floater  and can be moved at Company  discretion.
               Shift  electricians  are required to maintain  Type I and Type II
               certification for proper refrigeration practices.

Section 5      Rectifier  Operators shall be allowed to bid for different shifts
               annually.

Section 6      Machinists shall be allowed to bid for different shifts annually.
               (Swing and Day Shift.)

Section 7      Oilers shall be allowed to bid for different areas annually.

               Oilers areas consist of:

               Casthouse/Air Control   Potlines             Vacation Relief
               Green Carbon            Fab Shop (evenings)   Potlines
               River/Unloading                              Maintenance (nights)

_____________________                                      _____________________
Company                                                                    Union

                                       33
<PAGE>

Section 8      Maintenance  Services (per past practice) shall be allowed to bid
               for different shifts annually. (Swing and Day Shift.)

Section 9      Garage  Mechanics  shall be allowed to bid for  different  shifts
               annually. (Swing and Day Shift.)

Section 10     Air  Control  Operators  shall be  allowed  to bid for  different
               shifts annually.

_____________________                                      _____________________
Company                                                                    Union

                                       34
<PAGE>

                                   ARTICLE 12
                ADJUSTMENTS OF GRIEVANCES & NO STRIKE NO LOCKOUT

     A.   Purpose

     The purpose of this article is to establish  procedures  for the processing
and settlement of grievances as defined in subsection (B) of this Article 12.

     B.   Definition of Grievance

     "Grievance"  as used in the  Agreement  limited to a matter  which  involve
disputes  concerning the  interpretation  or application of, or compliance with,
the provisions of this  Agreement.  Claims relating to benefits  denials,  other
than claims relating to benefit denials by the Steelworkers  Pension Trust, "the
Trust",  and the  Steelworkers  Health and Welfare  Fund,  "the Fund",  shall be
processed through the grievance procedure. Claims relating to benefit denials by
the Trust and the Fund shall be processed  through the applicable ERISA internal
appeal procedure.

     C.   No Strikes

     During the term of this Agreement, neither the Union, its officers, agents,
representatives  or  members,  nor  any  employee  will  engage  in,  authorize,
instigate,  aid, condone or ratify any work stoppage,  strike,  sympathy strike,
slow down or any other  impeding of work for any  reason.  In the event that any
work stoppage,  strike, sympathy strike, slowdown, or any other impeding of work
occurs, the Union, within twelve (12) hours of the request of the Company, shall
undertake  reasonable  steps in an  effort  to  prevent  or  terminate  any such
activity.  Any employee or employees who violate the  provisions of this section
may be  disciplined,  up to and  including  discharge.  Any such  discipline  or
discharge  shall be for cause and is  subject  to the  grievance  procedure  and
arbitration procedure.

     D.   No Lockout

          1.   The Company and its officers, agents and representatives will not
               during  the  term of this  Agreement  engage  in any  lockout  of
               employees.

     E.   Procedures for Grievances

          1.   Should any grievance arise,  there shall be no suspension of work
               on account thereof, but earnest effort shall be made to settle it
               promptly  in the  manner  set  forth  below.  Grievances  must be
               reduced  to writing  before  processing  to the Second  Step upon
               forms furnished by the Union. The procedure shall be as follows:

_____________________                                      _____________________
Company                                                                    Union

                                       35
<PAGE>

                    FIRST:   The  oral  grievance  shall  be  presented  to  the
                    supervisor   within   three  (3)  working   days  after  the
                    occurrence  of  the  matter  which  is  the  subject  of the
                    grievance, or after the employee reasonably should have been
                    aware of the occurrence,  whichever is later. Grievances may
                    be presented to the  supervisor  during  working  hours when
                    such   grievances   concern  matters   requiring   immediate
                    resolution.  The  grievance  shall be  discussed  among  the
                    aggrieved employee, a Union representative,  if the employee
                    so desires, and the supervisor.  The supervisor shall either
                    grant or reject the grievance  within three (3) working days
                    after it has been presented to him.

                    SECOND:  If the dispute is not settled at the first step,  a
                    written   grievance  may  be  referred  to  the   employee's
                    department  head within five (5) working days after  receipt
                    of the supervisor's answer. The grievance shall be discussed
                    among the aggrieved employee,  a Union  representative,  and
                    the  employee's   department  head  or  his  designee.   The
                    employee's  department  head shall give a written  answer to
                    the grievance  within five (5) working days  following  such
                    meeting.

                    THIRD: If the dispute is not settled at the second step, the
                    grievance  may be appealed  within  seven (7)  working  days
                    after  receipt  of the  written  answer  of  the  employee's
                    department  head.  Within fourteen days after a grievance is
                    appealed to the third step,  the  parties  will  establish a
                    date for the third step grievance meeting. The Company shall
                    designate an employee to be its  representative in the third
                    step. The aggrieved employee,  a representative of the Local
                    Union,  the grievance  person from the  department,  and the
                    International  Representative  of the Union  shall meet with
                    the  Company's  representative.   The  Company's  designated
                    representative  shall give a written answer to the grievance
                    within seven (7) working days following such meeting.

          2.   If the dispute is not settled at the third  step,  the  grievance
               may be appealed to arbitration as provided below, provided notice
               of appeal to  arbitration  is served  within thirty (30) calendar
               days  within  receipt  of the  Company  representative's  written
               answer.

          3.   Either  party may  request  a  reasonable  extension  of the time
               limits referred to in the Article. In the event that either party
               fails to  undertake  an action  within the time  limits set forth
               above, such failure shall not operate as a default, provided such
               party,   after  being   notified  in  writing  of  such  failure,
               undertakes  the action  within  seven (7) days of the  receipt of
               such written notification.

_____________________                                      _____________________
Company                                                                    Union

                                       36
<PAGE>

     F.   Arbitration

     The  Company  and  Union  have  agreed  to a panel  of five  (5)  impartial
arbitrators. Selection of an arbitrator for a particular grievance or grievances
shall be from this five-member panel and in a manner mutually agreed upon by the
parties. Arbitrators selected to serve on such panel may be changed from time to
time by mutual agreement of the Company and the Union.

     The  Company  agrees  that it shall not  subpoena  or call as a witness  in
arbitration  proceedings any employee from any bargaining unit. The Union agrees
that it  shall  not  subpoena  or  call as a  witness  in such  proceedings  any
non-bargaining unit employee.

     The  arbitrator  shall have  jurisdiction  and authority only to interpret,
apply or determine compliance with the provisions of this Agreement,  memoranda,
supplements,  etc.,  insofar  as  shall be  necessary  to the  determination  of
grievances   appealed  to  the  arbitrator.   The  arbitrator   shall  not  have
jurisdiction  or  authority  to add to,  detract  from or  alter  in any way the
provisions of this Agreement,  memoranda,  supplements, etc. No arbitrator shall
be selected in a discharge case unless he agrees in advance to render a decision
within 45 days of the close of the record.

     The expense and salary incident to the services of the arbitrator  shall be
shared equally by the Company and the Union.

     Briefs shall be submitted in the course of arbitration only if requested by
the  Arbitrator or by mutual  agreement of the Company and the Union,  except in
grievances  involving  discharge of an employee(s),  in which case, either party
may submit a brief without consent of the other.

     In the event a transcript  is requested by the  arbitrator,  or the Company
elects to have one, the Company will pay the expense of the court reporter,  and
the Union will pay only the cost of their copy of the transcript if they request
one.

     Steps  1, 2, and 3, or any of  them,  may be  waived  by  agreement  of the
parties hereto.  During each step of the grievance procedure,  the Union and the
Company shall disclose the pertinent facts and information  relied upon.  Copies
of such information or materials shall be made available.

     If an  employee  is given a  written  discipline,  written  notice  of such
discipline  shall be given to the employee.  The written  notice shall include a
statement   of  his  right  to  grieve   the   discipline   and  to  have  Union
representation.  Records of previous  disciplinary action more than one year old
shall be void and not used for any purpose.

     In the event an  employee  dies,  the  Union may  continue  to  process  or
initiate  on behalf of his legal  heirs any  grievance  claim  filed prior to or
after the  death,  if such claim  would  result in a  monetary  award  under any
provision of this Agreement.

_____________________                                      _____________________
Company                                                                    Union

                                       37
<PAGE>

     Any payment  required  under a grievance  settlement or  arbitration  award
shall be made within 30 days from such  settlement or receipt of such award.  No
deduction from such payment shall be made for governmental  assistance,  welfare
or private charity assistance received by the grievant during the period covered
by such payment.  Any award of back pay interest at the current prime rate shall
be added to back pay awards  decreed by an arbitrator  which are not paid within
30 days of the receipt of the arbitration  award.  Interest will begin to accrue
on the  31st day  unless  the  parties  agree to  extend  that  time in order to
assemble the necessary data to compute the back pay award. If it is necessary to
obtain a  clarification  of the  arbitrator's  decree in order to determine  the
amount  of  back  pay,  the  thirty-day  period  will  begin  to  run  when  the
clarification of the award is received.

     G.   Expedited Arbitration Procedure

          1.   The  parties  agree  to the  following  Rules  of  Procedure  for
               expedited arbitration.

          2.   Panel of Arbitrators

               The panel of arbitrators has been  established by the headquarter
               representatives of each party.

               The  panel  shall  be kept  current  as the need  arises,  by the
               headquarter representatives of the parties.

          3.   Liaison with Parties

               Union Coordinator
               Collective Bargaining Services Department
               United Steelworkers of America
               AFL-CIO-CLC
               Five Gateway Center
               Pittsburgh, Pennsylvania 15222

               Company Coordinator
               Appropriate Company Representative

          4.   General problems dealing with the Expedited Arbitration Procedure
               to be  discussed  with  parties are to be directed to the offices
               of:

               Robert A. Pierson, Staff Representative
               United Steelworkers of America
               District 8
               2441 Mayfair Drive
               Owensboro, KY 42301

               Appropriate Company Representative

_____________________                                      _____________________
Company                                                                    Union

                                       38
<PAGE>

          5.   Specific  problems  relating to specific  grievances  of hearings
               shall be directed to:

               Steve Janowick, President, Local 9423
               United Steelworkers of America
               P.O. Box 448
               Lewisport, KY 42351

               Appropriate Company Representative

          6.   Expedited Grievances

               Where grievances  concerning written warnings and/or disciplinary
               suspensions of less than five (5) days and alleged  violations of
               Article 15 are to be arbitrated,  they shall be arbitrated in the
               Expedited    Arbitration    Procedure   unless   the   3rd   Step
               representatives  of both parties agree to refer such grievance to
               regular arbitration through regular procedures.

               Any grievance  applied to this  Expedited  Arbitration  Procedure
               must be confined to issues  which do not involve  novel  problems
               and which have limited  contractual  significance  or complexity.
               Matters  involving  discharge or discipline in excess of five (5)
               days shall not be handled in expedited arbitration.

          7.   Hearings

               The hearing shall be conducted in accordance with the following:

               a.   The hearing shall be informal;

               b.   No briefs shall be filed or transcripts made;

               c.   There shall be no formal evidence rules;

               d.   The  arbitrator  shall have the  obligation of assuring that
                    all necessary  facts and  considerations  are brought before
                    him by the  representatives of the parties. In all respects,
                    he shall assure that the hearing is a fair one.

               e.   If the  arbitrator  or the  parties  conclude at the hearing
                    that  the  issues   involved  are  of  such   complexity  or
                    significance  as to  require  further  consideration  by the
                    parties, the case shall be referred to the third step and it
                    shall be processed as though appealed on such date.

_____________________                                      _____________________
Company                                                                    Union

                                       39
<PAGE>

          8.   Decisions

          A.   Decisions  shall be mailed to the  designated  parties  not later
               than  48  hours  after  the  close  of  the  hearing   (excluding
               Saturdays,  Sundays, and holidays).  In no case will decisions be
               given  or sent to only  one of the  parties.  Decisions  shall be
               mailed to all of the parties at the same time. The decision shall
               be based on the record developed by the parties before and at the
               hearing  and shall  include a brief  written  explanation  of the
               basis for their conclusion.

                    Decisions will not be cited as a precedent in any discussion
                    of grievances  or at any step of the grievance  procedure or
                    in subsequent arbitration.

                    The authority of the  arbitrator  shall be the same as those
                    provided in Section F of this Article.

                    The decisions in expedited  arbitration  shall be consistent
                    with the decisions issued by impartial  Arbitrators  through
                    the regular arbitration procedure.

          9.   Fees to Arbitrator for Services and Expenses

               A.   The arbitrator shall be paid on the basis of per hearing day
                    which shall also include his written decision on cases heard
                    in such hearing day.

                    A normal  hearing  day shall be from 9:30 a.m. to 12:30 p.m.
                    and 1:30 p.m. to 4:30 p.m.

               B.   The  expense  and salary  incident  to the  services  of the
                    arbitrator  shall be shared  equally by the  Company and the
                    Union.

     H.   Grievance Committee and Stewards

               Section 1.   There  shall be  a  Grievance Committee  which shall
                            consist of:

                            a.   The Union President as Chairman

                            b.   The Union Vice President as Co-Chairman

                            c.   One potline employee

                            d.   One casting employee

                            e.   One carbon plant employee

                            f.   One maintenance employee

_____________________                                      _____________________
Company                                                                    Union

                                       40
<PAGE>

                           Section 2.   The Union will  appoint one shop steward
                                        and one alternate per shift from and for
                                        each of the following areas:

                                        shift maintenance
                                        casting
                                        rodding
                                        potlines
                                        carbon plants
                                        river/cell lining

                                        The Union will  appoint one shop steward
                                        and one  alternate  from and for each of
                                        the following areas:

                                        electrical
                                        general maintenance
                                        maintenance

                           Section 3.   The Union will  provide the Company with
                                        a   written   list   of  all   Grievance
                                        Committee    members,    stewards    and
                                        alternates  and will provide the Company
                                        with  timely   written   notice  of  any
                                        changes.

                           Section 4.   If there is a significant  change in the
                                        number of  employees  in any  area,  the
                                        Company  and the Union have the right to
                                        renegotiate  the number of stewards  and
                                        the   areas  in  which   they   will  be
                                        selected.

                           Section 5.   Union  stewards and Grievance  Committee
                                        members shall not handle any  grievances
                                        outside of their  respective area unless
                                        the  appropriate  steward  or  Grievance
                                        Committee member is not available.

_____________________                                      _____________________
Company                                                                    Union

                                       41
<PAGE>

                                   ARTICLE 13
                         DISCHARGE CASES AND DISCIPLINE

     In the exercise of its rights under Article 14, the Company  agrees that no
employee shall be peremptorily discharged from and after the date hereof, and in
all  instances  in which the Company may  conclude  that an  employee's  conduct
justifies discharge, he first shall be suspended. Such suspension,  shall be for
not more than five (5) calendar days. During this period of initial  suspension,
the employee if he believes that he has been unjustly dealt with,  shall request
a hearing  and a  statement  of the offense  before the  department  head or his
designated representative,  with his grievance representative and/or Chairman of
the Grievance  Committee present.  At such hearing the facts concerning the case
shall be made  available  to both  parties.  After such  hearing the Company may
conclude whether the suspension shall be converted into discharge, or, dependent
upon the facts of the case,  that such  suspension  be  affirmed,  extended,  or
revoked.  If the  suspension  is  revoked,  the  employee  shall be  returned to
employment and receive full  compensation  for earnings lost, but in the event a
disposition  shall result in the  affirmation  or extension of the suspension or
discharge of the employee, the employee may within five (5) calendar days file a
grievance  in Step 2, which  shall be deemed to have been  appealed to Step 3 of
the  grievance  procedure  under  Section C of Article 12 and the Step 3 meeting
shall be held and a decision made within five (5) calendar days from the date of
filing of such  grievance.  Should it be  determined  by the  Company,  or by an
arbitrator  in  accordance  with  Step 4 of the  grievance  procedure  that  the
employee has been discharged or suspended  without just cause, the Company shall
reinstate the employee and pay full compensation for earnings lost.

     Notwithstanding  the  foregoing,  the  Company and the Union may agree to a
compromise  settlement  of a  discharge  case in the event it is shown  that the
employee was partially at fault,  or an arbitrator may in such a case modify the
disciplinary action.

     Suspension

     In recognition of the desirability of Union  representation for an employee
being suspended, the Company will provide representation by first contacting the
department Grievance Committeeman or in the department Grievance  Committeeman's
absence,  a Union  official so designated  by the Union.  Such contact will take
place prior to the suspended  employee leaving the Plant,  although both parties
accept the fact that the above procedure is not always possible.

     The  Company  will  provide  the  employee  being  suspended  prior  to the
employee's  leaving the Plant,  written  notification  of the suspension and the
reasons therefor.

     Disciplinary  suspensions  shall not commence  during an  employee's  shift
unless, in the opinion of the Company,  the immediate suspension of the employee
is in the best interests of safety or good order.  No such  suspension  shall be
issued until a Union representative has first been notified.

_____________________                                      _____________________
Company                                                                    Union

                                       42
<PAGE>

     With  respect to the matter of  escorting  suspended  employees  out of the
Plant by members of Plant  Protection,  the Company will  provide such  services
only in those instances where it anticipates undesirable reactions.

     The sole intent and purpose of this section is to provide an employee  with
proper knowledge and representation, and nothing contained herein is designed to
change or delete any of the provisions of the Agreement.

     Justice and Dignity on the Job

     Disciplinary  suspensions  of five  (5)  days or less  for  absenteeism  or
tardiness shall be administrative in nature and shall not result in the affected
employee   being  removed  from  active  work  without  pay  prior  to  a  final
determination  of the merits of the suspension in accordance with the Agreement.
Disciplinary  action  of  this  nature  will  become  a part  of the  employee's
personnel  record and may be considered  when  determining  future  disciplinary
action for the  employee.  The parties agree that the  administrative  nature of
this discipline does not minimize the impact of the  disciplinary  action or the
need for correction of employee conduct. It shall be no defense or excuse in any
future disciplinary action for the affected employee or the Union to maintain in
any  arbitration  proceeding  that he did not  understand  the  severity  of any
discipline issued hereunder.

     In recognition of the difficulties imposed upon the Company through failure
of employees to comply with working  schedules,  an employee reporting late for,
or absenting  himself from work without just cause,  may be  disciplined  by the
Company,  subject to the provisions of this Agreement. Any such discipline shall
be issued to the employee within fourteen (14) calendar days, excluding vacation
days or other scheduled days on which the employee is absent,  unless  otherwise
agreed locally.  Employees shall,  wherever  possible,  give prior notice to the
Company whenever they either report late or absent themselves from work.

_____________________                                      _____________________
Company                                                                    Union

                                       43
<PAGE>

                                   ARTICLE 14
                                MANAGEMENT RIGHTS

     The  Company  reserves  and  retains,  solely and  exclusively,  all of its
inherent rights to manage the business and the Plant,  provided this will not be
used for purposes of discrimination against any employee for Union activity. The
right to manage the  business  and the Plant,  and to direct the working  forces
include:  the right to hire,  assign,  suspend or discharge  for just cause;  to
transfer; to determine the complement of employees needed or assigned to perform
any particular function,  in the exercise of which right the Company shall first
meet with the Union and bargain concerning any proposed change and may implement
after reaching  impasse;  to relieve employees from duty because of lack of work
or for other legitimate  reasons;  to make and enforce  reasonable rules for the
maintenance of discipline; and to take such measures as Management may determine
to be necessary for the orderly,  safe and efficient conduct of the business. In
exercising its rights under this Article, the Company shall observe the terms of
this Agreement.

_____________________                                      _____________________
Company                                                                    Union

                                       44
<PAGE>

                                   ARTICLE 15
                                   SUPERVISORS

Supervisors shall not perform work on a job normally performed by an employee in
the Bargaining Unit; provided, however, this provision shall not be construed to
prohibit supervisors from performing the following types of work:

(a)  experimental, development, and other research work;

(b)  demonstration  work performed for the purpose of  instructing  and training
     employees;

(c)  work required by emergency  conditions  which are unforeseen  circumstances
     that call for immediate  action to prevent  injury to personnel,  damage to
     equipment, or loss of material; and

(d)  work which is negligible in amount, and which also, under the circumstances
     then  existing,  it would be  unreasonable  to assign to a Bargaining  Unit
     employee.

Work which is incidental to supervisory  duties on a job normally performed by a
supervisor,  even though similar to duties found in jobs in the Bargaining Unit,
shall not be affected by this provision.

For the purposes of this  Article,  the term  "supervisor"  shall  include other
non-bargaining unit employees of the Company.

During the first sixty (60) days of this Agreement,  no grievances will be filed
concerning any alleged violation of this Article.  However,  during this period,
the  parties  will  endeavor  to  evaluate  the  extent to which  non-bargaining
employees  of the Company are  normally  performing  tasks which may  constitute
bargaining  unit work and will  endeavor to resolve any such concerns as well as
any concerns which arise regarding any alleged violations of this Article.

Dual Supervision

It is recognized by the parties that  circumstances  wherein  employees  receive
conflicting  orders should not exist.  It is mutually agreed that an employee is
obligated  to take  orders  from one  supervisor  at a time and will not be held
responsible for  contradictory  orders because of dual or multiple action in the
direction of the working  force by the  management.  The  employee  will be held
responsible for only the last order received.  Therefore,  supervision will make
every  effort to  cooperate  toward  the end  result of  minimizing  conflicting
instructions  and will contact the  supervisor who issued the prior orders if at
all possible in order to minimize this problem.

The Company shall be responsible for notifying  employees of any and all changes
in supervision,  which includes initial  assignment or any assignment during the
shift.

_____________________                                      _____________________
Company                                                                    Union

                                       45
<PAGE>

                                   ARTICLE 16
                                SAFETY AND HEALTH

I.   SAFETY AND HEALTH PROCEDURES

     The Company and the Union will  continue to  cooperate  toward  eliminating
safety and health  hazards and will  continue to encourage  employees to use the
procedures stated herein in reaching this objective.

     The Company,  in accordance  with  applicable  Federal and State laws shall
furnish to each  employee,  employment  free from  recognized  hazards  that are
causing or are likely to cause  death or serious  physical  harm.  Further,  the
Company shall comply with Occupational  Safety and health Standards  promulgated
under any such laws. All employees will be required to perform their jobs in the
safest  manner  prescribed,   encouraged  to  report  workplace  hazards,   make
suggestions  for their control and cooperate  toward the over all success of the
safety program.  Hazards will be corrected as soon as practical.  Employees also
recognize their responsibility to perform their duties in a safe manner.

     It is intended that the  International  Union,  Local Unions,  Union safety
committees and its officers,  employees,  and agents shall not be liable for any
work-connected  injuries,  disabilities,  or  diseases  which may be incurred by
employees.  In this  Article,  the Union  through its  various  representatives,
committees,  officers,  employees,  and agents has been  accorded  participation
relating to employee safety and health;  however, it is not the intention of the
parties that these provisions shall in any way diminish the Company's  exclusive
responsibility.

     Further,  it is clearly  understood  by the parties that this Article shall
not be used for the  purposes  of  concerted  activity  or to  avoid  unpleasant
working conditions inherent in any particular  operation,  and nothing contained
in this Article shall abridge the rights of the Company under Articles 12 and 14
of this Agreement.

     A joint  safety and health  committee  to consist of seven (7) Local  Union
members  chosen by the Local Union  President  and such  Company  members as are
designated  by the Company will function at the plant,  meet monthly,  and shall
concern itself with the items outlined below:

     1.   The  Company  and the Union  representatives  of the  Committee  shall
          cooperate  and work  together in  considering  the practices and rules
          relating to safety and health.

     2.   Suggest  appropriate  changes  to  existing  practices  and  rules and
          recommend adopting of such changes.

     3.   Review and develop data which will be useful in  identifying  accident
          sources and injury trends and which identify health hazards.

_____________________                                      _____________________
Company                                                                    Union

                                       46
<PAGE>

     4.   A Company  member  of the  committee  shall  maintain  minutes  of its
          activities. Minutes will be mailed to the Union Safety Chairman within
          fifteen  (15) days of the  meeting.  Amendment  to the minutes must be
          provided to the Company Co-chairman in writing within five (5) working
          days upon  receipt of draft,  otherwise,  minutes will be published as
          written.

     Each  party  shall   designate  a  co-chairman.   It  shall  be  the  joint
responsibility of the committee-cochairmen or their designees to:

     1.   Investigate  accidents  and safety and health  hazards,  whether  they
          result in injury or not,  excluding  first-aid  cases. The Co-chairmen
          shall develop guidelines for investigating such incidents. The results
          of such  investigations  will be  reported in writing at the next full
          committee meeting.

     2.   Jointly  inspect work areas they deem  appropriate  for inspection and
          report the results of such monthly inspection to the full committee at
          its next meeting.

     3.   Accompany  State and/or  Federal  Safety and health and  Environmental
          officials who are on the Plant site to investigate employee complaints
          relating to employee safety and health.

     At every third monthly  meeting the committee  shall review its  activities
conducted   during  the  previous   period.   The   International   Union  staff
representative  servicing  the  location  may  attend  and  participate  in this
meeting.

     The Company shall provide  protective  devices,  wearing apparel (excluding
safety shoes) and other equipment that is necessarily  and customarily  provided
in the industry to protect  employees  from  industrial  illness  and/or injury.
Employees shall utilize such protective  equipment and apparel when necessary to
prevent  industrial  illness  and/or  injury.  The  Management  and Local  Union
Co-chairmen  of the Joint Safety and health  Committee  shall confer and resolve
any safety and health problems  associated with personal apparel provided by the
Company.  The Company will continue to maintain adequate  first-aid coverage and
other medical services.

     On July 1 of each year of the Agreement, each employee who on that date has
one year of continuous  service shall receive an allowance of $90.00 to purchase
safety shoes for his wear at the Plant.  This  allowance  will not be subject to
tax as long as permitted by the Internal Revenue Service and State laws.

     The Joint Health and Safety  Committee will be provided  Company  personnel
contacts for both  environmentally  and industrial  hygiene matters which may be
used  as  a  technical  and  advisory  resource  in  the  area  of  ventilation,
temperature  control,  fumes,  smoke,  toxic  substances,  flammable  materials,
chemicals, solvents, and compounds.

_____________________                                      _____________________
Company                                                                    Union

                                       47
<PAGE>

     Specifically,  these  environmental  and  industrial  hygiene  contacts are
available to the Joint  Safety and Health  Committee  in matters  pertaining  to
acceptable health levels and techniques of monitoring  environmental control. It
is also  expected  that the Committee  will have  occasion to  communicate  with
individual  employees  and  groups of  employees  concerning  implementation  of
applicable  safety and health laws and standards.  Any  unresolved  issues under
this Article may be entered at the third step of the grievance procedure.

A.   An employee who believes that there exists an unsafe  condition  beyond the
     normal  hazards  inherent in the  operation,  which  involves an  immediate
     danger of injury to his person,  may request an immediate  meeting with his
     supervisor.  The supervisor shall  investigate to determine  whether or not
     such conditions do exist.

     1.   If the supervisor determines that such imminently hazardous conditions
          do not exist and the employee still  believes that such  conditions do
          exist,  the  matters  shall be reduced to writing by the  employee  on
          forms  provided by the Company and the  employee may then request that
          the Company  Safety  Engineer  and the  Chairman  of the Union  Safety
          Committee, or their designated representatives,  confer immediately on
          the  subject.  The  employee  will then be assigned  other work in his
          classification or another classification as appropriate, or substitute
          work if available. Upon conferring the parties must first decide if an
          immediate danger of physical injury exists.  If the parties agree that
          no such danger of immediate physical injury exists, the employee shall
          perform the work.

     2.   If upon  conferring the Safety  Engineer and the Chairman of the Union
          Safety  Committee  cannot  agree if an  immediate  danger of  physical
          injury  exists,  the work shall be performed by the  employee.  If the
          employee  believes  that there  still  exists an  immediate  danger of
          physical  injury to his person,  he will be assigned other work in his
          classification   or  offered   work  in  another   classification   as
          appropriate,  substitute work, if available,  or he will be sent home.
          Nothing  contained  in this  Article  shall  preclude the Company from
          assigning  another employee to the job in question after he is advised
          by supervision that an unsafe condition has been alleged. No employee,
          other than  communicating the facts relating to the safety of the job,
          shall take any steps to prevent the assigned  employee from working on
          the job.

     3.   If the Company  Safety  Engineer  and the Chairman of the Union Safety
          Committee are in dispute, the matter shall be submitted immediately to
          the Company Safety  Director and  Headquarters  Representative  of the
          International Union's Health, Safety and Environment  Department,  who
          if they  cannot  resolve the  dispute,  shall  immediately  submit the
          matter to an  arbitrator  who has been agreed  upon in advance,  whose
          decision shall be final and binding, and whose expenses, if any, shall
          be shared  equally by the  Company  and the  Union.  While the case is
          awaiting   decision,   the  work  in  question  may  be  performed  by
          supervisors or outside contractors.

_____________________                                      _____________________
Company                                                                    Union

                                       48
<PAGE>

     4.   In  all  cases  under  the  above  procedure  the  disposition  of the
          complaint  shall be reduced to writing on the forms  provided for that
          purpose.

          If the  employee  is sent home and it is later  decided in  accordance
          with the above  procedure  that such  conditions  did not  exist,  the
          Company may exercise  its rights  under  Articles 12, 13 and 14 of the
          Agreement.  If, on the other hand, the employee is sent home and it is
          later  decided  in  accordance  with the  above  procedure  that  such
          conditions  did exist,  the employee  shall be entitled to recover the
          pay for the lost time.

     In providing  the  procedures  outlined  above,  the parties agree to guard
     against the misapplication of this procedure by those seeking to use it for
     purposes not related to safety or health  and/or by the  misapplication  of
     the immediate  danger  provisions  described above. It is,  therefore,  the
     continuing  responsibility  of all  employees,  as well as all  Company and
     Union representatives,  to make certain that the provisions of this Article
     16A are  applied  solely for,  and in the manner  intended  herein.  If the
     Company believes that this Article 16A procedure is being abused under this
     Agreement,  use of this  section  may be  suspended  until  the  Designated
     Company and Union  Officials  have an  opportunity to review such abuse and
     take necessary corrective action. Such suspension of this Section shall not
     be  implemented  during the  processing  of a grievance as provided in this
     Article 16A.

     B.   An employee  alleging an unsafe working  condition  beyond the hazards
          inherent  in  this  particular  operation,  which  does  not  pose  an
          immediate  danger of injury to his person,  should file a grievance in
          Step 2 of the  grievance  procedure  rather than use the 16A procedure
          above.  It is understood  and agreed that if the grievance is filed on
          an unsafe working  condition,  such grievance shall receive  preferred
          handling and shall be expedited through the grievance  procedure.  The
          Department Head shall meet with the Chairman of the Local Union Safety
          Committee in Step 2 and if they cannot  resolve the issue,  it will be
          appealed to the Company Safety Director, and the Chairman of the Local
          Union Safety Committee.

     C.   A  reasonable  number of Union  members of the Joint Safety and Health
          Committee  shall  have  access to all  places in or about the Plant or
          property of the Company at reasonable times to investigate  safety and
          health  conditions,  provided  reasonable notice has been given to the
          department head to be visited or his designated  representative.  Each
          such Union member of the Joint Safety and Health  Committee shall upon
          reasonable notice to this immediate supervisor,  be afforded such time
          off  without pay as may be  required  for the  purposes of making such
          inspections and performing  other duties provided for in this Article.
          The Director of the International Union Safety, Health and Environment
          Department, or his designee, may arrange to make a Plant visitation by
          making  arrangements  with  the  Union  Chairman  of  the  Negotiating
          Committee  who may  contact the  Company  Chairman of the  Negotiating
          Committee.

_____________________                                      _____________________
Company                                                                    Union

                                       49
<PAGE>

     D.   When an employee is temporarily  reassigned  from his job because of a
          Company medical  determination  establishing  that exposure to a toxic
          substance involved in such job has adversely and temporarily  affected
          his health,  he shall  retain his regular  rate of pay for a period of
          not more than sixty  (60)  calendar  days  while  working on any other
          Company  assigned  job.  The local  parties may  mutually  agree to an
          extension of the rate retention period.

Safety Equipment

1.   Safety Shoe Purchase:

     The Company  shall  maintain an inventory of a single style of safety shoes
     for employee purchase in the event of an emergency.

2.   Gloves:

     The Company will make available  adequate gloves or hand  protection  under
     the same conditions as in the past.

     The Company will make the  determination  as to what type of gloves or hand
     protection will be made available in each  department  and/or in a specific
     job with  consultation of the  appropriate  members of the Joint Safety and
     Health Committee.

     It is  understood  that the employee  shall be required in turn in the worn
     out or unusable gloves or hand protection before a replacement in kind will
     be issued.

3.   Prescription Safety Glasses:

     a.   The employee  will be  responsible  for the cost of all  prescriptions
          (including  professional  fees) for safety glasses.  The Company shall
          pay the dispensing fee, including the cost of fittings.

     b.   The cost of the  original  pair will be paid by the Company as well as
          the cost of  replacement  of  prescription  lenses  when  required  by
          changes in vision.  The cost incurred for replacement of lenses due to
          vision change will be paid not more frequently than once every year.

     c.   Replacement  of safety  glasses  will be made without cost when damage
          occurs within the course of employment. When damage or loss occurs due
          to employee  negligence,  replacement cannot be covered, and the total
          cost of replacement will be charged to the employee.

_____________________                                      _____________________
Company                                                                    Union

                                       50
<PAGE>

     d.   Certification  of  how  damage  occurred,  signed  by  the  employee's
          supervisor,  must be presented  along with the damaged  glasses at the
          time replacement is requested.

     e.   The cost of  replacement  of  prescription  lenses  when  required  by
          changes in vision will be split 50-50  between  the  employee  and the
          Company, when the vision change is more frequent than once per year.

     f.   When  employees  place an order  through the  Company for  replacement
          safety  glasses  and are  required  to  wear  personal  glasses  while
          awaiting  delivery  of  the  replacement  safety  glasses,   and  such
          replacement  takes  over six (6)  weeks  from the date of  order,  the
          Company will be responsible for any damage to the employee's  personal
          glasses occurring after the six (6) weeks' date.

4.   Damaged or Destroyed Clothing:

     The practice to be followed for the replacement of an employee's  clothing,
     damaged or  destroyed  due to unusual  circumstances  occurring  during the
     performance of the employee's  job, has been, and will continue to be, that
     each case will be judged on its own merits.

5.   Outside Wearing Apparel:

     The Company  recognizes that during  inclement  weather any employee who is
     not  normally  required  to work  outside  will be  furnished  with  proper
     rainwear to protect the employee from the elements.

First-aid Visits:

1.   When an employee receives an industrial injury or becomes ill which, in the
     opinion of the Company Medical Department, needs the immediate attention of
     a physician and there is no physician  available in the Medical  Department
     at the time,  the Company  will  continue to assume the  responsibility  to
     transport the employee immediately to a hospital or a physician,  whichever
     is necessary.

2.   The Company Medical Department will schedule employees for re-dressings and
     re-examinations  in  cases  of  industrial   injuries  on  their  regularly
     scheduled shifts. It is understood,  however, that employees so injured may
     elect to  receive  such  treatment  on  their  own time  other  than  their
     regularly scheduled shift.

_____________________                                      _____________________
Company                                                                    Union

                                       51
<PAGE>

3.   From time to time, the Company's  Medical  Department will advise employees
     that they should be  examined or receive  further  treatment  during  their
     regular  days off. It is  understood  that as this  situation  occurs,  the
     employees  may elect to  receive  such  treatment  on their own time at the
     Company's  Medical  Department  or from  their  personal  physician.  It is
     further  understood  that the cost of treatment by the employee's  personal
     physician will not be paid for directly by the Company.

4.   When  employees are required to have a medical  release for work,  they may
     present a  release  from  their  personal  physician  for  approval  by the
     Company's  Medical  Department.  It is  agreed  that  the  purpose  of this
     understanding  is  to  expedite  the  employee's  return  to  work  when  a
     professional   physician  is  not  available  in  the   Company's   Medical
     Department.  It is understood  that the Company's  Medical  Department will
     evaluate the employee's physical and mental fitness when and as necessary.

5.   Unless unusual circumstances regarding an employee's physical condition are
     evident, the Company's Medical Department will make every reasonable effort
     when a Company physician is not present in the Medical Department,  to give
     the employee a temporary clearance for work with the understanding that the
     employee may be required to report to the Medical  Department  as scheduled
     to obtain final clearance from the Company physician.

6.   Medical Clearance:

     a.   Return to Work:

          Normally,  when a  Company  doctor  is not  available  to  examine  an
          employee   prior  to  his  return  to  work,   the  employee  will  be
          provisionally   permitted  to  return  to  work,   pending  subsequent
          clearance by the Company's  doctor,  upon  presentation of a statement
          from his personal doctor certifying his fitness to do so. However,  in
          those cases where the nature of the illness or injury is such that the
          Company  requires  clearance  by the  Company  doctor,  such  will  be
          necessary prior to return to work.

     b.   Third Doctor Arbitration:

          If any difference  shall arise between the Company and the Union as to
          the employee's  ability to return to work,  such  difference  shall be
          resolved by filing a  grievance,  which shall be deemed  waived by the
          parties to Step 3. Differences remaining thereafter shall be submitted
          to a special  arbitrator  whose decision shall be final and binding on
          all parties.  The arbitrator shall be a physician mutually agreed upon
          between the Company doctor and a doctor  appointed by the Union. It is
          understood  that it is the  prerogative of the Company or the Union to
          have their respective  physicians present to assist in the presentment
          of their opinions and the facts in resolving the dispute. The fees and
          expenses of the physicians selected by the Company and the Union shall
          be borne by the  party  appointing  such  physician,  and the fees and
          expenses  of the  third  physician,  the  arbitrator,  shall be shared
          equally by the Company and the Union.

_____________________                                      _____________________
Company                                                                    Union

                                       52
<PAGE>

7.   Medical Monitoring

     The  Company and the Union will  undertake  to initiate a program to ensure
     proper and necessary medical  monitoring of employee health where there may
     occur a health  problem  that  affects a group of  employees.  The  Company
     intends to actively pursue such a program on a continuing basis and expects
     the cooperation of our employees and the Union in such program.

8.   It is  further  understood  that when  employees  are absent for other than
     nominal  periods of time,  they will keep the  Company  Medical  Department
     advised  in  advance of their  intended  time of return,  the name of their
     attending physician, and the reason for absence and any conditions of their
     return.

     The  Company  may  make  reasonable  inquiry  regarding  the  status  of an
     employee's  medical  condition as it relates to the employee's  fitness and
     timing  to  return  to  work.  Such  inquiry  may be made  directly  to the
     employee's  treating  health  care  professionals  and/or the  Company  may
     require the employee to be examined by the Company  Doctor at the Company's
     expense so that such an assessment may be made.

9.   When an employee  reports to the Company's  Medical  Department  during day
     shift with a return to work slip from his  personal  physician  authorizing
     return  to full  employment,  and is held in the  Medical  Department  as a
     result of the Company requiring the employee to see the Company doctor, and
     subsequently returns to work on that same shift, the Company will reimburse
     the  employee  for the time on that  shift  which the  Company  caused  the
     employee  to miss as a result of his being in the Medical  Department.  The
     employee should report to the Medical Department sufficiently in advance of
     the  start of the day  shift so as to  permit  examination  by the  Company
     Doctor prior to the shift starting time under ordinary circumstances.

INTERPRETATIONS, LETTERS, AND MEMORANDA

1.   Safety and Health Matters

     a.   Medical Records:

          Employee  medical records files shall be maintained  under the control
          of the Medical Department or a licensed physician, under conditions of
          confidentiality appropriate to ethical medical practice. An employee's
          medical  record file shall not be released to any  individual  without
          the informed  written  consent of the  employee,  except where legally
          required.

_____________________                                      _____________________
Company                                                                    Union

                                       53
<PAGE>

          The Medical  Department may provide medical  opinions,  prognoses,  or
          recommendations to the Company or to the Union, without the consent of
          the  employee,  where  such  information  does  not  contain  specific
          diagnoses or details,  and where such  information is necessary to the
          Company as the employer or the Union as the  employee  representative.
          Whenever the Company physician detects a medical  condition,  which in
          his judgment requires further medical attention, the Company physician
          shall  advise the  employee of such  condition  or to consult with his
          personal physician.

     b.   Sampling

          The  Company  will  continue  its  program of  periodic  in-Plant  air
          sampling, heat stress and temperature testing, and noise testing under
          the direction of qualified  personnel.  Where the Union Co-Chairman of
          the Joint Safety and Health Committee  reasonably  believes there is a
          significant  on-the-job health hazard due to in-Plant air pollution or
          noise, the Company will make appropriate tests and investigations that
          are reasonable and necessary and will notify the Union  Co-Chairman of
          the Joint  Safety  and  Health  Committee  when such a test is to take
          place.

          Upon  request,  the Union  Co-Chairman  or designee  may be present to
          observe the  sampling or testing  activities.  A report  based on such
          tests and  investigations  will be given to the Union  Co-Chairman.  A
          copy of the  underlying  sampling  and  testing  results  will also be
          provided to the Union Co-Chairman.

          The  Company  will  endeavor  to enlist  volunteers  for its  sampling
          programs.  However,  if  sufficient  numbers  of  volunteers  are  not
          available,  the  Company  may require  employees  to utilize  sampling
          devices.

     c.   Toxic Materials

          Where the Company  uses  materials  at levels  considered  to be toxic
          under normal conditions of use, or where employees might be exposed to
          unusual  concentrations of toxic materials through accident,  it shall
          inform the affected employees what hazards, if any, are involved,  and
          what precautions shall be taken to insure the safety and health of the
          employees.  Upon the written  request of the Union  Co-Chairman of the
          Joint  Safety and Health  Committee,  the Company  shall  provide,  in
          writing,  requested  information from material safety data sheets,  or
          their  equivalent,  if they  are  available  to the  Company  on toxic
          substances to which employees are exposed in the work place;  provided
          that when the information is considered proprietary, the Company shall
          so advise the Union Co-Chairman,  and provide  sufficient  information
          for the Union to make further inquiry.

_____________________                                      _____________________
Company                                                                    Union

                                       54
<PAGE>

     d.   Safety and Health Training

          The Company recognizes the special need to provide  appropriate safety
          and health training to all employees. The Company presently has safety
          and health training that provides either the training  described below
          or the  basis  for such  training  as it  relates  to the needs of the
          Company.

          Departments  with  continuous   operations  may  schedule  safety  and
          company-related  meetings  before or after shifts upon 48 hours notice
          with pay for actual time spent in such meetings.

          Training  programs shall  recognize that there are different needs for
          safety and health  training for newly hired  employees,  employees who
          are  transferred  or assigned to a new job and  employees  who require
          periodic retraining.

          (1)  Training of Newly Hired Employees

               Newly  hired  employees  shall  receive  training  in the general
               recognition  of  safety  and  health   hazards,   the  applicable
               Agreement  provisions,  and  the  purpose  and  function  of  the
               Company's Safety and Medical Departments,  the Local Union Safety
               Committee  and  the  International   Union  Safety,   Health  and
               Environment  Department.  In addition, upon initial assignment to
               their duties, they shall receive necessary training on the nature
               of the  operation  or process,  the safety and health  hazards of
               their  duties,  safe working  procedures,  the purpose,  use, and
               limitations of personal protective equipment required,  and other
               controls or precautions associated with their duties.

          (2)  Training Review

               The  necessary  training  of  employees  shall be directed to the
               hazards of the duties to which they are  assigned.  Such training
               shall  include  hazard  recognition,   safe  working  procedures,
               purpose,  use, and  limitations  of special  personal  protective
               equipment   required  and  any  other   appropriate   specialized
               instruction.

               The Union  Co-Chairman  of the Joint Safety and Health  Committee
               and  the  International  Union  Safety,  Health  and  Environment
               Department or a designee  shall,  upon  request,  be afforded the
               opportunity  to review the training  program for all employees at
               the Plant level.

_____________________                                      _____________________
Company                                                                    Union

                                       55
<PAGE>

          (3)  Retraining

               As required by an employee's duties and assignment area, periodic
               retraining   as   necessary   shall  be  given  on  safe  working
               procedures,  (hazard recognition, and other necessary procedures)
               and precautions.

     e.   PCB Control Program

          The Company,  as required by law, shall  continue its control  program
          for  handling  and  disposing  of  oils   containing   polychlorinated
          biphenyls (PCB's).

     f.   Confidentiality

          Information  provided  pursuant to this Article shall not otherwise be
          divulged,  released, or used for any other purpose without the written
          consent  of the  Company  Co-Chairman  of the Joint  Safety and Health
          Committee.

II.  ALCOHOL AND DRUG ABUSE POLICY

A.   INTENT

     1.   The  intent  of  this  policy  is to  assist  in  maintaining  a  work
          environment for employees free from alcohol and drug abuse. Therefore,
          employees are:

          a)   required  to report  for work and  conduct  duties  free from the
               influence of alcohol or other drugs; and,

          b)   not  permitted  to use,  possess,  manufacture,  sell,  purchase,
               transfer  or  otherwise  distribute  alcohol  or drugs on Company
               premises or while on Company time.

     2.   While it is recognized that alcohol and drug dependency may contribute
          to  impaired  work  performance  and  costs  to the  Company  and  its
          employees in many ways, it is also recognized that such dependency may
          be an illness and treatable condition.

          Therefore,   this  policy  is  further   intended  to  encourage   the
          identification  and  referral of  affected  employees  to  appropriate
          treatment on a strictly confidential basis.

_____________________                                      _____________________
Company                                                                    Union

                                       56
<PAGE>

          Employees  in need of help  shall be made aware of and  encouraged  to
          participate in the Company Employee Assistance Program (EAP).

          This  program  shall  receive  full  commitment  and support  from the
          Company, the Union and all employees. There shall be no retribution or
          special privileges as a result of employee EAP participation.

B.   PURPOSE

     1.   It is recognized  that the Company's  greatest asset is its workforce.
          As in any prudent business,  its present and future prosperity depends
          on its  people.  It is also  recognized  that  each  employee  has the
          personal  potential and capacity,  through acceptable job performance,
          to contribute to the overall prosperity of the operation.  However, as
          in  any  community,  there  are  certain  outside  factors  which  can
          adversely affect an individual's ability to make a full contribution.

          Therefore, a purpose of this program is to encourage an environment in
          which  employees can freely seek assistance and support to minimize or
          overcome such outside  factors that diminish the ability to contribute
          to the operation through acceptable job performance.

     2.   In belief that all  employees  are valued,  a sincere  effort shall be
          made  to  assist  substance  or  otherwise  troubled  employees,  when
          reasonably  possible.  Also believed is that this given  investment in
          employee assistance may significantly  improve the job performance and
          well being of all employees.

     3.   The  selected EAP  provider  shall be  available to diagnose,  counsel
          and/or  refer  troubled  employees to  appropriate  treatment or other
          needed assistance.

     4.   The parties shall jointly  advertise the EAP program and encourage its
          use by employees.

C.   SCOPE

     The scope of this Policy shall apply to all  employees  and provide for any
     substance or otherwise  troubled  employee to freely seek assistance  under
     the EAP to maintain the desired status of a healthy and productive  worker.
     However,  it is also  understood  that under certain  circumstances  it may
     become  necessary for certain  employees to be directed,  as a condition of
     continued employment, to seek and maintain such assistance.

_____________________                                      _____________________
Company                                                                    Union

                                       57
<PAGE>

D.   TEST PROCEDURES

     In commitment  and pursuit of the objective to provide all employees with a
workplace free from the influence of alcohol and other drugs, the following test
procedures and related understandings for all employees are established.

     1.   Definition: As used herein, aside from the term alcohol, a drug is any
          of the substances  defined in the Federal Government List of Drugs and
          Harmful  Substances  applied by the Bureau of Narcotics  and Dangerous
          Drugs.

     2.   Prescribed and  Over-The-Counter  Drugs: Except as provided below, the
          use or being under the  influence of any legally  obtained  controlled
          substance by an employee on Company  premises or while on Company time
          is  prohibited  to the  extent  such use or  influence  may affect the
          safety  of  employees,   customers  or  members  of  the  public;  the
          employee's job performance; or the safe and efficient operation of the
          Company's  facilities.  An employee may continue to work,  even though
          under the influence of a legal  controlled  substance,  if the Company
          has determined  that the employee does not pose a threat to his or her
          own safety,  the safety of  co-workers,  or the safety of customers or
          the  general  public,  and  the  employee's  job  performance  is  not
          significantly affected by the legal drug. Otherwise,  the employee may
          be  required  to take a medical  leave of absence or comply with other
          appropriate action as determined by the Company.

          If the  use of an  over-the-counter  or  prescribed  medication  could
          affect an  employee's  ability to perform  work  safety,  the employee
          shall notify the Medical  Department.  As to the use of  prescribed or
          over-the-counter  drugs  that may affect  job  performance,  questions
          pertaining  to  same  shall  be  referred  to  the  Company's  Medical
          Department   where   any   determination   regarding   an   employee's
          continuation of duties,  temporary  reassignment  or temporary  relief
          from duties shall be made by accredited medical personnel.

     3.   Alcohol  Test:  Alcohol  testing shall be conducted  initially  with a
          saliva test and then by an accredited  operator  using  maintained and
          calibrated  breathalyzer  equipment,  or  by  blood-alcohol  test.  An
          alcohol  concentration  equaling or exceeding the limit established by
          the United States  Department  of  Transportation  (for  over-the-road
          drivers) or the  equivalent  standard under State law for violation of
          driving a motor  vehicle  while  "under  the  influence"  of  alcohol,
          whichever is less, shall be considered "positive" for purposes of this
          Policy.

     4.   Drug and Alcohol  Testing:  The Company  shall not  randomly  test for
          drugs or alcohol. In addition to any test required by Federal or State
          law, the Company retains the right to require an employee to submit to
          unannounced  urinalysis,  breathalyzer  test,  blood  alcohol test, or
          physical examination under the following circumstances:

_____________________                                      _____________________
Company                                                                    Union

                                       58
<PAGE>

          a.   Pre-employment (to the extent permitted by law).

          b.   As required by Federal and/or State Department of  Transportation
               (DOT) regulations.

          c.   Upon physical  examination  following  sickness,  layoff or other
               leave exceeding ninety (90) days.

          d.   Following a prior positive alcohol or drug test.

          e.   For "reasonable  suspicion" based upon observation and good faith
               belief  that an  employee  is  under  the  influence  of drugs or
               alcohol;  such  belief may be based  upon but not  limited to the
               smell of  alcohol,  slurred  speech,  staggering  gait,  or other
               abnormal physical or psychological  behavior typically associated
               with drug and  alcohol  intoxication  or  impairment,  as well as
               other   non-typical   individual   behavior   and  a  pattern  of
               absences/latenesses.

          f.   Upon  involvement in an accident on Company  premises or while on
               Company time.

     5.   All test  results/findings  shall be reported back "in confidence" and
          directed  only to those  Company  and Union  representatives  having a
          need-to-know.

     6.   When a urine specimen is required under this Policy, the employee will
          be allowed  to submit  the  specimen  in the  privacy of a  controlled
          environment.

     7.   A split-sample  of each urine specimen  submitted shall be retained to
          provide the affected  employee,  upon request and without cost, with a
          follow-up test of any initial test believed in error.

     8.   "Chain of custody" means a sequence of documents, signatures and dates
          of all persons handling a specimen so that the Company may later prove
          how the specimen was passed from one person to the next.

     9.   Refusal  to provide a blood  sample,  or  provide a urine  sample,  or
          submit to a breathalyzer  test as required  under this Policy,  or the
          submittal of a  doctored/tampered-with  sample,  or the detection of a
          masking agent in the sample, or otherwise refusing to cooperate in the
          testing process shall result in discharge.

_____________________                                      _____________________
Company                                                                    Union

                                       59
<PAGE>

E.   DRUG/ALCOHOL TEST LEVELS AND LABORATORY ANALYSIS PROCEDURES

     1.   The initial  drug test to be  conducted  in all testing  circumstances
          will be by kinetic  interaction of  microparticles  in solution (KJMS)
          for the following  drugs or classes of drugs:  marijuana  metabolites,
          cocaine metabolites, opiate metabolites, phencyclidine,  amphetamines,
          and  barbituates.  Any testing  done  pursuant to this Policy shall be
          conducted   in  as   confidential   manner  as   possible   under  the
          circumstances,  without  compromising the test, and in accordance with
          all applicable State and Federal laws.

          The test will be conducted in accordance  with the accepted  standards
          and procedures for the administration of such tests,  including sample
          splitting and maintenance of "chain of custody" criteria.

          If an  employee  tests  negative  under the  initial  KIMS  test,  the
          specimens  are  disposed  of and no  further  action is  taken.  If an
          employee  tests  positive  under the initial KJMS test,  the specimens
          identified  as positive  under the initial  testing  must be confirmed
          using  a Gas  Chromatography/Mass  Spectrometry  (GC/MS)  test.  If an
          employee  tests  negative  under  the  confirmatory  GC/MS  test,  the
          specimens  are  disposed  of and no  further  action is  taken.  If an
          employee tests positive under the confirmatory test, the employee will
          be subject to discipline up to and  including  discharge,  as provided
          herein.

     2.   The "laboratories" used for drug testing must have a quality assurance
          program encompassing all of the testing processes.  Participation in a
          recognized  accreditation and proficiency testing program for drugs of
          abuse is required.

     3.   The drugs that will be included in the testing are as follows:

               Amphetamines
               Marijuana (metabolites)
               Cocaine (metabolites)
               Opiates (metabolites)
               Phencyclidine
               Barbituates    (Initial Screen: 200 ng/ml;
                              Confirmatory Screen: 300 ng/ml)

          The  cut-off  levels  that  shall  be used  when  initially  screening
          specimens and the cut-off  levels that shall be used for  confirmatory
          screenings to determine whether the specimens are negative or positive
          shall be those cut-off levels approved by the United States Department
          of  Health  and  Human  Services  (Mandatory  Guidelines  for  Federal
          Workplace  drug  testing  programs).  The  presence  of an  amount  of
          substance  equaling or exceeding  these  cut-off  levels  respectively
          shall be considered  "positive"  for the purposes of this Policy.  The
          cut-off levels for barbituates are as noted above.

_____________________                                      _____________________
Company                                                                    Union

                                       60
<PAGE>

F.   POSITIVE TEST RESULTS

     1.   Probationary  employees  refusing  to be tested,  or testing  positive
          pursuant to this Policy, will be terminated immediately.

     2.   Any permanent employee who tests positive for drugs or alcohol for the
          first time will be  suspended  without pay for not less than seven (7)
          working days and further:

          a.   He shall be required as a condition  of continued  employment  to
               utilize the Company's Employee  Assistance  Program ("EAP"),  the
               cost of which shall be borne by the Company.

          b.   Upon  failure to schedule  within  forty-eight  (48) hours of the
               test  results  or the  next  business  day  thereafter,  such EAP
               counseling  and/or  treatment and to adhere to the  participation
               requirements of the EAP, the employee will be terminated.

          c.   He shall be required to submit to a retest  before  returning  to
               work;   if  such  retest  is  positive,   the  employee  will  be
               terminated.  Such retest  shall not be given  before  thirty (30)
               days  following  the  test  results  unless  an  earlier  date is
               requested by the employee.

          d.   Any employee  whose retest is negative under this paragraph 2 and
               who subsequently returns to service will be subject to additional
               unannounced drug and/or alcohol tests (no more than six [6] times
               per year) at any time for up to  twenty-four  (24)  months  after
               returning to service.

          e.   A second drug or alcohol test which is positive  within three (3)
               years of the return to work within  section "c" above will result
               in the immediate termination of the employee.

G.   MISCELLANEOUS

     1.   All tests will remain  confidential  and only those  Company and Union
          representatives having a need to know will be informed of the results.
          Results will be maintained in a separate,  confidential  file and will
          not be maintained in the employee's personnel files.

_____________________                                      _____________________
Company                                                                    Union

                                       61
<PAGE>

     2.   An employee who suffers from drug or alcohol  abuse is  encouraged  to
          utilize the Company's EAP. For such  utilization to be allowed without
          any  possibility of discipline,  such assistance must be sought before
          drug  and/or   alcohol  use  or  abuse  creates   inappropriate   work
          performance or inappropriate  behavior at work. An employee's decision
          to seek  assistance  from the EAP before work  performance or behavior
          difficulties occur will be kept confidential. Furthermore, the Company
          assures   employees   that  voluntary   participation   in  diagnosis,
          treatment,  and rehabilitation  will not jeopardize their job security
          and/or  promotional  opportunities.  Once work performance or behavior
          difficulties  affecting the job or the Company do occur,  however, the
          subsequent  voluntary  use of the EAP  will  not  necessarily  prevent
          disciplinary action, up to and including discharge.

     3.   Where the Company has reasonable  cause to believe the use of drugs or
          alcohol,  or in  the  event  of  post-accident  testing,  the  subject
          employee  will be  relieved  from  work  pending  the  results  of the
          testing.

          Employees  who are suspended  pending  receipt of the results who test
          negative   shall  be  reinstated   and  will  be  paid  their  regular
          straight-time  hourly rate (including shift premium or holiday pay, if
          applicable) for all scheduled hours missed during the suspension.

     4.   Any employee confronted with a request to submit to an alcohol or drug
          test shall be provided,  upon request, Union representation before any
          further  action  is taken.  Disputes  as to  requirements  for drug or
          alcohol  test,  test  procedures,  confidentiality,  chain-of-custody,
          discipline,  discharge  or believed  misapplication  of any portion of
          this Policy shall subject the matter to the grievance and  arbitration
          procedure  which may be pursued by the affected  employee or the Union
          itself.

     5.   The use, possession,  manufacture,  sale, purchase,  transfer or other
          distribution  of an illegal drug or alcohol by any employee on Company
          premises  or while on Company  time is  prohibited  and will result in
          immediate termination.

     6.   The Company,  when reasonable  cause for such action exists,  reserves
          the  right to  conduct  unannounced  searches  for  illegal  drugs and
          alcohol anywhere on Company property,  including,  but not limited to,
          lockers,  tool boxes,  desks,  file  cabinets,  and personal  vehicles
          parked on Company  property in those areas requiring  parking permits.
          Company  personnel  will not  inspect  personal  vehicles  without the
          employee's permission. All searches shall be conducted in the presence
          of a Union  representative  and the affected  employee if he is on the
          Company  premises at the time of the search.  Employees  who refuse to
          cooperate  during  such   unannounced   searches  may  be  subject  to
          disciplinary  action,  up to and  including  discharge.  Any suspected
          contraband  will be put in clean  containers  and  marked  for  future
          identification  and testing.  The employee will receive a receipt from
          the Company for any items taken into possession by the Company.

_____________________                                      _____________________
Company                                                                    Union

                                       62
<PAGE>

     7.   In the event a urine sample is  determined to be invalid or unreliable
          due to circumstances  unrelated to the conduct of the individual,  the
          individual will be immediately notified of the circumstances requiring
          a new test and will be required to undergo a new test.

     8.   No employee will suffer loss of wages while undergoing such tests, and
          all costs involving  transportation to and from a physician's  office,
          clinic,   hospital,  or  other  collection  site,  and  all  costs  of
          examination  and tests will be paid by the Company.  Any loss of wages
          and benefits  incurred by an employee while waiting for the results of
          a drug or alcohol test will be reimbursed,  making the employee whole,
          if the test result proves to be negative.

     9.   No employee may utilize the Company EAP  in-patient  program more than
          three (3) times  during  the term of this  Agreement  and no more than
          once a year.

III. TOBACCO PRODUCTS

     Tobacco  products may be used in any portion of a Plant building or vehicle
     which is not heated or air cooled. Tobacco products may also be used in all
     outside areas on the Plant site.

     Smoking shall not be permitted  anywhere in Green Carbon and the spent cell
     lining building.

_____________________                                      _____________________
Company                                                                    Union

                                       63
<PAGE>

                                   ARTICLE 17
                             GROUP INSURANCE PROGRAM

I.   Active Employee Medical, Dental, and Vision Benefits

     Except as provided in part VII below,  during term of this  Agreement,  the
     Company   shall  provide  to  active   employees  the  medical   (including
     prescription drugs), dental, and vision benefits attached hereto as offered
     by the  Steelworkers  Health  and  Welfare  Fund.  During  the term of this
     Agreement,  the  monthly  premiums  to be paid by active  employees  are as
     follows:

                       Individual                  Family
                       ----------                  ------

     Medical            $   10.00                 $   25.00
     Dental             $    0.00                 $    0.00
     Vision             $    0.00                 $    0.00

II.  Retiree Medical Benefits

     During the term of this  Agreement,  the Company shall provide to retirees,
     who  retire  on or  after  December  1,  2000,  the same  medical  benefits
     (including  prescription  drugs) provided to active employees,  except that
     outpatient  treatment of mental and nervous  disorders is covered at 50% of
     reasonable  and  customary  charges  per  visit  for 40  visits.  Inpatient
     treatment of mental and nervous  disorders is covered at 50% of  reasonable
     and customary charges.

     To be eligible for retiree insurance, a retiree must have at least ten (10)
     years of  service  and be at least age 50 and age plus  service  years must
     total 75 or have 30 years service and qualify for a NSA annuity.

     Retirees,  when  eligible,  must be enrolled in Medicare Parts A and B. The
     Medical  Plan,  for  retirees,  will  pay  secondary  to  Medicare  and the
     "carveout" method of Medicare coordination will be used.

     During  the term of this  Agreement,  the  monthly  premiums  to be paid by
     retirees under 65 are as follows:

          Retirees who qualify for a NSA annuity:
               $50.00 per person per month

          Retirees who do not qualify for a NSA annuity:
               $125.00 per month for retiree only
               $250.00 per month for retiree and spouse
               $375.00 per month for family

     During  the term of this  Agreement,  the  monthly  premiums  to be paid by
     retirees  age 65 or  older  are as  follows,  except  that  a  retiree  who
     qualifies  for a NSA  annuity  pays at the $50.00 per person per month rate
     unless he  qualifies  for a lower rate by virtue of having 35 or more years
     of service:

_____________________                                      _____________________
Company                                                                    Union

                                       64
<PAGE>

          Years of Service                  Per Person Per Month
          ----------------                  --------------------

             40 and above                          No cost
                 35                               $  38.00
                 30                               $  50.00
                 25                               $  63.00
                 20                               $  75.00
                 15                               $  88.00
                 10                               $ 100.00

III. Retiree Dental and Vision Coverage

     Dental and Vision will be available  through COBRA at the  following  rates
     effective December 1, 2000.

         Dental             Member:                 $  19.35/month
                            Family:                 $  55.05/month

         Vision             Member:                 $  2.80/month
                            Family:                 $  7.55/month

     The COBRA rates  referenced  in Section  III above may be  adjusted  upward
     during the term of the Agreement  depending on the  Company's  future costs
     for all employees, active and retired.

IV.  Active Employee Life and Accident Insurance

     The  Company  shall  provide  a Life and  Accident  Insurance  Program  for
     employees and their dependents identical to that offered by NSA except that
     the amount of Company-paid Life Insurance increases from $10,000 to $30,000
     and the amount of  Company-paid  Accident  Insurance  also  increases  from
     $10,000 to $30,000.  The  Company  will  endeavor  to procure an  insurance
     program  that  provides  eligible  employees  the  opportunity  to purchase
     additional insurance at an insured rate at the employee's expense.

V.   Retiree Life Insurance

     To be eligible for Retiree Life  Insurance a retiree must have at least ten
     (10) years of service  and be at least age 50 and age plus years of service
     must equal 75. The Company shall  provide  Company-paid  Life  Insurance of
     $15,000  to those  employees  who  retire  before  age 70.  This  amount is
     automatically reduced to $7,500 at age 70.

_____________________                                      _____________________
Company                                                                    Union

                                       65
<PAGE>

     Retirees  are  not  eligible  for  Accidental   Death  and   Dismemberment,
     Supplemental Life, and Dependent Life.

VI.  Accident and Sickness Benefits

     The  Company  shall  provide  Accident  and  Sickness  Benefits  to  active
     employees  pursuant  to  a  Plan  identical  to  the  Southwire  Short-Term
     Disability Plan. The Company will endeavor to procure an insurance  program
     that provides  eligible  employees the opportunity to purchase extended and
     supplemental coverage at an insured rate at the employee's expense.

VII. Substitution of Carriers and Preservation of Benefit Levels

     The  parties  have  taken the  necessary  steps to enable  the  Company  to
     contract  with the  Steelworkers  Health and  Welfare  Fund to provide  the
     medical  (including   prescription  drugs),   dental  and  vision  benefits
     referenced  in Sections  I-III above in  accordance  with the  Steelworkers
     Health and Welfare  Fund  Participation  Agreement  dated  March 30,  2001,
     incorporated  herein.  In  the  event  that  the  Company  terminates  that
     Participation  Agreement as provided in paragraph XIII thereof, the Company
     is  obligated  to provide for the  entirety of this  Agreement  the same or
     better level of benefits as set forth in the  attachments to Sections I-III
     above and may not charge increased premiums to active employees or retirees
     apart from the COBRA rates set forth in Section III above.

                                CENTURY ALUMINUM
                   PREFERRED PROVIDER ORGANIZATION - PPO 90/70
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
           Benefit Provision                     In-Network Care                Out-of-Network Care
-----------------------------------------------------------------------------------------------------------
<S>                                          <C>                                <C>
Deductible
  Individual                                           $100                             $300
  Family                                               $200                             $600
-----------------------------------------------------------------------------------------------------------
Coinsurance                                            90%                              70%
-----------------------------------------------------------------------------------------------------------
Out-of-Pocket Maximums
(Excludes deductible, copayments,                $750 Individual                 $1,500 Individual
prescription drug expenses, mental                $1,500 Family                    $3,000 Family
health and substance abuse expenses,
amounts over "usual and customary")
-----------------------------------------------------------------------------------------------------------
Lifetime Maximum                                    Unlimited                         $500,000
-----------------------------------------------------------------------------------------------------------
Physician Office Visits                      100% after $10 copayment           70% after deductible
-----------------------------------------------------------------------------------------------------------
Preventive Care
    Adult
    Routine physical exams                   100% after $10 copayment               Not Covered
    Routine GYN exams, including PAP         100% after $10 copayment           70% (no deductible)
    Mammograms, as required                            100%                     70% after deductible
    Pediatric
    Routine physical exams                   100% after $10 copayment               Not Covered
    Pediatric immunizations                            100%                     70% (no deductible)
-----------------------------------------------------------------------------------------------------------
</TABLE>

_____________________                                      _____________________
Company                                                                    Union

                                       66
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
           Benefit Provision                     In-Network Care                Out-of-Network Care
-----------------------------------------------------------------------------------------------------------
<S>                                          <C>                                <C>
Emergency Room/Urgent Care Services          100% after $20 copayment           70% after deductible
                                               (waived if admitted)
-----------------------------------------------------------------------------------------------------------
Hospital Services (Inpatient and               90% after deductible             70% after deductible
   Outpatient)
-----------------------------------------------------------------------------------------------------------
Medical/Surgical Services                      90% after deductible             70% after deductible
-----------------------------------------------------------------------------------------------------------
Diagnostic Services (Lab, X-Ray and            90% after deductible             70% after deductible
   other tests)
-----------------------------------------------------------------------------------------------------------
Physical Therapy (Professional)                90% after deductible             70% after deductible
-----------------------------------------------------------------------------------------------------------
Spinal Manipulations                           90% after deductible             70% after deductible
                                                                               Limit: 25 visits/year
-----------------------------------------------------------------------------------------------------------
Durable Medical Equipment, Ambulance,                           90% after deductible
Skilled Nursing Facility Care, Home
Health Care, Hospice, Private Duty
Nursing, Speech, Occupational Therapy
(Professional)
------------------------------------------------------------------------------------------------------------
Mental Health(1)
    Inpatient                                  90% after deductible              70% after deductible
    Outpatient                                 90% after deductible              50% after deductible
------------------------------------------------------------------------------------------------------------
Substance Abuse
    Inpatient                                  90% after deductible              70% after deductible
    Detoxification                                    7 days/admission; 4 admissions/lifetime
                                         -------------------------------------------------------------------
    Rehabilitation                                         30 days/year; 90 days/lifetime
------------------------------------------------------------------------------------------------------------
    Outpatient(2)                              90% after deductible              50% after deductible
------------------------------------------------------------------------------------------------------------
                                                        60 visits/year; 120 visits/lifetime
                                                   30 visits may be exchanged on a 2 for 1 basis
                                                      to secure up to 15 additional days/year
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
           Benefit Provision                     In-Network Care                Out-of-Network Care
-----------------------------------------------------------------------------------------------------------
<S>                                      <C>                                        <C>
Precertification Requirements(3)                               Patient Responsibility
------------------------------------------------------------------------------------------------------------
Premier Prescription Drug Program              Mandatory Generic(4)
Benefits available through the Premier       Retail - 34 days supply
Pharmacy Network only.                     Mail Order - 90 days supply
                                         -------------------------------
                                         Retail:          Mail Order:                Not Covered
                                         > $5             > $10
                                         generic          generic
                                         > $10            > $20
                                         brand            brand
------------------------------------------------------------------------------------------------------------
</TABLE>

(1)  State  mandated  benefits  (30  inpatient  days  and 60  outpatient  visits
     annually)  may apply for  serious  diagnosis.  Serious  diagnosis  includes
     schizophrenia,   schizo-affective   disorder,  major  depressive  disorder,
     bipolar disorder,  obsessive compulsive disorder, panic disorder,  anorexia
     nervosa, bulimia nervosa, delusional disorder.

(2)  First  instance  or  course  of  treatment  reimbursed  at 100%  after  $10
     copayment In-Network; or at 70% after deductible Out-of-Network.

(3)  If Blue Cross Blue Shield is not contacted prior to an inpatient  admission
     and it is later  determined  that all or part of the inpatient stay was not
     medically  necessary or  appropriate,  the patient will be responsible  for
     payment of any costs not covered.

_____________________                                      _____________________
Company                                                                    Union

                                       67
<PAGE>

(4)  The member is responsible for the payment  differential when a generic drug
     is authorized  by the physician and the patient  elects to purchase a brand
     drug.  The member  payment is the price  difference  between  the brand and
     generic in addition to copay or coinsurance amounts which may apply.

                              DENTAL PLAN - Custom
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                 Benefit Provision
----------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>
Annual Deductible (does not apply to Diagnostic and Preventive services)
>>       Individual                                                                         $0
>>       Family                                                                             $0
----------------------------------------------------------------------------------------------------------
Diagnostic Services                                                                     100% UCR *
>>       Routine oral examinations
>>       Dental X-rays
      -  Full mouth X-rays
      -  Bitewing X-rays
----------------------------------------------------------------------------------------------------------
Preventive Services                                                                     100% UCR *
>>       Routine cleanings
>>       Topical fluoride application for dependent children under age 19
>>       Space maintainers (not made of precious metals) that replace prematurely
         lost teeth for dependent children under 19 years of age
>>       Sealants when provided to children.  Coverage is limited to one sealant
         per tooth in any three-year period
----------------------------------------------------------------------------------------------------------
Basic Restorative                                                                        85% UCR *
>>       Fillings
>>       Simple extractions
>>       Endodontics, including pulpotomy and root canal treatment
----------------------------------------------------------------------------------------------------------
Periodontal Services                                                                     85% UCR *
>>       Diagnosis and treatment planning including periodontal examination
>>       Non-surgical periodontal therapy including periodontal scaling and root
         planing
>>       Surgical periodontal therapy
>>       Maintenance-- post treatment preventive periodontal procedures
         (periodontal cleanings)
----------------------------------------------------------------------------------------------------------
Oral Surgery                                                                             85% UCR *
>>       Surgical removal of teeth
----------------------------------------------------------------------------------------------------------
Prosthetics                                                                              50% UCR *
>>       Initial insertion of bridges (including pontics and abutment crowns,
         inlays and onlays)
>>       Initial insertion of partial or full dentures (including any adjustments
         during the six-month period following insertion)
>>       Replacement of an existing partial or full denture or bridge by a new
         denture or bridge
----------------------------------------------------------------------------------------------------------
Crown, Inlay and Onlay Restorations                                                      50% UCR *
>>       Single unconnected crowns, inlays and onlays
>>       Replacement of crowns, inlays and onlays, but only if satisfactory
         evidence is presented  that at least 5 years have elapsed since the date of
         insertion of the existing crown,  inlay or onlay,  and only if the existing
         crown, inlay or onlay is unserviceable and cannot be made serviceable
----------------------------------------------------------------------------------------------------------
Orthodontics (Not subject to Annual Maximum)                                             50% UCR *
>>       Diagnosis, including radiographs
>>       Active treatment, including necessary appliances
>>       Retentive treatment following active treatment
>>       Lifetime maximum $1,000
----------------------------------------------------------------------------------------------------------
Annual Maximum                                                                            $1,000
----------------------------------------------------------------------------------------------------------
*Usual,  Customary and Reasonable (UCR) allowances for all services are based on
90th percentile.
----------------------------------------------------------------------------------------------------------
</TABLE>

_____________________                                      _____________________
Company                                                                    Union

                                       68
<PAGE>

                             OPTICHOICE VISION PLAN
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
    Service/Product        Allowance           Patient Responsibility                       Frequency
---------------------------------------------------------------------------------------------------------------------
<S>                      <C>            <C>                                  <C>
Eye Exam and Refraction       $32       In-Network: $0                       Under age 19 -- once per 12 months
                                        Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Single Vision Lenses          $24       In-Network: $0                       Under age 19 -- once per 12 months
(standard)                              Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Bifocal Lenses                $36       In-Network: $0                       Under age 19 -- once per 12 months
(standard)                              Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Trifocal Lenses               $46       In-Network: $0                       Under age 19 -- once per 12 months
(standard)                              Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Aphakic/Lenticular            $72       In-Network: $0                       Under age 19 -- once per 12 months
Lenses                                  Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Non-Standard Lenses          Same       In-Network: Difference between       Under age 19 -- once per 12 months
(e.g. photochromatic,    allowances as  charge and allowance with a 10%      Age 19 and over -- once per 24 months
polycarbonate,             standard     discount
progressive)                            Out-of-Network: Provider Charge
---------------------------------------------------------------------------------------------------------------------
Frames                        $24       In-Network: $0-- up to $60 retail;   All ages -- once per 24 months
                                        Over $60 retail-- patient pays the
                                        difference between $60 and charge
                                        Out-of-Network: Provider Charge
---------------------------------------------------------------------------------------------------------------------
Contact Lens Fitting    $20 - Daily     In-Network: $0                       Under age 19 -- once per 12 months
and Prescription        $30 - Extended  Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Standard Contact              $48       In-Network: $0                       Under age 19 -- once per 12 months
Lenses(1)                               Out-of-Network: Provider Charge      Age 19 and over -- once per 24 months
---------------------------------------------------------------------------------------------------------------------
Specialty Contact             $48       In-Network: $0-- up to $75 retail;   Under age 19 -- once per 12 months
Lenses(1)                               Over $75 retail-- patient pays the   Age 19 and over -- once per 24 months
                                        difference between $75 and charge
                                        Out-of-Network: Provider Charge
---------------------------------------------------------------------------------------------------------------------
Additional Services or        N/A       In-Network: Same amount as all       As needed
Products-- exceeding                    allowances described above
program frequency                       Out-of-Network: Provider Charge
---------------------------------------------------------------------------------------------------------------------
Other Products           10% discount   In-Network: 90% of charge            As needed
                                        Out-of-Network: Not covered
---------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)  Plan  allows for one pair  eyeglasses  (lenses  and  frames) or one pair of
     contact lenses within a benefit period.

_____________________                                      _____________________
Company                                                                    Union

                                       69
<PAGE>

                                   ARTICLE 18
                                    HOLIDAYS

The Company recognizes nine (9) paid holidays each year:

     New Years Day                    Thanksgiving Day
     Good Friday                      Day after Thanksgiving
     Memorial Day                     Christmas Eve
     Independence Day                 Christmas Day
     Labor Day

General Holiday Information

     The Company recognized holidays consist of the twenty-four (24) hour period
beginning  at the shift  changing  hour  nearest to 12:01 a.m. of the holiday or
6:45 a.m. for rotating 12-hour shift employees. An exception exists for holidays
that are  observed  nationally  on  Saturday  and  Sunday.  At the  Plant,  if a
nationally  observed  Company holiday falls on Sunday,  the following  Monday is
recognized  as the  holiday.  Thus,  hours worked on Sunday are paid at time and
one-half or  according  to the  provision  in Article 6, ss. VI. Hours worked on
Monday are paid at double time and one-half.  If a nationally  observed  Company
holiday falls on Saturday,  premium pay of double time and one-half will only be
paid for hours worked on the Saturday holiday.

     Employees  working  other than  rotating  shift  arrangements  may,  at the
discretion of their supervisor, be allowed the Saturday holiday off if scheduled
to work, or be allowed to have an additional day off if already scheduled off on
the Saturday holiday.

     If an employee is a Monday through  Friday  employee and is allowed to have
Friday off as a substitute  holiday,  the day before the Saturday holiday,  that
employee's time would be marked "Holiday" for Friday. In the above situation, if
the employee were called in or otherwise works on Friday,  holiday pay would not
be paid for those occurrences referenced.  Pay for the unscheduled holiday shall
be paid provided all  eligibility  criteria have been met. If the employee works
on Saturday,  holiday pay at double time and one-half will be paid for all hours
worked,  regardless  of  whether  the  employee  worked  or was off  Friday as a
substitute holiday.

     If allowed to substitute a day for the Saturday  holiday,  the substitution
should  be  made  in the  payroll  week  of the  holiday  or  the  payroll  week
immediately following the holiday.

Pay for Holidays Not Worked

     If an employee does not work on a recognized  Company  holiday,  he will be
paid  eight (8) hours,  nine (9) hours,  ten (10)  hours,  or twelve  (12) hours
depending on his shift assignment, times his Standard Base Wage Rate provided he
meets these eligibility requirements:

_____________________                                      _____________________
Company                                                                    Union

                                       70
<PAGE>

     1.   Have been employed  thirty (30) calendar  days since  employee's  last
          hire;

     2.   Perform work or have been on vacation seven (7) days prior to or after
          the holiday; and,

     3.   Work as scheduled or assigned on both the  employee's  last  scheduled
          working day prior to the holiday and on the employee's first scheduled
          day following the holiday,  unless he failed to work due to an excused
          absence  such as  Union  business,  family  emergency,  or a  personal
          illness  (supported  by a  physician's  statement and submitted to the
          Company by the fifth day following the holiday).

     When a holiday occurs during the employee's scheduled vacation,  he will be
paid for the unworked  holiday in addition to his vacation  pay. If the employee
is on a leave of absence,  other than Union business,  when a scheduled vacation
comes due near a holiday, he will still have to work in the seven (7) day period
before or after the holiday in order to be eligible for the holiday pay.

     Provided the holiday falls within the employee's normal work schedule,  and
the  employee's  supervisor  schedules  him off, the holiday  hours paid will be
considered  as hours worked for the  purposes of computing  premium and overtime
pay under the provisions of premium pay.

     An eligible employee scheduled to work on a recognized Company holiday, who
fails to report for work or perform his scheduled or assigned work,  will not be
eligible to receive pay for the unworked  holiday.  This will be true unless his
failure to report for or perform such work was due to an excused absence such as
Union business, personal illness (supported by a physician's statement),  family
emergency,  or death in the immediate family. An unworked holiday shall count as
a day worked for the purpose of calculating overtime.

Pay for Holidays Worked

     An employee  will be  eligible  to receive pay for  holidays if he has been
employed thirty (30) calendar days since his last hire.

     For  all  hours  worked  on any of the  recognized  Company  holidays,  the
employee will be paid premium pay at the rate of two and one-half  (2-1/2) times
his Standard Base Wage Rate,  including all applicable  shift  differential  and
shift premiums.

     If the employee  performs work that is less than his normal scheduled shift
hours on a Company  holiday,  he will be paid two and one-half (2-1/2) times his
Standard  Base Wage Rate for all hours  worked  plus one (1) times his  Standard
Base Wage Rate for the remainder of his normal  scheduled shift. Pay for holiday
hours not worked must meet the same eligibility requirements as pay for holidays
not worked.

_____________________                                      _____________________
Company                                                                    Union

                                       71
<PAGE>

Call-In Pay on Holidays

     If an employee is called in on a holiday,  he will  receive 2 1/2 times his
Standard  Base  Wage  Rate for all  hours  worked,  plus  straight  time for the
remaining hours not worked, in the standard holiday shift period.

_____________________                                      _____________________
Company                                                                    Union

                                       72
<PAGE>

                                   ARTICLE 19
                                MILITARY SERVICE

A.   The Company agrees to comply with all  applicable  Federal laws relating to
     the  re-employment  rights of veterans.  Further,  any veteran eligible for
     re-employment by the Company under such laws who applies for  re-employment
     within ninety (90) days after honorable  discharge shall, upon his request,
     be granted a leave of  absence  without  pay not to exceed  sixty (60) days
     before he shall be required to return to work.

B.   An employee  entitled to  reinstatement  under this Article who applies for
     re-employment  and who  desires  to pursue a course of study in  accordance
     with  the  Federal  law  granting  him  such  opportunity  before  or after
     returning to his  employment  with the Company  shall be granted a leave of
     absence for such  purpose;  provided  that an employee  who desires  such a
     leave of absence after  returning to his employment  with the Company shall
     have it granted only if he notifies the Company in writing, within one year
     from the date he is  re-employed,  of his intention to pursue such a course
     of study. Such employee's  continuous  service shall accumulate during such
     leave of absence,  provided he reports for re-employment within thirty (30)
     days after the completion or termination of such course of study.  Any such
     employee  must  notify the  Company  and the Union in writing at least once
     each calendar year of his continued desire to resume active employment with
     the Company upon  completing or terminating  such course of study to remain
     eligible for re-employment.

C.   If an employee who would  otherwise  have been  entitled to a vacation with
     pay under the  provisions  of Article 9 of this  Agreement  shall enter the
     Armed  Services  of the  United  States  before he shall  have  taken  such
     vacation,  or before he shall have  accepted  vacation  pay in lieu of such
     vacation,  such  employee  shall  receive  such pay as he would  have  been
     entitled to receive for the period of such vacation.

D.   The Company  also agrees to comply  with all  applicable  Federal and State
     laws relating to the granting of leaves of absence for members of the Armed
     Services  Reserve or National  Guard  called to  training  or active  duty.
     Should an employee fail to meet the  eligibility  requirements  for holiday
     pay  solely  because  he was  on  active  military  encampment  during  the
     eligibility period, he will be paid as though he had so qualified.

     Further,  an employee will not be required to take his vacation time during
     this period of active military encampment.

E.   Re-employment  rights  of  returning  military  veterans  are  provided  in
     applicable  Federal Law. When a veteran is eligible to return to a job, the
     veteran will do so by  displacing  the junior  employee on that job and any
     further    reduction-in-force    will   be   in    accordance    with   the
     reduction-in-force   provision  of  this  Agreement.  Since  such  law  may
     supersede this Agreement and provides  similar or expanded  rights to those
     conferred by this  Agreement,  it is not intended for this  paragraph to be
     used by returning veterans.

_____________________                                      _____________________
Company                                                                    Union

                                       73
<PAGE>

                                   ARTICLE 20
                                 PENSION PROGRAM

     The parties shall take the necessary  steps to enable the Company to become
a participating  employer in the Steelworkers  Pension Trust,  "the Trust",  the
terms of which are set forth in the  attached  1999 Annual  Report of the Trust.
During the term of this Agreement,  the Company shall  contribute $1.00 per hour
for each hour worked by each covered employee.  For purposes of calculating such
contributions,  hours  paid for  vacations  and  holiday  shall be deemed  hours
worked.  In addition,  the Company shall make a minimum monthly  contribution of
$50.00  for a period of up to six (6)  months for any  covered  employee  who is
absent from work because of illness or disability, or Union leave.

     With respect to vested employee benefits,  each employee of the Company who
is in the  employ  of the  Company  on the  date the  Company  first  becomes  a
participating  employer in the Trust shall have all periods of prior  employment
with NSA  (and  Southwire  affiliates)  up to four  years  treated  as  "Covered
Service" for vesting  purposes under the Trust if the employee  continues in the
employ  of the  Company  for one  year  beyond  that  date.  All  other  vesting
requirements  of the Trust  continue  to apply.  These  periods  do not count as
"Covered  Service" in determining  eligibility for disability  benefits or under
the Rule of 85.

_____________________                                      _____________________
Company                                                                    Union

                                       74
<PAGE>

                                   ARTICLE 21
                              JURY AND WITNESS PAY

A.   EXCUSED ABSENCE FOR JURY OR WITNESS DUTY

     1.   An employee  summoned  for jury or witness  duty will be excused  from
          work for each actual workday of service.

     2.   An employee scheduled to work on the afternoon or night shift shall be
          excused from work during his service period.

     3.   "Service",  as used in this  Article,  includes  reporting for jury or
          witness  duty without  regard as to whether the  employee  serves on a
          jury or testifies as a witness.

B.   ELIGIBILITY FOR JURY AND WITNESS PAY

     1.   An employee  excused  for jury duty is  eligible  for jury and witness
          pay.

     2.   An employee  excused for witness duty is eligible for jury and witness
          pay in the  following  circumstances:  (1) if subpoenaed in a criminal
          proceeding  in  which  the  employee  is  not  the  defendant;  (2) if
          subpoenaed in a civil proceeding by the Company;  or (3) if subpoenaed
          by a public  agency  in a civil  proceeding  in which the  Company  is
          providing jury and witness pay to employees appearing on behalf of the
          Company.

     3.   To receive  jury and witness  pay, an employee  must  present  written
          proof to his supervisor of service as a jury member or witness.

     4.   Employees  on vacation  shall not be eligible for jury or witness pay;
          in  determining  eligibility  an  employee  will  be  deemed  to be on
          vacation 24 hours prior to the  starting  time of his first  scheduled
          day of vacation; an employee will not be allowed to cancel vacation in
          lieu of Jury/Witness service once he is considered to be on vacation.

     5.   Employees on medical leave who have been declared disabled by a doctor
          shall not be eligible  for jury or witness  pay; a person who has been
          declared  disabled by a doctor during the seven day waiting period for
          eligibility  for sickness  and  accident  benefits is not eligible for
          jury and witness pay.

C.   AMOUNT OF JURY AND WITNESS PAY

     1.   For each day of jury or witness  service  that an  employee  otherwise
          would have worked,  the employee  shall  receive 8, 9, 10, or 12 times
          his Standard Base Wage Rate depending on the  employee's  normal shift
          schedule.

_____________________                                      _____________________
Company                                                                    Union

                                       75
<PAGE>

     2.   Hours  paid for jury or  witness  service  shall be  counted  as hours
          worked in the computation of premium and overtime pay.

     3.   An employee  will not receive jury and witness pay when it  duplicates
          pay received for time not worked for any other reason.

_____________________                                      _____________________
Company                                                                    Union

                                       76
<PAGE>

                                   ARTICLE 22
                                 BEREAVEMENT PAY

A.   Eligibility For Bereavement Pay

     1.   An  employee  who has  suffered  a death of a member of his  immediate
          family,  as  defined  in  Section 2 below,  is  eligible,  subject  to
          Sections  3-5 below,  to receive  bereavement  pay while  absent up to
          three (3) consecutive days including the day of the funeral,  provided
          the employee attends.

     2.   Immediate  family members for purposes of determining  eligibility for
          bereavement pay include:

          Mother                      Father            Spouse
          Natural Children            Brother           Step-Parents
          Legally Adopted Children    Father-in-Law     Step-Brother
          Step-Children               Step-Sister       Employee's Grandparents
          Mother-in-Law               Half-Sister       Grandchildren
          Half-Brother                Sister

     3.   Employees  who are  receiving  pay for time not  worked  for any other
          reason are not eligible for bereavement pay.

     4.   Employees on vacation  shall not be eligible for  bereavement  pay; in
          determining  eligibility  an employee will be deemed to be on vacation
          24 hours  prior to the  starting  time of his first  scheduled  day of
          vacation;  an employee will not be allowed to cancel  vacation in lieu
          of bereavement leave once he is considered to be on vacation.

     5.   Employees on medical leave who have been declared disabled by a doctor
          shall not be  eligible  for  bereavement  pay;  a person  who has been
          declared  disabled by a doctor during the seven day waiting period for
          eligibility  for sickness  and  accident  benefits is not eligible for
          bereavement pay.

     6.   An  employee  should  notify his  supervisor  and the Human  Resources
          Office to make  arrangements to receive  bereavement pay and to assist
          in funeral arrangements and attend the funeral of a family member; the
          Company shall exercise the greatest  possible degree of  understanding
          and the employee shall exercise his best judgment.

B.   Amount of Bereavement Pay

     1.   While  absent for up to three days for the  purpose  of  assisting  in
          funeral arrangements and attending the funeral of a family member, the
          employee  shall  receive 8, 9, 10, or 12 times his Standard  Base Wage
          Rate for each day of work missed  depending on the  employee's  normal
          shift schedule.

_____________________                                      _____________________
Company                                                                    Union

                                       77
<PAGE>

     2.   Hours paid for bereavement pay shall be counted as hours worked in the
          computation of premium and overtime pay.

C.   Unpaid Bereavement Leave

     1.   An  employee  who has  suffered a death in his  immediate  family of a
          person  other than those  identified  in Section A (2) above  shall be
          entitled  to an unpaid  bereavement  leave of up to three  consecutive
          days including the day of the funeral,  provided the employee  attends
          and there is no adverse impact on operational requirements. Such leave
          shall not be unreasonably withheld by the Company.

     2.   Employees   requesting  unpaid  bereavement  leave  shall  follow  the
          notification requirements set forth in Section A (6) above.

_____________________                                      _____________________
Company                                                                    Union

                                       78
<PAGE>

                                   ARTICLE 23
                                EQUAL OPPORTUNITY

A.   It is the continuing  policy and  recognized  obligation of the Company and
     the Union that the provisions of this Agreement shall be applied fairly and
     in  accordance  with those  Federal and State  employment  laws relating to
     race, color,  religion,  creed, national origin,  disability,  sex, or age,
     except where sex or age is a bona fide occupational qualification.

B.   All  provisions of this Agreement  shall apply alike  (equally) to all male
     and female employees.  (Masculine  pronouns or references in this Agreement
     shall be deemed to include feminine pronouns or references.)

C.   Equal Opportunity Committee:

     1.   There shall be  established a joint  Company-Union  Equal  Opportunity
          Committee.  The Committee shall consist of six (6) members,  three (3)
          each from the Company and the Union.  The Company members shall be the
          Plant Manager,  or his personal  designee,  the  Industrial  Relations
          Superintendent, and one other designee of the Plant Manager.

          The  Union  members  shall  be  the  President  and  two  (2)  persons
          designated by the President of the Local Union.

     2.   The primary  purpose of the  committee  shall be to  establish a forum
          within the  framework  of the  Company-Union  relations  whereby  both
          parties can  discharge  their  affirmative  commitments  made above in
          Section  A, as well as  consider  complaints  raised by members of the
          bargaining  unit  concerning  these  commitments.  The  members of the
          committee shall have access to departments other than their own at all
          reasonable times,  without undue delay, for the purpose of transacting
          the legitimate  business of the committee after reasonable  notice has
          been given to the head of the  department to be visited and permission
          from their own department has been obtained, and such permission shall
          be granted at all reasonable times.

     3.   The committee shall meet at mutually agreeable times, but no less than
          once every three (3) months. Minutes of the proceedings shall be taken
          and maintained.  Union designees attending these meetings of the Joint
          Equal Opportunity Committee shall be paid for each hour of work lost.

     4.   It is not intended by the parties that this  committee  shall displace
          the  normal  operations  of  the  grievance  procedure.  However,  the
          committee

may take  action  concerning  those  matters set forth in Section A which is not
contrary to provisions of the Labor Agreement. It is further understood that the
Chairman of the  Grievance  Committee  may file a grievance in the third step of
the grievance procedure alleging a violation of Section A of this Article.

_____________________                                      _____________________
Company                                                                    Union

                                       79
<PAGE>

D.   There shall be an annual meeting between designated  representatives of the
     Company  and the Union on a date  mutually  agreed  upon by the  parties to
     review all matters involving Civil Rights.

_____________________                                      _____________________
Company                                                                    Union

                                       80
<PAGE>

                                   ARTICLE 24
                                 CONTRACTING OUT

1.   During the negotiations preceding the effective date of this Agreement, the
     parties  recognized  the  seriousness  of  the  problems   associated  with
     contracting out of work and accordingly agree as follows:

     During the  initial  sixty (60) days of this  Agreement,  the  Company  may
     contract out any work,  provided an Initial Base Force Manning Level of 600
     bargaining  unit  employees  are provided with a full work week and are not
     denied reasonable overtime opportunity and a reasonable amount of overtime.
     During this sixty (60) day period,  no grievances will be filed  concerning
     any violations of this Article.

2.   During a period of ten (10) months  following the  conclusion of this sixty
     (60) day period,  the Company and the Union shall meet  regularly to review
     the  appropriate  types and amount of work,  if any, in each section  which
     contractors shall be permitted to perform in that section and shall develop
     a Sectional Agreement with respect thereto. Such Sectional Agreements shall
     assure that no job being  performed by an employee  included in the Initial
     Base Force  Manning Level will be eliminated  through  contracting  out and
     laying off the  employee  then  performing  such job.  During this ten (10)
     month period  grievances  may be filed under this Article  concerning  only
     alleged  violations  of  Section  1 or  one  of  the  Sectional  Agreements
     referenced in this Section.

3.   On April 1, 2002, Part A below shall become effective and grievances may be
     filed  concerning the entire scope of Article 24. The "existing  rights and
     obligations  with respect to various types of contracting  out"  referenced
     therein are those set in the Sectional  Agreements entered into pursuant to
     Section 2.  Whenever  the term  "practice"  appears in Paragraph 1 below it
     refers to the NSA practice prior to January 1, 1998.

     In the event of any capital  improvements or  technological  changes at the
     Plant which  results in a  reduction  in  manning,  the Initial  Base Force
     Manning  level may be reduced by a number  equal to the  resultant  manning
     reduction.

A.   Memorandum

     The Union has expressed  serious concern over the matter of contracting out
     work and the effect it has on the  bargaining  unit.  Sharing  the  Union's
     concern,  the Company agrees that  preference  shall be given to Production
     and Maintenance employees where practicable,  taking into consideration the
     magnitude of the job (including economic factors), availability of employee
     skills, and availability of materials and equipment. The Company shall also
     extend this same type of consideration and preference to those employees on
     layoff status,  provided  there is sufficient  number of such employees and
     they have the ability,  qualifications  and physical fitness to perform the
     work in question.

_____________________                                      _____________________
Company                                                                    Union

                                       81
<PAGE>

     The parties have existing  rights and  obligations  with respect to various
     types  of  contracting   out.  In  addition,   the  following   supplements
     protections  to bargaining  unit employees or affirms  existing  management
     rights,  whichever  the case may be, as to those types of  contracting  out
     specified below. In no event shall the following affect the protections set
     forth in Section 2 above.

     1a.  Production,  service, and day-to-day maintenance and repair work as to
          which the practice  has been to have such work  performed by employees
          in the bargaining  unit shall not be contracted  out for  performance,
          unless otherwise mutually agreed pursuant to Paragraph 4. In the event
          the Union  agrees with the Company  that work  covered by this section
          can be contracted out, it is expressly understood and agreed that this
          shall in no manner be  interpreted to mean that the Union has given up
          its rights to have such work performed in the future by members of the
          bargaining unit.

     b.   If production,  service, and day-to-day maintenance repair work has in
          the past been performed under some  circumstances  by employees in the
          bargaining  unit  and  under  some   circumstances   by  employees  of
          contractors,  or both,  such  practice  shall  remain in  effect  with
          respect  to such work  performed,  unless  otherwise  mutually  agreed
          pursuant to Paragraph 4. However,  before any work is contracted  out,
          the Company and the Union will again review and consider those factors
          set forth above in the introductory remarks.

          It is expressly  understood and agreed that this shall in no manner be
          interpreted  to mean that the  Union  has given up its  rights to have
          such work performed in the future by members of the  bargaining  unit,
          or that the Company has given up any of its rights.

          The Company  agrees that  preference  shall be given to Production and
          Maintenance employees where practical.

     c.   Production,  service,  and  day-to-day  maintenance  repair work as to
          which the practice  has been to have such work  performed by employees
          of contractors  may continue to be contracted  out,  unless  otherwise
          mutually agreed pursuant to Paragraph 4.

          In the event that the Company agrees with the Union to have bargaining
          unit employees  perform work covered by this Section,  it is expressly
          understood  and agreed that this shall in no manner be  interpreted to
          mean  that the  Company  has  given up its  right  to have  such  work
          performed in the future by employees of contractors.

_____________________                                      _____________________
Company                                                                    Union

                                       82
<PAGE>

     2.   Production,  service, and day-to-day maintenance and repair work other
          than that described in Paragraphs  1(a-c) above as well as maintenance
          and repair work  performed,  other than that  described  in those same
          paragraphs,  and  installation,   replacement  and  reconstruction  of
          equipment  and  productive  facilities,  other than that  described in
          Paragraph 3(a) below, may not be contracted out for performance unless
          contracting  out under the  circumstances  existing as of the time the
          decision to contract out was made, can clearly be  demonstrated by the
          Company to have been the more  reasonable  course  than doing the work
          with  bargaining  unit  employees,   taking  into   consideration  the
          significant factors which are relevant.  Whether the decision was made
          at the particular  time to avoid the obligations of this paragraph may
          be a relevant factor for  consideration.  It is not the intent of this
          paragraph to justify the delay of  day-to-day  maintenance  and repair
          work as described under Paragraphs 1(a-c).

     3a.  New construction including major installation,  replacement, and major
          reconstruction of equipment and productive facilities at the Plant may
          be  contracted  out,  subject  to any rights  and  obligations  of the
          parties which are applicable at the Plant.

     b.   Where  the  Union   Contracting   Out   Committee   and  the   Company
          representatives  have held discussions in accordance with section 5(a)
          below,  and the work involved in such  discussions is contracted  out,
          should  significant new facts or information become known either prior
          to the work being  performed or during the period in which the work is
          being performed, the Committee shall reconvene to discuss such facts.

     c.   Once a job has been contracted out, any  modifications to the original
          specifications  necessitating significant additions or revisions shall
          be  subject  to  discussion  with the  Contracting  Out  Committee  in
          accordance with section 5(a).

     4a.  A regularly-constituted committee consisting of not more than four (4)
          persons  (except that the committee may be enlarged to six (6) persons
          by local agreements),  half of whom shall be members of the bargaining
          unit and  designated  by the Union in  writing to  Management  and the
          other half  designated  in writing to the Union by  Management,  shall
          attempt  to  resolve   problems  in  connection  with  the  operation,
          application, and administration of the foregoing provisions.

     b.   In addition to the  requirements of Paragraph 5 below,  such committee
          may discuss any other current problems with respect to contracting out
          brought to the attention of the committee.

_____________________                                      _____________________
Company                                                                    Union

                                       83
<PAGE>

     5.   The  Union  Committee  members  will be given  notice  by the  Company
          members,  when the  Company  believes  it  should  have  items of work
          performed by outside  contractors.  Should the Union committee members
          believe discussion to be necessary,  they shall so request the Company
          members  in  writing  within  three  (3)  days  (excluding  Saturdays,
          Sundays,  and  Holidays)  after  receipt  of such  notice  and  such a
          discussion  shall be held within three (3) days (excluding  Saturdays,
          Sundays,  and  Holidays)  thereafter.  The Company will make whole the
          earnings of members of the  Contracting  Out Committee,  for lost time
          from  work  while  attending  meetings  of this  Committee,  when such
          meetings are requested by the Company.  The Company is responsible for
          reviewing  with the  Union  all the  facts  involved.  Engineering  or
          Technical  personnel  will be utilized where  necessary,  to assist in
          explaining the technical factors.

          Should the  committee  resolve the matter,  such  resolution  shall be
          final and binding.  Should a discussion  be held and the matter not be
          resolved, or in the event a discussion is not held, then within thirty
          (30) days from the date of the Company's notice, a grievance  relating
          to  such  matter  may be  filed  in  Step 2 under  the  grievance  and
          arbitration  procedure.  Should the Company  committee members fail to
          give  notice as provided  above,  then not later than thirty (30) days
          from the date of the commencement of the work or point of discovery, a
          grievance relating to such matter may be filed under the grievance and
          arbitration procedure.

          The  Union  also   expressed   concern  over  the  possible   lack  of
          notification of the Company's intent to contract out work and, in some
          instances,  the possible  lack of adequate  time to consider the facts
          involved in the contracting out of work. In view of this concern,  the
          Company agrees to the following:

          a.   The Company will discuss  contracting out decisions in advance of
               making  such  and  will  allow  adequate  time  for the  Union to
               consider the facts  presented by the Company.  In the event of an
               emergency,  such advance  notice shall not be required;  however,
               notice  of the items of work  performed  by  outside  contractors
               shall be given by the Company as soon as possible.

          b.   Failure  of  the  Company  to  comply  with  Paragraph  (a)  will
               constitute   a   violation   of  the  Company   contracting   out
               notification   commitments   and  the  work  in  question   will,
               therefore, not proceed until the Union has been properly notified
               and due consideration given to their suggestions,  which shall be
               made promptly.

_____________________                                      _____________________
Company                                                                    Union

                                       84
<PAGE>

          c.   If,  however,  discussion  does not take place  with  appropriate
               Union  representatives,   then  the  appropriate  Production  and
               Maintenance  employees  will  either be  assigned  to perform the
               work, if it has not been performed,  or will be compensated as if
               they had performed the work. In the event employees on layoff are
               those to be  compensated in accordance  with this  Understanding,
               such compensation  shall be reduced by monies received that would
               otherwise  not have  been  received  had the  employees  actually
               performed the work (other employment, etc.)

     6a.  An employee  included in the Initial Base Force  Manning  Level of 600
          employees  shall receive a full work week at his Standard  Hourly Base
          wage rate so long as there are employees of contractors working in the
          Plant  performing  work which would  otherwise  be  performed  by such
          employee.  This  commitment  shall apply only to those  covered  Plant
          employees  who receive less than a full work week and would  otherwise
          perform the work so long as they have the ability,  qualifications and
          physical  fitness and are available for work.  The number of employees
          protected by this  commitment will not exceed the lesser of the number
          of contractor  employees of similar skill or alternatively  exceed the
          sum of the number of Plant employees covered hereunder who are working
          less than a full work week plus the number of such  employees  who are
          on layoff.  The recipients and distribution shall be determined by the
          local parties. Such commitment shall not be applicable with respect to
          outside   contractors'   employees   working   in  the  plant  on  new
          construction  including major  installation,  major  replacement,  and
          major  reconstruction  of equipment and  productive  facilities.  This
          section  6a shall  not be  construed  as  permitting  the  Company  to
          contract out the work that a laid-off  employee  could perform so long
          as it pays that  employee a full work week at his  Standard  Base Wage
          Rate.

     b.   The following Outside  Contracting  Notification  shall be used during
          the term of this Contract.

OUTSIDE CONTRACTING NOTIFICATION

TO: ___________________________________           DATE: ___________
   (Chairman, Outside Contr. Committee)

FROM: _________________________________
        (Plant Manager or Designee)

CC:  Union
     Company

I.  COMPANY WHICH WILL PERFORM WORK:    ________________________________
    LOCATION WHERE WORK PERFORMED:      ________________________________
    DATE WORK EXPECTED TO COMMENCE:     ________________________________

_____________________                                      _____________________
Company                                                                    Union

                                       85
<PAGE>

    ESTIMATED TIME TO COMPLETE WORK:    ________________________________
    ____________________________________________________________________
    ____________________________________________________________________

    REASON FOR CONTRACTING OUT WORK:    ________________________________
    ____________________________________________________________________
    ____________________________________________________________________
    ____________________________________________________________________

II.  UNION RESPONSE: UNION REQUEST MEETING     [ ]
                     UNION AGREES:     [ ]

    UNION POSITION:
    ____________________________________________________________________
    ____________________________________________________________________
    ____________________________________________________________________

III. DISPOSITION:  _____________________________________________________
    ____________________________________________________________________

    UNION ACCEPTS POSITION OF THE COMPANY:  [ ]
    UNION REJECTS:  [ ]

_____________________                                      _____________________
Company                                                                    Union

                                       86
<PAGE>

                                   ARTICLE 25
                              PLANT CLOSING PROGRAM

A.   The Company shall provide ninety (90) days written notice, if circumstances
     permit,  to the  International  Union of its intention to permanently close
     the plant or major operating  department.  In the event of such notice, the
     parties shall immediately commence  discussions  regarding the impact which
     the closing will have on affected  employees.  At the Union's request,  the
     Company  shall  explain  the basis for its  decision  to close the plant or
     major operating department.

     Without being  obligated to bargain over its decision to permanently  close
     the plant or major  operating  department,  the Company shall  consider any
     proposals of the Union which may either postpone or avoid the necessity for
     the closing for affected  employees.  At the Union's  request,  the Company
     will  share  equally  with the Union any  reasonable  costs not paid by any
     public  agency  for one  feasibility  study,  not to exceed  $25,000 as the
     Company's  share, to determine  whether there are  alternative  uses of the
     plant,  or alternative  forms of ownership  including  employee  ownership,
     which would preserve job opportunities at the plant.

B.   If the plant or major operating  department is to be permanently shut down,
     the Company and the Union will designate appropriate representatives at the
     location to coordinate such activities as:

     - liaison with Federal,  State, and local  governmental  officials who have
     some  relationship to the assistance of affected  employees in an effort to
     focus governmental support for the affected employees;

     - personal  contact  with  affected  employees to assess needs and personal
     preferences in terms of assistance.

C.   In the event of the  permanent  shutdown  of the  plant,  or a  substantial
     layoff  at  the  plant  location,   the  Company  and  International  Union
     representatives shall meet to determine whether appropriate Federal, State,
     or local government funds are available to establish an employee  training,
     counseling, and placement assistance program for that facility.

     If such funds are  available,  the Company and Union shall work  jointly to
     secure  such  funds to  establish  a program  to  provide  alternative  job
     training for  affected  employees  for job  opportunities;  counseling  for
     affected  employees on available  benefit  program;  and job  opportunities
     possibly available.

     In implementing such program,  the Company will cooperate with the involved
     Local Union and State  unemployment  agency,  other  appropriate  public or
     private  employment  agencies,  and area employers in an effort to seek job
     opportunities   for  displaced   employees.   To  further  assist  affected
     employees,   both  the  Company  and  the  Union  will  designate  specific
     representatives  at the time of any permanent  plant closing or substantial
     extended layoff to answer questions by employees pertaining to their rights
     under the basic Labor Agreement and various benefits programs.

_____________________                                      _____________________
Company                                                                    Union

                                       87
<PAGE>

                                   ARTICLE 26
                               MISCELLANEOUS ITEMS

1.   Orientation -- New Employees

          The parties  recognized  the mutual  desirability  of  establishing  a
     coordinated program of orientation for new employees at the time of hire or
     in the course of pre-employment processing.

          Accordingly,  during the term of this Agreement,  the  Headquarters of
     the  International  Union will develop an appropriate  education program of
     not  more  than  two  hours'   duration   designed  for   presentation   by
     representative  designated  by the  Union  in  facilities  provided  by the
     Company.  The Union will  consult with the Company in the  development  and
     implementation  of the  program.  It is further  understood  that the local
     parties will  coordinate the Union  orientation  sessions as to content and
     timing with the Company orientation program. All materials,  papers, texts,
     visual  aids and  other  education  or  informational  aids  for the  Union
     Orientation  program will be  furnished  by the Union at its  expense.  Any
     other costs incidental to the program shall be paid by the Company.

2.   Periodic Meetings

          So that the  parties  may  maintain  close  liaison to provide  mutual
     attention to the  administration  and application of the Labor Agreement it
     is agreed to meet  periodically and to have those persons in attendance who
     are responsible for the matters set forth above.

          Safety  and  Health  matters  arising  under  Article  16 of the Labor
     Agreement  shall,  at the request of either party,  be placed on the agenda
     for discussion and review at these periodic meetings.

3.   USWA-PAC Check-off

     A.   USWA-PAC

          The  Company  has agreed  that it will check off and  transmit  to the
     Treasurer of the USWA PAC all  contributions  to the USWA Political  Action
     Fund from the earnings of those  employees who  voluntarily  authorize such
     contributions  on forms  provided  for that  purpose by the  USWA-PAC.  The
     amount and timing of such check-off  deductions and the transmittal of such
     voluntary  contributions  shall  be as  specified  in  such  forms  and  in
     conformance with any applicable State or Federal statute.

          The  signing of such  USWA-PAC  check-off  form and the making of such
     voluntary  annual  contributions  are not  conditions  of membership in the
     Union or of employment with the Company.

_____________________                                      _____________________
Company                                                                    Union

                                       88
<PAGE>

          The Union shall  indemnify and hold the Company  harmless  against any
     and all claims,  demands,  suits,  or other forms of  liability  that shall
     arise out of, or by reason of, action taken or not taken by the Company for
     the purpose of complying with any of the provisions of this Agreement.

          The United Steelworkers of America Political Action Committee supports
     various candidates for Federal and other elective office, is connected with
     the United Steelworkers of America, a labor organization,  and solicits and
     accepts only  voluntary  contributions,  which are  deposited in an account
     separate  and  segregated  from  the  dues  fund of the  Union,  in its own
     fund-raising efforts and in joint fund-raising efforts with the AFL-CIO and
     its Committee on Political Education.

     B.   Check-off

          (1) The Company shall provide for a voluntary check-off, in the amount
     specified  in the USWA-PAC  check-off  authorization  form  provided by the
     Union,  only at those plants where the Union is the  recognized  collective
     bargaining agent and only for those employees who are so represented by the
     Union.

          (2) PAC payroll  deductions will be allowed in increments of $.25 on a
     weekly basis only.  Deductions based on authorization cards provided to the
     Company  three  (3)  weeks in  advance  of each  calendar  quarter  will be
     commenced at the beginning of each such quarter.

          (3) The amounts so deducted  shall be remitted at the end of the month
     following each calendar quarter to the Treasurer of the United Steelworkers
     of America  Political  Action Fund,  Five Gateway  Center,  Pittsburgh,  PA
     15222. Such submittal shall include a printout listing the employee,  their
     social  security  number  and the  amount  of  deductions  for each of such
     employees.  The authorization  form, as well as the nature of the political
     action fund;  i.e.,  limited to Federal  candidates or a mixed purpose fund
     for Federal,  State and local  candidates,  shall conform to any applicable
     State or Federal statute.

          (4) The Union shall  indemnify and hold the Company  harmless  against
     any and all claims,  demands,  suits or other forms of liability that shall
     arise out of, or by reason of, any action  taken by the Company  under this
     provision,  or in reliance on any list, notice, or authorization  furnished
     by the  Union  under  this  provision.  The  Union  also  agrees  that  any
     solicitations  made  for  participation  in this  program  shall be done in
     compliance with the applicable local plant rules.

_____________________                                      _____________________
Company                                                                    Union

                                       89
<PAGE>

          (5) Under the Federal Election  Campaign Act, the Company is obligated
     to charge for,  and the Union  agrees to  reimburse  the Company  for,  the
     expenses the Company  incurs in making this  check-off  deduction.  In that
     regard  the  Company  shall  after  each  quarterly  computer  run  of  the
     employee's  deductions  submit to the  Treasurer of the USWA-PAC a bill for
     expenses  incurred by the Company in making the  deductions and producing a
     computer run of the employees' deductions.  The Union's reimbursement check
     should be payable to the Company and mailed to the Corporate headquarters.

          This  provision  shall  remain  in  effect  for the  duration  of this
     Agreement or until the Act or the  regulations  promulgated  thereunder are
     amended to prohibit the undertakings set forth in this provision, whichever
     shall first occur.

4.   Deduction for SOAR Dues and Retiree PAC Contributions

          Notwithstanding  any other  provisions of this Agreement,  the Company
     during  the  life of any  collective  bargaining  agreement  applicable  to
     employees covered by this Agreement shall deduct dues and PAC contributions
     from any  monthly  retirement  benefit  otherwise  payable  to any  retired
     employee who shall have duly  authorized  such  deduction(s) as a member of
     the Steelworker Organization of Active Retirees (SOAR) on a form acceptable
     to the Company to the extent permitted by applicable federal and state laws
     and  regulations  and to remit such amounts to the  Treasurer of the United
     Steelworkers  of America and,  where  appropriate,  to the Treasurer of the
     United Steelworkers of America PAC Fund.

          The Union shall  indemnify and save the Company  harmless  against any
     and all claims,  demands,  suits,  or other forms of  liability  that shall
     arise out of or by reason of action  take or not taken by the  Company  for
     the purpose of complying with any provisions of these  understandings or in
     reliance  of any list,  notice or  assignment  furnished  under any of such
     provisions.

5.   Voter Registration

          The month of September in each calendar  year will be  designated  for
     the purpose of registering voters. Permission will be given for Local Union
     officers and committee  members to Solicit these  signings in the [areas to
     be designated] as well as parking Lots. The intent of this paragraph is not
     to impede production.

_____________________                                      _____________________
Company                                                                    Union

                                       90
<PAGE>

                                   ARTICLE 27
                                TRAINING PROGRAM

The Company and the Union  recognize the mutual  advantages  in  developing  and
training  interested  and  qualified  employees  to fulfill the need for skilled
workers.   In  keeping  with  this  objective  and  their  mutually   recognized
responsibilities,  it is agreed that full and fair  opportunity  for advancement
through  organized  and  supervised   training  programs  will  be  provided  to
interested  and  qualified  employees in order to meet present and future demand
for skilled workers, as determined by the company.

Further,  it is recognized that work  requirements  and training  facilities may
vary and that the basic aim of the training program is to develop  personnel who
are qualified to perform the full range of repair and maintenance tasks required
at the plant. Nevertheless, the job classifications and the Job Descriptions for
specified  occupations  shall continue to be uniformly  effective and applicable
during the term of these guidelines.

The Apprenticeship Program shall conform to the following minimum guidelines:

I.   Qualifications

     Applicants   for  training   program  must  meet  the   following   minimum
     requirements:

     1.   Be a full time employee of the Company;

     2.   Have  satisfactorily   completed  job-related  written  and  practical
          certification tests at the senior level;

     3.   Be physically able to satisfactorily  perform the essential  functions
          of the job involved when reasonable accommodations are provided;

     4.   Be  eligible  to bid under  the  eligibility  requirements  of the Job
          Bidding & Posting Procedure;

     5.   Have satisfactorily completed simulated work exercises;

     6.   Be a high school graduate or have a GED diploma.

II.  Advisory Team

     The  Training  Program will be under the  direction of an advisory  team to
     consist  of  three  representatives  appointed  by the  Company  and  three
     representatives appointed by the Union.

III. Selection Process

     The need for trainees under this program will be determined by the Company.
     Openings  will be filled by  contacting  the most senior  employee  who has
     passed the  certification  test at the senior level for the specific  craft
     opening.  Applicants  meeting the minimum  requirements will be selected in
     accordance with the applicable seniority provisions without regard to race,
     creed,  color,  national  origin,  sex, age and  occupationally  irrelevant
     physical requirements until all open positions are filled.

_____________________                                      _____________________
Company                                                                    Union

                                       91
<PAGE>

         Applicants  for the training  program  shall be verbally  examined with
         respect to previous  training and/or experience and perform a series of
         simulated work related exercises to determine the employees'  potential
         to finish the program.

IV.  Trial Period

     The first thirty (30) days of the training  program  shall be  considered a
     trial period  during which either the Company or the trainee may  terminate
     the  trainee's  participation  in the  program.  Trainees,  whose  training
     program have been terminated during this period,  will be returned to their
     original job from which they came with no loss of seniority.

V.   Release From Training Program

     In addition to the trial  period  described in Section IV,  employees  may,
     within  the  initial  3-month  period,  elect to return  to their  previous
     seniority  section (while retaining their sectional  seniority).  Employees
     not allowed to return to their  previous  job would be placed in the lowest
     rated job within that section.  During the initial 3-month period, trainees
     may elect to return to their  previous  Section for the  following  reasons
     only:  (a) have  failed  to  adequately  perform  the  necessary  duties as
     assigned or (b) dissatisfaction with the program.

     During the first 6 months in the program,  the Company may request that the
     trainee be returned to the trainee's  previous  department  with no loss in
     seniority.  Employees  displaced  from the program at the  company  request
     would be allowed to return to their previous job.

     Any request for release from the training program not addressed above would
     be based on the recommendation of the Advisory Team.

VI.  Job Bidding

     An employee in a training classification will be eligible for consideration
     for any opening  created by an  employee  being  released  from a different
     training field, provided it was during the initial 20 weeks of the training
     program.  Any vacancy created after the start of the training program would
     be filled under the original selection procedure.

     An employee accepted into the training program who subsequently  leaves the
     program will be ineligible  for bidding into any future  training  openings
     unless  the  reason  for  leaving  the  program  was  due to a  justifiable
     extenuating circumstance.

_____________________                                      _____________________
Company                                                                    Union

                                       92
<PAGE>

     Eligibility for employees in the training  program to bid to other openings
     will be subject to the requirements of the Job Bidding & Posting Procedure.

VII. Terms Of Training

     The total duration of this training program shall be a minimum of 24 months
     plus the sum of any required  extension periods specified in the agreement.
     All hours worked,  regular vacation,  leaves of absence of 14 days or less,
     and paid  holidays not worked shall be credited  toward  completion  of the
     total  training  program as  required.  The total  duration of the training
     program  may be  shortened  due to  extraordinary  circumstances  as deemed
     applicable by the Advisory Team.

IX.  Related Instruction

     Trainees  will be required to attend  and/or  satisfactorily  complete  the
     required  number of hours of related  classroom  instruction and home study
     material   that  is  outlined   for  them  based  on  the  results  of  the
     certification    test.   Any   subsequent    deficiency   revealed   during
     on-job-training sessions may require additional classes in order to satisfy
     the job requirements.  The Advisory Team may find it necessary to alter the
     hours of classroom work required in any rotation period and hereby reserves
     the right to do so. The  Advisory  Team shall  arrange  for and outline all
     courses of related instruction which may be given at vocational schools, in
     plant classrooms or approved home study courses.

     The Company  shall obtain  instructors  for such related  training  courses
     based on their ability to instruct and their knowledge of the machinery and
     work function  involved.  The trainees shall be assigned to a counselor for
     the duration of the training  period to provide advice and  instructions to
     insure compliance with all requirements of the training program.

     Time spent by the trainee on supervised,  related  training  courses during
     working hours shall be paid for at the trainee's applicable training rate.

     The  cost  of any  outside  related  instruction  deemed  necessary  by the
     Company, including necessary books, will be paid by the Company.

X.   On-The-Job Training

     On-the-job  training  shall  be the  responsibility  of the  supervisor  as
     assigned by the general supervisors.  It shall be the responsibility of the
     supervisor  to assign  productive  on-the-job  work,  which the trainee can
     perform   individually  or  working  with  qualified   skilled   employees.
     Supervisors will be furnished a detailed checklist of training requirements
     for each specific  area.  Since the  employees are  classified in a trainee
     status,  it is important  that their  working  role be clearly  understood.
     Trainees are  students  and the  department  is their  school.  The primary
     reason for them being there is to learn the job.

_____________________                                      _____________________
Company                                                                    Union

                                       93
<PAGE>

     Instruction  of the trainee will follow the sequence  deemed best suited to
     the volume and type of work  common to the job.  The  schedule  of training
     courses may be altered as deemed  necessary in order to provide  changes in
     work schedules or in area responsibilities.

XI.  Periodic Review of Progress

     The progress of each  trainee  shall be reviewed at the  completion  of the
     initial  30-day  trial  period  and  subsequently  at the end of each  area
     assignment.  Should a review reveal unsatisfactory  progress on the part of
     the trainee, the Advisory Team will determine whatever action they consider
     appropriate.  The Human  Resources  Manager  will be  consulted  before any
     action is taken. The Advisory Team shall arrange such job-related  tests as
     are necessary to determine  the trainee's  progress in required work skills
     and related technical knowledge.

     The Advisory Team will meet with the trainees on an annual basis to discuss
     program areas and  recommendations  for improvements to the program.  These
     meetings  will be conducted at the  conclusion of the first and second year
     of the training program.

XII. Probation

     The Company will maintain  records for each  trainee's  performance  in all
     phases of training.  Employees will be evaluated as trainees (not as crafts
     persons) on their job performance in the work area,  classroom  instruction
     and  written  examinations.   Trainees  who  fail  to  pass  such  progress
     examinations,  have not  progressed  satisfactorily  with their work on the
     job, do not have passing grades on the classroom  instructions,  or are not
     current with their related  classroom or  correspondence  course,  shall be
     placed on  probation  for a period  not to exceed  six months and shall not
     have their rate of pay increased.

     Trainees  placed  on  probation  will  have  their  maintenance   sectional
     seniority date extended by the period of the probation imposed.  Under this
     guideline the trainee's  sectional  seniority date would be later than when
     he actually entered the program by the amount of time on probation.

     Trainees may be re-examined at the mid-point of the probationary  period in
     those phases of their  training in which they are  unsatisfactory.  If they
     are then found  satisfactory,  they will be reinstated and their  probation
     period will be ended.

_____________________                                      _____________________
Company                                                                    Union

                                       94
<PAGE>

XIII. Rates of Pay

     Trainees shall enter the program and receive the wage rate of the job class
     listed for satisfactory completion of each phase of the program as follows:

                                      Maint. Mechanic
                                      Machinist &               Garage
                                      Electrician               Mechanic

First 12-month Period                 Job Grade 18              Job Grade 17

Second 12-month Period                Job Grade 20              Job Grade 19

After successful completion
of program and waiting to bid to an
"A" Opening                           Job Grade 22              Job Grade 21

     Note

          Mechanics,  Machinists & Electricians -- At the successful  completion
          of  the  training  program,  trainees  will  be  classified  as a  "B"
          Mechanic, "B" Machinist or "B" Electrician and will be eligible to bid
          for an "A" class job in his field as an opening  occurs.  If there are
          not "A" class  openings  at the time they  complete  the  program  the
          employee will remain at Job Grade 22 until they  successfully bid into
          an "A" opening.

          Garage  Mechanics  -- At the  successful  completion  of the  training
          program, trainees will be classified as a "B" Garage Mechanic and will
          be  eligible  to bid for an "A" class job in their field as an opening
          occurs.  If there are no "A" class  openings at the time they complete
          the  program  the  employee  will  remain at Job  Grade 21 until  they
          successfully bid into an "A" opening.

     All trainees  will be required to pass a written exam for their craft to be
     eligible for bidding into the "A" classification.

XIV. Seniority

     Employees  participating  in the training  program will not be eligible for
     sectional  seniority  until after  satisfactory  completion of the program,
     then their sectional  seniority will be retroactive.  The retroactive  date
     will be determined by subtracting 24 months from the completion  date. This
     will determine their sectional seniority.

_____________________                                      _____________________
Company                                                                    Union

                                       95
<PAGE>

     For  example:  A trainee  is  placed on  probation  for  three  months  for
     unsatisfactory  performance mid-way through the program. At the end of this
     3-month  period  the  trainee  has  improved  and it is decided to keep the
     trainee in the  program.  This  3-month  probation  period  will extend the
     program to a total of 27 months. To determine the sectional seniority date,
     subtract  24 months from the date the trainee  successfully  completes  the
     requirements  of the  program  and this will give the  sectional  seniority
     date.  A leave of absence in excess of 14 days would be treated in the same
     manner.

XV.  Reduction in Force

     If a  reduction  in  force  other  than a  temporary  reassignment  becomes
     necessary in a particular Maintenance  classification,  any employee in the
     training  program in that  classification  would be  displaced  in order of
     least amount of credited  time in the program by plant  seniority  before a
     classified Maintenance employee would be displaced.

     Sectional  seniority  will be the  determining  factor  in the  event  of a
     departmental reduction in force.

     If a layoff becomes necessary,  a sectional reduction in force by sectional
     seniority would occur prior to the layoff.

XVI. Recall

     A recall of trainees  would be  conducted  in order of the trainee with the
     most credited time in the program  (excludes  leaves and probation time). A
     trainee  will be subject to recall  only after all  classified  Maintenance
     personnel have been recalled in each specific classification where laid-off
     trainees exist.

XVII. Vacation

     Vacations  for the training  participants  will be scheduled as a group and
     will not be scheduled in conjunction with the Maintenance  Department until
     they are  classified  as "A"  class.  Except  as noted,  vacations  for the
     training  group will be  scheduled in  accordance  with the  procedures  as
     outlined in the labor agreement and other departmental rules.

XVIII. Overtime

     Participants in the Training Program will not share in any overtime that is
     offered  within the  Maintenance  group during their tenure in the program.
     However,  overtime  may be offered to the  trainees'  group if it is deemed
     necessary by the  Maintenance  Supervisor.  An overtime roster will be kept
     and overtime hours will be distributed evenly within the group.

_____________________                                      _____________________
Company                                                                    Union

                                       96
<PAGE>

XIX. Hours of Work

     1.   The trainees' daily and weekly schedules,  work assignments,  overtime
          and shifts are subject to plant operating and training conditions.

XX.  General

     1.   The company  reserves the right to hire qualified  employees  directly
          into any Maintenance  classification whether or not there are trainees
          in the program.

     2.   The  rates  of  pay  and  progression  steps  for  trainees  shall  be
          determined according to Section XIII of this agreement.

     3.   Except as noted in this  outline  each  participant  is subject to the
          existing work rules.

     4.   The  company  will  maintain  adequate  records to be  examined by the
          trainee upon request.

     5.   Performance  appraisals  will  normally be given at the  completion of
          each rotation  assignment with the option of giving these more or less
          often.

     6.   Employee must sign an authorization for release of school records upon
          request.

     7.   Employee  will be  required  to  procure,  at own  expense,  all tools
          necessary for training requirements as needed.

     8.   The company will issue to the trainee a certificate of completion upon
          satisfactory completion of the Training Program.

_____________________                                      _____________________
Company                                                                    Union

                                       97
<PAGE>

                                   ARTICLE 28
                              TUITION REIMBURSEMENT

A.   Purpose

     1.   The purpose of the tuition  reimbursement plan is to aid and encourage
          eligible  employees to supplement their education on their own time in
          order to  assist  them in  maintaining  and  improving  their  working
          skills.

B.   Coverage

     1.   Eligible  Employees -- Regular,  full-time  employees with two or more
          years of continuous  service are eligible to  participate in the plan.
          Such employees would be eligible to receive  reimbursement  in varying
          amounts  for  tuition  costs  for  eligible   courses  in  which  they
          participate  at their own request.  In the event an eligible  employee
          quits or is discharged  prior to  completion of an approved  course of
          study, he shall not be entitled to any financial assistance under this
          plan.

     2.   Eligible Course -- Eligible  courses shall be defined as courses which
          in the Company's opinion,  if successfully  completed,  will provide a
          mutual benefit to the parties.

     3.   Prior  Approval -- Employees  must make written  application  on forms
          supplied by the Company,  and receive written approval by the Company,
          prior to  course  registration,  or the  course  to be  taken  and the
          institution offering the course.

C.   Financial Assistance

     1.   Application for  reimbursement of tuition costs shall be made on forms
          supplied  by the  Company  and  forwarded  to the  plant's  Industrial
          Relations  department.   The  refund  request  form  shall  include  a
          statement from the school or sponsoring  authority indicating that the
          employee  satisfactorily  completed  the  required  work of the  study
          course (i.e.  grade of "C" or better) and the grade received (if any),
          and that the tuition charges were paid in full by the employee.

     2.   Reimbursement for approved courses shall be 100% of tuition cost up to
          but  not in  excess  of  $750  in any one  year.  This  shall  include
          textbooks,  breakage fees,  equipment,  etc. Receipts for reimbursable
          expenditures must also be presented prior to reimbursement.

     3.   Employees  participating  in the program  who are  eligible to receive
          tuition benefits  resulting from service in the Armed Forces,  Federal
          aid or  scholarship  aid will be eligible to receive  from the Company
          only the  difference  of the  portion of tuition  not  covered by such
          benefits not to exceed $750.

_____________________                                      _____________________
Company                                                                    Union

                                       98
<PAGE>

     4.   Where employees have been placed on layoff  subsequent to their having
          enrolled in an eligible  course,  they shall be reimbursed for already
          incurred  costs of the course in which they are currently  enrolled in
          accordance with the provision of this Agreement.

_____________________                                      _____________________
Company                                                                    Union

                                       99
<PAGE>

                                   ARTICLE 29
                              NEUTRALITY AGREEMENT

A.   NEUTRALITY

     The Company places a high value on the  continuation and improvement of its
relationship with the Union as well as with all Century employees.

     The Company knows from experience that when both parties are involved in an
organizing campaign directed at unrepresented Company employees, there is a risk
that election  conduct and campaign  activities may have a harmful effect on the
parties'  relationship.  Therefore,  it is incumbent on both parties to take the
appropriate  steps to insure that all facets of an  organizing  campaign will be
conducted in a constructive  and positive manner which does not  misrepresent to
employees the facts and  circumstances  surrounding  their  employment  and in a
manner which  neither  demeans the Company or the Union as an  organization  nor
their  respective  representatives  as individuals.  To underscore the Company's
commitment in this matter, the Company agrees to adopt a position of neutrality,
in the event that the Union seeks to represent  at any  Affiliate of the Company
non-represented   employees  of  the  Company   performing   Production   and/or
Maintenance work.

     Neutrality means that the Company shall neither help nor hinder the Union's
efforts during an organizing campaign;  nor will it in providing  information or
in  expressing  an  opinion  demean  the  Union  as  an   organization   or  its
representatives as individuals.  Also, the Company shall not provide any support
or assistance of any kind to any person or group opposed to Union organization.

     Consistent  with the above,  the Company  reserves the right to communicate
fairly and  factually to employees in the unit sought  concerning  the terms and
conditions of their employment with the Company and concerning legitimate issues
in the campaign.

     For its part, the Union agrees that all facets of its  organizing  campaign
will  be  conducted  in  a  constructive  and  positive  manner  that  does  not
misrepresent  to the employees  the facts and  circumstances  surrounding  their
employment and in a manner which neither  demeans the Company as an organization
nor its representatives as individuals. The Company commitment and obligation to
remain neutral is predicated on this conduct.

B.   SCOPE OF THIS NEUTRALITY AND RECOGNITION AGREEMENT

     For the purposes of this  Agreement,  the term  "Company" also includes any
Affiliate of the Company,  and the  obligations  and  commitments in this letter
applicable to the Company are applicable to any Affiliate of the Company.

     For the purposes of this Agreement,  "Affiliate"  means any business entity
in which the  Company  directly or  indirectly  owns more than 50% of the voting
stock and has operating responsibility.

_____________________                                      _____________________
Company                                                                    Union

                                      100
<PAGE>

C.   DISPUTE RESOLUTION

     Any alleged violations of this Agreement, as well as any disputes involving
the Company's neutrality,  alleged Union misrepresentations or misconduct during
a campaign or definition of the  appropriate  unit,  shall be brought to Company
and  Union   designees.   If  the  alleged   violations  or  dispute  cannot  be
satisfactorily  resolved  by the  parties,  either  party  may  request  that an
arbitrator who shall be selected in advance resolve such dispute. The Arbitrator
shall resolve such dispute by means of a decision to be rendered at a hearing to
be held within  Thirty (30) days of the making of the request at a site mutually
agreeable to the parties.

D.   BARGAINING IN NEWLY RECOGNIZED UNITS

     In the event the Union is  certified  as the  collective  bargaining  agent
after a secret ballot election  conducted by the National Labor Relations Board,
the  parties  shall  meet  within  Sixty (60) days to begin  negotiations  for a
Collective Bargaining Agreement covering the new bargaining unit.

E.   NOTICE OF INTENT TO ORGANIZE

     The Union will give the appropriate  Company official written notice of the
Union's intent to organize a facility subject to this Neutrality Agreement.

     Upon  receipt  of such  notice,  the  Company  shall meet with the Union to
exchange  information  that might be pertinent to an organizing  effort.  During
this  meeting,  the parties will  discuss the scope of the  proposed  Collective
Bargaining Unit,  employees to be excluded from the unit,  campaign issues, etc.
Union  access  to the  plant  may also be  addressed  at this  notice  of intent
meeting.  The Company reserves the right to challenge any issues relating to the
scope and  makeup  of the unit  sought by the  union by  involving  the  dispute
resolution  procedure  described above. To minimize  disputes about the scope of
Collective  Bargaining  Units, the Company and the Union agree that the National
Labor  Relations  Board's  case law  regarding  the  composition  of  Collective
Bargaining  Units is incorporated  into this Neutrality  Agreement by reference.
Upon reaching an agreement on all outstanding  issues, the Company will give the
Union a list of the  names  and  addresses  of the  Production  and  Maintenance
employees in the agreed-upon  proposed Collective  Bargaining Unit, as well as a
description of their wages and benefits.

     Upon  receiving the Union's  notice of intent to organize,  the Company may
send a letter to members of the proposed  Collective  Bargaining Unit describing
the neutrality process contained in this Agreement,  as well as the implications
of signing a Union Authorization Card.

F.   CAMPAIGN PERIOD AND UNION ACCESS TO COMPANY FACILITIES

     The campaign  period shall not exceed  ninety (90) days and shall  commence
upon  the  Union's  receipt  of  the  names,  addresses  and  wage  and  benefit
information  described  above in Section E. The Company and the Union will agree
upon  reasonable  times and  reasonable  places at the plant  premises where the
Union can campaign.  The Company and the Union will review all Company and Union
campaign literature prior to its distribution.

_____________________                                      _____________________
Company                                                                    Union

                                      101
<PAGE>

G.   UNION AUTHORIZATION CARDS

     For the purposes of this Neutrality Agreement,  only cards signed after the
Notice of intent has been  served may be counted  as valid  cards.  The  Union's
Authorization Cards will clearly state that the card may be used for the purpose
of obtaining:

     A.   An  NLRB-sponsored  election  where a simple  majority  of votes  will
          create a duty to bargain;

     B.   A Secret Ballot  Election  conducted in  cooperation  with the Company
          where a duty to bargain will arise if the Union  receives votes from a
          majority of the eligible voters in the proposed Collective  Bargaining
          Unit.

H.   STRUKSNESS SELECTION

     If, at any time during the campaign  period,  the Union  represents that it
has  obtained  cards  from a  majority  of  the  employees  in  the  agreed-upon
Collective  Bargaining  Unit, the parties will schedule a Secret Ballot Election
to take place no later than  Fourteen  (14) days from such notice to the company
by the Union. The Company will provide an opportunity for both the Union and the
Company to make  short  presentations  to groups of  employees  in the  proposed
Collective  Bargaining unit. Such  presentations will be reviewed by the parties
in advance.

     After the  presentations  to the employees,  the employees will be given an
opportunity  to  participate  in a Secret  Ballot  Election  for the  purpose of
determining   whether  the  Union  will  represent  employees  in  the  proposed
Collective  Bargaining  Unit. The election shall be conducted in accordance with
Struksness  Construction Company. This means: (1) The Union must formally demand
recognition  and  advise  the  Company  that it has  authorization  cards from a
majority of the  employees in the  agreed-upon  proposed  Collective  Bargaining
Unit;  (2) The  employees  must be told that the  purpose of the  election is to
determine  whether the Union has  majority  status;  (3) The  Company  will give
employees  assurances  that there will be no reprisals for engaging in protected
activity;  (4) The employees will be polled by Secret Ballot;  and (5) There may
be no  Unfair  Labor  Practices  or  other  activity  that  creates  a  coercive
atmosphere.  The Company will recognize the Union as the  representative  of the
proposed/agreed Collective Bargaining Unit if a simple majority of the employees
cast votes to be represented by the Union.

_____________________                                      _____________________
Company                                                                    Union

                                      102
<PAGE>

                                   ARTICLE 30
                       UNION REPRESENTATION AND ACTIVITIES

(1)  For the purpose of conducting  legitimate  Union business within the Plant,
     Local Union  officials,  approximately  6, shall be allowed unpaid time for
     the purpose of conducting  such affairs  provided that such activity  shall
     not interfere with the normal operation of the Plant.

     The Local  Union  President  shall be entitled to take time off without pay
     for the purpose of conducting legitimate Local Union business.

     The Union  shall  notify  the  Company in writing of the names of the Union
     officials, and of any subsequent changes that may occur.

     The Company agrees to pay Union  Committeemen their scheduled straight time
     Standard  Base Wage Rate only for time actually  attending  meetings of any
     Joint Committee provided for in this Agreement.

(2)  Any  Bargaining  Unit  employee who is required to be off work for official
     Union business will notify the Company, as soon as possible, prior to going
     on Union business. Any such time off shall be without pay.

(3)  A leave of  absence  may be granted  to a  employee  who is a  delegate  or
     official of the Union to attend a Union  convention  or other similar Union
     meetings.  A maximum of twelve (12) employees may be granted such leave for
     up to seven (7) business days without pay.

(4)  A  bargaining  unit member shall have the right to request to see his Union
     representative  or other  available  official  of the Union to discuss  any
     matter  affecting his rights or privileges under the Agreement and any such
     request shall not be unreasonably  denied.  Such member shall not leave his
     job without the prior consent of his supervisor.

(5)  A Union  representative  or other Union official shall, upon request to his
     supervisor,  be granted  time off from his job for a  reasonable  period of
     time to  investigate  or attempt to settle a dispute,  or to discuss with a
     bargaining  unit  member  any  matter  affecting  said  member's  rights or
     privileges under the Agreement. Such Union representative or official shall
     not leave his job  without  the prior  consent of his  supervisor  and such
     consent shall not be unreasonably withheld.  Such time off shall be without
     pay unless the presence of such  representative or official is requested by
     the Company.

(6)  It is agreed  between the  parties  that as of the  effective  date of this
     Agreement,  a reasonable  number of  International  Representatives  of the
     Union or  officially  elected  or  appointed  Local  Union  officials,  and
     Grievance  Committeemen,  shall have access to the Plant for the purpose of
     conducting  official Union business,  provided,  however,  that such access
     shall not interfere  with the normal  operation of the Plant.  The names of
     the aforementioned  individuals will be furnished in writing to the Company
     and shall be kept  current at all  times.  It is  further  agreed  that the
     designated  individuals  referred to above will (i)  register in and out at
     the  respective  guard  gate,  and (ii)  contact  the  appropriate  Company
     Representative  being  visited  for  the  purpose  of such  official  Union
     business prior to conducting their Union business.

_____________________                                      _____________________
Company                                                                    Union

                                      103
<PAGE>

(7)  The Company shall provide a reasonable number of bulletin boards.

(8)  LEAVE OF ABSENCE - UNION BUSINESS

     Leave  of  absence  for  the  purpose  of  accepting   positions  with  the
     International  Union or Local  Union  shall be  available  to a  reasonable
     number of employees.  Adequate notice of intent to apply for leave shall be
     afforded  Management to enable proper  provision to be made to fill the job
     to be vacated.

     Leaves  of  absence  for  the  purpose  of  accepting  positions  with  the
     International Union shall be for a period not in excess of three (3) years.
     Leave of absence  may be extended  for an  additional  period  equal to (i)
     three  years,  or (ii) the  excess,  if any,  of an  employee's  length  of
     continuous  service  at  commencement  of the leave of  absence  over three
     years,  whichever is less. Such person shall accumulate  continuous service
     for purposes of recall to employment  and for all other purposes under this
     Agreement,  except  pensions,  provided that subsequent to the first day of
     the  following  month he shall not be entitled  to receive any  contractual
     benefits  during the  period of his leave of  absence  or  receive  retiree
     health care benefits from the Company if he is eligible for coverage in the
     International Union health care plan for retirees.

     Leaves of absence for the purpose of  accepting an elective  position  with
     the Local  Union shall be for a period not in excess of three years and may
     be renewed for further periods of three years each.

     Continuous  service shall not be broken by the leave of absence,  except as
     set forth above with respect to International  Union leave of absence,  and
     will continue to accrue.

_____________________                                      _____________________
Company                                                                    Union

                                      104
<PAGE>

                                   ARTICLE 31
                                  LOCAL ISSUES

     During the term of this Agreement, the Company shall continue the prior NSA
practice as to the following items:

     1.   the Fitness Center (excluding incentives)

     2.   service awards

     3.   Christmas gifts

     4.   scholarships

     5.   retirement gifts

     6.   the training facility and library

     7.   safety awards

     8.   fire brigade insurance

     9.   grills,  stoves and  refrigerators  (the use of grills and stoves will
          not be abused)

     10.  sports drinks

     11.  pro-rating of vacation for employees who die or retire

     12.  sending of flowers to funeral  home for  relatives  covered  under the
          funeral leave program

     13.  $25. 00 gift  certificates  to all graduates  including  employees and
          dependents

     14.  perfect attendance bonus-- to be paid in cash equivalent of bond value
          at purchase

     15.  direct deposit at employee's option

_____________________                                      _____________________
Company                                                                    Union

                                      105
<PAGE>

                                   ARTICLE 32
                                SAVINGS PROVISION

     In the event that any  portion of this  Agreement  is found to violate  any
applicable  Federal or State law,  the  unlawful  section  shall be deemed to be
severed and shall not affect the validity of the  remainder  of this  Agreement.
The parties shall  promptly meet to  re-negotiate  that portion of the Agreement
found to be unlawful.

_____________________                                      _____________________
Company                                                                    Union

                                      106
<PAGE>

                                   ARTICLE 33
                                   TERMINATION

     Except as otherwise  provided  below,  this Agreement shall terminate sixty
(60) days after  either party shall give written  notice of  termination  to the
other party, but in any event shall not terminate earlier than 12:01 A.M., April
1, 2006.  If either  party gives such notice,  the parties  shall meet within 30
days  thereafter  to negotiate  with respect to rates of pay,  hours of work and
other terms and  conditions of  employment.  If the parties shall not agree with
respect  to such  matters by the end of sixty (60) days after the giving of such
notice, either party may thereafter resort to strike or lockout, as the case may
be, in support of its  position in respect to such  matters as well as any other
matter in dispute, but not earlier than 12:01 A.M., April 1, 2006.

     Any notice to be given under this  Agreement  shall be given by  registered
mail and addressed to the respective parties as follows:

     Century Aluminum of Kentucky, LLC
     P.O. Box 500                                United Steelworkers of America
     1627 State Rt. 271 North                    5 Gateway Center
     Hawesville, KY  42348                       Pittsburgh, PA  15222

_____________________                                      _____________________
Company                                                                    Union

                                      107
<PAGE>

                                   APPENDIX A

                         Standard Hourly Base Wage Rates

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                  Apr. 01,   Apr. 01,   Apr. 01,   Apr. 01,
                                          NSA       2001       2003       2004       2005                  Job
               Job Title                 Rate      (.25)       (.25)      (.25)      (.30)    Job Code    Grade
-----------------------------------------------------------------------------------------------------------------
<S>                                     <C>        <C>        <C>        <C>        <C>          <C>       <C>
Production Apprentice - A               $10.07     $10.32     $10.57     $10.82     $11.12      A001
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - B               $10.60     $10.85     $11.10     $11.35     $11.65      B002
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - C               $11.13     $11.38     $11.63     $11.88     $12.18      C003
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - D               $11.66     $11.91     $12.16     $12.41     $12.71      D004
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - E               $12.19     $12.44     $12.69     $12.94     $13.24      E005
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - F               $12.72     $12.97     $13.22     $13.47     $13.77      F006
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - G               $13.25     $13.50     $13.75     $14.00     $14.30      G007
-----------------------------------------------------------------------------------------------------------------
Production Apprentice - H               $13.78     $14.03     $14.28     $14.53     $14.83      H008
-----------------------------------------------------------------------------------------------------------------
Service Worker                          $13.71     $13.96     $14.21     $14.46     $14.76      1401       1
-----------------------------------------------------------------------------------------------------------------
Helper                                  $13.71     $13.96     $14.21     $14.46     $14.76      1402       2
-----------------------------------------------------------------------------------------------------------------
Cruce Cleaner                           $14.13     $14.38     $14.63     $14.88     $15.18                 5
-----------------------------------------------------------------------------------------------------------------
Utility                                 $14.13     $14.38     $14.63     $14.88     $15.18      1403       5
-----------------------------------------------------------------------------------------------------------------
Tool Room Keeper                        $14.28     $14.53     $14.78     $15.03     $15.33      1499       6
-----------------------------------------------------------------------------------------------------------------
Machine Shop Utility                    $14.28     $14.53     $14.78     $15.03     $15.33      1502       6
-----------------------------------------------------------------------------------------------------------------
Sampler                                 $14.28     $14.53     $14.78     $15.03     $15.33      1405       6
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.28     $14.53     $14.78     $15.03     $15.33      1440       6
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.42     $14.67     $14.92     $15.17     $15.47      1445       7
-----------------------------------------------------------------------------------------------------------------
Anode Cleaner                           $14.42     $14.67     $14.92     $15.17     $15.47      1462       7
-----------------------------------------------------------------------------------------------------------------
Maintenance Attendant                   $14.56     $14.81     $15.06     $15.31     $15.61      1508       8
-----------------------------------------------------------------------------------------------------------------
Mobile Equipment Operator               $14.56     $14.81     $15.06     $15.31     $15.61      1408       8
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.56     $14.81     $15.06     $15.31     $15.61      1449       8
-----------------------------------------------------------------------------------------------------------------
Cleaning Machine Operator               $14.56     $14.81     $15.06     $15.31     $15.61      1407       8
-----------------------------------------------------------------------------------------------------------------
Scrubber Helper                         $14.56     $14.81     $15.06     $15.31     $15.61      1409       8
-----------------------------------------------------------------------------------------------------------------
Rodding Room Assistant                  $14.70     $14.95     $15.20     $15.45     $15.75      1413       9
-----------------------------------------------------------------------------------------------------------------
Metal Handler - Casting                 $14.70     $14.95     $15.20     $15.45     $15.75      1414       9
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.70     $14.95     $15.20     $15.45     $15.75      1450       9
-----------------------------------------------------------------------------------------------------------------
Conveyor Operator                       $14.70     $14.95     $15.20     $15.45     $15.75      1411       9
-----------------------------------------------------------------------------------------------------------------
Tool Assistant                          $14.70     $14.95     $15.20     $15.45     $15.75      1406       9
-----------------------------------------------------------------------------------------------------------------
Relief Worker                           $14.84     $15.09     $15.34     $15.59     $15.89      1464       10
-----------------------------------------------------------------------------------------------------------------
Saw Operator - Metal Serv.              $14.84     $15.09     $15.34     $15.59     $15.89      1466       10
-----------------------------------------------------------------------------------------------------------------
Scale Operator - Metal Serv.            $14.84     $15.09     $15.34     $15.59     $15.89      1463       10
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.84     $15.09     $15.34     $15.59     $15.89      1459       10
-----------------------------------------------------------------------------------------------------------------
Pig Stacker Operator                    $14.84     $15.09     $15.34     $15.59     $15.89      1525       10
-----------------------------------------------------------------------------------------------------------------
Cell Reliner - A                        $14.84     $15.09     $15.34     $15.59     $15.89      1483       10
-----------------------------------------------------------------------------------------------------------------
Crane Operator - Bake                   $14.99     $15.24     $15.49     $15.74     $16.04      1416       11
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $14.99     $15.24     $15.49     $15.74     $16.04      1460       11
-----------------------------------------------------------------------------------------------------------------
Special Equipment Operator              $14.99     $15.24     $15.49     $15.74     $16.04      1506       11
-----------------------------------------------------------------------------------------------------------------
Mixer Operator                          $14.99     $15.24     $15.49     $15.74     $16.04      1420       11
-----------------------------------------------------------------------------------------------------------------
Bath Crusher Operator                   $14.99     $15.24     $15.49     $15.74     $16.04      1412       11
-----------------------------------------------------------------------------------------------------------------
Molten Metal Driver                     $14.99     $15.24     $15.49     $15.74     $16.04      1457       11
-----------------------------------------------------------------------------------------------------------------
Shipper                                 $14.99     $15.24     $15.49     $15.74     $16.04      1439       11
-----------------------------------------------------------------------------------------------------------------
Press Operator                          $14.99     $15.24     $15.49     $15.74     $16.04      1419       11
-----------------------------------------------------------------------------------------------------------------
Storeroom Clerk                         $14.99     $15.24     $15.49     $15.74     $16.04      1421       11
-----------------------------------------------------------------------------------------------------------------
Oiler                                   $15.14     $15.39     $15.64     $15.89     $16.19      1461       12
-----------------------------------------------------------------------------------------------------------------
Repair Welder - Rodding                 $15.26     $15.51     $15.76     $16.01     $16.31      1422       13
-----------------------------------------------------------------------------------------------------------------
</TABLE>

_____________________                                      _____________________
Company                                                                    Union

                                      108
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                  Apr. 01,   Apr. 01,   Apr. 01,   Apr. 01,
                                          NSA       2001       2003       2004       2005                  Job
               Job Title                 Rate      (.25)       (.25)      (.25)      (.30)    Job Code    Grade
-----------------------------------------------------------------------------------------------------------------
<S>                                     <C>        <C>        <C>        <C>        <C>          <C>       <C>
Carrier Repair - Rodding                $15.26     $15.51     $15.76     $16.01     $16.31                 13
-----------------------------------------------------------------------------------------------------------------
Furnace Operator - Spray                $15.26     $15.51     $15.76     $16.01     $16.31      1426       13
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $15.26     $15.51     $15.76     $16.01     $16.31      1470       13
-----------------------------------------------------------------------------------------------------------------
Hartmann Operator                       $15.42     $15.67     $15.92     $16.17     $16.47      1423       14
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $15.42     $15.67     $15.92     $16.17     $16.47      1477       14
-----------------------------------------------------------------------------------------------------------------
On-Job Train - Maint. 2                 $15.42     $15.67     $15.92     $16.17     $16.47      1512       14
-----------------------------------------------------------------------------------------------------------------
Lindberg/Oxyfuel Furnace Operator       $15.42     $15.67     $15.92     $16.17     $16.47                 14
-----------------------------------------------------------------------------------------------------------------
Furnace Operator - Bake                 $15.42     $15.67     $15.92     $16.17     $16.47      1425       14
-----------------------------------------------------------------------------------------------------------------
Assistant Cell Operator                 $15.56     $15.81     $16.06     $16.31     $16.61      1503       15
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $15.56     $15.81     $16.06     $16.31     $16.61      1478       15
-----------------------------------------------------------------------------------------------------------------
Scrubber Operator                       $15.56     $15.81     $16.06     $16.31     $16.61      1428       15
-----------------------------------------------------------------------------------------------------------------
Pig Caster Operator                     $15.56     $15.81     $16.06     $16.31     $16.61      1523       15
-----------------------------------------------------------------------------------------------------------------
Assistant Utility Operator              $15.56     $15.81     $16.06     $16.31     $16.61      1529       15
-----------------------------------------------------------------------------------------------------------------
FCE-Equip Oper.- D.C. Unit              $15.56     $15.81     $16.06     $16.31     $16.61      1521       15
-----------------------------------------------------------------------------------------------------------------
FCE-Equip Oper.-Pig Caster              $15.56     $15.81     $16.06     $16.31     $16.61      1522       15
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $15.71     $15.96     $16.21     $16.46     $16.76      1479       16
-----------------------------------------------------------------------------------------------------------------
Cell Reliner - B                        $15.71     $15.96     $16.21     $16.46     $16.76      1481       16
-----------------------------------------------------------------------------------------------------------------
Unloading Operator                      $15.71     $15.96     $16.21     $16.46     $16.76      1418       16
-----------------------------------------------------------------------------------------------------------------
On-Job Train  -  Maint. 3               $15.71     $15.96     $16.21     $16.46     $16.76      1513       16
-----------------------------------------------------------------------------------------------------------------
Service Crafts Trainee 1                $15.84     $16.09     $16.34     $16.59     $16.89      1410       17
-----------------------------------------------------------------------------------------------------------------
Green Mill Operator                     $15.84     $16.09     $16.34     $16.59     $16.89      1429       17
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $15.84     $16.09     $16.34     $16.59     $16.89      1480       17
-----------------------------------------------------------------------------------------------------------------
D.C. Caster                             $16.00     $16.25     $16.50     $16.75     $17.05      1430       18
-----------------------------------------------------------------------------------------------------------------
Cell Reliner - C                        $16.00     $16.25     $16.50     $16.75     $17.05      1505       18
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.00     $16.25     $16.50     $16.75     $17.05      1487       18
-----------------------------------------------------------------------------------------------------------------
On-Job Train - Maint. 4                 $16.00     $16.25     $16.50     $16.75     $17.05      1514       18
-----------------------------------------------------------------------------------------------------------------
Service Crafts Trainee 2                $16.13     $16.38     $16.63     $16.88     $17.18      1415       19
-----------------------------------------------------------------------------------------------------------------
Utilities Operator                      $16.13     $16.38     $16.63     $16.88     $17.18      1467       19
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.13     $16.38     $16.63     $16.88     $17.18      1488       19
-----------------------------------------------------------------------------------------------------------------
Cell Operator                           $16.13     $16.38     $16.63     $16.88     $17.18      1504       19
-----------------------------------------------------------------------------------------------------------------
On-Job Train - Maint. 5                 $16.27     $16.52     $16.77     $17.02     $17.32      1515       20
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.27     $16.52     $16.77     $17.02     $17.32      1489       20
-----------------------------------------------------------------------------------------------------------------
Heavy Equipment Operator                $16.41     $16.66     $16.91     $17.16     $17.46      1526       21
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.41     $16.66     $16.91     $17.16     $17.46      1490       21
-----------------------------------------------------------------------------------------------------------------
Service Craftsperson -A                 $16.41     $16.66     $16.91     $17.16     $17.46      1434       21
-----------------------------------------------------------------------------------------------------------------
On-Job Train - Maint. 6                 $16.57     $16.82     $17.07     $17.32     $17.62      1516       22
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.57     $16.82     $17.07     $17.32     $17.62      1491       22
-----------------------------------------------------------------------------------------------------------------
Garage Mechanic -A                      $16.70     $16.95     $17.20     $17.45     $17.75      1441       23
-----------------------------------------------------------------------------------------------------------------
Rectifier Operator -A                   $16.70     $16.95     $17.20     $17.45     $17.75      1436       23
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.70     $16.95     $17.20     $17.45     $17.75      1492       23
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.84     $17.09     $17.34     $17.59     $17.89      1493       24
-----------------------------------------------------------------------------------------------------------------
Mechanical/Electrical Facilitator       $16.98     $17.23     $17.48     $17.73     $18.03      1417       25
-----------------------------------------------------------------------------------------------------------------
Electrician -A                          $16.98     $17.23     $17.48     $17.73     $18.03      1437       25
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $16.98     $17.23     $17.48     $17.73     $18.03      1494       25
-----------------------------------------------------------------------------------------------------------------
Mechanic -A                             $16.98     $17.23     $17.48     $17.73     $18.03      1435       25
-----------------------------------------------------------------------------------------------------------------
Predictive Maintenance Mech. - A        $16.98     $17.23     $17.48     $17.73     $18.03                 25
-----------------------------------------------------------------------------------------------------------------
Machinist-A                             $16.98     $17.23     $17.48     $17.73     $18.03      1443       25
-----------------------------------------------------------------------------------------------------------------
</TABLE>

_____________________                                      _____________________
Company                                                                    Union

                                      109
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                  Apr. 01,   Apr. 01,   Apr. 01,   Apr. 01,
                                          NSA       2001       2003       2004       2005                  Job
               Job Title                 Rate      (.25)       (.25)      (.25)      (.30)    Job Code    Grade
-----------------------------------------------------------------------------------------------------------------
<S>                                     <C>        <C>        <C>        <C>        <C>          <C>       <C>
Temporary Relief Supervisor             $17.14     $17.39     $17.64     $17.89     $18.19      1495       26
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $17.27     $17.52     $17.77     $18.02     $18.32      1496       27
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $17.42     $17.67     $17.92     $18.17     $18.47      1498       28
-----------------------------------------------------------------------------------------------------------------
Temporary Relief Supervisor             $17.55     $17.80     $18.05     $18.30     $18.60      1500       29
-----------------------------------------------------------------------------------------------------------------
</TABLE>

_____________________                                      _____________________
Company                                                                    Union

                                      110
<PAGE>

                                                             Tentative Agreement
                                                             September 25, 2000

                               LETTER OF AGREEMENT

Mr. Robert A. Pierson
Staff Representative
United Steelworkers of America
2441 Mayfair Drive
Owensboro, KY  42301

RE: Omissions or Errors in the Collective Bargaining Agreement

Dear Mr. Pierson:

     During the 2000 Negotiations the parties  recognized that given the exigent
circumstances surrounding contract approval, some of the contract provisions may
require  correction  so as to reflect the  parties'  intentions  as expressed in
those negotiations.  Accordingly,  it is agreed that all omissions and errors in
the  Agreement  terms would be corrected  as soon as possible and the  Agreement
will be finalized upon such corrections, if any. Likewise,  omissions and errors
in the Settlement Agreement will be corrected.

                                            Sincerely,

                                            ----------------------

Agreed: /s/ Robert A. Pierson
        ---------------------

Dated:
       ----------------------

                                      111
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
by their duly authorized representatives:

CENTURY ALUMINUM OF WEST VIRGINIA, LLC      UNITED STEEL WORKERS OF AMERICA,
                                            ALF-CIO-CLC

  /s/ J. H. Nessini                         /s/ Leo W. Gerard
--------------------------------------      ------------------------------------
  CHIEF NEGOTIATOR                          LEO W. GERARD, INT'L. PRESIDENT

                                            /s/ James D. English
                                            ------------------------------------
                                            JAMES D. ENGLISH, INT'L. SECY -
                                            TREAS.

                                            /s/ Richard H. Davis
                                            ------------------------------------
                                            RICHARD DAVIS, INT'L. V. PRES., ADM.

                                            /s/ Leon Lynch
                                            ------------------------------------
                                            LEON LYNCH, INT'L V. PRES., H.
                                            AFFAIRS

                                            /s/ Ernest R. "Billy" Thomspon
                                            ------------------------------------
                                            ERNEST R. "BILLY" THOMPSON, DIR.,
                                            DIST. 8

                                            /s/ Robert Pierson
                                            ------------------------------------
                                            ROBERT PIERSON, STAFF
                                            REPRESENTATIVE

                                            NEGOTIATING COMMITTEE, LU 9423

                                            /s/ John S. Janowick
                                            ------------------------------------

                                            /s/ Gary E. Erwin
                                            ------------------------------------

                                            /s/ Michael E. Eaynor
                                            ------------------------------------

                                            /s/ Michael D. Moarman
                                            ------------------------------------

                                      112OWNERS AGREEMENT

                                     BETWEEN

                                   NSA, LTD.,
                         a Kentucky limited partnership,

                           GLENCORE ACQUISITION I LLC,
                      a Delaware limited liability company,

                                       AND

                        CENTURY ALUMINUM OF KENTUCKY LLC,
                      a Delaware limited liability company

                                   DATED AS OF

                                  APRIL 2, 2001

<PAGE>

                                Table of Contents

                                                                          Page #

Article I DEFINITIONS..........................................................1

   Section 1.1    Definitions..................................................1

Article II JOINT USE; NO ENTITY; GUARANTEES....................................6

   Section 2.1    Joint Use....................................................6
   Section 2.2    Intent.......................................................7
      2.2.1    No Entity or Agency.............................................7
      2.2.2    Tax Election....................................................7
   Section 2.3    Joint Ownership; Waiver of Partition.........................7
      2.3.1    Ownership of Jointly-Owned Property as Tenants in Common........7
      2.3.2    Waiver of Partition.............................................7
      2.3.3    Disposition of Jointly-Owned Property, Owner's Plant Assets.....7
   Section 2.4    Parent Guarantees............................................7

Article III ACTION BY OWNERS; OWNERS COMMITTEE.................................8

   Section 3.1    Authority to Bind Owners.....................................8
      3.1.1    Action by Owners Required.......................................8
      3.1.2    Operator's Actions..............................................8
      3.1.3    No Unilateral Action............................................8
   Section 3.2    Owners Committee.............................................8
   Section 3.3    Appointment of Representatives...............................8
      3.3.1    Appointment Procedure...........................................8
      3.3.2    Dismissals and Replacements.....................................8
      3.3.3    General.........................................................9
   Section 3.4    Meetings of the Owners Committee; Written Consents in
                  Lieu of Meetings.............................................9
      3.4.1    Holding of Meetings.............................................9
      3.4.2    Quorum; Calling of Meetings.....................................9
      3.4.3    Written Consents................................................9
   Section 3.5    Intentionally Omitted........................................9
   Section 3.6    Voting Requirements..........................................9
      3.6.1    In General......................................................9
      3.6.2    Matters Requiring Unanimous Consent.............................9
   Section 3.7    Other Committees............................................11
   Section 3.8    Minutes.....................................................11
   Section 3.9    No Liability of Committee Members...........................11

Article IV OPERATIONS AND MANAGEMENT..........................................12

   Section 4.1    Intent......................................................12
   Section 4.2    Operations..................................................12
   Section 4.3    Compliance with Law.........................................12
   Section 4.4    Operator's Ownership of Intellectual Properties.............12

<PAGE>

Article V FINANCIAL MANAGEMENT; MANAGEMENT FEE................................12

   Section 5.1    Budgets.....................................................12
   Section 5.2    Implementation of Approved Budgets..........................13
   Section 5.3    Emergency or Unexpected Expenditures........................13
   Section 5.4    Accounting Principles and Procedures........................13
   Section 5.5    Books, Records, Reports and Auditors........................13
      5.5.1    Books and Records..............................................13
      5.5.2    Reports........................................................13
      5.5.3    Auditors.......................................................13
   Section 5.6    Bank Accounts...............................................14
      5.6.1    Establishment of Accounts......................................14
      5.6.2    Deposits and Disbursements of Funds............................14
      5.6.3    Signatory Powers...............................................14
   Section 5.7    Charges.....................................................14
      5.7.1    Operating Costs................................................14
      5.7.2    Extras.........................................................15
      5.7.3    Calculation of Charges.........................................15
      5.7.4    Payment of Charges.............................................15
      5.7.5    Year End Adjustments...........................................16
      5.7.6    Resolution of Disputed Charges.................................16
      5.7.7    Financing and Other Costs......................................16
      5.7.9    Management Fee.................................................17

Article VI OBLIGATIONS OF THE OPERATOR........................................17

   Section 6.1    Plant Operation Services....................................17
   Section 6.2    Management Services.........................................19
   Section 6.3    Authorization to Act........................................19
   Section 6.4    Liability of the Operator...................................20

Article VII CONVERSION........................................................20

   Section 7.1    Conversion Rights and Obligations...........................20
      7.1.1    Obligation to Convert..........................................20
      7.1.2    Reduction of Basic Tonnage.....................................21
      7.1.3    Failure to Convert Basic Tonnage...............................21
      7.1.4    Available and Allocated Excess Tonnage.........................22
      7.1.5    Production Deficiencies........................................22
   Section 7.2    Alumina Supply..............................................22
      7.2.1    Alumina Delivery Obligations...................................22
      7.2.2    Unloading of Alumina...........................................22
      7.2.3    Quality of Alumina.............................................23
   Section 7.3    Title.......................................................23
   Section 7.4    Shipment, Delivery, Sampling and Weighing...................23
      7.4.1    Production Schedules and Deliveries............................23
      7.4.2    Failure to Take Delivery.......................................24
      7.4.3    Sampling, Analysis and Weights.................................24
      7.4.4    Storage........................................................25
      7.4.5    Markings.......................................................25
   Section 7.5    Cast House..................................................25
      7.5.1    Use of Equipment in Cast House.................................25

                                      -ii-
<PAGE>

Article VIII INSURANCE AND CASUALTY...........................................26

   Section 8.1    Insurance...................................................26
      8.1.1    Coverage Requirements..........................................26
      8.1.2    Product Liability Coverage.....................................26
   Section 8.2    Casualty....................................................26
   Section 8.3    Condemnation................................................26

Article IX RESTRICTIONS ON DISPOSITION OF PROPERTY OR INTERESTS...............27

   Section 9.1    Transfers of Interests......................................27
      9.1.1    Restriction....................................................27
      9.1.2    Transfers to Affiliates........................................27
      9.1.3    Transferee to Become Party to this Agreement...................27
      9.1.4    Reconstitution of Interests....................................27
      9.1.5    Transfers of Part of an Interest...............................27
      9.1.6    Minimum Interest...............................................28
   Section 9.2    Voluntary Encumbrances......................................28
      9.2.1    Restrictions...................................................28
      9.2.2    Acknowledgment of Liens........................................28
      9.2.3    Condition Precedent to Enforcement of Voluntary Encumbrances...29
      9.2.4    Secured Party's Rights; Non-Granting Owners' Rights............29
   Section 9.3    Right of First Refusal......................................29
      9.3.1    Restrictions...................................................29
      9.3.2    Right and Procedure............................................30
   Section 9.4    Involuntary Transfers or Encumbrances.......................31
      9.4.1    Deemed Offer to Transfer.......................................31
      9.4.2    Fair Market Value..............................................32
   Section 9.5    Transfer of Ownership of an Owner...........................32
   Section 9.6    Appointment of Operator Upon Transfer.......................33
   Section 9.7    Closings....................................................33

Article X DEFAULT.............................................................33

   Section 10.1   Events of Default...........................................33
   Section 10.2   Constitution of Owners Committee Upon Event of Default......34
   Section 10.3   Notification of Secured Party; Right to Cure................34
   Section 10.4   Use of Defaulting Owner's Interest..........................34
      10.4.1   Right of Non-Defaulting Owner..................................34
      10.4.2   Non-Defaulting Owner's Costs, etc..............................35
   Section 10.5   Option to Purchase Defaulting Owner's Interest..............35
      10.5.1   Agreement on Liquidated Damages................................35
      10.5.2   Exercise of Right to Purchase..................................36
      10.5.3   "Gross Profits"; "Market Price"................................36
   Section 10.6   Attorney-in-Fact............................................36
   Section 10.7   Monetary Defaults...........................................37
   Section 10.8   Appointment of Operator.....................................37

                                     -iii-
<PAGE>

Article XI COVENANTS..........................................................37

   Section 11.1   Inspection..................................................37
   Section 11.2   Liens.......................................................37
   Section 11.3   Notification................................................37
   Section 11.4   Performance of Contracts....................................38
   Section 11.5   Organization, Power and Authority...........................38
   Section 11.6   Easements...................................................38
   Section 11.7   Further Assurances..........................................38

Article XII REPRESENTATIONS...................................................39

   Section 12.1   Owners' Representations.....................................39
      12.1.1   Organization, Powers and Authority.............................39
      12.1.2   Compliance with Other Instruments..............................39
      12.1.3   Litigation.....................................................39

Article XIII MISCELLANEOUS....................................................39

   Section 13.1   Term........................................................39
   Section 13.2   Disposition of Plant and Other Assets.......................39
   Section 13.3   Liability...................................................40
   Section 13.4   Notices.....................................................40
   Section 13.5   Entire Agreement and Modification...........................41
   Section 13.6   Best Efforts and Cooperation................................42
   Section 13.7   Force Majeure...............................................42
   Section 13.8   Binding Effect..............................................42
   Section 13.9   Survival....................................................42
   Section 13.10  Governing Law...............................................42
   Section 13.11  Disputes....................................................42
   Section 13.12  Captions....................................................42
   Section 13.13  Singular and Plural.........................................43

                                      -iv-
<PAGE>

                                OWNERS AGREEMENT

     THIS  AGREEMENT,  dated as of April 2, 2001,  between NSA, LTD., a Kentucky
limited  partnership  ("NSA"),  GLENCORE  ACQUISITION I LLC, a Delaware  limited
liability  company  ("GAC")  and Century  Aluminum  of Kentucky  LLC, a Delaware
limited liability company ("CAK").

                                    Recitals

     A. NSA and GAC  (collectively,  the "Owners") own, directly and indirectly,
all of the Plant.

     B.  The  Owners  desire  to  provide  for  the  operation,  management  and
maintenance of the Plant, as well as certain rights and obligations with respect
to  their  interests  therein,  all as more  fully  set  forth  in  this  Owners
Agreement.

     C. The Owners desire that CAK perform,  in its capacity as "Operator" under
this  Agreement  and on  behalf  and  for the  benefit  of the  Owners,  certain
responsibilities  of  the  Owners  and  provide  certain  additional  management
services, all as herein set forth.

     THE PARTIES AGREE AS FOLLOWS:

                                   Article I
                                   DEFINITIONS

     Section 1.1 Definitions. The following terms, whenever used and capitalized
herein, shall have the following meanings:

     "Acquisition  Agreement"  shall mean that certain asset purchase  agreement
dated as of April 2, 2001 by and between Century,  Century  Kentucky,  Inc., NSA
and Glencore providing for the purchase by GAC of GAC's Interest.

     "Affiliate"  shall  mean,  with  respect  to any Owner,  any  Person  which
directly or indirectly  controls,  is controlled  by, or is under common control
with,  such Owner.  For purposes of this  definition,  "control"  shall mean the
direct or indirect power to vote, or direct or determine the manner of voting by
others,  of one hundred  percent  (100%) of the shares of stock of a corporation
having  ordinary voting power (other than stock having such power only by reason
of the happening of a contingency),  or any other similar equity interest giving
the right to vote  with  respect  to  determining  the  management  or  business
policies of a Person which is not a corporation,  in each of the foregoing cases
whether  through  record or  beneficial  ownership of voting  securities or such
other equity interest, by contract or proxy, or otherwise.

     "Alumina" shall mean alumina meeting the minimum  specifications  set forth
in Exhibit A to this  Agreement  and shall also  include any alumina not meeting
such  specifications  which is  tendered  by an  Owner  and is  accepted  by the
Operator.

     "Aluminum Product" shall mean Molten Metal or Primary Aluminum.

     "Aluminum  Supply  Agreement"  shall  mean the  Aluminum  Supply  Agreement
entered into as of the date hereof by Century and Southwire,  as the same may be
amended, modified or supplemented from time to time.

<PAGE>

     "Auditors" shall have the meaning specified in Section 5.5.3.

     "Available  Excess Tonnage" and "Allocated  Excess Tonnage" shall each have
the meanings specified in Section 7.1.4.

     "Basic Tonnage" of an Owner shall mean the percentage equal to that Owner's
Interest,  unless adjusted pursuant to this Agreement,  in the actual production
at the applicable time of Molten Metal at the Plant, calculated on a one hundred
percent (100%) aluminum basis.  Basic Tonnage shall not include Allocated Excess
Tonnage taken by a particular Owner.

     "Capital Lease  Obligations" shall mean, for any Person, all obligations of
such Person to pay rent or other  amounts  under a lease of (or other  agreement
conveying the right to use) Property to the extent such obligations are required
to be classified and accounted for as a capital lease on a balance sheet of such
Person under GAAP (including  Statement of Financial Account Standards No. 98 of
the Financial  Accounting Standards Board), and, for purposes of this Agreement,
the  amount  of  such  obligations  shall  be the  capitalized  amount  thereof,
determined in accordance with GAAP (including such Statement No. 98).

     "Cast House" shall mean the land, improvements and personal property at the
Plant for the casting of Molten Metal into Primary Aluminum.

     "Century" shall mean Century Aluminum Company, a Delaware corporation,  and
its successors.

     "Code" shall mean the Internal  Revenue Code of 1986,  as amended from time
to time.

     "Collective  Bargaining  Agreement"  shall mean the  collective  bargaining
agreement dated September 25, 2000 and effective as of the date hereof,  between
CAK and the United Steelworkers of America, AFL-CIO-CIC.

     "Employee Benefit Plans" shall have the meaning specified in Section 5.7.1.

     "Environmental   Access   and   Cooperation   Agreement"   shall  mean  the
Environmental  Access and Cooperation  Agreement  entered into by the Owners and
Southwire  as of the  date  hereof,  as the  same may be  amended,  modified  or
supplemented from time to time.

     "Extras" shall mean the following services in respect of the Plant: (i) any
special  service  performed  at the  request  of an Owner in the  conversion  of
Alumina,  (ii) any  manufacturing  process  required to cast  Molten  Metal into
Primary  Aluminum or as  otherwise  specified  by an Owner or any other  process
performed  at the request of an Owner to produce  any product  other than Molten
Metal, and (iii) transportation of Primary Aluminum from the Plant.

     "Fair Market Value" shall have the meaning specified in Section 9.4.2.

     "GAAP" shall mean U.S. generally accepted accounting principles.

     "Glencore" shall mean Glencore AG, a Swiss corporation.

     "Groundwater Treatment Building Lease Agreement" shall mean the Groundwater
Treatment  Building Lease Agreement entered into by the Owners with Southwire as
of the date hereof,  as the same may be amended,  modified or supplemented  from
time to time.

                                       2
<PAGE>

     "Guarantee" shall mean a guarantee, an endorsement,  a contingent agreement
to purchase or to furnish funds for the payment or maintenance  of, or otherwise
to be or become  contingently liable under or with respect to, the Indebtedness,
net worth,  working  capital or earnings of any  Person,  or a guarantee  of the
payment of dividends or other  distributions  upon the stock or equity interests
of any Person or an agreement  to purchase,  sell or lease (as lessee or lessor)
Property  or  services  primarily  for the  purpose of enabling a debtor to make
payment  of such  debtor's  obligations  or an  agreement  to assure a  creditor
against  loss,  and  including,  without  limitation,  causing  a bank or  other
financial  institution to issue a letter of credit or similar instrument for the
benefit of another Person, but excluding  endorsements for collection or deposit
in the ordinary course of business.  The terms "Guarantee" and "Guaranteed" used
as a verb shall have a correlative meaning.

     "Indebtedness" shall mean, for any Person: (a) obligations created,  issued
or incurred by such Person for borrowed money (whether by loan, the issuance and
sale of debt  securities or the sale of Property to another Person subject to an
understanding or agreement, contingent or otherwise, to repurchase such Property
from such Person);  (b) obligations of such Person to pay the deferred  purchase
or acquisition price of Property or services,  other than trade accounts payable
(other than for borrowed money) arising,  and accrued  expenses  incurred in the
ordinary  course of business so long as such trade accounts  payable are payable
within  ninety  (90)  days of the date the  respective  goods  or  services  are
delivered  or  rendered;  (c)  Indebtedness  of others  secured by a Lien on the
Property of such Person,  whether or not the respective  Indebtedness so secured
has been assumed by such Person;  (d)  obligations  of such Person in respect of
letters of credit or similar  instruments  issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations
of such  Person;  and (f)  Indebtedness  of others  Guaranteed  by such  Person.
Notwithstanding the foregoing,  the term  "Indebtedness"  shall not include swap
agreements  entered  into  to  hedge  against  fluctuations  in  the  prices  of
commodities and currencies, deferred revenue accounts arising from forward sales
or Guarantees of either thereof.

     "Intellectual Properties" shall have the meaning specified in Section 4.4.

     "Interest",  as applied to an Owner, shall mean the entire interest of such
Owner and its  Affiliates  (i) as an owner of Property  comprising a part of the
Plant,  including without limitation the Owner's Plant Assets,  (ii) as an owner
of  membership  units in CAK,  (iii) as a tenant in common of the  Jointly-Owned
Property,   (iv)  in  this  Owners  Agreement,   including  in  respect  of  the
Intellectual  Properties,  (v) its joint  interest  with the other  Owner in any
agreements  in effect  from  time to time for the  supply  of  material  used to
produce Aluminum Product at the Plant or to sell such Aluminum Product, and (vi)
any other  rights  hereunder or  otherwise  of the Owner to  participate  in the
conversion  of alumina  into  aluminum at the Plant,  but shall not include such
Owner's  Inventory.  It is the intent of the Owners that they shall share all of
the  benefits and burdens of the  operation of the Plant pro rata in  accordance
with their respective Interests,  and for such purpose, in all instances in this
Agreement  in which the Owners'  Interests  are  expressed  with  reference to a
percentage or pro rata portion, the Interests, as of the date of this Agreement,
are agreed to be as follows:  NSA,  eighty percent (80%) and GAC, twenty percent
(20%).

     "Interest  Rate"  shall  mean the  United  States  prime  rate as quoted by
Reuters News Service on page US Prime, in effect from time to time calculated on
a daily basis.

                                       3
<PAGE>

     "Interested Party" shall have the meaning specified in Section 9.4.2.

     "Inventory"  shall mean,  with respect to an Owner,  such Owner's  Alumina,
work-in-process  and Aluminum  Product  held at the Plant,  title to which shall
(subject  to such  Liens as may be  granted  thereon  by the Owner) at all times
remain with such Owner.

     "Jointly-Owned  Property"  shall  mean,  collectively,  (i)  such  personal
property  constituting  Plant Assets under the Acquisition  Agreement in which a
twenty  percent  (20%)  undivided  interest is conveyed by NSA to GAC, (ii) such
real property constituting Plant Assets under the Acquisition Agreement in which
a twenty  percent (20%)  undivided  interest is conveyed by NSA to GAC and (iii)
such personal property  constituting Plant Assets as may be subsequently jointly
acquired by or on behalf of the Owners.

     "Lien" shall mean with respect to any Property,  any mortgage lien, pledge,
charge,  security  interest  or  encumbrance  of any  kind  in  respect  of such
Property.  For purposes  hereof,  a Person shall be deemed to own,  subject to a
Lien,  any Property  that it has acquired or holds  subject to the interest of a
vendor or lessor under any conditional  sale  agreement,  capital lease or other
title  retention  agreement  (other than an  operating  lease)  relating to such
Property.

     "Management Fee" shall have the meaning specified in Section 5.7.9.

     "Molten Metal" shall mean Alumina reduced to aluminum in molten form at the
Plant.

     "Notes" shall mean the 11 3/4% Senior Secured First Mortgage Notes due 2008
issued by Century and any registered notes issued in exchange therefor.

     "Operating  Costs" shall mean all costs,  expenses and charges  incurred by
the Operator  and billed by the Operator to or otherwise  incurred by the Owners
for the  operation,  maintenance  and  repair of the Plant,  and shall  include,
without limitation, costs and expenses incurred by the Owners in performance of,
or otherwise payable under, the Shared Services  Agreement and the Environmental
Access and Cooperation Agreement.  All such costs, expenses and charges shall be
computed on an accrual  basis in  accordance  with GAAP,  and shall  exclude (i)
interest  and other  costs  related to  financing,  (ii)  Alumina  costs,  (iii)
depreciation and  amortization,  (iv) Extras,  (v) costs of Century employees in
performing services for the Operator, unless otherwise expressly approved by the
Owners  Committee and (vi) such costs,  expenses or charges as are excluded from
time to time by the Owners Committee.

     "Operator"  shall  mean  CAK  and  any  subsequent  operator  of the  Plant
appointed in accordance with the provisions of this Agreement.

     "Owners" shall have the meaning specified in the Recitals to this Agreement
and shall include their respective  successors and assigns who become parties to
this Agreement.

     "Owners Agreement" or "Agreement" shall mean this agreement,  including all
Exhibits and Schedules attached hereto.

     "Owners  Committee" shall mean the committee  established by the provisions
of Article III of this Agreement.

                                       4
<PAGE>

     "Owner's  Plant  Assets"  shall mean the Property  comprising a part of the
Plant, title to which is now or hereafter held individually by an Owner.

     "Parent  Guarantee"  or  "Parent   Guarantees"  shall  mean  those  certain
agreements of guarantee and undertaking referred to in Section 2.4, the forms of
which are  attached  as  Exhibits  B-1,  B-2 and B-3 to this  Agreement,  or any
similar  agreement  delivered by a Parent Guarantor of a transferee  pursuant to
Section 9.3.2.

     "Parent  Guarantor"  shall mean a  corporation  named in  Section  2.4 or a
parent company of a transferee,  which executes and delivers a Parent  Guarantee
relating to an Owner.

     "Person" shall mean any individual, corporation, limited liability company,
voluntary  association,   partnership,   joint  venture,  trust,  unincorporated
organization  or  government  (or  any  agency,   instrumentality  or  political
subdivision thereof).

     "Plant"  shall  mean (i) the land,  pot lines and  related  facilities  and
fixtures at the NSA aluminum reduction  facility located at Hawesville,  Hancock
County,  Kentucky,  (ii) all facilities  and fixtures  necessary for the current
operation of the Plant such as the power substations,  Cast House and Cast House
equipment,  anode bake oven,  paste plant,  alumina silo,  rodding  shop,  water
treatment and pollution control  facilities,  and (iii) any additional land, and
any additional  facilities and fixtures,  acquired or constructed after the date
hereof by joint  agreement of the Owners and at their joint expense.  The Plant,
as currently existing under clauses (i) and (ii), is described in Exhibit C.

     "Plant  Assets"  shall mean all Property  comprising  the Plant,  and shall
include the Owner's Plant Assets of each Owner and the Jointly-Owned Property.

     "Primary  Aluminum" shall mean aluminum  products (e.g.,  T-ingot,  foundry
ingot and sow) resulting from the casting of Molten Metal.

     "Property"  shall  mean any  interest  of any kind in  property  or assets,
whether real personal or mixed, and whether tangible or intangible.

     "Rated  Capacity"  shall mean,  assuming  normal  operating  conditions and
taking into account maintenance and other technical  requirements,  237,000 Tons
of Molten Metal per year.

     "Reconstitution" shall have the meaning specified in Section 9.1.4.

     "Related  Company" shall have the same meaning as Affiliate except that the
reference in the  definition of Affiliate to one hundred  percent (100%) control
shall be changed to twenty percent (20%) control.

     "Representative" shall have the meaning specified in Section 3.1.1.

     "Secured Party" shall have the meaning specified in Section 9.2.1(a).

                                       5
<PAGE>

     "Shared  Services  Agreement"  shall  mean the  Shared  Services  Agreement
entered into by the Owners with Southwire as of the date hereof, as the same may
be amended, modified or supplemented from time to time.

     "Southwire" shall mean Southwire Company, a Delaware corporation.

     "Tangible  Net  Worth"  shall  mean as at any  date  the  sum for a  Parent
Guarantor and its consolidated  subsidiaries (determined on a consolidated basis
without  duplication  in  accordance  with  GAAP  or  international   accounting
standards, as applicable,  in each case consistently applied), of the following:
(a) the gross book value of assets  (excluding  goodwill,  patents,  trademarks,
tradenames,  organization expense, treasury stock, unamortized debt discount and
expense,  deferred  charges  and  other  intangibles)  minus  (b) the sum of the
following:  (i) reserves  applicable to the assets  referred to in the foregoing
clause (a), (ii) all liabilities  (including  accrued and deferred income taxes)
and  subordinated  indebtedness  to the extent they are not  subordinated to the
Owners' obligations under this Agreement, and (iii) all minority interests.

     "Ton" shall mean a metric ton of 1,000 kilograms (2,204.6 pounds).

     Section 1.2 References in Agreement. In this Agreement,  unless the context
otherwise requires:

          1.2.1 References to an Article,  Section or Exhibit shall be construed
     as  references to that  specified  Article or Section of or Exhibit to this
     Agreement.

          1.2.2 References to a document  (including this Agreement),  or to any
     provision  of any  agreement,  shall be  construed  as  references  to that
     document or provision as amended or supplemented from time to time upon the
     written agreement of the parties thereto and with any further consent which
     may be required.

                                   Article II

                        JOINT USE; NO ENTITY; GUARANTEES

     Section 2.1 Joint Use. The Owners, each owning its Owner's Plant Assets and
holding an  undivided  interest  in the  Jointly-Owned  Property  as a tenant in
common,  hereby  agree to cause the  Operator  to use and  operate the Plant for
their joint use and benefit in accordance  with the terms and provisions of this
Agreement.  The  Operator  agrees to use and operate the Plant for the joint use
and benefit of the Owners and for its own benefit in  accordance  with the terms
set forth in this Agreement.

                                       6
<PAGE>

     Section 2.2 Intent.

          2.2.1 No Entity or Agency.  The  Owners  intend by this  Agreement  to
     provide  for the use of their  respective  Interests  in the  Plant for the
     conversion  of Alumina into Molten Metal or Primary  Aluminum,  as provided
     for in this  Agreement.  The  parties  do not intend by this  Agreement  to
     establish a  corporation,  association,  partnership or other entity of any
     kind.  This  Agreement is not entered into for the  production of profit to
     the parties, except with respect to (i) each Owner's own use or disposition
     of  Aluminum  Product  produced  at the Plant and (ii) the  Management  Fee
     payable hereunder to the Operator.

          2.2.2 Tax  Election.  At the earliest  opportunity,  the parties shall
     take all  action  necessary  to  elect,  to the  extent  that  this  Owners
     Agreement or any related agreements give rise to an organization treated as
     a partnership for tax purposes,  that such  organization  shall be excluded
     from  the  application  of all of the  provisions  of  Subchapter  K of the
     Internal  Revenue Code of 1986, as amended,  pursuant to the  provisions of
     Section 761(a) thereof and the regulations thereunder.

     Section 2.3 Joint Ownership; Waiver of Partition.

          2.3.1 Ownership of  Jointly-Owned  Property as Tenants in Common.  The
     Jointly-Owned  Property,  both  as  currently  existing  and  as  hereafter
     acquired or constructed, shall be owned by the Owners as tenants in common,
     in undivided interests in proportion to their respective Interests, and not
     owned by the Operator or any  partnership or association of any kind of the
     Owners.  The Owners acknowledge that their respective Owner's Plant Assets,
     their respective Interests and their respective tenancy in common interests
     in the Jointly-Owned Property are separate.

          2.3.2 Waiver of Partition. Except as provided in Section 13.2, each of
     the  Owners  waives  all rights to  partition  any  portion of the Plant by
     judicial proceedings.

          2.3.3  Disposition of  Jointly-Owned  Property,  Owner's Plant Assets.
     Except as provided in Article  IX, all sales or other  dispositions  of any
     Jointly-Owned  Property shall require the unanimous  consent of the Owners,
     provided  that (a) any sale or  disposition  not  exceeding $2 million with
     respect to a single transaction,  or any separate but related  transactions
     not  exceeding  $5  million  in  the  aggregate,  during  any  twelve  (12)
     consecutive calendar months, shall be effectuated upon the majority vote of
     the Owners on the basis of their respective Interests,  and (b) any sale or
     other  disposition for which a majority vote is sufficient under clause (a)
     may be effectuated  by an Owner whose Interest  exceeds fifty percent (50%)
     without the need for a vote by the Owners, and such Owner shall give notice
     of any  such  sale  or  other  transfer  to the  other  Owners.  Except  in
     connection  with a  disposition  of all or part of its  Interest  as may be
     permitted  pursuant  to Article  IX,  neither  Owner  shall  dispose of its
     Owner's Plant Assets without the prior written consent of the other Owner.

     Section 2.4 Parent Guarantees.

          2.4.1 The parties  acknowledge that Century and Glencore have executed
     and delivered the Parent  Guarantees in the forms  attached as Exhibits B-1
     and B-2 to this Agreement, respectively.

                                       7
<PAGE>

                                  Article III

                       ACTION BY OWNERS; OWNERS COMMITTEE

     Section 3.1 Authority to Bind Owners.

          3.1.1 Action by Owners Required. With respect to the subject matter of
     this  Agreement  and subject to Sections  3.1.2 and 10.2,  the Owners shall
     only act (i)  through  resolutions  adopted by the Owners  Committee  which
     shall be  composed  of a minimum  of one and a maximum of two  persons  per
     Owner  (collectively,  the  "Representatives"),   selected  in  the  manner
     specified  in  Section  3.3,  (ii)  through  resolutions  adopted  by other
     committees  to the extent  authorized by the Owners  Committee  pursuant to
     Section 3.7, or (iii) by written  consent of the Owners  executed in one or
     more  counterparts  on  behalf  of each  Owner  by its  President  or other
     authorized  officer  or  signatory.  Action  taken by the Owners by written
     consent as provided by clause  (iii) shall not  constitute  an amendment of
     this Agreement.

          3.1.2 Operator's  Actions.  In addition to actions taken by the Owners
     as  provided  in Section  3.1.1,  the Owners  shall be bound by all actions
     taken by the Operator  within the scope of authority  delegated to it under
     the terms of this Agreement.

          3.1.3 No Unilateral Action. No Owner shall have the right or authority
     by its  own  act  to  bind  any  other  Owner,  any  of  the  Plant  or the
     Jointly-Owned  Property (except for encumbrances on its Owner's Interest or
     its Owner's  Plant Assets as permitted  under Section 9.2 or as provided in
     Section 2.3.3),  or any of the assets or property of the other Owner or the
     Operator,  nor shall any Owner  represent  or hold  itself out to any third
     party as having such right or authority.

     Section  3.2  Owners  Committee.  The  Owners,  acting  through  the Owners
Committee,  shall be  responsible  for the  general  management  of the  Plant's
operations and facilities,  including  supervision and control of the Operator's
performance  of those  responsibilities  delegated  to the  Operator  under this
Agreement.   The  Owners  Committee  also  shall  have  the   responsibility  of
supervising and controlling the activities of any committee  appointed  pursuant
to Section 3.7.

     Section 3.3 Appointment of Representatives.

          3.3.1 Appointment  Procedure.  Each Owner shall appoint upon execution
     of this Agreement,  and may appoint from time to time thereafter subject to
     the provisions of Section 10.2, up to two  Representatives  to serve on the
     Owners  Committee.  If two  Representatives  are appointed by an Owner, one
     shall be  designated  its  "Principal  Representative"  and the  other  its
     "Alternate  Representative".  If only one  Representative is serving on the
     Owners Committee for an Owner, that  Representative  shall be the Principal
     Representative of that Owner. If all  Representative  positions allotted to
     an Owner  are  vacant,  the  Owner's  President  shall be  deemed to be the
     Principal  Representative  of that Owner,  and shall serve in such capacity
     until  that  Owner  appoints  a  Representative  to  serve  on  the  Owners
     Committee.

          3.3.2  Dismissals  and  Replacements.  Subject  to Section  10.2,  any
     Representative  appointed by an Owner may only be dismissed from the Owners
     Committee   or  replaced  as  a  Principal   Representative   or  Alternate
     Representative  by that Owner.  Any  vacancies  in  positions on the Owners
     Committee  allotted to an Owner may only be filled by that  Owner,  in each
     case by delivering written notice to the other Owner. Any such notice shall
     be  effective  immediately  upon  receipt by the other Owner unless a later
     effective   date  is  specified  in  the  notice.

                                       8
<PAGE>

          3.3.3  General.  Each  Representative  appointed  by  an  Owner  shall
     represent the  interests  and act on behalf of that Owner.  Representatives
     shall not be deemed to be employees or agents of the Plant or the Operator,
     and except as specifically provided for herein, their salary,  expenses and
     other compensation shall be the responsibility of the appointing Owner.

     Section 3.4 Meetings of the Owners  Committee;  Written Consents in Lieu of
Meetings.

          3.4.1 Holding of Meetings.  The Owners Committee shall meet quarterly,
     with  additional  meetings if required to effectuate the intent and purpose
     of this Agreement.  Meetings of the Owners Committee may be (i) held at the
     Plant facilities or at such other place as agreed to by a Representative of
     each Owner, or (ii) conducted by conference  telephone,  which for purposes
     of this  Article III shall  include any means of audio  transmission  which
     permits each Representative  participating in such a meeting to hear and be
     heard by each other participating Representative.

          3.4.2 Quorum;  Calling of Meetings.  Subject to Section 10.2, meetings
     of the Owners Committee shall require the attendance, or participation in a
     telephone conference,  of at least one (1) Representative appointed by each
     Owner in order to constitute a quorum for the transaction of business.  Any
     Representative  may call a meeting  of the Owners  Committee  upon ten (10)
     calendar days prior notice to each of the other  Representatives.  Meetings
     of the  Owners  Committee  may be held at any time  without  notice  if the
     Principal  Representatives of each Owner participate in the meeting. Notice
     to  Representatives  shall be given  care of the  appointing  Owner at such
     Owner's  address  and  in the  manner  specified  for  notices  under  this
     Agreement. Any Representative may request the attendance of officers of the
     Operator or advisors at a meeting.

          3.4.3  Written  Consents.  In lieu of  holding a  meeting,  the Owners
     Committee may act by means of a written consent  containing the text of the
     resolutions  proposed for adoption,  and such written  consent shall become
     effective upon receipt by each Owner of a fully  executed  original (or set
     of original  counterparts)  signed by the Principal  Representative of each
     Owner.

     Section 3.5 Intentionally Omitted.

     Section 3.6 Voting Requirements.

          3.6.1 In General.  Except as provided in Section  3.6.2,  decisions of
     the  Owners  Committee  shall  require a  majority  of the  votes  cast for
     approval.

          3.6.2 Matters Requiring Unanimous Consent.  Decisions regarding any of
     the following shall require the unanimous  consent of the Owners  Committee
     or, in the  alternative,  written  consent  of the  Owners as  provided  in
     Section  3.1.1(iii)  (for  purposes of this Section  3.6.2,  references  to
     "Plant Assets" shall be deemed not to include any Owner's Plant Assets):

                                       9
<PAGE>

               (a) Approval of the annual  operating  budgets and annual capital
          budgets  for the  operation  and  maintenance  of the  Plant,  and any
          increases  in such  budgets in excess of five  percent  (5%) (it being
          understood  that  increases  in such  budgets of five  percent (5%) or
          less,  which  shall  not  require  unanimous  consent  of  the  Owners
          Committee,  shall  not  include  any costs of the type  identified  in
          paragraph (j) of this Section 3.6.2);

               (b) Approval of any capital  expenditures for the Plant in excess
          of  $2.5  million  and  approval  of  separate  but  related   capital
          expenditures in excess of $3.5 million in the aggregate;

               (c) Sales of any Plant  Assets where such sales exceed $2 million
          with respect to a single  transaction  or $5 million in the  aggregate
          with  respect to separate but related  transactions  during any twelve
          (12) consecutive calendar months, except as permitted by Article IX;

               (d) Placing of Liens on any Plant Assets,  except as permitted by
          Article IX;

               (e) Entering  into any lease or lease  purchase for  equipment or
          other Property for the Plant  exceeding $2.5 million in total payments
          in a single  transaction or  transactions  aggregating in excess of $5
          million  in total  payments  with  respect  to  separate  but  related
          transactions in any twelve (12) consecutive calendar months;

               (f)  Selecting  the  Auditors  as  provided  in Section  5.5,  or
          dismissing   the  Auditors  prior  to  completion  of  their  term  of
          engagement;

               (g) Except as  otherwise  may be expressly  permitted  hereunder,
          entering   into,   amending,   modifying,   supplementing,   renewing,
          extending,  terminating  or rescinding any agreement that is necessary
          for the  operation of the Plant and that has a fixed term of more than
          one year;

               (h) Any action for the abandonment or total or partial suspension
          of  operations of the Plant or the  resumption  of operations  after a
          suspension of operations;

               (i) Approving any contract  between the Operator and any Owner or
          any  Related  Company  of the  Operator  or an Owner or any  amendment
          thereto or waiver thereunder;

               (j) Approving the  engagement of any employees of either Owner or
          any of their  Affiliates  (other  than the  Operator)  at the Plant or
          otherwise  in  connection  with  the  operation  of  the  Plant,   and
          allocating  the costs  thereof as  Operating  Costs as provided for in
          this  Agreement  (such costs to be reflected in the operating  budgets
          for the Plant);

               (k)  Adopting or changing any rules of the Owners  Committee,  or
          any rules regarding Cast House allocation pursuant to Section 7.5.1;

                                       10
<PAGE>

               (l)  Subject  to the terms of  Section  9.2,  9.4 and 10.5 to the
          extent  that they relate to  enforcement  or  bankruptcy  proceedings,
          commencing or settling any  litigation,  proceeding or claim involving
          any Plant  Assets or the  operation  of the Plant where (i) all Owners
          are parties,  (ii) the relief sought  affects title to assets having a
          value in excess of  $1,000,000 or (iii)  expenditures  or losses would
          exceed $1,000,000;

               (m) Changing the accounting principles and procedures referred to
          in Section  5.4,  the cost  accounting  system  referred to in Section
          5.7.2, or the insurance requirements referred to in Section 8.1.1;

               (n)  Amending,  modifying,  supplementing,  renewing,  extending,
          terminating  or rescinding  any contract or agreement  which  required
          Owners Committee approval for execution;

               (o)  Establishing  other  committees of the Owners and delegating
          responsibilities  to them, provided that any such committee shall have
          at least one member designated by the Principal Representative of each
          Owner as the "Representative" of that Owner for purposes of voting;

               (p)  Subject  to  Section  10.8,  terminating,   or  amending  or
          modifying the terms of, the  appointment  of or replacing the Operator
          at any  time  during  which  Century  or its  Affiliates  hold a fifty
          percent (50%) or greater Interest in the Plant;

               (q) Selecting the general manager for the Plant, who shall direct
          all personnel at the Plant in accordance with the policy  decisions of
          the Owners Committee; and

               (r) Such other matters as the Owners may agree to in writing from
          time to time.

     Section 3.7 Other  Committees.  The Owners  Committee may from time to time
establish such other committees,  in accordance with Section 3.6.2(o), with such
responsibilities and authority as may be specified by resolution.

     Section  3.8  Minutes.  Minutes  shall be taken  at each  Owners  Committee
meeting  or  other  committee  meeting  by  the  person  designated  as  meeting
secretary, and copies of such minutes shall be sent to each member of the Owners
Committee or such other  committee and shall be deemed  approved if no objection
is raised within fourteen (14) days after receipt by all members of the relevant
committee.

     Section 3.9 No Liability of Committee  Members.  None of the members of the
Owners Committee or any other committee shall be personally liable to the Owners
or the Operator  for any loss,  cost or damage  arising out of or in  connection
with the  management,  operation  or  conduct of such  committees  and/or of the
business and affairs of the Plant.

                                       11
<PAGE>

                                   Article IV

                            OPERATIONS AND MANAGEMENT

     Section 4.1 Intent.  The Owners intend by this Agreement to provide for the
use of their  respective  Interests  to  convert  Alumina  owned  separately  or
otherwise  separately  supplied by the Owners into Aluminum  Product.  Except as
otherwise specifically provided in this Agreement, no agency is created or is to
be implied with respect to any Owner or the Operator.

     Section 4.2 Operations.  Unless otherwise unanimously agreed by the Owners,
the Owners' obligations  regarding the operation of the Plant shall be performed
by the Operator  pursuant to the terms of this  Agreement.  The  Operator  shall
operate  and manage the Plant on behalf of and for the  benefit of the Owners in
accordance  with the terms hereof and in an efficient and cost effective  manner
pursuant to budgets and programs  approved by the Owners Committee in accordance
herewith.

     Section 4.3  Compliance  with Law. The Owners  desire that the operation of
the  Plant  will be  carried  out in  compliance  with all laws and  regulations
applicable  thereto,  and the Operator  will use its best efforts to ensure that
the operation of the Plant so complies.

     Section 4.4 Operator's Ownership of Intellectual  Properties.  The Operator
in the  performance  of its  duties  hereunder  may  develop,  invent or improve
technologies,  practices,  procedures,  methods,  materials  or equipment at the
Plant or may obtain the right to use intellectual  properties developed by third
parties (collectively, "Intellectual Properties"). The Operator shall retain all
right  and  title  in and to all  Intellectual  Properties  notwithstanding  any
payment of fees or other  expenses to the  Operator  by the  Owners.  Each Owner
shall  have  the  non-exclusive  right  to use and  enjoy  the  benefits  of the
Intellectual Properties at the Plant and shall have the right to sell world-wide
any Aluminum  Product produced at the Plant by employing any of the Intellectual
Properties.  An Owner  shall  have no  other  rights  in or to the  Intellectual
Properties  and shall  have no license  to use,  sell or enjoy the  Intellectual
Properties except as expressly set forth in this Section 4.4. This limitation on
each of the  Owner's  rights  shall not apply to any (i)  information  which was
known to an Owner prior to the date of this  Agreement and such prior  knowledge
can be reasonably  demonstrated by reference to existing written  records;  (ii)
information  which appears in issued patents,  published patent  applications or
other  publications  of  general  public  circulation,  including  those  of the
aluminum  industry,  other  than  by  acts  or  omissions  of  an  Owner;  (iii)
information  which an Owner  lawfully  obtained  from any third  party  which is
legally in  possession  of such  information  and has a right to reveal  same to
Owners; or (iv) information which is independently developed by an Owner without
breaching this Agreement.

                                   Article V

                      FINANCIAL MANAGEMENT; MANAGEMENT FEE

     Section  5.1  Budgets.  On or before  November 1 of each year the  Operator
shall submit to the Owners  Committee a proposed  operating  budget for the next
calendar year and a proposed  capital  expenditure  budget for the next calendar
year. Such proposed budgets shall include the amounts estimated to be payable by
each  Owner  for the  calendar  year  and  each  quarter  thereof,  taking  into
consideration  all cash  balances  anticipated  to be held or  generated  by the
Operator.  As early as possible  before the beginning of each calendar year, the
Owners  Committee,  by unanimous vote,  shall approve in principle the operating
budget and the capital budget for that calendar  year.  The Owners  Committee by
unanimous vote may amend any budget from time to time.

                                       12
<PAGE>

     Section 5.2 Implementation of Approved Budgets.  The Operator shall use its
best efforts to  implement  each  approved  operating  budget and each  approved
capital  expenditure  budget and to carry out all its  activities and operations
hereunder in accordance therewith.

     Section 5.3 Emergency or Unexpected Expenditures. In case of emergency, the
Owners agree that the Operator may take any reasonable action it deems necessary
to  protect  life,  limb  or  property  or to  comply  with  law  or  government
regulation.  The Operator may also make reasonable  expenditures  for unexpected
events which are beyond its  reasonable  control.  The Operator  shall  promptly
notify  each  member of the Owners  Committee  of the  emergency  or  unexpected
expenditure, and all resulting costs shall thereupon be charged to the Owners in
proportion to their respective Interests at the time the emergency or unexpected
expenditures are incurred.

     Section 5.4 Accounting  Principles  and  Procedures.  The Owners  Committee
shall  review  accounting  principles  and  procedures  that are utilized by the
Operator in  operating  the Plant,  which  shall  include the types of books and
records to be maintained,  the procedures  for  collections of amounts  required
from the Owners and  disbursements  relating to  operations of the Plant and the
nature of data and reports provided to the Owners or the Owners Committee.

     Section 5.5 Books, Records, Reports and Auditors.

          5.5.1 Books and Records.  The Operator  shall  maintain such books and
     records  relating  to Plant  Assets and the  operation  of the Plant as are
     required by applicable law or the Owners Committee.  Such books and records
     shall  contain such data as are  reasonably  required by each of the Owners
     necessary to record and reflect the financial position  (including an asset
     register) and  obligations  of the Owners in  accordance  with the terms of
     this Agreement.

          5.5.2  Reports.  The  Operator  shall  furnish to every  member of the
     Owners  Committee  periodic cash forecasts and reasonable  advance  notice,
     pursuant  to the  procedures  established  from time to time by the  Owners
     Committee,  of any major  payments  that may be  required to be made by the
     Owners,  and furnish to every member of the Owners  Committee within thirty
     (30) days after the end of each calendar month a statement of operations of
     the Plant for such calendar month in such form as is approved by the Owners
     Committee,  including any  adjustments  of the type required  under Section
     5.7.6.

          5.5.3  Auditors.  The  Owners  Committee  shall  designate  a firm  of
     independent   auditors  to  opine  upon  the  statements  relating  to  the
     operations  of the  Plant as of the end of each  calendar  year and for the
     calendar year then ended (the "Auditors"). The firm initially designated by
     the  parties is  Deloitte & Touche LLP.  The  audited  statements  shall be
     received by each of the members of the Owners  Committee within ninety (90)
     days after the end of such calendar year.

                                       13
<PAGE>

     Section 5.6 Bank Accounts.

          5.6.1  Establishment  of Accounts.  The Operator shall maintain one or
     more bank  accounts in its name as approved from time to time by the Owners
     Committee.

          5.6.2 Deposits and  Disbursements of Funds. The Operator shall deposit
     into such  account(s)  all payments  which it receives from any Owner under
     this  Agreement,  all  amounts  which  it  receives  as  damages  or  under
     warranties relating to any Plant Assets, and all proceeds which it receives
     as a result of the sale,  lease,  license or other disposition of any Plant
     Assets,  and the  Operator  shall pay from  such  account(s)  all  expenses
     permitted to be paid by it under this  Agreement and all  distributions  to
     the Owners of amounts  received  with  respect to any Plant  Assets  (which
     shall not include an Owner's  Plant  Assets);  provided  that the  Operator
     shall be permitted  to offset  amounts due from and payable to a particular
     Owner.

          5.6.3  Signatory  Powers.  Subject  to the  limitations  specified  in
     Section 3.6.2 and any other conditions  determined from time to time by the
     Owners Committee,  all checks,  notes,  bills of exchange,  drafts or other
     documents  for the payment of money for Plant  purposes  shall be signed in
     the name of the Operator by the Plant's General Manager or controller or by
     such other employees of the Operator as shall be approved by unanimous vote
     of the Owners Committee.

     Section 5.7 Charges.

          5.7.1 Operating Costs.

               (a)  Each  Owner  shall  be  charged  and  obligated  to pay  the
          Operator,  in the manner  provided  in Sections  5.7.3 and 5.7.4,  the
          Operating  Costs for each Ton of Molten  Metal  produced  at the Plant
          pursuant to this  Agreement as part of such Owner's  Basic Tonnage and
          Allocated Excess Tonnage.

               (b) The Operating  Costs per Ton of Molten Metal produced  during
          any period shall be the Operating Costs for such period divided by the
          number of Tons of Molten Metal  produced for all of the Owners in such
          period.

               (c) The  Operator  shall  use its best  efforts  to  ensure  that
          Operating  Costs  are kept at a  minimum  consistent  with the  legal,
          proper and efficient operation of the Plant.

               (d) The  Operating  Costs  billable by the Operator to the Owners
          shall include all costs, expenses and charges incurred by the Operator
          for the operation, maintenance and repair of the Plant, computed on an
          accrual basis in accordance  with GAAP and subject to  confirmation by
          the Auditors as provided in Section 5.5.3 of this Agreement, and shall
          include  without  limitation  the cost to  Operator  of the funding of
          actuarial cost obligations accruing under any pension plans determined
          under the funding methods used to determine costs under the plans, and
          the payment of other  obligations  accruing under any employee benefit
          plans,  group life  insurance  plans,  major  medical  plans,  medical
          (including  drug)  reimbursement  plans,  salary  continuation  plans,
          supplemental  unemployment benefit plans and welfare plans,  severance

                                       14
<PAGE>

          or termination of pay plans,  and retiree benefit,  savings,  bonus or
          profit-sharing  plans  (collectively  with all such pension plans, the
          "Employee  Benefit  Plans"),  but  only  to the  extent  the  expenses
          incurred by the Operator with respect to any Employee  Benefit Plan do
          not  exceed  the  funding  or  payment  requirements,   for  employees
          generally  or  for  particular  classes  of  employees,   approved  by
          unanimous  vote of the  Owners  Committee  or (in the  absence of such
          action by the Owners  Committee) such funding or payment  requirements
          as are  based on the  terms  of such  Employee  Benefit  Plans as they
          existed as of the date hereof,  it being  understood that no unanimous
          approval of the Owners  Committee  for  expenses  incurred by Operator
          with respect to actuarial  cost  obligations  under the pension  plans
          shall be required if such  expenses  are within the range  proposed in
          the annual  actuarial  study for the relevant  year based on actuarial
          funding  methods and assumptions  consistent  with those  contemplated
          under the then applicable funding or payment requirement terms of that
          pension plan, as provided above.

     5.7.2 Extras.

               (a) Each Owner agrees to pay the Operator, in the manner provided
          in Section  5.7.3,  for each Extra  requested by it as  determined  in
          accordance with the cost accounting  system for the Plant  established
          by the Owners Committee. The cost accounting system shall be installed
          and used  throughout  the term of this  Agreement  by the  Operator to
          determine  the  proper  allocation  among  the  Owners of the costs of
          operating the Cast House.

               (b) If the Owners Committee does not approve a proposed change in
          the cost accounting system requested by an Owner, the Owner requesting
          a change  shall have the right to request  the  Auditors to review the
          cost accounting  system then being employed to ascertain  whether such
          system  should be changed in the manner  sought by such Owner in order
          more  accurately to allocate  costs among the Owners.  The expenses of
          such Auditors'  review shall be borne by the Owner which requested the
          review,  if the Auditors  determine  no change is required,  or by the
          Owner  which voted  against  the  requested  change,  if the  Auditors
          recommend  such change.  Any change in such system  recommended by the
          Auditors  shall be effective  for the calendar  months  following  the
          calendar  month in which  the  request  was  made  for  review  by the
          Auditors.

          5.7.3 Calculation of Charges. The Operator shall calculate charges for
     Operating Costs,  Extras and other amounts as may be due from the Owners or
     a particular  Owner,  prepare  statements  to the Owners  relating to their
     respective  shares of Operating  Costs and such other amounts,  and receive
     and  deposit  into the  Operator's  bank  account(s)  all sums  paid to the
     Operator for the account of the Owners,  all in the manner  provided in the
     procedures established by the Owners Committee.

          5.7.4 Payment of Charges.

               (a) Charges for Operating Costs,  Extras and other amounts as may
          be due under this Agreement  shall be collected from the Owners by the
          Operator  at the times and in the manner  provided  in the  procedures
          established by the Owners Committee.

                                       15
<PAGE>

               (b) In  general,  it is  intended  that the  Operator  shall have
          neither  more than nor less than such funds as are required to operate
          the Plant  efficiently.  Each Owner shall make funds available so they
          may be drawn on a daily basis through the Operator's bank account. The
          procedures to be established by the Owners Committee shall require the
          Operator to give the Owners  Committee  periodic  cash  forecasts  and
          reasonable  advance  notice of any major payments that may be required
          to be made.

               (c)  Notwithstanding  any  dispute  with  respect  to the  amount
          requested  to be paid by an Owner,  each  Owner  shall pay the  amount
          requested within ten (10) days after the receipt of such request,  all
          payments being subject to adjustment as provided in Sections 5.7.5 and
          5.7.6.

          5.7.5 Year End Adjustments.

               (a) Within  ninety (90) days after the end of each  calendar year
          the Operator  shall  submit to the Owners:  (i)  financial  statements
          showing  the  items  of the  Operating  Costs  for such  year,  (ii) a
          statement  showing the Extras  performed during such year, and (iii) a
          statement  showing any other amounts payable by each Owner or received
          from each Owner under this Agreement,  all of which  statements  shall
          reflect  adjustments  for  partial  calendar  months  included in such
          calendar year and shall be audited by the Auditors.

               (b) Within ten (10) days  after the  receipt of such  statements,
          all such adjustments, including any repayment from the Operator, shall
          be made as may be  necessary to make the  respective  payments of each
          Owner for such year conform to its respective  obligations  under this
          Agreement for such calendar year, as shown by such  statements.

          5.7.6 Resolution of Disputed Charges.

               (a) If any  Owner  disputes  the  calculation  or  allocation  of
          charges for Operating Costs, Extras or any other amounts hereunder, it
          shall give notice of such dispute to the Operator and the other Owners
          setting forth the details of its dispute.  If the disputing  Owner and
          the Operator cannot  satisfactorily  resolve the dispute within thirty
          (30) days, the disputing  Owner may request the dispute to be referred
          to the  Auditors,  whose  decision  shall be binding  on the  parties.
          Payments  arising out of  resolution  of such  disputes  shall be made
          within ten (10) days of the resolution.

               (b) If the Auditors  recommend an  adjustment  which  exceeds the
          lesser of $100,000 or five percent (5%) of the amount in dispute,  the
          Auditors' fees shall be paid by the Operator. Otherwise, the disputing
          Owner shall pay the Auditors' fees.

          5.7.7  Financing and Other Costs.  Each of the Owners shall pay and be
     responsible for its own (i) charges for interest and other costs related to
     financing  its payments  required to be made  hereunder,  and (ii) costs of
     transportation of Alumina.

                                       16
<PAGE>

          5.7.8  Power  Contract.  In the event that the  Owners  agree that the
     current  power  contracts  entered  into by the  Operator for the supply of
     electrical  power to the Plant may be assigned to an Owner,  pro rata,  the
     Owners  shall  enter  into an  agreement  containing  terms and  conditions
     acceptable to the Owners which provides,  inter alia, that the Owners shall
     have the  obligation to supply their pro rata share of electrical  power to
     the Plant for the operation thereof at its then rated capacity and that the
     Owner to which its pro rata portion of the power contract is assigned shall
     reimburse the other Owner for any increase in Operating Costs  attributable
     to any  replacement  source of  electrical  power and for any  reduction in
     capacity  of such other  Owner as a result of any  failure to provide  such
     electrical power.

          5.7.9  Management  Fee. For each calendar  quarter  during the term of
     this Agreement, GAC shall pay to the Operator,  quarterly in arrears, a fee
     (the  "Management  Fee")  as  full  compensation  for all  services  of the
     Operator  provided under this Agreement.  The Management Fee payable by GAC
     shall be based  solely upon the value of Aluminum  Product  produced at the
     Plant.  The Management Fee for a calendar  quarter shall be an amount equal
     to the product obtained by multiplying (x) the amount in pounds of Aluminum
     Product  produced for the account of GAC as an Owner during the  applicable
     calendar  quarter and (y) 3/4 of 1% of the arithmetic  average of the daily
     settlement price per pound of aluminum on the London Metal Exchange ("LME")
     as  published in "Metal  Bulletin" as the seller's  price under the caption
     "Daily  Metal"  for  each  calendar  month  during  the  calendar   quarter
     immediately preceding the calendar quarter for which payment is to be made.
     The LME  settlement  price is a basis agreed to by the parties upon which a
     value of Primary  Aluminum in major free world markets can be  established.
     If a significant  change occurs in its historic  relationship to free world
     values, and such change is for a duration of nine (9) months or longer, the
     parties,  upon the  request of either of them,  agree to meet to discuss in
     good faith an alternative  basis for  establishing  such value.  If the LME
     shall cease to trade aluminum or the aluminum  settlement  price of the LME
     is no longer  published,  the  "value of Primary  Aluminum"  shall mean the
     generally accepted substitute for the aluminum settlement price of the LME.
     If there is no such generally accepted substitute the parties in good faith
     shall select a substitute.  Failing such  agreement,  the "value of Primary
     Aluminum"  shall be submitted to  arbitration as provided in Section 13.11.
     The Operator shall invoice GAC for the amount of the Management Fee due for
     each calendar  quarter  promptly after the end of such calendar quarter and
     GAC shall pay such amount  within ten (10)  calendar  days after receipt of
     such invoice.

                                   Article VI

                           OBLIGATIONS OF THE OPERATOR

     Section 6.1 Plant Operation Services. In addition to the obligations of the
Operator specified in Article V and elsewhere in this Agreement,  and subject to
the  supervision  by the Owners  through the Owners  Committee and to the limits
imposed on the Operator herein,  the Operator shall perform,  in its own name as
agent for an  undisclosed  principal,  but in all  cases on  behalf  and for the
benefit of the Owners,  all tasks  required for the operation,  maintenance  and
repair of the Plant in the manner  contemplated by this  Agreement;  and without
limiting the generality of the foregoing the Operator shall:

                                       17
<PAGE>

          6.1.1  purchase and store all  materials,  supplies and other personal
     property  necessary for the operation,  maintenance and repair of the Plant
     (other than Alumina, which the Owners shall be required to deliver pursuant
     to Article VII hereof);

          6.1.2 purchase or otherwise  arrange for the provision of all services
     and utilities  necessary for the operation,  maintenance  and repair of the
     Plant,  and for that  purpose  the  Operator  shall  continue to perform on
     behalf and for the benefit of the Owners all contracts or other  agreements
     relating to such services and utilities which are currently in force and to
     which an Owner is a party or in which an Owner has an interest;

          6.1.3 receive delivery of all Alumina delivered by or on behalf of the
     Owners,  unload  such  Alumina  and store such  Alumina and provide for the
     conversion  of such Alumina into  Aluminum  Product,  deliver to the Owners
     their  allocable  portions of the Aluminum  Product in accordance  with the
     Owners  Agreement upon completion of production,  and keep complete records
     with respect to the Alumina furnished and converted for each Owner;

          6.1.4 take all commercially  reasonable actions in order to permit the
     Owners to perform their  obligations  under the Aluminum  Supply  Agreement
     including  without  limitation the obligations for the delivery of Aluminum
     Product to Southwire;

          6.1.5 if and to the  extent  so  requested  by an  Owner,  place  such
     Owner's non-molten  Aluminum Product in storage at the Plant for a handling
     charge  determined  by the Operator and billed to that Owner as provided in
     this Agreement,  take such commercially  reasonable measures as appropriate
     to segregate all Aluminum  Product  stored for that Owner,  issue a holding
     certificate  in  customary  form  and  execute  financing   statements  and
     documents of similar nature  provided by such party,  and mark all Aluminum
     Product owned by an Owner with a distinctive  mark acceptable to such Owner
     which shall be sufficient to identify that Aluminum Product as the property
     of such Owner;

          6.1.6 repair and maintain the Plant in good operating condition and in
     accordance with generally accepted repair and maintenance standards;

          6.1.7 secure all operating permits,  licenses and approvals  necessary
     to the continued  operations of the Plant,  conduct operations of the Plant
     in  accordance  with  applicable  laws  and  regulations,   maintain  Plant
     security,  and not permit  actions to occur which  would  cause  default or
     violations of any such operating permits, licenses and approvals; provided,
     however,  that Operator shall have no liability or obligation  with respect
     to permits  and  approvals  that were to have been  obtained  by  Southwire
     before the date  hereof,  except to use  Operator's  reasonable  efforts to
     obtain same;

          6.1.8 recruit and employ all personnel necessary to operate and manage
     the  Plant,  instruct  and  train  such  employees  in  the  processes  and
     procedures used in the Plant,  and advise the Owners  Committee  concerning
     employee  training  programs  for the  Plant  and,  in  furtherance  of its
     obligations under this Section 6.1.8, perform all of the obligations of CAK
     under the Collective Bargaining Agreement;

          6.1.9 perform,  on behalf of the Owners, all of the obligations of the
     Owners under the Shared Services  Agreement,  the Environmental  Access and
     Cooperation  Agreement and the Pump and Treat Building Lease  Agreement and
     any other  contracts  which may be entered  into by the Owners with a third
     Person relating to the operation of the Plant; and

                                       18
<PAGE>

          6.1.10  perform  all  obligations   required  of  the  Operator  under
     contracts entered into by the Operator under this Section 6.1, and exercise
     its best  efforts to cause the other  parties to  perform  all  obligations
     required to be performed by such other parties under such contracts.

          6.1.11  Nothing in this  Agreement  shall be deemed to  authorize  the
     Operator  to perform  any act on behalf of the Owners  which  requires  the
     unanimous consent of the Owners Committee under Section 3.6.2 hereof unless
     such  consent has been given in the manner  required  under  Section  3.6.2
     hereof.

     Section 6.2 Management Services.  In addition to its other undertakings set
forth in this  Agreement,  the  Operator  agrees to  provide  to the  Owners all
management,  advisory and  consultation  services  reasonably  necessary for the
efficient operation and management of the Plant, and in particular will:

          6.2.1 from time to time make available to the Owners for consultation,
     engineers and experts familiar with the processing and engineering problems
     relating to the efficient  operation and maintenance of aluminum  reduction
     plants, including pot room operations,  power utilization,  computer usage,
     testing,  carbon plant  operations,  cast house  operations,  environmental
     controls and maintenance procedures;

          6.2.2  advise the Owners in relation to the  acquisition  of equipment
     and supplies for the Plant;

          6.2.3   advise   the   Owners   concerning   financial   and   general
     administrative and control, and employee relations and remunerations;

          6.2.4  advise the Owners on the uses of  processes  and other  changes
     resulting  from  the  Operator's  continuing  experience  and  study in the
     operation of aluminum  reduction plants,  which processes and changes shall
     be made available to the Owners on a non-exclusive  royalty free basis, but
     without right to sublicense; and

          6.2.5  provide  guidance  and advice as requested by the Owners or the
     Owners Committee.

     Section 6.3 Authorization to Act.

          6.3.1  The  Owners  hereby  authorize  CAK,  in  its  capacity  as the
     "Operator" under this Agreement,  to do the following acts without need for
     further Owners Committee approval,  until such time as the Owners Committee
     shall determine otherwise by unanimous vote:

               (a) sell any Plant Assets  (other than an Owner's  Plant  Assets)
          where such sales do not  exceed $2  million  with  respect to a single
          transaction  or $5 million in the  aggregate  with respect to separate
          but related  transactions during any twelve (12) consecutive  calendar
          months;

               (b)  enter  into any  lease or lease  purchase  for the Plant not
          exceeding  $2.5 million in total  payments in a single  transaction or
          transactions  aggregating  in excess of $5 million  in total  payments
          with  respect to separate but related  transactions  during any twelve
          (12) consecutive calendar months;

               (c)  enter  into,  amend  or  terminate  any  agreement  that  is
          necessary  for the operation of the Plant and that has a fixed term of
          one year or less;

                                       19
<PAGE>

               (d)  commence  or  settle  any  litigation,  proceeding  or claim
          involving  any Plant Assets (other than an Owner's Plant Assets) where
          none of the following conditions is satisfied:  (i) both Owners or any
          of their affiliates are parties,  (ii) the relief sought affects title
          to  assets  having  a  value  in  excess  of   $1,000,000   and  (iii)
          expenditures or losses would exceed $1,000,000.

          6.3.2 If the Plant is damaged or  destroyed  in whole or in part,  the
     Owners and the members of the Owners Committee, on behalf of themselves and
     any  subsequent  transferee of all or part of their  respective  Interests,
     hereby  authorize CAK,  independently  of its capacity as "Operator"  under
     this  Agreement  and for so long as the Interest of NSA or any Affiliate of
     NSA is greater than fifty percent (50%),  to repair the damaged  portion or
     rebuild or replace  the  destroyed  portion on behalf of the Owners in such
     manner as CAK shall  reasonably deem  appropriate so as to restore the same
     as nearly as possible to the  capacity  thereof  immediately  prior to such
     damage or destruction,  provided the cost of repairing such damage does not
     exceed $2.5 million.  In connection  with any such repair  activities,  CAK
     shall consult with the Owners  Committee and keep it informed of its repair
     activities, and shall bill the Owners directly for such repair costs.

     Section 6.4 Liability of the Operator.  The Operator shall be liable to the
Owners  for,  and shall  indemnify  and hold  each of them and their  respective
officers,  employees and agents  harmless from,  any claims,  losses or expenses
arising as a result of acts or omissions of the Operator's  management personnel
(first line supervisor or higher)  constituting,  on a repetitive  basis,  gross
negligence or willful misconduct.  The preceding sentence shall not be deemed to
limit the Operator's obligation to repay any amounts billed to and paid to it as
Operating  Costs  which are  ultimately  determined  by the  Auditors  not to be
Operating Costs.

                                  Article VII

                                   CONVERSION

     Section 7.1 Conversion Rights and Obligations.

          7.1.1 Obligation to Convert.  The rights and obligations of the Owners
     to convert Alumina to Molten Metal or Primary Aluminum at the Plant are set
     forth in this Article VII.

               (a) Except as otherwise provided in this Agreement

                    (i) the  Operator  shall  endeavor  to operate  the Plant at
               Rated Capacity or higher;

                    (ii) each Owner  agrees to supply or cause to be supplied to
               the Plant the quantity of Alumina necessary for the production of
               such Owner's Basic Tonnage and Allocated Excess Tonnage,  if any;
               and

                    (iii) each Owner will be entitled to Molten  Metal  produced
               at the Plant in proportion to its Basic Tonnage and its Allocated
               Excess  Tonnage,   if  any,  provided  it  supplies  Alumina  for
               conversion in accordance with the provisions of this Article VII.

                                       20
<PAGE>

          7.1.2 Reduction of Basic Tonnage.

               (a) If, from time to time,  an Owner  desires to reduce its Basic
          Tonnage,  it shall notify the other  Owner,  at least ninety (90) days
          prior to the date that it desires the  reduction to become  effective,
          of the  amount  of the  reduction,  the  date the  reduction  is to be
          effective  and the period of time (which shall not be less than ninety
          (90) days) that such reduction is to be in effect.

               (b) If an Owner  gives  notice to reduce its Basic  Tonnage,  the
          other Owner (the "eligible  Owner") shall have the right to assume all
          or part of the available tonnage or conversion capacity,  for all or a
          portion of the time that such tonnage or conversion  capacity shall be
          made  available,  such right to be exercised  by giving  notice to the
          Owner seeking to reduce its Basic  Tonnage,  within sixty (60) days of
          receipt  of the  notice of  reduction,  specifying  the  amount of the
          available  tonnage  to be  assumed  and the  period  of time that such
          assumption is to be in effect.

               (c) The giving of the notice of assumption specified in paragraph
          (b) shall thereby  commit the eligible Owner to convert the tonnage in
          the amount and for the time therein  designated  upon the terms herein
          provided. Any portion of the reduction in tonnage or tolled tonnage of
          an Owner which is  committed  for by the other Owner  pursuant to this
          Section  7.1.2 for any  period of time  shall not be part of the Basic
          Tonnage of the Owner  making the  reduction  for such period and shall
          for such  period  be part of the  Basic  Tonnage  of the  Owner  which
          committed for the tonnage made available by such reduction or offer to
          Toll.

          7.1.3  Failure to  Convert  Basic  Tonnage.  If (i) an Owner has given
     notice to the other  Owner  pursuant  to Section  7.1.2 to reduce its Basic
     Tonnage  and the other  Owner does not commit to convert all of the tonnage
     made  available by such  reduction  pursuant to Section  7.1.2,  or (ii) an
     Owner fails (for any reason, including a reason constituting force majeure)
     to supply  Alumina  sufficient  for the production of its Basic Tonnage and
     the other  Owner  does not  utilize  the  tonnage  made  available  by such
     failure,  then the Owner making the reduction or failing to supply,  as the
     case may be,  shall pay to the other Owner,  within  thirty (30) days after
     the end of each calendar month, the amount of any increase in the Operating
     Costs per Ton incurred by such other Owner during such calendar month which
     is attributable  to such reduction or failure to supply.  The amount of any
     such increase  shall be determined by the Operator by reference to the cost
     accounting  system utilized for the Plant, and shall be subject to possible
     adjustment as provided in Section 5.7.5.

                                       21
<PAGE>

          7.1.4 Available and Allocated Excess Tonnage.

               (a)  The  Operator  shall  promptly  notify  the  Owners  of  the
          availability of any capacity to produce Primary  Aluminum in excess of
          Rated  Capacity  (the  amount of such excess  expressed  in Tons being
          herein referred to as "Available  Excess  Tonnage").  The notice shall
          specify the amount of  Available  Excess  Tonnage and the  approximate
          date  such  tonnage  can be  delivered.  Each  Owner may  request  the
          Operator  at any time to  determine  the  amount of  Available  Excess
          Tonnage.  Each of the Owners  shall give the  Operator  notice  within
          thirty (30) days after receipt of the  Operator's  notice  stating the
          portion of its share of such Available  Excess Tonnage,  such share to
          be based upon each Owner's Basic  Tonnage,  that it desires to utilize
          and the period  during which it desires to commit for such use. If any
          Owner  fails to give such  notice or commits  for less than all of its
          proportionate  share of such Available  Excess Tonnage the other Owner
          shall  have the  option to  convert  all or any part of the  remaining
          portion of the Available Excess Tonnage.  An Owner that has elected to
          take less than all of its  Available  Excess  Tonnage  shall  have the
          right,  upon six months  notice to the other Owner,  to convert all or
          any  part of its  proportionate  share  of  Available  Excess  Tonnage
          allocated to the other Owner.

               (b) Available  Excess  Tonnage which is allocated to an Owner for
          any period of time is herein called the "Allocated  Excess Tonnage" of
          such Owner for such period.

               (c) The Owners shall bear any increase in Operating Costs per Ton
          of Molten Metal incurred because the Plant is being operated in excess
          of Rated Capacity in proportion to their  respective  Allocated Excess
          Tonnages.  The amount of any such increase  shall be determined by the
          Auditors,  and the costs of such  determination  shall be borne by the
          Owners in proportion to their respective Allocated Excess Tonnages.

          7.1.5  Production  Deficiencies.  If at any time for any  reason  (not
     attributable  to the  default of an Owner) the  production  of the Plant is
     insufficient  to meet scheduled  deliveries of Molten Metal,  deliveries of
     Molten  Metal shall be reduced as follows:  (i) the  delivery of  Allocated
     Excess  Tonnages,  if any,  shall be reduced in  proportion  to the Owners'
     respective  Allocated  Excess  Tonnages  and,  if  there  is any  remaining
     deficiency,  (ii)  deliveries  of Basic  Tonnages  to the  Owners  shall be
     reduced in  proportion  to their  respective  Basic  Tonnages.

     Section 7.2 Alumina Supply.

          7.2.1  Alumina  Delivery  Obligations.  Alumina  shall at all times be
     delivered  to the  Plant  by each  Owner  or for that  Owner's  account  in
     sufficient  quantities so that, with due  consideration  for the quality of
     Alumina and the capacity of the alumina  storage  facilities  at the Plant,
     there  shall be  sufficient  Alumina  on hand at all times for the Plant to
     produce the particular Owner's Basic Tonnage and Allocated Excess Tonnage.

          7.2.2 Unloading of Alumina.

               (a) Alumina to be provided  by each Owner shall be  delivered  at
          the Plant in a vessel with acceptable storage conditions and unloading
          characteristics  reasonably  adapted  to  the  characteristics  of the
          facilities for the delivery of Alumina at the Plant. Alumina furnished
          by an Owner may be  commingled  and  shipped  in common  with  Alumina
          belonging to the other Owner,  and  commingled at the Plant,  provided
          that Alumina from different sources shall not be commingled.

                                       22
<PAGE>

               (b) Each Owner shall pay all freight and shall be responsible for
          all other charges to effect delivery of its Alumina to the Plant.  All
          unloading costs shall be Operating Costs.

               (c) If extra demurrage, freight or other costs are incurred by an
          Owner by reason of any other Owner's  failure to comply with an agreed
          upon  delivery  schedule or  otherwise  through the fault of any other
          Owner,  the Owner at fault  shall pay the  non-defaulting  Owner  upon
          demand an amount determined by such non-defaulting Owner as sufficient
          to compensate the non-defaulting Owner for excess costs so incurred by
          them. The defaulting  Owner shall have the right to review the records
          upon which such calculation was based.

               (d) The Operator shall keep complete  records with respect to the
          Alumina furnished and converted for each Owner.

          7.2.3  Quality of Alumina.  If for any reason an Owner does not supply
     Alumina  which meets the minimum  specifications  set forth in Exhibit A to
     this Agreement, the Operator may, but shall not be required to, accept such
     Alumina for  conversion.  If such Alumina is accepted for  conversion,  the
     Operator shall determine the  difference,  if any, in costs of handling and
     processing such Alumina into Molten Metal,  and any increase in costs shall
     be for the account of such Owner.  The amount of any such increase shall be
     determined by the Operator,  and shall be subject to possible adjustment as
     provided in Section 5.7.5.

     Section 7.3 Title.

          7.3.1  Title to the  Alumina  furnished  by an Owner and to the Molten
     Metal to which that Owner is entitled hereunder and to the Primary Aluminum
     cast  therefrom  shall be in that  Owner,  provided  that where  Alumina or
     Molten Metal is commingled  in storage or processing  each Owner shall have
     an undivided  interest in such Alumina to the extent of the amount supplied
     and in such Molten Metal to the extent of its Basic Tonnage plus  Allocated
     Excess Tonnage, if any.

          7.3.2 At an Owner's  request,  the Operator  shall (i) issue a holding
     certificate in customary form, or (ii) execute such financing statements or
     documents  of similar  nature as may be  requested by the Owner to evidence
     its ownership of Alumina, Molten Metal or Primary Aluminum, as the case may
     be.

     Section 7.4 Shipment, Delivery, Sampling and Weighing.

          7.4.1 Production Schedules and Deliveries.

               (a) So long as the Aluminum Supply  Agreement shall be in effect,
          Molten  Metal  produced  at the  Plant  shall  be  allocated  first to
          delivery under and in accordance with the terms of the Aluminum Supply
          Agreement,  for the  credit  of each  Owner  in  accordance  with  its
          Interest.

               (b)  Primary  Aluminum  produced  at  the  Cast  House  shall  be
          delivered to the Owner entitled  thereto  pursuant to its instructions
          immediately  upon  completion of production of such Primary  Aluminum.
          Deliveries  shall be made to the  Owners  at the  Plant on rail  cars,
          trucks or other forms of transport.

                                       23
<PAGE>

               (c) The Owners shall be advised  periodically of Plant production
          schedules  and the  Owners  shall  arrange  among  themselves  to take
          delivery  of  Molten  Metal or  Primary  Aluminum  in  amounts  and at
          intervals  which are consistent with the Plant's  production  capacity
          and  storage  facilities.  If the  Owners  are  unable to agree upon a
          schedule  consistent with the Plant's production  capacity and storage
          facilities,  deliveries shall be made by the Operator pursuant to this
          Section 7.4.1 in as equitable a manner as possible,  giving due regard
          to the Basic Tonnages and Allocated Excess Tonnages of the Owners.

          7.4.2  Failure to Take  Delivery.  If  production is lost or increased
     costs are  incurred  due to the  failure  of an Owner to take  delivery  of
     Primary  Aluminum  in  accordance  with  established  schedules,  the costs
     resulting from such reduced  production or increased costs shall be for the
     account of such Owner.  The amount of any such costs shall be determined by
     the  Operator,  and shall be subject to possible  adjustment as provided in
     Section 5.7.5.

          7.4.3 Sampling, Analysis and Weights.

               (a) The  Owners  Committee  shall  from  time  to time  establish
          procedures for representative sampling and analysis of Alumina, Molten
          Metal and Primary  Aluminum in accordance with good industry  practice
          to insure that the Alumina  delivered  to the Plant,  the Molten Metal
          produced at the Plant and Primary Aluminum received by the Owners from
          the Plant comply with the quality standards  established by the Owners
          Committee. The Operator shall conduct such representative sampling and
          analysis in accordance  with the procedures  established by the Owners
          Committee.

               (b) Unless the Owners Committee unanimously agrees otherwise, the
          Operator shall use its best efforts to produce Molten Metal (i) first,
          in accordance with the specifications therefore in the Aluminum Supply
          Agreement,  and  (ii)  thereafter,  which  has  a  minimum  purity  of
          ninety-nine  and  seven-tenths  percent  (99.7%)  aluminum and Primary
          Aluminum which meets Aluminum Association standards.

               (c) The quantity of Alumina  delivered in each shipment  shall be
          taken from the bill of lading for that  shipment,  provided  that such
          weight may be  confirmed or checked by vessel  displacement  survey in
          light  and  loaded  condition  at the  Plant  or,  at  the  Operator's
          discretion,  may be  determined  or  checked  by  scale  weights.  The
          quantities  of Molten Metal and Primary  Aluminum  delivered  shall be
          determined  by  scale  weights.  Weights  shall  be  certified  by the
          Operator to the Owners and the same weighing  devices or methods shall
          be uniform on  shipments  to the Owners.  Analyses and weights so made
          shall be presumptively correct, but each Owner shall have the right to
          investigate  such  analyses and weights and the method of  determining
          same and to check the same by other  analyses  and weights made at its
          own  expense,   and  mistakes  when  ascertained   shall  be  promptly
          corrected.

                                       24
<PAGE>

          7.4.4 Storage.

               (a) If an  Owner so  requests,  the  Operator  shall  place  such
          Owner's Primary Aluminum in storage at the Plant for a handling charge
          covering costs which shall be determined by the Operator and billed to
          that Owner.

               (b)  At  an  Owner's  request,   the  Operator  shall  take  such
          commercially  reasonable  measures as  appropriate  to  segregate  all
          Primary Aluminum stored for that Owner.

               (c) As of the end of each  calendar  month,  the  Operator  shall
          inform each of the Owners  regarding the quantity and  composition  of
          Primary Aluminum products in storage.

          7.4.5  Markings.  At an Owner's  request and at such Owner's cost, the
     Operator shall mark all Primary Aluminum  products owned by that Owner with
     a  distinctive  mark  acceptable to that Owner which shall be sufficient to
     identify that product as the property of that Owner.

     Section 7.5 Cast House.

          7.5.1 Use of Equipment in Cast House.

               (a) The Cast House time  available  for casting  Molten  Metal on
          behalf  of the  Owners  shall  be  allocated  between  the  Owners  in
          proportion to their  respective  Basic  Tonnages and Allocated  Excess
          Tonnages, if any.

               (b) Not later than 25 days before the  beginning of each calendar
          month,  the  Owners  shall  notify the  Operator  as to the Cast House
          capacity for which they wish to subscribe with respect to each form of
          Primary  Aluminum.  When the Cast House  capacity so subscribed  for a
          particular form of Primary  Aluminum  exceeds the available  capacity,
          then the Operator  shall allocate the available  capacity  between the
          Owners in  proportion  to their Basic  Tonnages and  Allocated  Excess
          Tonnages,  if  any,  and  shall  consult  with  each  Owner  regarding
          alternative forms of Primary  Aluminum.  Not later than 18 days before
          the  beginning of such  calendar  month the  Operator  will notify the
          Owners of the Cast House  capacity  allocated  to them with respect to
          each form of Primary Aluminum.

               (c) If during any  calendar  month the actual  production  of any
          form of Primary Aluminum by the Cast House is less than the Cast House
          capacity  subscribed  for in such  period  for  that  form of  Primary
          Aluminum, the Cast House capacity allocated to each Owner with respect
          to that form of Primary Aluminum shall be reduced in proportion to the
          Owners'  respective  Allocated  Excess  Tonnages  and, if there is any
          remaining deficiency, such allocated capacity shall then be reduced in
          proportion  to  the  Owners'   respective   Basic  Tonnages.   Similar
          adjustments  shall  be made to the  extent  that the  Cast  House  has
          insufficient capacity to produce alternative forms of Primary Aluminum
          requested by an Owner as a result of a reduction in allocated capacity
          under the preceding sentence.

               (d) The rules  governing the allocation of Cast House capacity to
          give effect to the  provisions  of clauses  (a) - (c) of this  Section
          7.5.1 shall be determined by the Owners Committee.

                                       25
<PAGE>

                                  Article VIII

                             INSURANCE AND CASUALTY

     Section 8.1 Insurance.

          8.1.1  Coverage  Requirements.  The Operator shall be, and shall cause
     each of the  Owners  to be, a named or  additional  insured  on all  public
     liability, property and casualty insurance policies applicable to the Plant
     and the Plant Assets. The Operator shall also maintain such other insurance
     relating to  conversion  operations  of the Plant  necessary to protect the
     Owners'  interests,  including  insurance on Alumina upon  discharge at the
     Plant and  Primary  Aluminum  while in storage at the  Plant.  The  initial
     insurance  requirements  are set forth in Exhibit E, and such  requirements
     may be  changed  from  time  to time by the  unanimous  vote of the  Owners
     Committee.

          8.1.2  Product  Liability  Coverage.  The Owners  agree that each will
     separately  insure for all  product  liability  claims  relating to Primary
     Aluminum  sold by such  Owner.  The  Owners  further  agree  that each will
     indemnify and hold the other Owner and the Operator harmless from any loss,
     cost,  damages or  liability  of any nature  whatsoever  arising out of any
     product liability claim relating to such Owner's Primary Aluminum, and that
     any such liability shall survive the  termination of this  Agreement.  Each
     Owner will deliver to the Operator and to the other Owner  certificates  of
     insurance  evidencing their product  liability  coverage with  commercially
     reasonable  limits and containing  endorsement  naming the other Owner, its
     Affiliates  and  the  Operator  as  additional   named  insureds,   waiving
     subrogation  against the other  Owner,  its  Affiliates  and the  Operator,
     providing  that such coverage  shall be primary to any other coverage as to
     such  Owner's  Primary  Aluminum  and  product   liability  claims  arising
     therefrom  and  providing  at  least  ten  (10)  business  days  notice  of
     modification or cancellation of coverage.

     Section  8.2  Casualty.  If the Plant or the Plant  Assets  are  damaged or
destroyed  in whole or in part,  in any respect,  the Operator  shall repair the
damaged portion or rebuild or replace the destroyed portion in such manner as to
restore the same as nearly as possible to the capacity thereof immediately prior
to such damage or destruction,  except that if the cost of repairing such damage
exceeds $2.5 million,  the Owners must consent unanimously to such repairs.  The
Operator  shall  not be  obligated  to  expend  for such  purpose  more than the
proceeds of its  insurance  plus any amounts paid to it by the Owners on account
of any deductibles and self-insurance.

     Section 8.3 Condemnation.  In the event of condemnation of a portion of the
Plant which  adversely  affects the  production  capacity or  efficiency  of the
Plant,  the  Owners  shall  share in the  production  of the Plant in the manner
specified in Section 7.1.5. The Operator shall take such action as is necessary,
consistent with prudent business  practice,  to use the proceeds of condemnation
to restore the capacity and  efficiency of the Plant as it or they existed prior
to such condemnation,  unless otherwise  instructed by the Owners, in which case
the  proceeds  shall be  divided  between  the  Owners  in  proportion  to their
respective Interests.

                                       26
<PAGE>

                                   Article IX

                           RESTRICTIONS ON DISPOSITION
                            OF PROPERTY OR INTERESTS

     Section 9.1 Transfers of Interests.

          9.1.1 Restriction.  Except as otherwise provided in this Article IX or
     in Article X, neither this Agreement nor any Interests shall at any time be
     transferred  by any Owner without the express prior written  consent of the
     other Owner.  For purposes of this Article IX and Article X, transfer shall
     mean any sale, assignment, conveyance, exchange or other transfer.

          9.1.2  Transfers  to  Affiliates.  An Owner may  transfer  its  entire
     Interest to an Affiliate,  provided (a) such Affiliate shall become a party
     to  this  Agreement  and  shall  expressly  assume  the  due  and  punctual
     performance of all of the obligations of the transferor hereunder,  (b) any
     such assignment shall not release the transferor from any obligations under
     this Agreement  except to the extent that such obligations are performed by
     the  transferee,  and  (c)  the  Parent  Guarantee  delivered  by a  Parent
     Guarantor  with  respect  to the  obligations  of the  transferor  Owner is
     amended,  if requested  by the other  Owner,  to include a guarantee of the
     obligations of such transferee.

          9.1.3 Transferee to Become Party to this Agreement.  In the event of a
     transfer to a third Person of all or a portion of an  Interest,  such third
     Person shall execute and become a party to this Agreement and such transfer
     shall become  effective only upon such execution.  This Section 9.1.3 shall
     not apply to a Secured  Party which shall acquire an Interest in accordance
     with Section 9.2.3, unless such Secured Party shall retain and not transfer
     its  ownership of the acquired  Interest,  but shall apply to any Person to
     which a Secured Party shall transfer such Interest.

          9.1.4  Reconstitution  of  Interests.  The  Owners  acknowledge  that,
     subject to their unanimous consent,  it may at some future time be in their
     mutual best interests to reconstitute each of their Interests by each Owner
     conveying to the other Owner an undivided interest in the conveying Owner's
     Owner's Plant Assets (the "Reconstitution"),  so that thereafter each Owner
     would hold a pro rata undivided interest as tenant in common (having waived
     all  rights of  partition)  in all of the fixed and  movable  property  and
     assets then comprising the Plant. Any such Reconstitution  shall not affect
     the rights  and  obligations  of the  parties  set forth in this  Agreement
     except as specifically provided for in this Article IX and Article X.

          9.1.5  Transfers of Part of an Interest.  Subject to Section 9.1.6, in
     the  event of a  transfer  by an  Owner of a  portion  of an  Interest,  as
     provided  for herein,  before the  occurrence  of the  Reconstitution,  the
     transferring  Owner and the  transferee  shall agree upon the percentage of
     the total Owner's Plant Assets of all of the Owners that is  represented by
     the Owner's Plant Assets of the transferring Owner to be transferred to the
     transferee  (assuming  that the five pot lines at the Plant  constitute one
     hundred  percent (100%) of such total Owner's Plant Assets and that one pot
     line constitutes  twenty percent (20%) of such total Owner's Plant Assets),
     and the remainder of the portion of the Interest to be  transferred  by the
     transferring  Owner  to  the  transferee  shall  consist  of  an  undivided
     interest,  as tenant in common, in an equal percentage in the Jointly-Owned
     Property and an equal  percentage  of the  membership  units of CAK. In the
     event of a transfer by an Owner of a portion of an Interest as provided for
     herein  after the  occurrence  of the  Reconstitution,  the  portion of the
     Interest so transferred shall consist of an undivided  interest,  as tenant
     in common, in the Plant Assets, in an equal percentage in all of such Plant
     Assets, together with an equal percentage of the membership units of CAK.

                                       27
<PAGE>

          9.1.6 Minimum Interest.  Except for the transfers  involving all of an
     Owner's  Interest or as a result of the  application  of Section  10.5,  no
     transfer shall be permitted under this Owners  Agreement if, as a result of
     such transfer,  either the new Owner or the  Transferring  Owner would hold
     less than a twenty percent (20%) Interest in the Plant.

     Section 9.2 Voluntary Encumbrances.

          9.2.1  Restrictions.  An Owner (for  purposes of this Section 9.2, the
     "Granting Owner") may agree to grant a mortgage or otherwise agree to grant
     a Lien on its Interest or any portion thereof, provided

               (a) the rights of the  mortgagee or  lienholder  (for purposes of
          this  Agreement,  the "Secured  Party") are  expressly  limited to the
          Interest of the Granting  Owner (to the extent so  encumbered) in such
          assets and shall not impair or otherwise  affect title to the Interest
          of the  non-granting  Owner  (including  its  transferees  under  this
          Article IX) or its right to any increase in the value of its Interest,
          and any rights in the encumbered  Interest which the Secured Party may
          assert, acquire or transfer, whether through foreclosure or otherwise,
          shall in all  events be  subject to the  non-granting  Owner's  rights
          under this Agreement  (including  without limitation the rights of the
          non-granting Owner under Section 2.3.2 and Articles IX and X), and

               (b) prior to the  granting  of any such Lien by a Granting  Owner
          the  non-granting  Owner  shall have  approved in writing the form and
          substance of the provisions required under clause (a) and the validity
          and  enforceability  of the  document  in which  such  provisions  are
          contained, and

               (c) the Granting  Owner shall notify the  non-granting  Owner and
          the  Operator  in  writing  of  the  identity,   address  and  contact
          information  of the Secured Party and,  promptly  upon the  occurrence
          thereof, the Granting Owner shall notify the non-granting Owner of the
          exercise of any rights with respect to the Lien by the Security  Party
          (other than rights to access and/or information) and/or the release of
          the Lien.

          9.2.2 Acknowledgment of Liens.

               (a) GAC  acknowledges  that NSA and its Affiliates are, as of the
          date hereof,  granting a Lien on the Interest of NSA to secure in part
          the Notes  (and may grant a Lien in  connection  with any  refinancing
          thereof),  and  that  GAC has  reviewed  and  approved  the  form  and
          substance  of  the  mortgage  and  other   documents  and  instruments
          evidencing  such  Lien  and the  validity  and  enforceability  of the
          provisions  setting  forth the rights of GAC, as Owner  hereunder,  as
          incorporated  therein,  and that the grant of such Lien and the filing
          of such mortgage and other documents, in and of themselves,  shall not
          give rise to any  rights of GAC to  acquire  the  Interest  of NSA set
          forth in this Article IX, including  without  limitation under Section
          9.3.

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<PAGE>

               (b) The Owners  acknowledge  and agree that either Owner shall be
          entitled  to grant a Lien on its  Inventory  or any  portion  thereof;
          provided however,  that any such Lien shall be subject to the right of
          the non-granting Owner, if such Owner shall exercise its rights to use
          the Interest of a Defaulting  Owner under Section  10.4.1,  to use the
          Inventory of such  Granting  Owner or Defaulting  Owner.  The Operator
          shall  be  entitled  to  take  such  actions  as  may be  required  in
          connection  with the  enforcement of the rights of such Secured Party,
          provided  that  any  increased  costs  incurred  by  the  Operator  in
          connection  therewith  shall  not be  Operating  Costs  but  shall  be
          chargeable  to the  Owner  granting  such  Lien as a cost  related  to
          financing.

          9.2.3  Condition  Precedent to Enforcement of Voluntary  Encumbrances.
     Prior to the exercise by a Secured  Party of any  foreclosure  rights under
     any Lien granted by a Granting  Owner on its  Interest,  the Secured  Party
     shall  give at least  sixty (60) days'  prior  written  notice to the other
     Owner of its intent to exercise such rights and the  principal  amount (and
     not any  interest)  secured by the Lien which is in default,  and the other
     Owner shall have the right (but not the  obligation) to acquire all or part
     of the  Interest of the Granting  Owner upon payment to the Granting  Owner
     (without  prejudice  to the rights of the Secured  Party in such  proceeds)
     within that sixty (60) day period of the Fair Market  Value of the Interest
     or part  thereof  being  purchased.  The  Granting  Owner  shall  take  all
     necessary  steps to ensure that the  transfer of the  Interest  (or portion
     thereof as  applicable) is free and clear of the Lien of the Secured Party.
     In the event that the other Owner shall have  delivered a written notice to
     the Granting Owner of its intent to exercise the right granted  pursuant to
     this Section  9.2.3 and shall have made payment of the amount  provided for
     in the  immediately  preceding  sentence,  then the  Granting  Owner  shall
     execute and deliver to the non-granting  Owner  instruments  evidencing the
     transfer of its Interest (or if  appropriate,  portion of its  Interest) to
     the non-granting Owner. The non-granting  Owner's rights under this Section
     9.2.3 are in addition to its rights  under the  provisions  required  under
     Section  9.2.1  and in  addition  to any  claims  for  damages  which  such
     non-granting Owner may have against the Granting Owner.

          9.2.4 Secured Party's  Rights;  Non-Granting  Owners'  Rights.  If the
     non-granting Owner fails to exercise its right to purchase all or a part of
     the Granting  Owner's  Interest as provided in Section  9.2.3,  the Secured
     Party shall have the right in the name and on behalf of the Granting Owner,
     to sell the  Granting  Owner's  Interest  or that part not  acquired by the
     other Owner,  subject in all events to the  prohibition  against  partition
     provided for in Section 2.3.2 and the  requirements  of Sections  9.1.3 and
     9.1.5, but not subject to the provisions of Sections 9.3.2(a),  (b), (c) or
     (f) or 9.4. The  transferee  shall be subject to the provisions of Sections
     9.3.2(d)(ii), (iii) and (iv) and 9.3.2(g).

     Section 9.3 Right of First Refusal.

          9.3.1  Restrictions.  Absent the express prior written  consent of the
     other Owner and except for transfers  permitted  pursuant to Sections 9.2.3
     and 9.4.1 and  transfers to the other Owner  pursuant to Section  10.5,  no
     Owner shall offer to transfer, or transfer, all or any part of its Interest
     to any Person (other than as provided in Section  9.1.2) except as provided
     in this Section 9.3.

                                       29
<PAGE>

          9.3.2 Right and Procedure.

               (a) An Owner that  desires to transfer  its Interest or a part of
          the Interest ("Transferring Owner") to a third Person, and has reached
          basic  agreement  with  such  third  Person  regarding  the  terms and
          conditions  of the  transfer,  must give  notice  to the  other  Owner
          specifying  in detail the price and other  terms and  conditions  upon
          which the  Transferring  Owner  proposes to sell its  Interest or part
          thereof to the third Person,  the  percentage  of such Interest  being
          transferred and the name of the third Person.

               (b) Within  sixty (60) days after such  notice,  the other  Owner
          shall notify the Transferring Owner whether it desires to acquire,  at
          the  price  and  on  the  terms  and   conditions   contained  in  the
          Transferring Owner's notice, the Transferring Owner's Interest or part
          thereof  being  offered.  If the other  Owner  does not so notify  the
          Transferring   Owner  it  shall  be  deemed  to  have   rejected   the
          Transferring Owner's offer.

               (c) If the other Owner accepts the  Transferring  Owner's  offer,
          the  Transferring  Owner and the other  Owner  shall be deemed to have
          contracted  for the  sale and  purchase  of the  Transferring  Owner's
          Interest or part thereof on the terms and  conditions  offered,  and a
          closing of the transaction in accordance with the terms and conditions
          of the offer  shall be made  within  ninety (90) days after the deemed
          acceptance.

               (d)  If  the  other  Owner  does  not  elect  to   purchase   the
          Transferring  Owner's Interest or part thereof, the Transferring Owner
          during the one hundred  eighty (180) days following the sixty (60) day
          period under clause (b) may transfer (on the same terms and conditions
          offered  to the other  Owner)  its  Interest  or part  thereof  to the
          proposed transferee identified as provided in subsection (a) above (if
          applicable),  provided  that the  Transferring  Owner or the  proposed
          transferee,  as the case may be,  shall  deliver to the other Owner at
          such closing,  as a condition to the transfer,  executed originals (in
          form and substance reasonably  satisfactory to the other Owner) of the
          following documents:

                    (i)  certificates  of officers  of each of the  Transferring
               Owner and the  transferee  confirming  the terms  under which the
               Transferring  Owner is transferring  the Interest or part thereof
               to the transferee;

                    (ii) if the transferee does not have a Tangible Net Worth at
               least equal to  $200,000,000,  it shall (i) provide to each other
               Owner and the  Operator  a  guarantee,  in the form of the Parent
               Guarantee  attached hereto as Exhibit B-3, of an Affiliate of the
               proposed transferee or other corporation which has a Tangible Net
               Worth at least equal to  $200,000,000,  with  Tangible  Net Worth
               under this clause 9.3.2(d)(ii) to be evidenced by the most recent
               audited  financial  statement of the transferee or its guarantor,
               or by a written  opinion of a nationally  recognized  independent
               accounting   firm;   or  (ii)  deliver  to  the  other  Owner  an
               irrevocable  letter of credit drawn on a U.S. bank holding a long

                                       30
<PAGE>

               term  rating not less than "A" or  equivalent  from a  nationally
               recognized  financial rating agency.  Such letter of credit shall
               be in a form reasonably acceptable to the other Owner, shall name
               the Operator as  beneficiary,  shall be in an amount equal to one
               half of the  Owner's  Interest  times the  annual  operating  and
               capital budget then in effect in respect of the Plant,  and shall
               have an expiry date not shorter  than twelve (12)  months,  and a
               replacement   letter   of  credit  or   Guarantee   meeting   the
               requirements of this Section  9.3.2(d)(ii)  shall be delivered to
               the Operator no less than thirty (30)  business days prior to the
               expiry of the then current letter of credit.

                    (iii) the proposed  transferee's  written  undertaking to be
               bound by all of the terms and  conditions of this Agreement as an
               Owner; and

                    (iv)  such   opinions  of  legal  counsel  to  the  proposed
               transferee and any guarantor as the other Owner shall  reasonably
               require.

               (e) The Transferring Owner shall pay all costs of transfer of its
          Interest.

               (f) If the Transferring Owner fails to consummate the third party
          transfer within the one hundred eighty (180) day period referred to in
          Section  9.3.2(d),  the  first  rights  of  the  other  Owner  in  the
          Transferring Owner's Interest shall be deemed to be revived and notice
          under clause (a) and  compliance  with the other terms of this Section
          9.3 shall be required in respect of any transfer thereafter.

               (g)  Following  a  transfer  of an  Interest  or part  thereof in
          accordance with the provisions of this Section 9.3, if at any time the
          Parent  Guarantor  providing a  guarantee  of the  obligations  of the
          transferee  shall cease to have a Tangible Net Worth at least equal to
          $200,000,000,  as  evidenced  by such Parent  Guarantor's  most recent
          unaudited quarterly financial statements, then the transferee Owner or
          such Parent  Guarantor shall promptly notify the other Owner or Owners
          and shall deliver promptly to the other Owner or Owners an irrevocable
          standby  letter  of  credit  meeting  the   requirements   of  Section
          9.3.2(d)(ii) and replacements thereof as required thereby.

     Section 9.4 Involuntary Transfers or Encumbrances.

          9.4.1  Deemed  Offer to  Transfer.  Except for  transfers  pursuant to
     Section  9.2.3,  if the  Interest  (or any portion  thereof) of an Owner is
     involuntarily  transferred  or encumbered as a result of judicial  process,
     attachment,  execution or judicial  sale and such  involuntary  transfer or
     encumbrance is not set aside or discharged within sixty (60) days, then the
     Interest  held by that Owner shall be deemed to have been  offered for sale
     to the other Owner on the date the other Owner  receives  actual  notice of
     the  involuntary  transfer or  encumbrance.  The other Owner shall have the
     option,  exercisable  before the  earlier to occur of (i) the date on which
     the involuntary transfer or encumbrance is set aside or discharged, or (ii)
     the date  which is sixty  (60)  days  after  such  actual  notice to it, to
     purchase all or, if the  Reconstitution  shall have occurred,  such part as
     the other  Owner  shall  determine,  of the  involuntarily  transferred  or
     encumbered  Interest  for a price  equal to Fair  Market  Value  thereof as
     determined  pursuant to Section  9.4.2,  payable in cash. The provisions of
     Section 9.3 shall not apply to any such involuntary transfer.

                                       31
<PAGE>

          9.4.2 Fair Market  Value.  "Fair Market Value" shall mean for purposes
     of this Agreement the fair market value of the relevant Interest or portion
     thereof agreed upon by the purchasing  Owner and the other Owner, a Secured
     Party and/or a trustee in  bankruptcy,  as the case may be (an  "Interested
     Party"),  subject to the  proviso  below,  or as  otherwise  determined  as
     provided in this Section 9.4.2. In the event that, within ten (10) days (i)
     after  receipt  by the  Owner  entitled  to  exercise  a right to  purchase
     pursuant to Section  9.2.3 or 9.4.1,  of the notice  provided for under the
     relevant Section,  or (ii) delivery of notice by a non-defaulting  Owner of
     an exercise of its rights pursuant to Section 10.5, as the case may be, the
     purchasing Owner and the Interested Party cannot agree upon the fair market
     value of the Interest or portion  thereof to be transferred,  then,  within
     five (5) days after such ten (10) day  period has  expired,  such Owner and
     Interested Party will select an independent  appraiser,  who will determine
     the then-current fair market value of the Interest or portion thereof.  The
     Owners hereby agree that (x) any appraiser  selected shall be an investment
     bank or other  independent  appraiser  with  expertise in the  appraisal of
     aluminum reduction  facilities and (y) the value of the Interest or portion
     thereof shall be calculated as (A) a value per Ton of production  capacity,
     multiplied by (B) the rated  production  capacity,  in Tons of Molten Metal
     per year, represented by the Interest or portion thereof to be transferred,
     provided  that,  in the case of an  appraisal  of the Interest or a portion
     thereof of NSA,  the Fair  Market  Value  determined  for  purposes  of any
     transaction  shall in no event be less than the amount determined using the
     applicable  methodology set forth in the indenture  entered into by Century
     with  respect  to the  Notes (or such  methodology  as may be  required  by
     applicable law governing such  indenture),  so long as such indenture is in
     force.  Such appraiser will determine the fair market value of the Interest
     or portion thereof within twenty-five (25) days following its selection. In
     the event that,  within the five (5) day period provided for the parties to
     select an  appraiser,  the  relevant  parties  are  unable to agree upon an
     appraiser,  each of them will  within  an  additional  five (5) days  after
     expiration of such period select a professional designee and such designees
     together shall select an appraiser within five (5) days of their selection.
     In the  event  that,  within  the  five  (5) day  period  provided  for the
     designees to select an appraiser, the designees are unable to agree upon an
     appraiser,  each of the relevant parties will within an additional five (5)
     days after  expiration of such period select an  independent  appraiser and
     such appraisers together will select a third independent  appraiser meeting
     the criteria specified above, whose  determination of the fair market value
     of the  Interest  or  portion  thereof  will be final  and  binding  on all
     parties.  This third (3rd)  appraiser  will have thirty (30) days following
     its selection to determine the fair market value of the Interest or portion
     thereof. The costs and expenses of appraisal shall be borne by the Granting
     Owner  or  Defaulting  Owner,  as the  case may be.  In the  event  that an
     appraisal  in the  manner  described  above  is not  completed  within  the
     relevant sixty (60) day period provided for a purchasing  Owner to purchase
     an Interest or portion  thereof  pursuant to Section 9.4.1 (but not Section
     9.2.3 or  10.5.2(b)),  then such period shall be extended as necessary  for
     the  completion  of the  appraisal,  but not for a  period  longer  than an
     additional  thirty (30) days,  and  payment of the Fair Market  Value as so
     determined  shall be made by the  purchasing  Owner within ten (10) days of
     the final determination thereof.

     Section 9.5  Transfer of Ownership  of an Owner.  Each Owner shall  remain,
either directly or indirectly,  wholly-owned  by its respective  parent which in
the case of NSA shall be Century,  and in the case of GAC shall be Glencore  or,
in the case of an Owner which  acquired its  Interest  under this Article IX, by
its  ultimate  parent  company on the date of transfer  of the  Interest to that

                                       32
<PAGE>

Owner.  Failure to maintain such ownership of an Owner without the prior written
consent of the other  Owner  (which  consent  may be freely  withheld)  shall be
deemed to be a default of that Owner  under this  Agreement  and, in addition to
any claims for  damages  which the other Owner may have  against the  defaulting
Owner and its Parent  Guarantor  (if any),  the other Owner may require that the
defaulting  Owner's  Interest be sold and  purchased in the manner  provided for
under Section 10.5. The restrictions on transfer of ownership of an Owner by its
parent  company set forth in this Section 9.5 shall not apply to a Secured Party
which shall  acquire  ownership of an Interest  through the  enforcement  of its
rights under a Lien on such Interest (unless such Secured Party shall retain for
its own  interest,  and not  transfer,  such  Interest),  but shall apply to any
Person to which such Secured Party transfers such Interest.

     Section  9.6  Appointment  of  Operator  Upon  Transfer.  In the event of a
transfer  by GAC to a  non-Affiliate  of GAC of all or part of its  Interest  in
accordance  with the  provisions  of this Article IX, NSA or an Affiliate of NSA
shall  have the  right  (but not the  obligation),  in its sole  discretion,  to
terminate the  appointment of CAK as Operator and to appoint an Affiliate of NSA
as  replacement  Operator.  In the event of a transfer  of the  Interest  of NSA
pursuant to a foreclosure on a voluntary Lien in accordance  with Section 9.3.2,
or an  involuntary  transfer as specified in Section 9.4, GAC or an Affiliate of
GAC shall  have the right but not the  obligation,  in its sole  discretion,  to
terminate  the  appointment  of CAK as  Operator  and to  appoint a  replacement
Operator.  In the event of the termination of the appointment of CAK as Operator
in  accordance  with the first or  second  sentence  of this  Section  9.6,  the
appointment of a replacement Operator shall become effective upon the acceptance
by the replacement Operator of such appointment.

     Section 9.7 Closings.  The closings for any transfer of an Owner's Interest
pursuant to Section 9.2.3, 9.3.2(c), 9.3.2(d), 9.4.1 or 10.5 shall take place at
the principal office of the Operator or at such other location as the parties to
the closing may mutually  agree.  The  Transferring  Owner shall deliver (i) the
requisite  instruments  of conveyance,  sale and assignment  with respect to the
Transferring   Owner's   Interest  in  the  Owner's  Plant  Assets  and  in  the
Jointly-Owned  Property as tenant in common, and (ii) all other documents as may
be  reasonably  requested  by any  purchasing  owner  in order  to  confirm  the
Transferring  Owner's title to and transfer of its Interest and the authority of
its agent,  officer or attorney to act in connection  with each of the transfers
referred to in clauses (i) and (ii) above.

                                   Article X

                                     DEFAULT

     Section 10.1 Events of Default.  Each of the following shall  constitute an
"Event of  Default"  with  respect  to an Owner  (the  "Defaulting  Owner")  for
purposes of this Article X:

          10.1.1 the failure by that Owner to pay amounts due to the Operator or
     the other Owner under this  Agreement  within three (3) full  business days
     (based on  recipient's  business  days and its local  banking  hours) after
     notice by the Operator or such other Owner demanding such payment be made;

          10.1.2 that Owner  transfers or encumbers,  or attempts to transfer or
     encumber,  any of its Interest in violation of the terms of Sections 9.2 or
     9.3;

                                       33
<PAGE>

          10.1.3  any  default  by  that  Owner  (as an  owner  in any  material
     obligation  under this Agreement (other than as described in clauses 10.1.1
     or 10.1.2 above) which remains uncured for thirty (30) days after notice of
     such default from the other Owner;

          10.1.4 the filing by that Owner,  or any other Person  which  directly
     owns fifty-one percent (51%) or more of that Owner's shares of voting stock
     (that  Owner's  "Parent"),  or (if  different  from the  Parent) the Parent
     Guarantor of that Owner's obligations under this Agreement,  of a voluntary
     petition  in  bankruptcy,   or  for   reorganization,   rehabilitation   or
     dissolution or other proceeding analogous in purpose or effect;

          10.1.5 the filing  against  that Owner or its Parent or (if  different
     from the Parent) the Parent  Guarantor  of that Owner's  obligations  under
     this  Agreement,  by its  creditors  of a  petition  in  bankruptcy  or for
     reorganization,  rehabilitation,  involuntary liquidation or dissolution or
     other proceeding  analogous in purpose or effect, which is not dismissed or
     stayed within sixty (60) days of filing; or

          10.1.6 any act by that Owner or its Parent or (if  different  from the
     Parent)  the  Parent  Guarantor  of that  Owner's  obligations  under  this
     Agreement, which results in a default under Section 9.5.

     Section 10.2  Constitution of Owners Committee Upon Event of Default.  Upon
the  occurrence of an Event of Default and until that Event of Default is cured,
the  Defaulting  Owner shall lose its membership and voting rights on the Owners
Committee,  and the attendance of a Representative of the Defaulting Owner shall
not be required to constitute a quorum for actions by the Owners Committee.

     Section 10.3 Notification of Secured Party; Right to Cure.  Notwithstanding
anything to the  contrary  set forth in this Article X, prior to the exercise of
any remedies  provided for herein by a non-defaulting  Owner upon the occurrence
of an Event of Default by a Defaulting  Owner, such  non-defaulting  Owner shall
have provided or caused to be provided,  to any Secured Party of whose existence
it has  received  written  notice  pursuant  to Section  9.2.1(c) at its address
provided in such notice, written notice of such Event of Default and a period of
(a) five (5)  days,  in the case of an Event  of  Default  which  consists  of a
payment  default or (b) thirty (30) days with respect an Event of Default  which
is not a payment  default,  shall  have  elapsed  since the date of such  notice
during  which the  non-defaulting  Owner has  permitted  the  Secured  Party the
opportunity to cure the Event of Default.

     Section 10.4 Use of Defaulting Owner's Interest.

          10.4.1 Right of Non-Defaulting Owner.

               (a) If an Event of  Default is not cured  within  the  applicable
          time period provided  therefor after notice of default is given to the
          Defaulting Owner by the nondefaulting  Owner of its intent to exercise
          its rights  under  this  Section  10.4,  the  nondefaulting  Owner may
          exercise the right to use the Defaulting  Owner's Interest and perform
          the  obligations  of the  Defaulting  Owner in place of the Defaulting
          Owner,  including  using the Defaulting  Owner's  Alumina or supplying
          quantities of Alumina  sufficient for the production of the Defaulting
          Owner's Basic Tonnage and Allocated Excess Tonnage.  The nondefaulting
          Owner  shall  thereby  become  entitled to sell for the account of the
          Defaulting  Owner all Molten  Metal or Primary  Aluminum  to which the
          Defaulting Owner would otherwise be entitled.

                                       34
<PAGE>

               (b)  Proceeds  received  from such sales in excess of one hundred
          six  percent  (106%) of the total  cost of  producing  the  Defaulting
          Owner's share of Primary Aluminum,  including  without  limitation the
          cost of Alumina,  Operating Costs, Extras and freight in (for Alumina)
          and freight out (for Primary Aluminum) (collectively,  for purposes of
          this Section 10.4 and Section  10.5,  "Total  Costs") shall be applied
          first to payment of any amounts  owed by the  Defaulting  Owner to the
          non-defaulting  Owner,  then to  payment  of any  amounts  owed by the
          Defaulting  Owner to the  Operator,  and the  remainder  of the excess
          above  106%,  if  any,  shall  be paid to the  Defaulting  Owner.  The
          non-Defaulting  Owner shall be entitled to retain the excess remaining
          from the one hundred six percent  (106%) of Total Costs after  payment
          of such costs, to defray its own expenses.

          10.4.2  Non-Defaulting  Owner's Costs, etc. The  non-defaulting  Owner
     which has  elected  to  exercise  its right to use the  Defaulting  Owner's
     capacity  under this Section 10.4 shall have the right at any time to elect
     to treat  the  costs,  loss or  damage  resulting  to it from such use as a
     monetary  default as provided in Section 10.7. It shall exercise such right
     by giving  notice to the  Defaulting  Owner of the amount of expense it has
     incurred on behalf of the Defaulting Owner.

     Section 10.5 Option to Purchase Defaulting Owner's Interest.

          10.5.1 Agreement on Liquidated Damages.

               (a) The Owners  acknowledge  that if a Defaulting  Owner fails to
          cure an Event of  Default  within  thirty  (30)  days of notice by the
          non-defaulting  Owner of its intent to exercise  its rights under this
          Section  10.5,  it will be  difficult  to measure  all of the  damages
          resulting from such failure to cure. Therefore, the Owners agree that,
          in addition to the rights of the non-defaulting  Owner provided for in
          Section 10.4.1, if an Event of Default is not cured within thirty (30)
          days after such notice to the  Defaulting  Owner,  then, as reasonable
          liquidated  damages,  the  Defaulting  Owner  shall be  deemed to have
          offered its Interest  for sale to the  non-defaulting  Owner,  and the
          non-defaulting Owner shall be entitled to purchase the Interest of the
          Defaulting  Owner,  at the price  and in the  manner  provided  for in
          Section 10.5.2 below.

               (b) In the event that the  non-defaulting  Owner  shall  purchase
          part  but not  all of the  Defaulting  Owner's  Interest  pursuant  to
          Section 10.5.1(a),  and shall continue to exercise its rights provided
          for in Section  10.4.1 with  respect to the  remaining  portion of the
          Interest  retained by the Defaulting  Owner, then at any time and from
          time to time  thereafter,  subject to  Section  10.5.2(d)  below,  the
          non-defaulting  Owner shall be entitled  upon notice given thirty (30)
          days in advance,  to purchase all or any part of the remaining portion
          of the Interest  retained by the Defaulting  Owner at the then current
          Fair Market Value thereof.

                                       35
<PAGE>

          10.5.2  Exercise of Right to Purchase.  In the event of a deemed offer
     of sale by a Defaulting  Owner of its Interest  pursuant to Section 10.5.1,
     the  non-defaulting  Owner  shall be  entitled  to  exercise  its  right to
     purchase as follows:

               (a) the  non-defaulting  Owner shall give notice of its intent to
          purchase the Interest or portion  thereof  within  thirty (30) days of
          the time at which the offer to sell has been deemed to be made;

               (b) with  respect to a purchase by GAC of the Interest of NSA, so
          long as the  indenture  entered  into by Century  with  respect to the
          Notes and any  registered  notes for which such Notes may be exchanged
          is in force,  payment  shall be made in the  manner  and to the extent
          required  under such  indenture,  including  payment within sixty (60)
          days of the date on which the offer to sell was deemed to be made, but
          no later than the date of  transfer of the  Interest,  of an amount in
          cash at  least  equal  to  seventy-five  percent  (75%)  of the  total
          purchase  price,  with the balance to be paid in  accordance  with the
          provisions of Section 10.5.2(c) below; and

               (c) the non-defaulting Owner shall be entitled to make payment of
          (i) the  balance  of the  purchase  price of the  Interest  or portion
          thereof after the payment required pursuant to paragraph (b) above, or
          (ii) in the event that the indenture referred to in such paragraph (b)
          is no longer in force,  the total  purchase  price of the  Interest or
          portion thereof which it has elected to purchase,  in either case from
          fifty  percent  (50%) of the  amount  of Gross  Profits  as  hereafter
          defined,  if any,  derived from the Interest of the  Defaulting  Owner
          during each calendar year and not from any other source.

               (d) Nothing in this Section 10.5 shall  prohibit a Secured  Party
          from  transferring  any  Interest of a  Defaulting  Owner prior to the
          exercise of a right of purchase by the  non-defaulting  Owner, and the
          non-defaulting  Owner shall have no rights under Section 10.2, 10.4 or
          10.5  against  the  transferee  with  respect  to the  default  by the
          Defaulting Owner,  provided that the Secured Party shall have complied
          with Section 9.2.3 or 9.4.1, as applicable.

          10.5.3 "Gross Profits";  "Market Price".  For purposes of this Section
     10.5:

               (a) "Gross  Profits" means an amount,  determined on a cumulative
          annual basis,  with respect to Primary Aluminum produced by use of the
          relinquished Interest of the Defaulting Owner, equal to the excess, if
          any, of (i) the Market Price of Primary Aluminum determined on a daily
          basis over (ii) the Total Costs,  determined  by reference to billings
          from the  Operator.  If the  Plant is  operating  at less  than  Rated
          Capacity,  it shall be assumed  for  purposes  of  calculating  "Gross
          Profits" that the relinquished Basic Tonnage is the operating capacity
          first reduced.

               (b)  "Market  Price"  means  the  mid-point  of the bid and asked
          prices for  unalloyed  ingot,  New York  Merchant  Price  (99.7%),  as
          published  in American  Metal  Market  under the heading  "AMM Closing
          Prices -  Aluminum"  or, if such  publication  ceases,  an  equivalent
          publication.

     Section 10.6  Attorney-in-Fact.  Each Owner hereby irrevocably appoints the
other Owner its  attorney-in-fact  to execute,  file and record all  instruments
necessary to perfect or effectuate  the  provisions of this Article X during the
continuance  of an Event of  Default.  This  power of  attorney  shall be deemed
coupled with an interest.

                                       36
<PAGE>

     Section  10.7  Monetary  Defaults.  If an Owner  fails to make any  payment
required under this Agreement,  the non-defaulting  Owner may advance the amount
of the  defaulted  payment on behalf of the Owner in default and treat the same,
together with accrued interest,  as a demand loan bearing interest from the date
of the advance at the  Interest  Rate plus two percent  (2%).  Each Owner hereby
grants to the other a lien upon its  Interest  and a  security  interest  in its
rights under this  Agreement  and in its Interest,  and the proceeds  therefrom,
which shall be junior to any Lien granted in compliance  with Section 9.2.2,  to
secure (a) any loan made hereunder,  including interest thereon,  which shall be
in an  amount  no  greater  than is  reasonably  required  in  order  to pay the
Operating  Costs  attributable  to the  Defaulting  Owner,  and  (b)  reasonable
attorneys  fees  and  all  other  reasonable  costs  and  expenses  incurred  in
recovering  the loan  with  interest  and in  enforcing  such  lien or  security
interest, or both.

     Section 10.8 Appointment of Operator.  In addition to the other rights of a
non-defaulting  Owner  specified in this Article X, in the event of a default by
NSA which is not cured within  thirty (30) days after notice of default is given
to NSA by GAC of its intent to exercise its rights under this Section 10.8,  GAC
shall have the right to terminate the appointment of the Operator and to appoint
a replacement Operator, provided that such replacement Operator shall enter into
an agreement providing for its appointment on terms and conditions substantially
similar to those applicable to the Operator provided for in this Agreement.

                                   Article XI

                                    COVENANTS

     Section 11.1  Inspection.  The Operator  shall afford to the Owners,  their
agents, employees,  accountants and attorneys,  during normal business hours and
on reasonable  notice,  access to and the opportunity to examine and make copies
of all books, records, documents, instruments and papers of or pertaining to the
Plant, any Owners' Plant Assets,  the Jointly-Owned  Property and the operations
of the Plant,  all as they may reasonably  request,  except for documents  which
pertain only to an Owner's  activities in purchasing  Alumina,  selling  Primary
Aluminum,  arranging for  transportation  and other  confidential  matters of an
Owner.

     Section 11.2 Liens.  Except as may be permitted  pursuant to Sections  7.3,
9.2,  10.7 and 11.6,  none of the Owners or the  Operator  shall cause any Liens
(other than tax Liens for taxes not past due) to be created or to exist upon the
Plant, any Owner's Plant Assets or any Jointly-Owned  Property. Each Owner shall
notify the other Owner and the Operator or the Operator  shall notify the Owners
Committee  promptly  after  discovery  of the  creation  of any  Liens  on  such
property,  and shall discharge forthwith all Liens not so permitted for which it
or its employees, agents or contractors are responsible.

     Section 11.3 Notification. Each Owner shall promptly notify the other Owner
and the Operator, or the Operator shall promptly notify the Owners Committee, of
the  occurrence  of any fact or  circumstance  which has or might tend to have a
material adverse effect upon the ownership and operation of the Plant, including
without  limitation adverse rulings by government  agencies having  jurisdiction
over the Plant or the  institution of any litigation or proceeding or the threat
of any claim of the type described in Section 3.6.2(l).

                                       37
<PAGE>

     Section 11.4  Performance  of Contracts.  Each Owner and the Operator shall
use its best efforts to perform all of the obligations  required of it under the
terms  of any  material  contract,  agreement  or  arrangement  entered  into in
connection  with the  operation of the Plant.  Each Owner shall notify the other
Owner and the  Operator  or the  Operator  shall  notify  the  Owners  Committee
promptly of any fact or circumstance  known to it which does or may constitute a
material default under, or which might  materially  adversely affect the ability
of the Owners or the Operator to carry out their  obligations under any contract
material to the operation of the Plant.

     Section 11.5 Organization,  Power and Authority. Each of the Owners and the
Operator shall remain a partnership,  corporation or limited liability  company,
as the case may be, duly organized,  validly existing and in good standing under
the laws of the jurisdiction in which it is organized,  and (if not organized in
the State of Kentucky) in good standing as a foreign partnership, corporation or
limited liability company, as the case may be, in the State of Kentucky. Each of
the Owners and the Operator shall maintain full corporate power and authority to
own, in the case of an Owner, its Interests and to perform its obligations under
this Agreement,  and shall promptly obtain any consent or approval of or license
or  permission  from any  governmental  authority  which may be required for the
performance of such obligations.

     Section  11.6  Easements.  Each  Owner  shall  grant  to  the  other  Owner
non-exclusive  rights of way and easements on, over,  through,  under and across
the real estate comprising a part of its Owner's Plant Assets and such rights of
access and use of such Owner's Plant Assets and the other assets  comprising its
Interest as may be necessary  for the operation by the other Owner of the assets
comprising  such other  Owner's  Interest.  The  Owner's  hereby  agree that the
Operator  shall  be  entitled  to the  free  use of all of  such  rights  in the
performance of its duties as Operator hereunder.  The rights and obligations set
forth in this  Section  11.6 and Section 11.7 shall be binding upon and inure to
the benefit of a transferee of all or a portion of an Owner's Interest.

     Section 11.7 Further  Assurances.  Each Owner,  including any transferee of
all or a portion of an Owner's Interest,  shall, upon the reasonable  request of
another  Owner or the  Operator,  and the Operator  shall,  upon the  reasonable
request of an Owner,  from time to time,  execute and deliver to the other Owner
or the  Operator all such  instruments  and  documents  of further  assurance or
otherwise,  and do all such acts and things,  as may  reasonably  be required to
carry  out such  Owner's  or the  Operator's  obligations  hereunder,  including
without  limitation the obligations set forth in Section 11.6, and to consummate
and complete this Agreement and the transactions contemplated hereby.

                                       38
<PAGE>

                                  Article XII

                                 REPRESENTATIONS

     Section 12.1 Owners'  Representations.  Each of NSA and GAC  represents and
warrants to the other that as of the date of this Agreement:

          12.1.1  Organization,  Powers and  Authority.  It is a partnership  or
     limited  liability  company duly  organized,  validly  existing and in good
     standing under the laws of the  jurisdiction as indicated on the first page
     of this Agreement,  and has the corporate power to own its Interest. It has
     the corporate power to carry on its business now being conducted and it has
     full  corporate  power  and  authority  to  enter  into  and  perform  this
     Agreement.  It requires no consent or approval of or license or  permission
     from  any   governmental   authority  for  the  execution  or  delivery  or
     performance  by it of this  Agreement  which  has  not  been  obtained.  It
     requires no consent of any party to any  contract or  agreement to which it
     is a party or to which any of its  property  or assets is  subject  for the
     execution,  delivery  or  performance  of this  Agreement  other  than such
     consents which have been obtained. The execution,  delivery and performance
     of this  Agreement  by it have been duly  authorized  and  approved  by all
     requisite corporate action of it. This Agreement has been duly executed and
     delivered by it, and is valid and binding upon it.

          12.1.2 Compliance with Other Instruments. Neither it nor any Affiliate
     of it is in  violation  of or in  default  with  respect  to  any  term  or
     provision of any indenture,  contract,  agreement or instrument to which it
     is a party or by which it is bound, or of any judgment,  order or decree of
     any  court or to its  knowledge  of any  governmental  authority  or to its
     knowledge any statute,  rule or regulation  applicable to it or by which it
     is bound,  in any case and in any manner so as  presently  or at any future
     time to affect it adversely in any material  respect in connection with the
     ownership or operation of the Plant.

          12.1.3  Litigation.  Neither it nor any  Affiliate of it is a party to
     any action,  suit or  proceeding in which an adverse  determination  has or
     would have any  material  effect on its ability to perform its  obligations
     under this  Agreement  or would have any material  adverse  effect upon the
     ownership or operation of the Plant.

                                  Article XIII

                                  MISCELLANEOUS

     Section  13.1 Term.  The  obligations  of the Owners to provide  Alumina as
provided  in this  Agreement  shall  terminate  on the date on which  the  Plant
permanently  ceases  operating,  and this Agreement shall terminate and be of no
further  force and effect on the date on which any Owner  becomes the sole owner
of all of the  Interests,  provided  that neither  event shall relieve any party
from liability arising out of or in connection with ownership of its Interest.

     Section 13.2  Disposition  of Plant and Other Assets.  If Plant  operations
cease  permanently,  the Owners shall  confer to determine  whether any Owner is
willing  to  purchase  the  Interest  of the  other  Owner at a price  and under
conditions  acceptable  to the other Owner,  whether the Plant and any remaining
Jointly-Owned Property or Plant Assets are usable for another purpose acceptable
to the Owners, or whether the Plant and any remaining Jointly-Owned Property and
Plant Assets should be sold. If unanimous agreement of the Owners is not reached
within  three months of  cessation  of Plant  operations,  either Owner may seek
partition.

                                       39
<PAGE>

     Section  13.3  Liability.  Each  Owner  hereby  acknowledges,   agrees  and
understands  that to the extent of its Interest it is and shall remain liable to
third parties for any loss, cost,  damages or liability of any nature whatsoever
arising out of the  ownership of an Interest and that any such  liability  shall
survive the termination of this Owners Agreement.

     Section  13.4  Notices.  All  notices,   demands  or  other  communications
(collectively, "notices") required or permitted to be given under this Agreement
shall be in writing, either delivered by hand to the other party at that party's
address set forth  below,  or sent by postage  prepaid  certified  mail  (return
receipt requested) or by telegraph or telephonic facsimile transmission,  to the
other party's address and facsimile  number (if applicable) set forth below, and
shall  be  effective  on the date the hand  delivery,  telegraph  or  telephonic
facsimile  transmission  is  received  by the  other  party or, in the case of a
notice by mail,  five (5) business days after deposit in the mail. A copy of the
text of any notice given by telegraph or telephonic facsimile transmission shall
be mailed by postage  prepaid  certified  mail (return  receipt  requested),  or
delivered  by hand,  to the  address set forth below  within a  reasonable  time
thereafter,  provided such  confirmation  shall not be required if the recipient
acknowledges receipt of the notice. Notices shall be sent:

     If to NSA or to an NSA Representative on the Owners Committee:

     NSA, Ltd.
     2511 Garden Road
     Building A, Suite 200
     Monterey, CA  93940
     Attention:  Gerald A. Meyers
     Facsimile No.:  (831) 642-9328

     with a copy to:

     Century Aluminum Company
     2511 Garden Road
     Building A, Suite 200
     Monterey, CA  93940
     Attention:  Gerald J. Kitchen
     Facsimile No.:  (831) 642-9328

                                       40
<PAGE>

     If to GAC or to a GAC Representative on the Owners Committee:

     Glencore Acquisition I LLC
     c/o Glencore Ltd.
     301 Tresser Boulevard
     Stamford, Connecticut 06901-3244
     Attention:  Aluminum Department (or Representative's name, if applicable)
     Facsimile No. (203) 978-2600

     with a copy to:

     Glencore AG
     Baarermattstrasse 3
     P.O. Box 666
     CH-6341 Baar
     Switzerland
     Attention:  Aluminum Department
     Facsimile No.:  011-4141-709-2980.

     if to the Operator:

     Century Aluminum of Kentucky LLC
     1627 State Route 271 North
     Hawesville, KY 42348-0500
     Attention:  Plant Manager
     Facsimile No.:  (270) 927-9058.

     with a copy to:

     Century Aluminum Company
     2511 Garden Road
     Building A, Suite 200
     Monterey, CA  93940
     Attention:  Gerald J. Kitchen
     Facsimile No.:  (831) 642-9328

Any change in the address or facsimile  transmission  number of a party (or copy
recipient)  for the purposes of notice under this Section shall be  communicated
to the other  parties  in the  manner set forth in this  Section  for  providing
notice.

     Section 13.5 Entire  Agreement  and  Modification.  This  Agreement and the
agreements  contained  in  Exhibits  hereto  constitute  and  contain the entire
agreement  of  the  Owners  and  supersede  any  and  all  prior   negotiations,
correspondence, understandings and agreements between the parties respecting the
subject  matter  hereof.  This  Agreement  may  be  amended  only  by a  written
instrument signed by the Owners.

                                       41
<PAGE>

     Section 13.6 Best Efforts and  Cooperation.  Each of the Owners shall exert
its best efforts to obtain all consents and approvals  necessary for its due and
punctual  performance of this Agreement and each shall  cooperate with the other
with respect thereto.

     Section 13.7 Force Majeure.  Except as specifically  provided  herein,  the
performance by the Owners or the Operator of their respective  obligations under
this Agreement  shall be suspended for such period of time as they are prevented
from  performing  such  obligations  by  reason  of acts of  God,  fire,  flood,
explosion,  insurrection, riot, enemy attack, strike or work stoppage, malicious
mischief,  orders of court or other governmental authority,  inability to secure
of delay in securing  governmental  consents or  authorizations,  rights of way,
privileges franchises,  permits,  equipment,  and other events reasonably beyond
the control of the party subject  thereto.  A force majeure shall not relieve an
Owner from the  monetary  obligations  under this  Agreement  incurred  during a
period of force  majeure.  Any force majeure shall be remedied with all possible
diligence  but such  requirement  shall not require the  settlement  of strikes,
lockout or other labor  difficulties by the party concerned on terms contrary to
its wishes.  How such difficulties shall be handled shall be entirely within the
discretion of the party concerned.

     Section 13.8 Binding Effect. This Agreement shall be binding upon and inure
to the  benefit of the  Owners and their  respective  successors  and  permitted
assigns.

     Section 13.9 Survival. All representations, warranties and indemnities made
herein or in any agreement,  certificate or other instrument  delivered pursuant
hereto by each Owner shall survive the termination of this Agreement.

     Section  13.10  Governing  Law.  This  Agreement  shall be  governed by and
construed in accordance  with the laws of the State of New York,  without giving
effect to the conflict of laws provisions thereof, except to the extent that the
terms hereof relate to the use of real property  constituting  Plant Assets,  in
which case such terms shall be governed by and construed in accordance  with the
laws of the State of Kentucky.

     Section 13.11 Disputes. Any controversy or claim arising out of or relating
to this  Agreement,  or any breach  thereof,  shall be  settled  by  arbitration
administered  by the  American  Arbitration  Association  under  its  Commercial
Arbitration  Rules, which shall take place in New York City, New York. The panel
of arbitrators shall consist of three  arbitrators.  Each party shall select one
arbitrator and the two selected arbitrators shall select a third to complete the
panel. The  determination  of the arbitrators  shall be final and binding on the
parties and judgment on the award rendered by the  arbitrator(s)  may be entered
in any court having jurisdiction thereof.

     Section  13.12  Captions.  The  captions to Articles  and  Sections of this
Agreement  are  for  convenience  and  are  to  be  ignored  in  construing  and
interpreting the provisions of this Agreement.

                                       42
<PAGE>

     Section  13.13  Singular and Plural.  In this  Agreement  where the context
admits, the singular includes the plural and vice versa.

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

ATTEST:                                              NSA, LTD.

_______________________________                 By______________________________

                                                Title___________________________

STATE OF NEW YORK,
COUNTY OF NEW YORK, to-wit:

     The  foregoing  instrument  was  acknowledged  before me this  _____ day of
April, 2001, by  __________________________,  the  ________________________,  of
METALSCO LTD, a Georgia corporation, the General Partner of NSA, LTD, a Kentucky
limited partnership, on behalf of said limited partnership.

     My commission expires ________________________________.

                                                _______________________________
                                                         NOTARY PUBLIC

[SEAL]

<PAGE>

ATTEST:                                            GLENCORE ACQUISITION I LLC

_______________________________                 By______________________________

                                                Title___________________________

STATE OF NEW YORK,
COUNTY OF NEW YORK, to-wit:

     The  foregoing  instrument  was  acknowledged  before me this  _____ day of
April, 2001, by ___________________________,  the _________________________,  of
GLENCORE  ACQUISITION I LLC, a Delaware limited liability company,  on behalf of
said company.

     My commission expires ________________________________.

                                                _______________________________
                                                         NOTARY PUBLIC

[SEAL]

<PAGE>

ATTEST:                                             CENTURY ALUMINUM OF KENTUCKY

_______________________________                 By______________________________

                                                Title___________________________

STATE OF NEW YORK,
COUNTY OF NEW YORK, to-wit:

     The  foregoing  instrument  was  acknowledged  before me this  _____ day of
April, 2001, by ____________________________,  the ________________________,  of
CENTURY  ALUMINUM OF KENTUCKY  LLC, a Delaware  limited  liability  company,  on
behalf of said company.

     My commission expires ________________________________.

                                                _______________________________
                                                         NOTARY PUBLIC

[SEAL]

This instrument was prepared in
consultation with counsel in Kentucky
by, and when recorded return to:

__________________________________
David Bayrock, Esq.
Curtis, Mallet-Prevost, Colt & Mosle LLP
101 Park Avenue
New York,  NY   10178

<PAGE>

                                LIST OF EXHIBITS

-  Exhibit A           -  Specifications for Alumina

-  Exhibit B-1         -  Guaranty of Century Aluminum Company for the benefit
                          of Glencore Acquisition I LLC

-  Exhibit B-2         -  Guaranty  of Glencore AG for the benefit of NSA, Ltd.

-  Exhibit B-3         -  Guaranty of Affiliate of Transferee

-  Exhibit C           -  Description of Plant

-  Exhibit D           -  Insurance Requirements

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