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                                                                  EXHIBIT 10.31

            THIS AGREEMENT CONTAINS A WAIVER OF CERTAIN OF YOUR LEGAL
                       RIGHTS. YOU ARE ADVISED TO CONSULT
                        WITH AN ATTORNEY PRIOR TO SIGNING

                        SETTLEMENT AGREEMENT AND RELEASE

                  This Settlement Agreement and Release is made as of February
15, 2001, by and between THOMAS A. CORCORAN (hereinafter referred to as
"Employee") and ALLEGHENY TECHNOLOGIES INCORPORATED, a Delaware corporation,
which includes, for purposes of this Settlement Agreement and Release, its
subsidiaries and related organizations and, collectively, all of its and their
officers, directors, employees, trustees, agents, representatives, predecessors,
successors and assigns, and compensation plans and programs sponsored or
established by any of the foregoing (hereinafter collectively referred to as the
"Corporation").

                  WHEREAS, Employee was an employee of the Corporation, was
terminated from employment with Corporation without cause on December 6, 2000
and has been offered the payments and severance benefits set forth herein upon
his termination of employment in exchange for a release of all claims and his
agreement not to sue the Corporation; and

                  WHEREAS, the parties desire to reach a mutually satisfactory
and legally binding compromise of any and all claims which have been made, or
which could be made, arising out of, or related to, Employee's employment with,
or separation of employment from, the Corporation, including, but not limited
to, claims arising from or under that certain Employment Agreement by and
between the Corporation and the Employee dated August 17, 1999 (the "Employment
Agreement");

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein and intending to be legally bound hereby, it is
understood and agreed as follows:

1.       SEVERANCE PAYMENTS AND BENEFITS

         Subject to Sections 1(k) and 2:

         a. Severance Payments. On the eighth day after the Corporation receives
a fully executed copy of this Settlement Agreement and Release and, if the
execution by the Employee of this Settlement Agreement and Release has not then
been revoked (the "Effective Date"), the Corporation will pay to the Employee,
in a lump sum payment, $3,894,621, that is, the sum of (i) amount determined by
multiplying $800,000, his regular base monthly pay at the rate in effect as of
the date of this Settlement Agreement and Release, by 3.6, the number of whole
and partial years remaining in the term of the Employment Agreement, (ii)
$750,000, the sum of unpaid special bonuses under Section 4(b)(ii) of the
Employment Agreement and (iii) $264,621 with respect to calendar year 2000 under
the Corporation's Annual Incentive Plan.

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         b. Supplemental Pension Agreement. The Corporation and the Employee
shall comply with all terms of the Supplemental Pension Agreement by and between
the Corporation and the Employee dated September 16, 1999 (the "Supplemental
Pension Agreement"). Without intending to limit the Supplemental Pension
Agreement, the Corporation shall pay to the Employee (or his beneficiary) 12
monthly payments of $33,000 each commencing on the first day of the month next
following the month in which the Employee attains (or would have attained) age
62 if the Employee had not at any time after the date of this Settlement
Agreement and Release and before attaining age 62 been employed by an employer
which is not exempt from federal income taxation.

         c. Continuation of Life, Health and Long Term Disability Coverages. The
Corporation will continue until July 16, 2004, to pay its cost toward life,
health and disability coverage of the Employee and his dependents enrolled as of
December 6, 2000 under the Corporation's employee benefits plans providing life,
health and disability coverages as in effect on December 6, 2001. The Employee
shall pay the Employee portion of such cost at the rate in effect from time to
time and if he fails to make such payments within thirty (30) days of the date
due, the obligations of the Corporation to provide coverage hereunder shall
cease. The Employee acknowledges and agrees that his rights under the
Consolidated Omnibus Budget Reconciliation Act ("COBRA") have been explained to
him and that this section satisfies the obligations of the Corporation to the
Employee and his dependents under COBRA. If any claims by the Employee or
dependents for benefits under the Corporation's health plan have been denied on
or before the Effective Date for reasons of lack of coverage, the Corporation
shall cause such claims to be paid or reimburse the Executive for amounts
actually paid to the service provider within thirty (30) days of the Effective
Date.

         d. Retiree Medical Coverage. The Employee shall participate in the
Corporation's medical plan for retirees as applied to senior corporate officers
from time to time and as set forth in the letter to the Employee from the
Corporation dated July 24, 2000, subject to the terms and conditions of such
plan as the same may be amended from time to time including, but not limited to,
the precondition that the Employee attain retirement age and not then have
retiree medical coverage from a subsequent employer.

         e. Lapse of Restrictions on Restricted Shares. On the Effective Date,
the restrictions on transferability on the 75,000 shares of the Corporation's
common stock issued in connection with that certain Restricted Stock Agreement
by and between the Corporation and the Employee dated September 16, 1999 shall
lapse and the Corporation shall promptly issue to the Employee, upon
satisfaction of the Corporation's withholding and payroll tax obligations, in
exchange for such restricted shares, certificates without restrictive legends
evidencing 75,000 shares of Corporation common stock.

         f. Stock Acquisition and Retention Plan ("SARP"). On the Effective
Date, the Corporation shall waive the restrictions applicable to each and any
share of Corporation common stock made subject by the Employee to restrictions
under the Corporation's SARP and the Corporation shall promptly issue to the
Employee certificates without restrictive legends evidencing such shares.

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         g. Stock Options. Notwithstanding the terms of any Stock Option
Agreement between the Corporation and the Employee, the Employee shall be
permitted to exercise any option to the extent vested on December 6, 2000 at any
time prior to the close of business on March 15, 2001. As of the close of
business on March 15, 2001, such option held by the Employee shall be void and
of no force and effect.

         h. Pay in lieu of vacation. Pursuant to the policies and practices of
the Corporation, the Corporation shall pay the Employee an amount equal to the
number of his vacation days remaining as of December 6, 2000 multiplied by his
base pay per working day.

         i. Executive Deferred Compensation Plan. As of the Effective Date, the
Employee has an accrued benefit of $572,591 under and subject to the terms and
conditions of the Corporation's Executive Deferred Compensation Plan as in
effect on the Effective Date. Such amount shall be paid to him in accordance
with the terms of that plan and elections made by the Employee or elections he
is entitled to make under the terms of that plan.

         j. ERISA Rights. Except as provided in Section 1(c), nothing in this
Settlement Agreement and Release is intended to surrender or waive any right the
Employee may have under the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), including, but not limited to, any vested and accrued
balances under the Allegheny Technologies Incorporated Pension Plan or the
Allegheny Technologies Retirement Savings Plan.

         k. Applicable Taxes. Notwithstanding any provision of this Settlement
Agreement and Release, the Corporation shall withhold from each and any payment
under this Settlement Agreement and Release and any ancillary agreement, policy,
practice or plan the amount determined in good faith by the Corporation to be
required to be withheld for applicable federal, state and/or local taxes or to
be paid by the Employee as federal, state or local payroll taxes. Such
obligations shall be satisfied with respect to distribution of securities by
withholding from the number of such securities the number with a value equal to
the withholding and payroll tax obligation determined using the closing trading
price reported on the New York Stock Exchange for the day prior to the day upon
which distribution is made. Any such withholding shall be made prior to the
reduction provided in Section 2.

2.       REDUCTION FOR EXCESS CHARGES BY EMPLOYEE

         The Corporation shall deduct from the amounts otherwise due and payable
under Section 1, and after the application of Section 1(k) to each such amount,
$135,418 representing the aggregate of charges asserted by the Corporation to
have been unreimbursed and personal in nature.

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3.       SEPARATION FROM EMPLOYMENT AND NO RE-EMPLOYMENT

         Effective December 6, 2000, the Employee's separation from service was
effective and from and after that date he is and was no longer an employee of
the Corporation. To the extent not delivered prior to the date described in
Section 1(a), the Corporation shall pay the Employee his regular base salary
through December 6, 2000. The Employee agrees that he has no claim for
re-employment, and further agrees that he will not at any time after her
execution of this Settlement Agreement and Release apply for employment with the
Corporation and that, if he does so, the Corporation may refuse to hire him (for
any reason or for no reason) and he will not initiate any proceeding of claim of
any kind on account of such refusal.

4.       RELEASE OF LIABILITY AND COVENANT NOT TO SUE

         (a) Employee, on behalf of himself, his heirs, dependents, and
administrators, absolutely, irrevocably and unconditionally releases and forever
discharges the Corporation from any and all claims, known and unknown, under
federal, state or municipal law (including all common law claims) and all
federal, state (including Pennsylvania and Maryland) and local statutes,
ordinances and regulations including, but not limited to, claims relating to
breach of contract, breach of promise, misrepresentation, wrongful discharge,
discrimination on account of age, race, sex, religion, national origin, military
status, disability or other such characteristics protected by law, that he may
have against the Corporation relating to, or arising out of, his employment
with, or separation from employment with the Corporation, whether now apparent
or yet to be discovered or which may hereafter develop based on events that have
transpired from the beginning of time to the date of his execution of this
Settlement Agreement and Release, whether or not any action, claim, complaint,
grievance or charge has been filed by Employee or on his behalf (collectively
"Civil Rights Provisions"). Further, Employee specifically releases the
Corporation from any and all claims arising under the following Civil Rights
Provisions, in each case as amended and in effect:

          (i)   Title VII of the Civil Rights Act of 1964, as amended;

          (ii)  the Americans With Disabilities Act of 1990; as amended

          (iii) the Age Discrimination in Employment Act, as amended; and

          (iv)  any same or similar state or local law, ordinance or regulation
                prohibiting such discrimination in employment.

The Employee specifically recognizes that a portion of the amount set forth in
Section 1 above is in full satisfaction of any claim the Employee may or could
make against the Corporation in connection with the Employment Agreement, the
Corporation's Annual Incentive Plan, Performance Share Plan or any other
compensation and deferred compensation plan or program of the Corporation
applicable to senior or executive employees or employees generally, and the
foregoing release is intended to release each and all such obligations and
plans.

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The foregoing shall not prevent the Employee from filing charges with the Equal
Employment Opportunity Commission but the Employee agrees he shall not
financially benefit from such charges.

         (b) If Employee violates this Settlement Agreement and Release by
filing a claim against or suing the Corporation, Employee agrees to pay all
costs and expenses of defending against such claims incurred by the Corporation
or in prosecuting any counterclaim or cross claim based on this Settlement
Agreement and Release, including reasonable attorney's fees and all other costs
and expenses associated therewith.

         (c) Except as provided below in this subsection, the Corporation
absolutely, irrevocably and unconditionally releases and forever discharges the
Employee from any and all claims, known and unknown, under federal, state or
municipal law (including common law claims) and all federal, state and local
statutes, including, but not limited to, claims related to breach of contract,
that it may have against the Employee relating to, or arising out of, his
employment with, or separation from, employment with the Corporation whether now
apparent or yet to be discovered or which may hereafter develop based on events
that have transpired from the beginning of time to the date of execution of this
Settlement Agreement and Release. The Corporation does not hereby release or
discharge the Employee from liability from or the cost of defense of any claim,
action suit or demand brought by a party other than the Corporation and, if a
claim is bought against the Corporation by a third party, the Corporation may
join the Employee as an additional defendant, cross claim, make claim for
indemnity or contribution and/or take other actions with regard to the Employee
as permitted under the then prevailing rules of court. The Corporation
specifically reserves the right to file a claim or take any other action it
deems necessary or appropriate to void its obligations under this Settlement
Agreement and Release and, in particular under this subsection, if it determines
that the Affidavit provided by the Executive, attached hereto as Exhibit A and
made a part hereof, is false or misleading in any material respect, such
Affidavit being a material inducement to the Corporation to enter into this
Settlement Agreement and Release.

         (d) If the Corporation violates the provisions of subsection 4(c), the
Corporation agrees to pay all costs and expenses of defending against claims
violating subsection 4(c) incurred by the Employee or in prosecuting any
counterclaim or cross claim based on this Settlement Agreement and Release,
including reasonable attorneys' fees and all other expenses associated
therewith.

5.       WAIVER OF RELIEF

         This Settlement Agreement and Release encompasses all relief, no matter
how called, whether now apparent or yet to be discovered, including but not
limited to: wages, front pay, back pay, compensatory damages, pension or
retirement benefits, punitive damages, liquidated damages, damages for pain,
suffering, mental anguish and loss of enjoyment of life, and, costs and
attorney's fees. Without limiting the foregoing, it is expressly agreed that the
Corporation shall have no obligation to pay or reimburse the Employee for
payment of attorney's fees for review and/or negotiation of this Settlement
Agreement and Release. Further, Employee agrees

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that he will not be entitled to any benefit from any claim or proceeding filed
on his behalf with any agency or court.

6.       NO ADMISSION OF LIABILITY

         Execution of this Settlement Agreement and Release and compliance with
its terms, as provided above, do not constitute an admission by the Corporation
that (i) it has treated the Employee or any other person unfairly or unlawfully
or (ii) that it engaged in any breach of contract or violation of any Civil
Rights Provision or other employment discrimination statute, or any other legal
provision, regulation, ordinance order or rule of common law.

7.       MUTUAL CONFIDENTIALITY OF AGREEMENT AND NON-DISPARAGEMENT COMMITMENTS

         (a) Employee agrees to keep confidential and not to disclose to any
person (other than members of the Employee's immediate family and Employees'
attorney) the terms of this Settlement Agreement and Release; provided, however,
that this Settlement Agreement and Release may be used as evidence in any claim
or litigation alleging breaches hereof. Any immediate family member or attorney
to whom Employee discloses information concerning this Settlement Agreement and
Release shall also be bound by the terms of this sub-section and Employee shall
be responsible for any breaches of confidentiality by such persons. Employee
agrees that, in the event he makes any disclosure that constitutes a violation
of this Settlement Agreement and Release (including, without limitation the
amount or approximate amount of the severance payment made pursuant to Section
1), a court may direct Employee to cease and desist, to compensate the
Corporation for all damages it has incurred as a consequence, and to pay the
Corporation its reasonable costs and expenses, including reasonable attorney's
fees, incurred in connection with its efforts to enforce this Settlement
Agreement and Release. Recognizing that damages may be difficult to calculate,
Employee agrees that the appropriate award of damages for his violation of this
subsection shall be no less than one hundred thousand dollars ($100,000),
without prejudice to the right of the Corporation to request and recover actual
damages in a larger amount should they be proven.

         (b) Except for disclosure required under any law or regulation,
including, but not limited to disclosure in connection with soliciting proxies,
the Corporation agrees to keep confidential and not to disclose to any person
(other than employees or agents who approve or implement this Settlement
Agreement and Release) the terms of this Settlement Agreement and Release;
provided, however, that this Settlement Agreement and Release may be used as
evidence by the Corporation in any claim or litigation alleging breaches hereof.

         (c) Employee states that he has returned to the Corporation all records
relating to the Corporation and its business in whatever medium and agrees not
to disclose or divulge, directly or indirectly, any business secret or other
confidential or proprietary information of the Corporation to any person, firm,
partnership, venture or corporation, except as required by law.

         (d) Employee and Corporation agree that he and it will not, in any way,
disparage one another to any person(s) or organization(s), including, without
limitation, any employee of the Corporation.

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         (e) The Corporation will respond to all references inquiries concerning
the Employee by confirming the dates of his employment with the Corporation.

8.       COOPERATION

         Employee agrees to cooperate with the Corporation in the prosecution or
defense of claims asserted by or against the Corporation. Such cooperation shall
include meeting with representatives of the Corporation or the Corporation's
attorneys, or both, divulging to the Corporation any information that the
Corporation may request for possible use in litigation, arbitration, or other
legal proceeding, and testifying on behalf of the Corporation at the
Corporation's request.

9.       NON-COMPETITION AGREEMENT

         Employee acknowledges and agrees that Section 6 of the Employment
Agreement imposes on him certain restrictions, including, but not limited to,
Non-competition, Nondisclosure and Nonsolicitation, and that such restrictions
survive the termination of his employment under the Employment Agreement for a
period of one year. The Employee acknowledges and reaffirms that until after
January 3, 2002, he shall keep and observe in all particulars the provisions and
the restrictions under Section 6 of the Employment Agreement which is
incorporated herein as if set forth at length. Employee agrees that any breach
or threatened breach of any covenants contained in Section 6 of the Employment
Agreement and incorporated herein would cause immediate, material and
irreparable harm to the Corporation and that money damages would not provide an
adequate remedy to the Corporation. The Corporation shall have all of the rights
and remedies available under law or equity, including, but not limited to,
injunctive relief, available to any party enforcing any such covenant. Each of
the rights and remedies shall be independent of the other and shall be severally
enforceable including, but not limited to, the right to have the covenants
specifically enforced by any court of competent jurisdiction by any court of
competent jurisdiction and the right to require Employee to account for and pay
over to the Corporation all benefits derived or received by him as a result of
any such breach of covenant and Employee shall not raise a defense to the
granting of any such relief that the Corporation has an adequate remedy at law.

10.      ENTIRE AGREEMENT

         This Settlement Agreement and Release constitutes the entire agreement
and understanding of the parties and supersedes all prior negotiations,
understandings and agreements, proposed or otherwise, written or oral,
concerning the subject matters hereof. Furthermore, no modification of this
Settlement Agreement and Release shall be binding unless in writing signed by
each of the parties hereto.

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11.      SEVERABILITY

         Should any provision of this Settlement Agreement and Release be
declared illegal or unenforceable by any court of competent jurisdiction and if
such provision cannot be modified to be enforceable (including the general
release language), such provision shall immediately become null and void,
leaving the remainder of this Settlement Agreement and Release in full force and
effect. However, if any portion of the general release language in Section 3 or
4 are ruled unenforceable for any reason, the Corporation and Employee agree to
use their best efforts to negotiate in good faith an enforceable general
release.

12.      GOVERNING LAW

         This Settlement Agreement and Release shall be governed by, and
construed and enforced in accordance with, the laws of the Commonwealth of
Pennsylvania, the state in which the Corporation's principal office is located,
without regard to its principles or provisions of conflicts of laws. Any action
brought under this Settlement Agreement and Release shall be brought in a court
of competent jurisdiction with venue in Allegheny County, Pennsylvania.

13.      JUDICIAL ENFORCEMENT

         This Settlement Agreement and Release may be specifically enforced in
judicial proceedings brought in equity in a court of competent jurisdiction with
venue in Allegheny County, Pennsylvania.

14.      VOLUNTARY AND UNDERSTANDING EXECUTION

         Employee agrees and acknowledges that he has read it and fully
understands the terms and conditions of the Settlement Agreement and Release,
including the release of claims and waiver of rights, that he has consulted with
his attorney, or, if he has not consulted with their attorneys, he has chosen
not to consult with an attorney after having been advised to do so with ample
opportunity to do so, and that he enters into this Settlement Agreement and
Release knowingly, voluntarily, free from duress and as a result of his own free
will.

15.      EFFECT OF SETTLEMENT AGREEMENT AND RELEASE ON CHANGE IN CONTROL
         AGREEMENT

         Without limiting the general applicability of Section 9, the Employee
specifically agrees that this Settlement Agreement and Release supersedes in its
entirety the Change in Control Agreement, as amended, by and between the
Corporation and the Employee (the "Change in Control Agreement") and that the
shall not be entitled to any payments under the Change in Control Agreement
under any circumstances now or in the future.

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16.      CONSIDERATION AND REVOCATION PERIODS

         (A) EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY THIS WRITING AND
PREVIOUSLY BY THE CORPORATION TO CONSULT WITH AN ATTORNEY OF HIS CHOOSING
CONCERNING HIS RIGHTS IN CONNECTION WITH HIS TERMINATION FROM EMPLOYMENT AND THE
TERMS AND CONDITIONS OF THIS SETTLEMENT AGREEMENT AND RELEASE, INCLUDING THE
RELEASE OF ALL CLAIMS CONTAINED HEREIN.

         (B) EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED THAT HE HAS A LEGAL
RIGHT TO USE ALL OR ANY PART OF TWENTY-ONE (21) DAYS TO CONSIDER, IN
CONSULTATION WITH HIS ATTORNEY, WHETHER TO SIGN THIS SETTLEMENT AGREEMENT AND
RELEASE AND THAT, DURING SUCH PERIOD OF CONSIDERATION, THE CORPORATION SHALL NOT
REVOKE ITS OFFER TO ENTER INTO THIS SETTLEMENT AGREEMENT AND RELEASE ON THE
TERMS AND CONDITIONS SET FORTH HEREIN.

         (C) EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED THAT, IF HE SIGNS
THIS SETTLEMENT AGREEMENT AND RELEASE, HE CAN THEREAFTER REVOKE HIS EXECUTION OF
THIS SETTLEMENT AGREEMENT AND RELEASE ON OR BEFORE THE CLOSE OF BUSINESS ON THE
SEVENTH DAY AFTER HIS EXECUTION HEREOF BY DELIVERING A WRITTEN REVOCATION TO THE
CORPORATION, ATTENTION, JON D. WALTON, SENIOR VICE PRESIDENT, GENERAL COUNSEL
AND SECRETARY, 10TH FLOOR, SIX PPG PLACE, PITTSBURGH, PA 15222-5479.

         IN WITNESS WHEREOF, the aforesaid parties have hereunto set their hands
and seals as of the date written below.

WITNESS                                 THOMAS A CORCORAN

/s/ Catherine A. Mehrters               /s/ Thomas A. Corcoran
------------------------------          ------------------------------------

Date:  February 15, 2001                Date:   February 15, 2001
      ------------------------               -------------------------------

                                        ALLEGHENY TECHNOLOGIES INCORPORATED
ATTEST:

 /s/ J. D. Walton                       By:     /s/ James L. Murdy
------------------------------             ---------------------------------

                                        Title   Executive Vice President
                                              ------------------------------

                                        Date:   February 20, 2001
                                             -------------------------------

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                                                                   EXHIBIT 10.32

                       ALLEGHENY TECHNOLOGIES INCORPORATED
                               2000 INCENTIVE PLAN

                          ADMINISTRATIVE RULES FOR THE
                 PERFORMANCE SHARE PROGRAM FOR KEY EMPLOYEES OF
              ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES

                 ARTICLE I. Adoption and Purpose of the Program

                  1.1 Adoption. These rules are adopted by the Personnel and
Compensation Committee and the Stock Incentive Award Subcommittee of the Board
of Directors pursuant to the authority reserved in the Allegheny Technologies
Incorporated 2000 Incentive Plan (the "Plan"), effective as of January 1, 2000.
Capitalized terms used but not defined herein shall have the same meanings as in
the Plan.
                  1.2 Purpose. The purposes of the Performance Share Program For
Key Employees of Allegheny Technologies Incorporated and Subsidiaries are to (1)
provide a structure and framework for certain awards made under the Plan, (2)
establish rules for certain awards under the Plan, and (3) further the Plan's
purpose of promoting the growth and profitability of Allegheny Technologies
Incorporated and its subsidiaries, providing key employees with an incentive to
achieve long-term corporate objectives and attracting and retaining key
employees of outstanding competence.

                             ARTICLE II. Definitions

                  For purposes of these rules, the capitalized terms set forth
below shall have the following meanings:

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                  2.1 "Award" shall mean the grant of a Performance Award
evidenced by this Agreement.

                  2.2 "Award Period" shall mean the time period established by
the Committee pursuant to Article IV of the PSP for the purpose of measuring
attainment of performance objectives.

                  2.3 "Board of Directors" shall mean the Board of Directors of
the Corporation.

                  2.4 "Chief Executive Officer" shall mean the chief executive
officer of the Corporation.

                  2.5 "Committee" shall mean the Stock Incentive Award
Subcommittee of the Board of Directors, in the case of individuals who are
Statutory Insiders of the Corporation, and the Personnel and Compensation
Committee of the Board of Directors, in the case of individuals who are not
Statutory Insiders, in each case as such Subcommittee or Committee which may be
appointed from time to time by the Board of Directors, subject to the provisions
of Section 3.1(a) hereof.

                  2.6 "Common Stock" shall mean common stock, $0.10 par value
per share, of the Corporation.

                  2.7 "Corporation" shall mean Allegheny Technologies
Incorporated.

                  2.8 "Disability" shall mean the total and permanent disability
of the Grantee as determined by the Committee in its sole discretion.

                  2.9 "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.

                  2.10 "Fair Market Value" shall mean, as of any given date, the
average of the high and low quoted sales prices of the Common Stock on the
relevant date or, if there were no

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sales of Common Stock on such date, on the next preceding date on which shares
of Common Stock were sold on the New York Stock Exchange.

                  2.11 "Grantee" shall mean a Key Employee to whom an Award or
Awards designated as a Performance Award have been granted.

                  2.12 "Key Employee" shall mean (a) an employee of the
Corporation or a Subsidiary who is a Statutory Insider (subject to the second
sentence of this subsection) and (b) any other employee of the Corporation or a
Subsidiary who is, in the judgment of the Chief Executive Officer, responsible
to a material extent for the profitability and continued growth of the
Corporation and its Subsidiaries. Directors of the Corporation who are not
otherwise officers or employees of the Corporation and directors who are members
of the Committee may not be designated as Key Employees.

                  2.13 "PSP" shall mean the Performance Share Program, as the
same may be amended from time to time.

                  2.14 "Performance Awards" shall mean Awards granted under the
PSP in accordance with Article VIII of the Plan.

                  2.15 "Performance Award Agreement" shall mean a written
agreement between the Corporation and a Key Employee or a written acknowledgment
from the Corporation to a Key Employee specifically setting forth the terms and
conditions of the Performance Award.

                  2.16 "Retirement" shall mean early or normal retirement under
a pension plan or arrangement of the Corporation or one of its Subsidiaries.

                  2.17 "Rule 16b-3" shall mean Rule 16b-3 as promulgated by the
Securities and Exchange Commission under the Exchange Act, as in effect from
time to time.

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                  2.18 "Section 162(m)" shall mean Section 162(m) of the
Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.
                  2.19 "Statutory Insider" shall mean an "officer" of the
Corporation as defined in Rule 16a-1(f) as promulgated by the Securities and
Exchange Commission under the Exchange Act, as such Rule may be amended from
time to time.
                  2.20 "Subsidiary" shall mean any corporation at least a
majority of whose outstanding voting shares shall at the time be owned by the
Corporation or by one or more Subsidiaries.

                              ARTICLE III. General

                  3.1      Administration.

                           (a) The PSP shall be administered by the Committee
                  which shall have all necessary power and authority to
                  interpret the PSP and take all action necessary or appropriate
                  in connection with the PSP. The Committee will be constituted
                  so as to qualify Awards for exemption under Rule 16b-3 and as
                  "performance-based compensation" for the purposes of Section
                  162(m), with respect to participation of Statutory Insiders in
                  the PSP.

                           (b) The Committee at its discretion but after
                  consultation with the Chief Executive Officer shall (i)
                  identify employees who, in addition to Statutory Insiders, are
                  Key Employees; (ii) grant Awards pursuant to the PSP; (iii)
                  prescribe such limitations and restrictions as the Committee
                  shall deem appropriate; and (iv) interpret the PSP, adopt,
                  amend and rescind rules and regulations relating to

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                  the PSP, and make all other determinations and take all other
                  action necessary or advisable for the implementation and
                  administration of the PSP.

                           (c) All such actions shall be final, conclusive and
                  binding upon the Key Employees. Neither the Chief Executive
                  Officer nor any member of the Committee shall be liable for
                  any action taken or decision made in good faith relating to
                  the PSP or any award thereunder.

                  3.2 Grant of Award. The Committee shall select from among the
Key Employees those individuals who shall be granted Awards under the PSP. The
Committee shall determine the form, value and denomination of the Performance
Award to be granted to a Grantee. In granting such Performance Awards and
determining their form, value and denomination, consideration shall be given to
the recommendations of the Chief Executive Officer, the functions and
responsibilities of the Grantee, the Grantee's potential contributions to the
profitability and sound growth of the Corporation and such other factors as
shall be deemed relevant.

                ARTICLE IV. Establishment of Corporate Objectives

                  The Committee, after discussion with the Chief Executive
Officer, shall determine whether to establish an Award Period commencing with
the beginning of a fiscal year with respect to which this determination is made
and the appropriate length of the Award Period. If the Committee establishes an
Award Period, the Committee, in consultation with the Chief Executive Officer,
shall determine the financial objectives of the Corporation and its Subsidiaries
to be achieved during such Award Period, the basis on which awards granted for
such Award Period shall vest upon either partial achievement of the corporate
objectives or upon the meeting

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<PAGE>   6

or surpassing of the corporate objectives, and the number of shares and/or
dollars comprising each award. The performance goals shall meet the requirements
of an objective formula under Section 162(m), unless the Committee determines
otherwise.

                           ARTICLE V. Grant of Awards

                  5.1 Grant of Awards. The Committee, subject to the provisions
of the PSP, may grant Performance Awards to Key Employees and determine (and the
Performance Award Agreement shall state) the form, value and denomination of the
Performance Awards granted to the respective Grantees and such other terms and
conditions as the Committee may consider appropriate. In taking such action,
consideration shall be given to the recommendations of the Chief Executive
Officer.
                  5.2 Performance Award Agreements. Performance Awards granted
to a Key Employee shall be evidenced by a written Performance Award Agreement to
be entered into between the Corporation and the Key Employee and to contain such
terms and conditions as the Committee may consider appropriate in each case.

                  5.3 Grantee Account. At such time as it shall be determined by
the Committee that the objectives for such Award Period shall have been fully or
partially achieved or surpassed, the Corporation shall establish and maintain a
bookkeeping account for each Grantee who shall have been granted Performance
Awards for such Award Period and shall credit to such account a dollar amount
and/or the number of shares of Common Stock equal to the dollar value and/or the
number of shares of Common Stock of the Performance Award to which the Grantee
becomes entitled pursuant to his Performance Award Agreement.

                                     - 6 -
<PAGE>   7

                  5.4 Payment of Grantee Account. The dollar amount and/or the
number of shares of Common Stock credited to a Grantee's bookkeeping account
shall be paid to the Grantee in installments; provided, however, that a Grantee
must be then and have continuously been an employee of the Corporation or any of
its Subsidiaries from the date of the grant of the award to the date of each
installment payment. The installment payments shall be in the amount and/or the
number of shares of Common Stock as follows: thirty-three and one-third percent
(33-1/3%) of the total dollar amount and number of shares of Common Stock
credited to the Grantee's account on or before the first day of the calendar
month following the calendar month in which the amount was credited to the
account and an additional thirty-three and one-third percent (33-1/3%) on or
before the first business day of January of each succeeding calendar year
thereafter, until such amount is completely distributed. Fractional shares shall
not be distributed but shall be aggregated and paid in the last maturing
installment.

                  5.5 Termination of Employment. Notwithstanding the provisions
of these Rules, including Section 5.4 hereof, if a Grantee terminates employment
with the Corporation or any Subsidiary because of Retirement, death or
Disability, the Performance Award shall be prorated based on the number of full
months of employment during the Award Period divided by the total number of
months in the Award Period and the Performance Award shall be paid at the time
and in the same form as Performance Awards are paid to active participants. If a
Grantee terminates employment for any other reason or no reason, any unvested or
unpaid installment shall be forfeited unless determined otherwise by the
Committee in its sole discretion.

                                     - 7 -
<PAGE>   8

                            ARTICLE VI. Miscellaneous

                  6.1 General Restriction. Any Performance Award denominated in
Common Stock shall be subject to the requirement that if at any time the
Committee shall determine that any listing or registration of the shares of
Common Stock or any consent or approval of any governmental body or any other
agreement or consent is necessary or desirable as a condition of the granting a
Performance Award or issuance of shares of Common Stock or cash in satisfaction
thereof, such grant of an award or issuance of shares of Common Stock may not be
consummated unless such requirement is satisfied in a manner acceptable to the
Committee.
                  6.2 Non-Assignability. No Performance Award shall be
assignable or transferable by the recipient thereof, except by will or by the
laws of descent and distribution. During the life of the recipient, any
installment of a Performance Award shall be paid only to such individual. No
purported assignment or transfer of a Performance Award, of the rights
represented thereby or of a Grantee's contingent interest in the bookkeeping
account described in Section 5.3, whether voluntary or involuntary, by operation
of law or otherwise (except by will or the laws of descent and distribution),
shall vest in the assignee or transferee any interest or right herein
whatsoever, but immediately upon such assignment or transfer the Performance
Awards shall terminate and become of no further effect.

                  6.3 Withholding Taxes. Whenever the Corporation makes payments
under the PSP, in whole or in part, the Corporation shall notify the Grantee of
the amount of withholding tax, if any, which must be paid under federal and,
where applicable, state and local law. The Corporation shall, in the discretion
of the Corporation, but with the consent of the Committee, arrange for payment
for such withholding taxes in any one or combination of the following ways: (i)
acceptance of an amount in cash paid by the Grantee, (ii) deduction of amounts
for

                                     - 8 -
<PAGE>   9

withholding taxes from amounts of cash payable as an installment under the PSP,
(iii) reduction in the number of shares to be issued in an installment by that
number of shares having a Fair Market Value equal to the amount which the
Corporation is required to withhold and/or (iv) acceptance of whole shares of
Common Stock already owned by the Grantee, having a Fair Market Value equal to
the amount the Corporation is required to withhold. If the full amount of the
withholding tax is not recovered in the above manner, the Grantee shall,
forthwith upon receipt of notice, remit the deficiency to the Corporation. No
certificates for shares of Common Stock shall be issued or delivered to a
Grantee under the PSP until all applicable taxes shall have been satisfied in
full.

                  6.4 Delivery of Certificates. As soon as practicable after
compliance by a Grantee with all applicable conditions, the Corporation will
issue and deliver by mail, or cause delivery by mail to the Grantee at the
address specified, certificates registered in the name of the Grantee for the
number or shares of Common Stock which the Grantee is entitled to receive
(subject to reduction for withholding tax as provided in Section 6.3 hereof)
under the provisions of the PSP and the Performance Award Agreement.

                  6.5 No Right to Employment. Nothing in the PSP or in any
agreement entered into pursuant to the PSP shall confer upon any employee or
Grantee the right to continue in the employ of the Corporation or any Subsidiary
or affect any right which the Corporation or a Subsidiary may have to terminate
the employment of any employee or Grantee.

                  6.6 Non-Uniform Determinations. The actions and
recommendations of the Chief Executive Officer, the determinations by the
Committee under the PSP (including without limitation the determinations by the
Chief Executive Officer and the Committee of the persons to receive Performance
Awards, and the determinations by the Committee of the form, value and

                                     - 9 -
<PAGE>   10

denomination of such awards, and the terms and provisions of such Awards) need
not be uniform and may be made by the Chief Executive Officer or the Committee,
as the case may be, selectively among persons who receive, or are eligible to
receive Performance Awards under the PSP, whether or not such persons are
similarly situated.

                  6.7 Amendment or Termination of the PSP. The Board may at any
time terminate the PSP or any part thereof and may from time to time amend the
PSP as it may deem advisable; provided, however, that without stockholder
approval, the Board of Directors may not (i) increase the aggregate number of
shares of Common Stock which may be issued under the PSP (other than increases
permitted under Paragraph 6.10 hereof), (ii) extend the term of the PSP, or
(iii) extend the period during which Performance Awards may be granted. The
termination or amendment of the PSP shall not, without the consent of a Grantee,
affect such Grantee's rights under a previous grant of Performance Awards.

                  6.8 Investment Representation. Each Performance Award
Agreement may provide that the Grantee shall deliver to the Committee, upon
demand by the Committee, at the time of any payment of an installment which
contains shares of Common Stock a written representation that the shares to be
acquired are to be acquired for investment and not for resale or with a view to
the distribution thereof. Upon such demand, delivery of such representation
prior to delivery of any shares shall be a condition precedent to the right of
the Grantee to receive any shares.

                  6.9 No Rights as Stockholders. Recipients of Performance
Awards denominated in Common Stock shall have no rights as stockholders of the
Corporation with respect thereto unless and until certificates for shares of
Common Stock are issued to them.

                                     - 10 -
<PAGE>   11

                  6.10 Adjustment of Awards. In the event of any change or
changes in the outstanding Common Stock of the Corporation by reason of any
stock dividend, recapitalization, reorganization, merger, consolidation,
split-up, combination or exchange of shares or any rights offering to purchase a
substantial amount of Common Stock at below fair market value or of any similar
change affecting the Common Stock, any of which takes effect after the first
grant of a Performance Award, the Committee may, in its discretion,
appropriately adjust the number and kind of shares which may be issued under the
PSP, the number and kind of shares subject to Performance Awards theretofore
granted, and any and all other adjustments deemed appropriate by the Committee
to prevent substantial dilution or enlargement of the rights granted under a
Performance Award Agreement in such manner as the Committee shall deem
appropriate.

                  6.11 Awards Not a Bar to Corporate Event. The existence of the
Performance Awards granted hereunder shall not affect in any way the right or
the power of the Corporation or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the
Corporation's capital structure or its business, or any merger or consolidation
of the Corporation, or any issue of bonds, debentures, preferred or prior
preference stocks ahead of or affecting the Common Stock or the rights thereof,
or the dissolution or liquidation of the Corporation, or any sale or transfer of
all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

                       ARTICLE VII. Rule 16b-3 Compliance

                  It is intended, unless the Committee shall determine
otherwise, that the PSP comply with Rule 16b-3, and that all interpretations of
the PSP relating to Statutory Insiders shall be consistent with such Rule and
the Exchange Act. In order to maintain compliance with such

                                     - 11 -
<PAGE>   12

Rule and the Exchange Act and to facilitate and promote the conformity of the
transactions of Statutory Insiders under the PSP with such Rule, the Committee
may adopt such rules and policies as it deems advisable, including, but not
limited to, rules and policies restricting the timing of the reduction in the
number of shares to be issued in an installment pursuant to Section 6. 3 hereof,
and any related rules or policies delaying payments pursuant to Section 5. 4
hereof, and any election with respect thereto.

                     ARTICLE VIII. Section 162(m) Compliance

                  It is intended, unless the Committee shall determine
otherwise, that the PSP comply with Section 162(m), and that all interpretations
of the PSP relating to Statutory Insiders who are "covered employees" as defined
in Section 162(m) shall be consistent with such Section. In order to maintain
compliance with such Section, the Committee may adopt such rules and policies as
it deems advisable.

                                     - 12 -
<PAGE>   13

                                    FORM OF
                       ALLEGHENY TECHNOLOGIES INCORPORATED
                           PERFORMANCE AWARD AGREEMENT

Allegheny Technologies Incorporated (the "Company") and the performance award
recipient named below ("Participant") enter into this Performance Award
Agreement effective as of January 31, 2000.

Participant:
                                 PARTICIPANT TO COMPLETE THE FOLLOWING CHART
                                 (Please print)

-------------------------------- -----------------------------------------------
Street Address

-------------------------------- -----------------------------------------------
City/State/Zip Code

-------------------------------- -----------------------------------------------
Social Security Number

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

WHEREAS, the Company desires to promote its growth and profitability and to
induce Participant to remain a key employee of the Company and to achieve
long-term objectives by making the performance award evidenced by this Agreement
to Participant pursuant to the Allegheny Technologies Incorporated 2000
Incentive Plan (the "Plan") and the Performance Share Program for Key Employees
of the Company (the "PSP") adopted thereunder and Participant, having read and
understood this Performance Award Agreement and the attached Terms and
Conditions of Performance Award incorporated herein by reference, is willing to
enter into this Performance Award Agreement.

NOW THEREFORE, in consideration of the covenants and agreements contained
herein, and intending to be legally bound, the parties hereto agree as follows:

Subject to the attainment of the Performance Objectives described below and to
the terms and conditions of the Plan, the PSP and the Terms and Conditions of
Performance Award attached hereto and incorporated herein by reference, by which
Participant agrees to be bound, the Company awards to Participant the
Performance Award described below, with respect to the Award Period described
below:

AWARD PERIOD:  January 1, 2000 through December 31, 2002

TARGET PERFORMANCE AWARD

A.   Target Number of Shares Awarded           shares of Common Stock
     [equals: base salary at 1/1/00 X 2/3 X 300% (which is Participant's target
     opportunity as a percent of salary) divided by $22.25 (which is the average
     closing price for the trading days after November 29, 1999 and prior to the
     beginning of the 3-year award period that began 1/1/00)]

PLUS

B.    Target Cash Award:
      [equals: base salary at 1/1/00 X 1/3 X 300% (which is Participant's target
      opportunity as a percent of salary)]

<PAGE>   14

PERFORMANCE OBJECTIVES--AT TARGET:

1.    Revenue and Earnings Component:

<TABLE>
<S>                                     <C>                       <C>
      --------------------------------- ------------------------- -------------------------------------------
      Objective                         Weight                    Amount
      --------------------------------- ------------------------- -------------------------------------------
      Revenue in Year 2002              33%                       $3.125 billion in Year 2002
      --------------------------------- ------------------------- -------------------------------------------
      Earnings per Share                67%                       Cumulative $7.90 per Share
      --------------------------------- ------------------------- -------------------------------------------
</TABLE>

      AND

2.    Return on Average Capital Employed: Average of 12% for 3 year award period

In making calculations, acquisitions are included and divestitures are excluded.

THE ACTUAL PERFORMANCE AWARD CREDITED TO PARTICIPANT'S ACCOUNT WILL EQUAL THE
TARGET PERFORMANCE AWARD (ON THE FIRST PAGE OF THIS AGREEMENT) TIMES THE
APPLICABLE PERCENTAGE BELOW:

o    For achievement equal to 100% of the Performance Objectives, the
     Performance Award equals the product of: (a) the Target Performance Award,
     times (b) 100%.

o    For achievement of over 100% and up to 120% of Performance Objectives, the
     Performance Award equals the product of: (a) the Target Performance Award,
     times (b) [(Percentage of Performance Objectives Achieved minus 100%) times
     5] plus 100%.

o    The maximum Target Performance Award will be equal the product of: (a) the
     Target Performance Award (on the first page of this Agreement), times (b)
     200%.

o    For achievement between 75% and 99.9% of Performance Objectives, the
     Performance Award equals the product of: (a) the Target Performance Award,
     times (b) [(Percentage of Performance Objectives Achieved minus 75%) times
     3] plus 25%.

o    For achievement equal to 75% of Performance Objectives, the Performance
     Award equals the product of (a) the Target Performance Award, times (b)
     25%.

o    For achievement less than 75% of Performance Objectives, no Performance
     Award will be payable.

                                       2
<PAGE>   15

ILLUSTRATION OF ACHIEVEMENT LEVELS UPON PERFORMANCE AWARD

For the four Target Performance Award levels on the left-hand margin below,
different achievement levels during the 2000-2002 period would establish
distinct Performance Awards as the following example shows:

<TABLE>
<CAPTION>
                           Performance Award as a Percentage of Eligible Salary
                           for Achievement at the Following Levels of the 2000-2002
Target                     Performance Objectives:
Performance                74.9%                                                             120.0%
Award    Level             or less      75.0%        90.0%        100.0%        110.0%       or more
--------------             -------      -----        -----        ------        ------       -------

<S>                        <C>          <C>          <C>          <C>           <C>          <C>
A - 300%                   0%           75.0%        210.0%       300.0%        450.0%       600.0%

B - 250%                   0%           62.5%        175.0%       250.0%        375.0%       500.0%

C - 200%                   0%           50.0%        140.0%       200.0%        300.0%       400.0%

D - 150%                   0%           37.5%        105.0%       150.0%        225.0%       300.0%
</TABLE>

IN WITNESS WHEREOF, the parties hereto have executed this Performance Award
Agreement effective the day and year first above written.

                                  ALLEGHENY TECHNOLOGIES INCORPORATED

                                  By:
                                     ----------------------------------------

WITNESS:                          PARTICIPANT:

_______________________________   ______________________________________

                                       2A
<PAGE>   16

                    TERMS AND CONDITIONS OF PERFORMANCE AWARD

Section 1:  Definitions

Capitalized words used but not defined below or elsewhere in these Terms and
Conditions shall have the meanings ascribed to them in the Plan.

Administrative Rules or PSP--the Administrative Rules for the PSP adopted by the
Committee effective January 31, 2000, as amended.

Award--the grant of a Performance Award evidenced by this Agreement.

Award Period--the period from January 1, 2000 through December 31, 2002.

Committee--the Personnel and Compensation Committee of the Board of Directors
for a Participant who is not a statutory insider of the Company for the purposes
of Section 16 of the Securities Exchange Act of 1934 and the Stock Incentive
Award Subcommittee of the Board of Directors for a Participant who is a
statutory insider.

Common Stock--common stock, $0.10 par value per share, of Allegheny
Technologies Incorporated.

Company--Allegheny Technologies Incorporated and its subsidiaries, unless the
context requires otherwise.

Disability--the total and permanent disability of Participant as determined by
the Committee in its sole discretion.

Fair Market Value--the average of the high and low quoted sales prices of the
Common Stock on the relevant date or, if there were no sales of Common Stock on
such date, on the next preceding date on which shares of Common Stock were sold
on the New York Stock Exchange.

Grantee Account--an unfunded contingent bookkeeping account entered on the
Company's books and records to record the number of shares of Common Stock, the
amount of cash or both to which Participant becomes entitled under, and subject
to, the terms of this Agreement and the PSP. The establishment of the Grantee
Account for Participant shall not be deemed to create a trust or otherwise
require a segregation of assets for the benefit of Participant, or Participant's
heirs, estate or personal representative and shares of Common Stock, amounts of
cash or both recorded as credits to Participant's Grantee Account shall be and
remain subject to the claims of the Company's creditors until paid to
Participant.

Installment--a partial payment of the amount of cash and/or shares of Common
Stock credited to Participant's Grantee Account with respect to the Award Period
according to the schedule set forth in Section 6.

Performance Award--the award of dollars and shares of Common Stock made pursuant
to the PSP and this Agreement.

Performance Objectives--the measure of Company achievement set forth in the
second page of this Agreement.

Retirement--the early or normal retirement of Participant under a pension plan
or arrangement of the Company or its subsidiaries

                                       3
<PAGE>   17

in which Participant participates, or, if none (e.g., where Participant
participates primarily in a defined contribution plan or an excess benefit plan
related thereto), when Participant has attained at least age 55 and completed
five or more years of service as of his or her date of employment termination.

Section 2:  Employment

2.1 Entitlement to payments under the PSP and this Agreement shall be
conditioned upon the period of employment as set forth in Section 6 hereof. The
existence of this Agreement and the reference to any time periods under this
Agreement shall not confer on Participant the right to continue in the employ of
the Company or affect any right which the Company may have to terminate the
employment of Participant.

Section 3:  Performance Award

3.1 Subject to the attainment of the Performance Objectives and to the terms and
conditions otherwise set forth in the Plan, Administrative Rules and in this
Agreement, the Company awards to Participant the Performance Award described in
the first two pages of this Agreement with respect to the Award Period.

Section 4:  Performance Objectives

4.1 The Performance Objectives applicable to the Award evidenced by this
Agreement and to be used by the Committee to determine whether and to what
extent the Performance Award shall be credited to Participant's Grantee Account
are as set forth in the second page of this Agreement. If it is determined that
actual performance has achieved the Performance Objectives in all respects for
the Award Period, then 100% of the Performance Award at Target as described in
the first page of this Agreement (the "Target Performance Award") shall be
credited to Participant's Grantee Account. If it is determined that actual
performance has exceeded the Performance Objectives in all respects for the
Award Period, or that actual performance has failed to achieve the Performance
Objectives but has exceeded the minimum performance level set forth on the
second page of this Agreement, then the Performance Award to be credited to
Participant's Grantee Account shall be an amount determined by multiplying the
applicable percentage set forth in the second page of this Agreement by the
Target Performance Award. If it is determined that the minimum performance level
is not achieved, no Performance Award shall be credited to Participant's Grantee
Account.

Section 5:  Credits to Grantee Account

5.1 Following the last day of the Award Period, the Committee shall determine
whether and to what extent the Performance Objectives have been met for the
Award Period and whether and to what extent the Performance Award, if any, shall
be credited to Participant's Grantee Account with respect to the Award

                                       4
<PAGE>   18

Period. No Performance Award shall be credited to Participant's Grantee Account
with respect to the Award evidenced by this Agreement unless and until the
Committee makes the determinations set forth in the preceding sentence. The
Committee shall make its determinations with respect to the Award Period as soon
as practicable after all information concerning the actual performance of the
Company for the Award Period is made available to the Committee.

Section 6:  Payment of Installments

6.1 The dollar amount and/or the number of shares of Common Stock credited as a
Performance Award to Participant's Grantee Account shall be paid to Participant
in Installments; provided, however, that Participant must be then and have
continuously been an employee of the Company from the effective date of this
Agreement to the date of each such Installment. Except as provided below, in the
event Participant ceases to be an employee of the Company, any then
undistributed Performance Awards shall be forfeited and shall not be paid to
Participant. Each installment shall be in the dollar amount and/or the number of
shares of Common Stock as follows: thirty-three and one-third percent (33-1/3%)
of the total dollar amount and the number of shares of Common Stock credited to
Participant's Grantee Account shall be delivered to Participant on or before the
first day of the calendar month following the calendar month in which the amount
was credited to the Grantee Account and an additional thirty-three and one-third
percent (33-1/3%) shall be delivered to Participant on or before the first
business day of January of each succeeding calendar year thereafter, until such
amount is completely distributed. Fractional shares shall not be distributed but
shall be aggregated and paid in the last maturing installment. Notwithstanding
the foregoing, in the event of the death, Disability or Retirement of
Participant, the Performance Award shall be prorated based on the number of full
months of employment during the Award Period divided by the total number of
months in the Award Period and the Performance Award shall be paid at the time
and in the same form as awards are paid to active participants. If Participant
terminates employment for any other reason or no reason, any unvested or unpaid
installment shall be forfeited unless determined otherwise by the Committee in
its sole discretion.

Section 7:  Miscellaneous

7.1 General Restriction. To the extent any Performance Award is denominated in
Common Stock under this Performance Award Agreement, it shall be subject to the
requirement that if at any time the Committee shall determine that any listing
or registration of the shares of Common Stock or any consent or approval of any
governmental body or any other agreement or consent is necessary or desirable as
a condition of the issuance of shares of Common Stock or cash in satisfaction
thereof, such issuance of shares of Common Stock may not be

                                       5
<PAGE>   19

consummated unless such requirement is satisfied in a manner acceptable to the
Committee. The Company shall in no event be obligated to register any securities
pursuant to the Securities Act of 1933 (as the same shall be in effect from time
to time) or to take any other affirmative action to cause the issuance of shares
pursuant to the distribution of Performance Awards to comply with any law or
regulation of any governmental authority.

7.2 Non-Assignability. No Performance Award granted under this Agreement shall
be assignable or transferable by Participant, except by will or by the laws of
descent and distribution. During the life of Participant, any Performance Award
shall be payable only to Participant. No purported assignment or transfer of a
Performance Award or of the rights represented thereby or of any rights in
Participant's Grantee Account, whether voluntary or involuntary, by operation of
law or otherwise (except by will or the laws of descent and distribution), shall
vest in the assignee or transferee any interest or right in this Agreement
whatsoever, and immediately upon such purported assignment or transfer, the
Performance Awards shall terminate and become of no further effect.

7.3 Withholding Taxes. Whenever the Company makes payments under the Plan, in
whole or in part, the Company shall notify Participant of the amount of
withholding for tax, if any, which must be paid under federal and, where
applicable, state and local law. The Company shall, in the discretion of the
Company, but with the consent of the Committee, arrange for payment for such
withholding for taxes in any one or combination of the following ways: (I)
acceptance of an amount in cash paid by Participant; (ii) deduction of amounts
for withholding from amounts of cash payable as an Installment; (iii) reduction
in the number of shares to be issued in an Installment by that number of shares
which, in aggregate, have a value equal to such withholding amount; and/or (iv)
acceptance of whole shares of Common Stock already owned by Participant which,
in aggregate, have a value equal to such withholding amount. If the full amount
of the required withholding is not recovered in the above manner, Participant
shall, forthwith upon receipt of notice, remit the deficiency to the Company. No
cash or certificates for shares of Common Stock shall be issued or delivered to
Participant (and/or Participant's designee) until all applicable withholding
obligations shall have been satisfied in full.

7.4 Delivery of Certificates. As soon as practicable after compliance by
Participant with all applicable conditions including, but not limited to, the
satisfaction of withholding obligations, the Company will issue and deliver, or
cause delivery, to Participant at the address specified by Participant in
writing, certificates registered in the name of Participant (and/or
Participant's designee) for the number of shares of Common Stock which
Participant is entitled to receive (subject to reduction for withholding as
provided in Section

                                       6
<PAGE>   20

7.3 hereof) under the provisions of this Agreement.

7.5 No Right to Employment. Nothing in the Plan, the PSP or this Agreement shall
confer upon Participant the right to continue in the employ of the Company or
any subsidiary thereof or affect any right which the Company or a subsidiary may
have to terminate the employment of Participant.

7.6 Amendment or Termination of the Plan. The Board may at any time terminate
the Plan, or any part thereof (including the PSP) and may, from time to time,
amend the Plan or PSP as it may deem advisable; provided, however, that the
termination or amendment of the Plan or PSP shall not, without the consent of
Participant, affect Executive's rights under this Agreement.

7.7 Investment Representation. Participant shall deliver to the Committee, upon
demand by the Committee, at the time of any payment of an Installment which
contains shares of Common Stock, a written representation that the shares to be
acquired are to be acquired for investment and not for resale or with a view to
the distribution thereof. Upon such demand, delivery of such representation
prior to delivery of any shares shall be a condition precedent to the right of
Participant to receive any shares of Common Stock.

7.8 No Rights as Stockholder. Participant shall have no rights as a stockholder
of the Company with respect to shares of Common Stock subject to the Award
evidenced by this Agreement unless and until a certificate for shares of Common
Stock is issued to Participant.

7.9 Adjustment of Award. In the event of any change or changes in the
outstanding Common Stock of the Company by reason of any stock dividend,
recapitalization, reorganization, merger, consolidation, split-up, combination
or exchange of shares or any rights offering to purchase a substantial amount of
Common Stock at a price substantially below fair market value or of any similar
change affecting the Common Stock, any of which takes effect after the first
grant of a Performance Award under this Agreement, the Committee may, in its
discretion, appropriately adjust the number and kind of shares of common stock
which may be issued under this Agreement, the number and kind of shares of
common stock subject to Performance Awards under this Agreement and any and all
other adjustments deemed appropriate by the Committee to prevent substantial
dilution or enlargement of the rights granted to Participant in such manner as
the Committee shall deem appropriate. Any adjustment so made shall be final and
binding upon Participant.

7.10 Performance Award Not a Bar to Corporate Event. The existence of the
Performance Award granted under this Agreement shall not affect in any way the
right or the power of the Company or its stockholders to make or authorize any
or all

                                       7
<PAGE>   21

adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

7.11 Not Income for Retirement or Other Plans. No amounts of income received by
Participant pursuant to this Agreement shall be considered compensation for
purposes of any pension or retirement plan, insurance plan or any other employee
benefit plan of the Company or any of its affiliates.

7.12 Meaning of Participant. Whenever the word "Participant" is used in any
provision of this Agreement under circumstances where the provision should
logically be construed to apply to the executors, the administrators, or the
person or persons to whom the Performance Awards may be transferred by will or
by the laws of descent and distribution, the word "Participant" shall be deemed
to include such person or persons.

7.13 Determinations of Committee. The actions taken and determinations of the
Committee made pursuant to this Agreement and the actions and determinations of
the Chief Executive Officer of the Company and of the Committee pursuant to the
Plan, the PSP and the Administrative Rules shall be final, conclusive and
binding upon the Company and upon Participant. Neither the Chief Executive
Officer of the Company nor any member of the Committee shall be liable for any
action taken or determination made relating to this Agreement, the Plan, the
PSP, or the Administrative Rules if made in good faith.

                                      ****

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]