Document:

SHARED SERVICES AGREEMENT

     AGREEMENT  ("Agreement"),  made this 2nd day of April,  2001 by and between
Century Aluminum Company ("Century"),  NSA, Ltd. ("NSA"), Glencore Acquisition I
LLC ("GAC" and, together with NSA,  collectively,  the "Smelter Site Owner") and
Southwire Company ("Southwire").

                                   BACKGROUND

     A.  Southwire,  through  various  entities,  owns and  operates a reduction
facility, a cast house, and related assets and property in Hawesville,  Kentucky
(collectively, the "Smelter Site").

     B. Southwire owns and operates a rod and cable mill, and related assets and
property  (collectively,  "SCKP";  each of the Smelter Site and SCKP hereinafter
sometimes referred to as a "Site"), adjacent to the Smelter Site;

     C. The Smelter Site and SCKP have  heretofore been operated by Southwire as
an integrated facility;

     D. Century and Southwire have entered into a Stock Purchase Agreement dated
August 31, 2000 (the "Stock Purchase Agreement"), pursuant to which Century will
acquire the entities  which own the Smelter Site,  including NSA, and all assets
comprising such Site;

     E. Century and Glencore AG ("Glencore") have entered into an Asset Purchase
Agreement  dated as of the date  hereof  pursuant  to which GAC, a  wholly-owned
subsidiary  of Glencore,  will acquire  certain  assets  comprising  part of the
Smelter Site;

     E. There are certain services,  facilities and related physical assets that
the parties desire to be shared between the two Sites.

                                    AGREEMENT

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

     1. Division of Premises. Pursuant to the Stock Purchase Agreement,  Century
and Southwire have agreed to divide the Hawesville  Complex as shown on the plat
of survey entitled "Southwire Company, located at 1987 State Route 271N, West of
Hawesville, Kentucky", dated March 8, 2001, prepared by HRG PLLC, which has been
recorded in Cabinet B, Slide 145 of the Office of the Hancock County Registry of
Deeds.  A reduced  photocopy  of such plat is  attached  hereto  as  Exhibit  A.
Pursuant to the Stock Purchase Agreement,  Southwire has taken such action as is
necessary  (a) to divide the  Hawesville  Complex such that at the closing under
the Stock Purchase  Agreement both Sites are in compliance with existing zoning,
land use,  environmental and similar laws and regulations and (b) to obtain such
permits and variances as are necessary to accomplish such division.

<PAGE>

     2.  Shared  Services.  Set forth in  Exhibit B hereto is a  description  of
facilities  that will be utilized  and shared by each of the Smelter  Site Owner
and Southwire  (each a "Facility") in the normal course of  operations,  and the
services  (each a "Shared  Service")  to be provided by Southwire or the Smelter
Site Owner,  as owner of a Facility,  to Southwire or the Smelter Site Owner, as
the case may be, with  respect to such  Facility.  Each party shall  provide the
Shared  Services  identified in Exhibit B as being provided by such party to the
other party in accordance with the terms and provisions of this  Agreement.  All
references to a providing  party shall mean the party providing a Shared Service
to the other party, and all references to a recipient party shall mean the party
receiving a Shared  Service from the  providing  party.  Exhibit B describes the
Facilities,  Shared Services and the allocations of  responsibilities  and costs
agreed with respect  thereto.  Exhibit B is incorporated  herein in its entirety
and made a part of this  Agreement,  and all references to this Agreement  shall
include Exhibit B.

     3. Standards;  Level of Services;  Limitation.  Unless otherwise  expressly
provided in this Agreement:

     (a) A party  obligated  to provide a Shared  Service  under this  Agreement
shall do so using  standards  of care  and  levels  and  manner  of  performance
consistent with its normal operating  procedures.  All Facilities to be operated
by either party shall be operated so as not to unduly  discriminate  against the
other party hereto.

     (b) All costs and expenses of operating and maintaining a Facility shall be
paid  by  the  party  owning  that   Facility,   subject  to   allocations   and
reimbursements as provided herein.

     (c) The providing party shall not be required to perform services hereunder
that conflict with any applicable Legal Requirement.

     (d) The recipient  party shall  provide  timely  decisions  and  reasonable
written policy  guidelines as required for the performance of Shared Services by
the providing party.

     (e) No party shall  permit the whole or any portion of a Facility  owned by
the other party to be occupied or utilized by any other person or entity,  other
than the first party's  officers,  directors,  employees and  authorized  agents
engaged in the  performance  of their duties in the ordinary  course of business
and operation of such other party's Site.

     4. Payment.

     (a) Except as  otherwise  specifically  provided  herein or in Exhibit B, a
recipient  of a  Shared  Service  shall  pay  therefor  an  amount  equal to the
providing  party's Direct Costs for providing such Shared Service.  For purposes
of this Agreement,  "Direct Costs" shall include, without limitation,  (i) wages
and employee  benefits of personnel that are providing the Shared Service,  (ii)
supply,  maintenance,  repair and other expenses of the providing party incurred
in providing the Shared Service,  (iii) any and all other costs directly related
to the operation and  maintenance of the relevant  Facility and the provision of
the Shared  Service,  and (iv) a reasonable  capital  charge for  replacement of
facilities  or  equipment  related to the  Facility  used in  providing a Shared
Service;   provided,   however,  the  recipient  shall  not  have  any  duty  or
responsibility  to pay new capital  charges for  replacement  of  facilities  or
equipment  related to the Facility  used in providing a Shared  Service that are
incurred  after  providing  written  notification  to terminate a Shared Service
pursuant to Section 5(a).

                                      -2-
<PAGE>

     (b) Except as otherwise  specified herein,  Direct Costs shall be allocated
to the recipient of the Shared Service pro rata to such recipient's actual usage
of such Shared Service.

     (c) Except as otherwise specified in Exhibit B, each party shall provide to
the other a monthly  statement  for  amounts  due for  Shared  Services  for the
immediately  preceding  calendar month,  setting forth in reasonable  detail the
services  provided and the Direct Costs  thereof.  The  recipient  shall pay the
provider the invoiced amount in immediately  available funds within fifteen (15)
days after delivery of the invoice.  Payments due on a day other than a business
day  shall  be made on the  next  succeeding  business  day.  Amounts  due  from
Southwire  to the  Smelter  Site  Owner,  and from  the  Smelter  Site  Owner to
Southwire,  hereunder  may be netted or set off one against the other.  Interest
shall accrue and be payable on any overdue  amount  payable  hereunder at a rate
equal to one and one-half percent (1 1/2%) per month, prorated for the number of
days such overdue amount is outstanding.

     (d) If an error is made in the  calculation  of any  amount  payable by the
recipient  under this  Agreement,  the invoice to such  recipient  for the month
immediately  succeeding  the month in which  such error was  finally  determined
shall be  increased  or  decreased  by an  amount  equal to the  amount  of such
overpayment or underpayment, as the case may be.

     (e) Notwithstanding the provisions of Section 9 hereof, if a party disputes
the amount of any charge, it shall pay the undisputed amounts within the payment
terms  provided for in paragraph  (c) above and shall set forth in writing those
amounts to which it objects with a reasonably detailed  explanation of the basis
for its objections.  The parties shall act in good faith to promptly resolve any
such  disputes.  Any  such  dispute  not so  resolved  shall be  subject  to the
provisions of Section 9 hereof.

     (f) Each party shall provide the other with such  information  as the other
may  reasonably  request to review  and  confirm  the  accuracy  of the  monthly
statements provided under Section 4(c) above.

     (g) The recipient shall pay to the provider for each Shared Service that is
the subject of any sales or use tax imposed by any Governmental Body (as defined
in Section 14), within fifteen (15) days after demand therefor,  an amount equal
to the recipient's pro rata portion of the aggregate amount of such sales or use
tax.  Notwithstanding the foregoing,  the recipient shall use reasonable efforts
to  provide  exemption   certificates  where  available  and  to  calculate  any
applicable  sales  or use  tax  and to  make  payment  thereof  directly  to the
appropriate taxing authority.

     (h)  During  the first full  calendar  year of the term of this  Agreement,
representatives  of the parties  shall meet  quarterly  to discuss the price and
level of service of each Shared Service.

                                      -3-
<PAGE>

     5. Term and Termination.

     (a) Unless  otherwise  provided  herein with  respect to a specific  Shared
Service,  this Agreement  shall have a term of five (5) years  commencing on the
date hereof with  respect to each Shared  Service.  Either  party may extend the
term of this  Agreement  for one (1)  additional  term of five  (5)  years  with
respect to any specific Shared  Service,  upon notice thereof to the other given
not less than sixty (60) days' prior to the expiration of the initial term.

     (b) Unless  otherwise  provided  herein with  respect to a specific  Shared
Service,  the  recipient of a Shared  Service may, at any time,  terminate  this
Agreement  as to such Shared  Service on not less than one hundred  twenty (120)
days' prior written notice to the providing party.

     (c) This  Agreement may be terminated  with respect to any specific  Shared
Service by the provider  thereof,  if the recipient thereof shall fail to pay to
the provider the amount due to the provider hereunder with respect to the Shared
Service in question, when the same becomes due and payable under this Agreement,
and any such failure  shall remain  unremedied  for a period of thirty (30) days
after notice thereof shall have been given by the provider to the recipient.

     (d) The foregoing  termination rights set forth in Section 5(c) shall be in
addition to all other rights and remedies that the non-breaching  party may have
against  the  breaching  party with  respect to such Shared  Service  under this
Agreement.

     (e) Upon the  discontinuation or termination of a Shared Service hereunder,
this  Agreement  shall be of no further  force and effect  with  respect to such
Shared  Service  except  as  to  obligations   accrued  prior  to  the  date  of
discontinuation or termination.

     6. Force Majeure.

     (a) Except to the extent caused by the negligence,  recklessness or willful
misconduct  of the  party  asserting  Force  Majeure  (as  defined  below),  the
providing party shall be excused from liability for failure to provide,  and the
recipient  party shall be excused from liability for failure to receive,  one or
more Shared  Services,  pursuant to this  Agreement  when such failure is due to
acts of God or the  elements of  weather,  fire,  war,  civil  commotion,  labor
disputes,  act of civil or military  authority,  Governmental  Order or request,
interruption of electrical  supply or supply of raw materials,  breakdown of key
equipment at the  respective  Facilities  or other like or unlike  causes beyond
such  party's  reasonable  control,  as  applicable  (any  such  event a  "Force
Majeure");  provided,  however, that: (i) such suspension shall relate solely to
that portion of the Shared Services that the party seeking to rely on such event
of Force  Majeure is unable to provide or receive,  as the case may be, and (ii)
such  suspension  shall be in effect only for the period during which such event
of Force Majeure shall be continuing.  If such event of Force Majeure results in
a partial  rather than a total  inability on the part of the provider to provide
or the recipient to receive the Shared  Service,  the recipient or the provider,
respectively,  shall be entitled  to receive or provide the pro rata  portion of
any available quantity or level of such Shared Service. If a party's performance
is affected,  or may be affected, by Force Majeure, that party shall give notice
thereof to the other party as soon as  practicable  after the occurrence of such
Force Majeure, which notice shall include,  insofar as known, a statement of the

                                      -4-
<PAGE>

probable extent to which the affected party will be unable to perform or will be
delayed in performing its  obligations  hereunder,  provided that any failure to
provide such notice shall not affect the right of the party  claiming such event
except to the extent that the other party has suffered actual prejudice thereby.
Each party shall  exercise  due  diligence to eliminate or remedy any such Force
Majeure and to prevent the same from unnecessarily delaying and interrupting its
performance  hereunder and shall give the other party prompt written notice when
such Force Majeure causes shall have been eliminated or remedied.

     (b) Upon the  occurrence  and during the  continuance  of an event of Force
Majeure,  the  recipient of a Shared  Service which is affected by such event of
Force Majeure shall be entitled to obtain substitute services or facilities on a
temporary basis. If an event of Force Majeure continues for more than sixty (60)
days, the recipient may elect to obtain any substitute  service or facility on a
permanent  basis and upon such election the  obligations of the providing  party
shall cease.

     7. Temporary Suspension of Shared Services for Repairs and Improvements.

     (a) To allow the party that owns a Facility and  provides a Shared  Service
to maintain and/or make repairs or improvements to the Facility,  such party may
elect to reduce, interrupt, allocate, alter or change (each activity a "Change")
the relevant  Shared  Services that it provides under this  Agreement,  provided
that the party desiring to make the Change shall give reasonable  notice of such
action,  describing  such Change and the reasons  therefor,  to the other party,
pursuant  to Section  13(h)  hereof;  provided  that if such  Change to a Shared
Service is  reasonably  likely to increase  the costs of such Shared  Service by
more than ten percent  (10%),  such notice shall be given at least  seventy-five
(75) days prior to the implementation of such Change.

     (b) Except as the parties  may  otherwise  agree in  writing,  a party that
desires to undertake a Change shall pay the costs  associated with effecting the
Change,  which shall be subject to the allocations and  reimbursements  provided
for  herein.  Upon the  occurrence  and  during  the  continuance  of any Change
referred to in this Section 7, the parties shall cooperate to attempt to arrange
for Shared  Services to be furnished  in an alternate  manner and to minimize or
reduce  the effect on their  operations  of such  Change of a Shared  Service in
conformity  with Section 3(a) hereof;  provided,  however,  that to the extent a
Shared Service is reduced by a Change,  the recipient party shall be entitled to
receive a pro rata  portion of any  available  quantity or level of such reduced
Shared  Service,  and an  appropriate  reduction in the charge to the  recipient
party for such reduced Shared Services shall be made.

     8. Additional Covenants.

     (a) Inspection,  Access and Testing. At scheduled times and intervals to be
agreed upon by the parties, each of Century and Southwire shall:

     (i) permit  either the recipient  party or, at such other  party's  option,
independent public accountants  mutually  acceptable to the parties,  to inspect
the books and records of the  providing  party  relating to the Shared  Services
furnished  pursuant to this  Agreement,  provided that such inspection and audit
shall be conducted for the sole purpose of determining whether the costs charged
have been assessed in accordance with the terms of this Agreement,  and the cost
of such inspection shall be borne by the requesting party; and

                                      -5-
<PAGE>

     (ii) permit the recipient party or any of its agents or  representatives to
visit its Site in order to: (A) consult with those agents of the providing party
designated by such party regarding Shared Services to be provided hereunder, and
(B) require that meter calibration and/or other tests be conducted to verify the
accuracy  of  equipment  used to  determine  the  quantity  or quality of Shared
Services provided hereunder, provided that: (x) the recipient party shall not be
entitled to require meter calibration and/or other tests permitted by clause (B)
above any more  frequently  than every  ninety  (90) days;  (y) each party shall
cause its employees,  agents and representatives to comply with all of the other
party's  rules and  regulations  pertaining  to  security,  safety and  property
protection  and follow the route or routes  designated by such party and (z) the
recipient party or its agents must provide not less than twenty-four (24) hours'
advance notice to the providing  party and all employees of the recipient  party
must be accompanied by a supervisor.

     (b) Books and  Records.  Each party shall keep proper  books and records of
account,  in  which  full and  correct  entries  shall be made of all  financial
transactions  related to Shared  Services and the performance of its obligations
under this Agreement,  including,  without  limitation,  recording the levels or
quantities  of Shared  Services  provided  by or on behalf of that  party to the
other party under this Agreement,  the costs and expenses  associated  therewith
and amounts paid by or on behalf of such party.

     9. Dispute Resolution.

     (a) In the event that any dispute,  claim or controversy  shall arise as to
whether  either party hereto shall have  fulfilled  its  obligations  under this
Agreement,  the  parties  agree that  within  five (5) days  after  notification
thereof  authorized  representatives  of the parties  shall meet to resolve such
dispute,  claim or  controversy.  If, within ten (10) days after the  authorized
representatives  first  begin such  meetings  the  parties  have not agreed on a
resolution, a Southwire representative and a Century representative (other than,
in the case of each party, the aforementioned authorized  representatives) shall
meet within five (5) days to resolve such  dispute,  claim or  controversy.  If,
within ten (10) days  after such  designated  representatives  first  begin such
meetings,  the  parties  have  not  reached  agreement,  the  dispute,  claim or
controversy shall be determined in the manner set forth in Section 9(b) hereof.

     (b) If,  within five (5)  business  days after the date  referred to in the
last  sentence  of Section  9(a) hereof the  dispute,  claim or  controversy  in
question  remains  unresolved,  such  dispute,  claim  or  controversy  shall be
determined by arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association.  The number of arbitrators to be appointed
in  accordance  with  such  rules  shall be  three  (3),  one of who  shall be a
practicing  attorney,  and the  arbitration  shall  take  place  in  Hawesville,
Kentucky.  Any award or decision rendered by such arbitrators shall be final and
binding on the parties and  nonappealable.  Judgment  upon any award or decision
rendered  by  such  arbitrators  may  be  entered  in  any  court  of  competent
jurisdiction.  Any costs of the proceedings described in this Section 9(b) shall
be shared equally by the parties.

                                      -6-
<PAGE>

     10. Liability Generally.  Neither party shall be responsible for special or
consequential or incidental damages (including lost profits) of the other party,
or for punitive  damages awarded against the other party,  based upon or arising
out of such party's  performance or non-performance of this Agreement,  provided
that nothing herein shall limit a party's  liability for damages (other than the
exclusion of special,  consequential or incidental damages),  including costs of
repair and remediation, to its or the other party's Site.

     11. Indemnification.

     (a) Subject to the  limitations  set forth in Section 10 and Sections 11(c)
and (d) below,  Century and the Smelter Site Owner hereby  agrees to  indemnify,
hold harmless and defend  Southwire and  Southwire's  Affiliates  against and in
respect  of any  and  all  Losses  (including  reasonable  attorneys'  fees  and
litigation expenses) incurred by Southwire and Southwire's  Affiliates caused by
or arising solely from (i) acts of the Smelter Site Owner in connection with the
performance  of  (or  failure  to  perform)  any  of the  Smelter  Site  Owner's
obligations  under this Agreement that  constitute  negligence,  recklessness or
willful  misconduct of the Smelter Site Owner and (ii) any  condition,  event or
act  caused or  contributed  to by the  Smelter  Site  Owner at or  affecting  a
Facility owned by Southwire.

     (b) Subject to the  limitations  set forth in Section 10 and Sections 11(c)
and (d) below,  Southwire  hereby agrees to indemnify,  hold harmless and defend
NSA and GAC and NSA's and GAC's Affiliates against and in respect of any and all
Losses (including  reasonable  attorneys' fees and litigation expenses) incurred
by NSA or GAC and NSA's or GAC's Affiliates caused by or arising solely from (i)
acts of Southwire in connection  with the performance of (or failure to perform)
any of  Southwire's  obligations  under this  Agreement  that  would  constitute
negligence,  recklessness  or  willful  misconduct  of  Southwire  and  (ii) any
condition,  event or act caused or contributed to by Southwire at or affecting a
Facility owned by the Smelter Site Owner.

     (c) A  party  seeking  indemnification  pursuant  to this  Section  11 (the
"Indemnified  Party")  shall  give  prompt  notice to the  party  from whom such
indemnification  is sought (the  "Indemnifying  Party") of the  assertion of any
claim,  or the  commencement  of any action,  suit or proceeding,  in respect of
which indemnity may be sought  hereunder,  and will give the Indemnifying  Party
such information  with respect thereto as the Indemnifying  Party may reasonably
request,  but  failure to give such notice  shall not  relieve the  Indemnifying
Party of any  liability  hereunder,  except to the extent that the  Indemnifying
Party has suffered actual prejudice  thereby.  The Indemnifying Party shall have
the right to undertake  the defense of any such claim  asserted by a third party
and the Indemnified Party shall cooperate in such defense and make available all
records  and  materials  requested  by  the  Indemnifying  Party  in  connection
therewith at the Indemnifying  Party's expense.  The Indemnified  Party shall be
entitled  to  participate  in  such  defense,  but  shall  not  be  entitled  to
indemnification  with  respect to the costs and  expenses of such defense if the
Indemnifying  Party shall have  assumed  the  defense of the claim with  counsel
reasonably  satisfactory to the Indemnified  Party. The Indemnifying Party shall
not be liable for any claim settled without its consent, which consent shall not
be unreasonably withheld or delayed. The Indemnifying Party may settle and claim
without  the  consent  of the  Indemnified  Party,  but  only if the  settlement
involves solely monetary damages.

                                      -7-
<PAGE>

     (d) No owner of a Site  shall be  responsible  for Losses  suffered  by the
other party or its Affiliates or their officers, directors,  employees or agents
arising out of or in connection  with Shared  Services  provided on such owner's
Site,  except to the extent (but  subject to Section  10) such  Losses  resulted
solely from the gross  negligence,  recklessness  or willful  misconduct  of the
owner of such Site.

     12. Insurance.  Each Party agrees that it shall maintain during the Term of
this Agreement insurance policies consistent with good business practices in the
industry,  including but not limited to, general  liability  insurance,  product
liability insurance,  workers' compensation insurance and motor vehicle or motor
driven equipment liability insurance.

     13. Miscellaneous.

     (a) Assignment.  Either party may assign this Agreement to any Affiliate of
such party for so long as the  assignee  remains an  Affiliate of such party and
provided  that the  assignor  (and  Century,  if the  Smelter  Site Owner is the
assignor)  shall  unconditionally  guarantee  all  obligations  of the  assignee
hereunder.  The parties agree that, (i) in the case of a direct or indirect sale
of all or substantially all the assets of the business  conducted by the Smelter
Site Owner at the Smelter  Site to a  non-Affiliate  of either of NSA or GAC, as
the case may be,  NSA and GAC shall  assign  all their  rights  and  obligations
hereunder to the  purchaser of such assets and such  purchaser  shall assume all
such  rights and  obligations  and NSA and GAC shall  have no further  rights or
obligations hereunder,  and (ii) in the case of a direct or indirect sale of all
or substantially  all the assets of the business  conducted by Southwire at SCKP
to a  non-Affiliate  of Southwire,  Southwire shall assign all of its rights and
obligations  hereunder to the purchaser of such assets and the  purchaser  shall
assume  all such  rights and  obligations  and  Southwire  shall have no further
rights or obligations hereunder. Except for the foregoing permitted assignments,
neither party shall assign this Agreement or any of its rights hereunder without
the  prior  written  consent  of the other  party,  which  consent  shall not be
unreasonably withheld. In the event of a merger between either party and a third
party,  the party entering into such merger shall cause the surviving  party (if
other than the party  hereto) of such merger to  unconditionally  assume all the
rights and obligations hereunder of the party hereto entering into such merger.

     (b) Non-Waiver.  No failure or delay on the part of either Southwire or the
Smelter Site Owner in exercising  any right  hereunder  will operate as a waiver
of, or impair any such  right.  No single or partial  exercise of any such right
will preclude any other or further exercise thereof or the exercise of any other
right.  No waiver of any such right will have effect  unless  given in a written
document,   with  specific  reference  to  the  relevant  provision(s)  of  this
Agreement,  which is signed  by a duly  authorized  representative  of the party
granting the waiver.  No waiver of any such right will be deemed a waiver of any
other right hereunder.

     (c) Severability. If any provision of this Agreement is held to be illegal,
void,  invalid,  ineffective or  unenforceable  by a competent  authority,  such
determination  will not  affect  the  validity  or  enforceability  of any other
provision(s)  of this Agreement  which will remain in full force and effect.  If
any of the  terms or  provisions  of this  Agreement  are in  conflict  with any
applicable  statute or rule of law, then such terms or provisions will be deemed
inoperative to the extent that they may conflict therewith and will be deemed to
be modified to conform with such statute or rule of law.

                                      -8-
<PAGE>

     (d) Counterparts.  This Agreement and any amendments hereto may be executed
in any number of counterparts, each of which will be deemed an original, but all
of which together will constitute one and same instrument.  Each counterpart may
consist of a number of copies thereof each signed by less than all, but together
signed by all, of the  parties.  In pleading  or proving any  provision  of this
Agreement, it will not be necessary to produce more than one such counterpart.

     (e) Independent  Contractor.  In all activities  under this Agreement,  the
parties will act as and be deemed  independent  contractors  with respect to one
another  with no  authorization  to any way  obligate  or bind the other  party.
Accordingly,  neither  party will hold itself out to third parties as purporting
to act on behalf of, or serving  as the agent of,  the other.  Neither  party is
authorized  to enter into any  understandings  or  agreements,  whether  oral or
written,  on the other party's behalf without the prior written  consent of such
other party.  This  Agreement will not be deemed held or construed as creating a
partnership,  joint venture,  or any other form of association between Southwire
and the  Smelter  Site Owner for any  purpose  whatsoever,  except as  expressly
provided in this Agreement.

     (f)  No  Lease,  Conveyance.   Except  as  specifically  provided  in  this
Agreement, this Agreement does not and shall not be deemed to constitute a lease
or a conveyance  of any real  property or premises,  or to confer upon any party
any right,  title,  estate or  interest  in the other  party's  Site or any part
thereof, including any equipment or other assets.

     (g) Governing Law. This  Agreement will be governed by and construed  under
the laws of the State of Delaware without regard to its principles pertaining to
conflict of laws.  Any suit or other action seeking to enforce any provision of,
or based  upon any right  arising  out of,  in  connection  with,  or in any way
relating to, this  Agreement  shall be brought only in the United  States Courts
sitting in the State of Delaware,  unless such court shall not have jurisdiction
over the  parties or the  claims  asserted  in such  action.  Each party  hereby
irrevocably consents and submits to the jurisdiction and venue of such court and
irrevocably  waives  any  objection  which it may now or  hereafter  have to the
laying of the venue of any suit or action  brought  in such  court and any claim
that  such  suit or  action  brought  in  such  court  has  been  brought  in an
inconvenient forum.

     (h) Headings. The headings used in this Agreement are intended for guidance
only and will not be considered  part of the written  understanding  between the
parties.

     (i)  Notices.  Any notice or request  to be given or  furnished  under this
Agreement by any party to another party will be in writing and will be delivered
personally or sent via prepaid certified mail, or by prepaid overnight  delivery
service, at the addresses listed below. A notice or request will be deemed to be
given  (a)  when  delivered  personally,  or (b) if  sent by  certified  mail or
overnight  delivery  service,  at the time of delivery as  indicated on the duly
completed U.S. Postal Service return receipt or at the time of package pickup as
indicated on the records of or certificates  provided by the overnight  delivery
service.

                                      -9-
<PAGE>

     If to the Smelter Site Owner, addressed to:

          Century Aluminum Company
          2511 Garden Road
          Building A, Suite 200
          Monterey, CA  93940
          Attention: Gerald J. Kitchen, Esq.
                     Executive Vice President, General Counsel
                     and Chief Administrative Officer
          Tel: (831) 642-9300
          Fax: (831) 642-9328

          With a copy to the manager of the Smelter Site.

     If to Southwire, addressed to:

          Southwire Company
          One Southwire Drive
          Carrollton, GA 30118
          Attention: Jeff Herrin
                     Director of Operations,
                     Wire and Cable Division
          Tel: (770) 832-4499
          Fax: (770) 832-4249

     With a copy to the Office of the General Counsel, Southwire Company.

or to such other place and with such other copies as such party may designate as
to itself by written notice to the others.

     (j) Entire  Agreement.  This  Agreement  constitutes  the entire  Agreement
between the parties  with  respect to the subject  matter  addressed  herein and
hereby  supersedes  all prior  understandings  and  agreements,  whether oral or
written,  between the parties with respect thereto. Any amendment to, or release
from, any  provisions set forth in this Agreement must be in writing,  signed by
the parties, and specifically state that it is an amendment or release.

     (k) Waiver of Jury Trial. Each party hereby irrevocably waives all right to
trial  by jury in any  action,  proceeding  or  counterclaim  (whether  based on
contract, tort or otherwise) arising out of or relating to this Agreement or the
actions  of  any  party  in the  negotiation,  administration,  performance  and
enforcement thereof.

     (l) Survival.  Without prejudice to the survival of the other agreements of
the parties hereunder, the agreements of the parties pursuant to Sections 4, 10,
and 11 hereof shall survive the termination of this Agreement.

     (m) Further Assurances. From time to time, each party agrees to execute and
deliver such additional documents and to provide such additional information and
assistance as the other party shall reasonably require in order to carry out the
terms of this Agreement.

                                      -10-
<PAGE>

     (n)  Regulations.  All  employees of each party when on the property of the
other party in  connection  with this  Agreement and the easements to be granted
pursuant  hereto and the services to be provided  hereunder  will conform to the
rules and regulations concerning health, safety and security of such other party
with respect to its Site.

     (o)  Authority.  If a party signs as a corporation,  partnership,  or other
entity,  each of the persons executing this Agreement,  on behalf of such party,
does hereby covenant and warrant that such party has full right and authority to
enter into this Agreement,  and that the persons signing on behalf of such party
were authorized to do so.

     14. Certain  Definitions.  As used in this  Agreement,  the following terms
have the following  meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

     "Affiliate"  has the  meaning  set forth in Rule  12b-2 of the  regulations
promulgated under the Exchange Act.

     "Governmental Body" means any federal, state, local, municipal,  foreign or
other  governmental  or  quasi-governmental  entity or  authority of any nature,
including without limitation any court or other tribunal.

     "Governmental Order" means any order, writ, judgment,  injunction,  decree,
stipulation,  determination  or  award  entered  by  or  with  any  Governmental
Authority.

     "Legal  Requirement"  means any  United  States  federal,  state,  local or
foreign law,  statute,  ordinance,  principle of common law,  rule,  regulation,
code, order or other requirement of a Governmental Body.

     "Losses" means any and all liabilities,  losses,  damages,  claims,  costs,
interests,  judgments,  fines,  amounts paid in settlement and expenses actually
incurred by a party.

                                      -11-
<PAGE>

     IN WITNESS WHEREOF,  the parties hereto have had this Agreement executed by
their respective authorized officers as of the date first written above.

                                      CENTURY ALUMINUM COMPANY

                                      By:_______________________________
                                      Its:______________________________

                                      NSA, LTD.
                                      by METALSCO LTD, its General Partner

                                      By:_______________________________
                                      Its:______________________________

                                      GLENCORE ACQUISITION I LLC

                                      By:_______________________________
                                      Its:______________________________

                                      SOUTHWIRE COMPANY

                                      By:_______________________________
                                      Its:______________________________

                                      -12-
<PAGE>

                                    EXHIBITS

A   -    Site Plan

B   -    Description of Shared Services

<PAGE>

                                    EXHIBIT A

                                    Site Plan

<PAGE>

                                    EXHIBIT B

     1.   Electric Power

          a) Electric  Service  Participation  Agreement- The Smelter Site Owner
     shall  provide  electric  power to SCKP  pursuant to the  Electric  Service
     Participation  Agreement  of  even  date  herewith.  The  Electric  Service
     Participation Agreement will also provide for a maximum limit on the amount
     of electric power to be provided to and paid for by Southwire. In the event
     of  any  inconsistency  between  the  provisions  of the  Electric  Service
     Participation Agreement and this Agreement,  the provisions of the Electric
     Service Participation Agreement shall govern.

          b) Description of Facilities and Property- Electric power is delivered
     to the substation on the North side of the Smelter Site by five power lines
     from a  coal-fired  plant on the adjacent  property to the North.  Electric
     power is supplied to SCKP through two  underground  power lines that extend
     from the substation on the Smelter Site along the East side of the potlines
     to the new property line of SCKP. The Smelter Site does not manage the load
     of SCKP.  The Smelter  Site and SCKP each have  separate  meters.  The SCKP
     meter is located on the Smelter Site in an electrical substation panel.

          c)  Ownership  and  Maintenance-  The Smelter Site Owner shall own the
     substation  on the North side of the Smelter  Site.  The Smelter Site Owner
     shall  maintain  the overhead  lines from the utility into the  substation.
     Southwire  shall own and maintain the 15 kV  underground  power lines which
     serve SCKP. These 15 kV underground  power lines extend from the meter base
     at the Smelter Site Owner switchgear to the SCKP property line.

          d) Rights of Access- The Smelter  Site Owner shall grant to  Southwire
     an easement for the two underground  power lines from the meter base at the
     Smelter Site Owner Switchgear to the new property line of the SCKP and such
     rights  of access  as may be  necessary  for the  maintenance,  repair  and
     replacement  of such power  lines.  The Smelter  Site Owner  hereby  grants
     Southwire  such rights of access as may be necessary  for Southwire to read
     the SCKP meters.  The Smelter Site Owner and  Southwire  shall grant to the
     electricity provider to the Hawesville Complex such rights of ingress to or
     egress from their respective properties as is reasonably necessary in order
     for the parties to obtain electric power as  contemplated  hereunder and to
     carry  out  their  respective   responsibilities   for  the   installation,
     operation,   maintenance,   testing  or  replacement  of  electrical  power
     facilities.

     2.   Water

          a) Process  Water;  Fire  Water-  There are three wells on the Smelter
     Site  which  connect  to a process  water  treatment  plant  located on the
     Smelter Site  between the cast house and the  potlines.  An 8-inch  process
     water  loop  and a  10-inch  fire  water  loop  presently  extend  from the
     treatment  plant around the Smelter Site. SCKP ties in to the process water
     loop and the fire  water  loop  near its  property  line.  Southwire  shall
     maintain the  underground  process  water and fire water pipes from SCKP to
     the respective  points of tie-in.  The fire water loop is not metered.  The
     Smelter Site Owner shall permit  Southwire to retain its existing tie-in to
     the fire water loop at no charge and the  Smelter  Site Owner  shall not be
     liable for any failure of the fire water loop  system.  The  process  water
     loop is metered,  but the existing  meter is not  functioning.  The Smelter
     Site Owner shall install a new meter for the process  water loop,  the cost
     of which shall be shared equally by the Smelter Site Owner and Southwire.

<PAGE>

          b) Sanitary  Waste  Water-  There is a sanitary  wastewater  treatment
     facility on the Smelter Site that  services both the Smelter Site and SCKP.
     An  underground  line  connects  SCKP to the  wastewater  treatment  plant.
     Treated  water is  discharged  through the 003 outfall on the Smelter Site.
     The  Smelter  Site Owner will own,  operate  and  maintain  the  wastewater
     treatment  facility.  There are no meters within the  wastewater  treatment
     loop. The Smelter Site Owner and Southwire  shall share the Direct Costs of
     the wastewater  treatment  facility in proportion to their respective water
     usage as  measured by the local  county's  water  meters to the  respective
     Sites.

          c) Payment-  The  Smelter  Site Owner  shall  charge  Southwire a flat
     monthly fee in the amount of $3,457  payable  monthly in arrears  until the
     new meter is installed and thereafter shall charge Southwire for the use of
     process  water based on  Southwire's  metered  usage in gallons.  The $ per
     gallon  charge rate will be equal to the annual  Direct  Costs of operating
     and  maintaining  the process water system  divided by the total gallons of
     water processed by the Smelter Site for the preceding year.

     3.   Fuel Oil

          a) There is a  150,000-gallon  fuel oil  storage  tank  located at the
     south end of the  Smelter  Site that  supplies  backup fuel oil to the cast
     furnaces of both the Smelter  Site and SCKP.  Spillage  dikes  surround the
     fuel oil storage  tank.  There is a pump station and meter  located next to
     the fuel tank with an  underground  pipe that connects to SCKP. The Smelter
     Site does not utilize the pump  station or the meter.  Southwire  shall own
     and maintain the pump station,  meter and underground pipe at its sole cost
     and  shall  be  solely   responsible  for  any  clean-up  costs  associated
     therewith. The Smelter Site Owner shall permit Southwire to access the pump
     station , meter and underground pipe for maintenance purposes.  The Smelter
     Site Owner shall own and  maintain  the fuel oil storage  tank and spillage
     dikes and charge  Southwire  for its  proportionate  share of Direct  Costs
     based on quantity of fuel oil used.  The Smelter Site Owner shall be solely
     responsible  for any clean-up  costs  associated  with the fuel oil storage
     tank and  spillage  dikes  for  events  occurring  after  the date  hereof.
     Southwire shall have the right to purchase up to 35,000 gallons of fuel oil
     per day.

          b) Payment- The Smelter Site Owner shall purchase an initial supply of
     backup fuel oil and charge  Southwire for 35,000 gallons of the fuel oil in
     storage. Thereafter, the Smelter Site Owner shall charge Southwire for fuel
     oil as used by Southwire.

     4.   Dross Storage; Dross Loading; Dust Waste

     SCKP has three covered bays for dross storage.  Southwire  shall permit the
Smelter  Site  Owner to use one of the dross  storage  bays at SCKP for up to 18
months after the date hereof.  The loading area abuts the dross  storage bays at
SCKP. In consideration  for its use of the storage bay at SCKP, the Smelter Site
Owner  shall  provide  the front  loader to load  Southwire's  dross onto trucks
approximately three times per week at no charge. Loading rates after the Smelter
Site Owner is no longer a recipient of this Shared Service will be negotiated at

                                      B-2
<PAGE>

the same time  equipment  rental rates are  negotiated in 11 below.  The loading
area has a bag house  system to  collect  fugitive  dust  from the  storage  and
loading  process.  Southwire shall own,  operate and maintain at its expense the
bag house,  dross loading and dross storage  facilities.  The Smelter Site Owner
agrees to leave the dross bay the Smelter Site is currently  using,  in the same
condition  as exists as of the date  hereof  when it  terminates  its use of the
dross storage bay.

     The  parties  acknowledge  that  waste,  which is sent from the dust  waste
facility for off-site disposal is subject to a State-approved  waste profile and
related  conditions set forth by the State  pursuant to the waste  profile.  The
parties  agree that (i) only those  wastes  consistent  with the  State-approved
waste profile and related  conditions  will be sent to the dust waste  facility,
and (ii) the parties will confer and cooperate in filing  future waste  profiles
relating to the dust waste facility.

     5.   Railroad

     CSX owns the rail line that services the Hawesville  Complex.  CSX owns the
line to a point  within the Smelter  Site.  CSX also owns a separate  section of
side track  located on the Smelter  Site.  The rail line runs across the Smelter
Site and connects to SCKP at the new property line. A  rehabilitation  agreement
will be negotiated among CSX, Southwire and other parties.

     6.   Drainage Ditch

     SCKP shall not discharge  process  water into the main drainage  ditch that
runs South to North on the East side of the Smelter  Site to the north  property
line of the Smelter Site (the "Ditch").  If SCKP discharges any storm water into
the Ditch,  Southwire shall periodically  sample its discharge into the Ditch as
required by applicable  law, and Southwire  shall be  responsible  for and shall
hold the Smelter Site Owner  harmless from any legal  obligation  caused by such
SCKP discharge.

     7.   Family Medical Center

     There is a  contract  medical  service  located  on the  Smelter  Site that
provides clinical services to the employees and their dependents employed at the
Smelter Site and SCKP (the  "Family  Medical  Center").  For a period of up to 3
years from the date  hereof,  the  Smelter  Site Owner  shall  permit  Southwire
employees  employed at SCKP,  their  dependents and retirees  (covered under the
Southwire Medical Benefit Plan) to access and utilize the services of the Family
Medical Center.  The Smelter Site Owner shall charge  Southwire a monthly fee in
the amount of $7,000, payable in advance, to cover Southwire's prorated share of
the Direct Costs based on usage of the Family Medical  Center.  The Smelter Site
Owner will reconcile amounts paid by Southwire  quarterly to Southwire's  actual
prorated share of the Direct Costs of the Family Medical Center.  Any payment or
credit  adjustment  necessary to reconcile  the account will be made on the next
billing cycle.  In addition to its obligations  under section 11(b),  subject to
Section 10,  Southwire  agrees to indemnify  and hold  harmless the Smelter Site
Owner and any  Affiliates  of NSA or GAC  against  and in  respect of all Losses
(including  reasonable  attorneys' fees and litigation expenses) incurred by the
Smelter  Site Owner or any  Affiliate  of NSA or GAC  arising out of the Smelter
Site Owner  providing  the  services  described  in  Paragraphs  8 and 9 of this
Schedule  B, except  where such  Losses  were caused by the willful  misconduct,
recklessness  or  negligence of the Smelter Site Owner or an Affiliate of NSA or
GAC.

                                      B-3
<PAGE>

     8.   First Aid Service

     There is a first aid service  located on the Smelter  Site  adjacent to the
Family Medical Center.  For a period of up to 3 years from the date hereof,  the
Smelter Site Owner shall  permit SCKP  employees to access and utilize the first
aid service.  The Smelter Site Owner shall charge Southwire a monthly fee in the
amount  of $300  payable  in  advance,  which  shall  be  subject  to an  annual
adjustment payment at year-end to allocate Direct Costs of the first aid service
according to respective usage during the year.

     9.   Machine Shop Services

     After the Closing,  the Smelter Site Owner shall use reasonable  efforts to
accommodate Southwire in emergency situations by permitting Southwire to use the
services of the machine shop. The Smelter Site Owner shall charge  Southwire for
the use of the machine shop's services based on Direct Costs according to usage.

     10.  Equipment

     After the Closing,  the Smelter  Site Owner shall  permit  Southwire to use
certain of the Smelter Site Owner's mobile  equipment  (e.g.,  loaders,  cranes)
upon  request,  subject to  availability.  The Smelter  Site Owner shall  charge
Southwire  an  hourly  rate  for the use of such  equipment  based  on the  rate
schedule to be agreed upon  annually  by the  Smelter  Site Owner and  Southwire
based upon the then current market rates for the use of similar equipment.  If a
qualified  operator is required  from the Smelter  Site Owner,  the Smelter Site
Owner shall charge Southwire $30 per hour for such operator.

     11.  Metal Lab Services

     The  Smelter  Site Owner will  perform hot metal lab  analysis  services to
Southwire  at the metal  analysis  lab on the Smelter Site for a charge of $3.50
per sample. The Smelter Site Owner will make reasonable efforts to deliver metal
samples  from the point of delivery at SCKP to the Smelter  Site's lab,  via the
hot  metal  trucker's  return  trip to the Hot  Metal  Scales.  Southwire  shall
ultimately  be  responsible  for  delivery of metal  samples to the lab and SCKP
personnel  shall be allowed access to the smelter site for such  delivery.  If a
special  standard  is needed in order to test any metal  sample  for  Southwire,
Southwire shall reimburse the Smelter Site Owner for the cost of purchasing such
standard. In such an event,  Southwire shall own the metal standard. The Smelter
Site Owner shall retain metal  samples for Southwire for a period of seven days,
after  which  the  Smelter  Site  Owner  shall  have no  responsibility  for the
retention of such samples.  The Smelter Site Owner shall  maintain an electronic
data system for delivering analysis results to SCKP.

     12.  Cafeteria

     There is a  cafeteria  located  on the  Smelter  Site  that  provides  food
services to employees  employed at the smelter site and SCKP. For a period of up
to 3 years from the date  hereof,  the  Smelter  Site Owner  shall  permit  SCKP
employees  access to the  cafeteria and use of the food services at no charge to
Southwire. Use of the food services will be provided to employees of SCKP at the
same cost as provided to employees of the Smelter Site.

                                      B-4
<PAGE>

     13.  Transition Services

     To the  extent  permitted  by  applicable  law,  Southwire  shall  make the
following information and administrative  services available to the Smelter Site
Owner,  for a period of up to 1 year  after  the date  hereof,  upon  reasonable
request  by  the  Smelter  Site  Owner  giving   appropriate   consideration  to
Southwire's ongoing business requirements:

          Payroll
          Employee records
          Medical benefits administration
          Medical center liaison

     The parties recognize that Southwire may need professional advice regarding
its ability to perform such services.  In the event Southwire  shall decide,  in
its sole  discretion,  to seek such advice as a  prerequisite  to providing  any
services to the Smelter  Site Owner,  Southwire  shall  notify the Smelter  Site
Owner  regarding the nature of the services  required and the Smelter Site Owner
shall reimburse Southwire for the actual cost of such professional  services. In
the event that such  professional  advice is that  Southwire is prohibited  from
providing such service,  Southwire  shall be relieved of any obligation to do so
to the extent  prohibited.  The Smelter Site Owner and  Southwire  shall in good
faith agree upon the  compensation  Southwire  shall receive for providing  such
services  as a  condition  precedent  to  Southwire's  obligation  to do so. The
Smelter Site Owner will  indemnify  and hold harmless  Southwire,  its officers,
employees and agents from any cost or expense in performing  such  services.  In
addition to its obligations  under Section 11(a), and subject to Section 10, the
Smelter Site Owner  agrees to indemnify  and hold  harmless  Southwire,  and any
Southwire  Affiliate against and in respect of all Losses (including  reasonable
attorneys'  fees and litigation  expenses)  incurred by Southwire or a Southwire
Affiliate  arising out of Southwire  providing  any  services  described in this
Paragraph  14,  except where such Losses were caused by the willful  misconduct,
recklessness or negligence of Southwire or a Southwire Affiliate.

                                      B-5Table of Contents

                                                                          Page #

I.    PURPOSES AND SCOPE OF PLAN...............................................1

II.   AMOUNT OF STOCK SUBJECT TO THE PLAN......................................1

III.  ADMINISTRATION...........................................................2

IV.   ELIGIBILITY..............................................................3

V.    STOCK OPTIONS............................................................3

       1.  General.............................................................3
       2.  Exercise Price and Payment..........................................3
       3.  Term of Options and Limitations on the Right of Exercise............4
       4.  Exercise of Options.................................................5
       5.  Nontransferability of Options.......................................5
       6.  Termination of Employment...........................................6
       7.  Maximum Allotment of Incentive Options..............................7

VI.   PERFORMANCE SHARE AWARDS.................................................7

       1.   General............................................................7
       2.   Restrictions.......................................................7
       3.   Stock Certificate..................................................8
       4.   Treatment of Dividends.............................................8
       5.   Nontransferability.................................................8
       6.   Shareholder Rights.................................................8
       7.   Termination of Employment..........................................8

VII.  CHANGE OF CONTROL........................................................8

VIII. PURCHASE FOR INVESTMENT..................................................9

IX.   ISSUANCE OF CERTIFICATES; LEGENDS; PAYMENT OF EXPENSES...................9

X.    WITHHOLDING TAXES.......................................................10

XI.   DEFERRAL................................................................11

XII.  LISTING OF SHARES AND RELATED MATTERS...................................11

XIII. AMENDMENT OF THE PLAN...................................................11

XIV.  TERMINATION OR SUSPENSION OF THE PLAN...................................11

i
<PAGE>

XV.   GOVERNING LAW...........................................................12

XVI.  PARTIAL INVALIDITY......................................................12

XVII. EFFECTIVE DATE, DURATION OF THE PLAN....................................12

ii
<PAGE>

                            Century Aluminum Company

                            1996 STOCK INCENTIVE PLAN
                        As Amended through June 28, 2001

     I.   PURPOSES AND SCOPE OF PLAN

     Century Aluminum Company (the "Company") desires to afford certain salaried
officers and other  salaried key  employees of the Company and its  subsidiaries
who are in a position to affect  materially the  profitability and growth of the
Company and its subsidiaries an opportunity to acquire a proprietary interest in
the  Company,  and thus to  create  in such  persons  interest  in and a greater
concern for the welfare of the Company. Directors who are salaried key employees
within the meaning of the  foregoing  are  eligible to  participate  in the 1996
Stock Incentive Plan (the "Plan"). These objectives will be promoted through the
granting to such key  employees of equity  instruments  including  (i) incentive
stock options ("Incentive  Options") which are intended to qualify under Section
422 of the Internal Revenue Code of 1986, as amended (the "Code");  (ii) options
which are not  intended to so qualify  ("NQSOs");  and (iii)  performance  share
units ("Performance Shares").

     The  awards  offered  pursuant  to  this  Plan  are a  matter  of  separate
inducement and are not in lieu of any salary or other compensation for services.

     The Company,  by means of the Plan, seeks to retain the services of persons
now  holding key  positions  and to secure the  services  of persons  capable of
filling such positions.

     II.  AMOUNT OF STOCK SUBJECT TO THE PLAN

     The total  number of shares of common  stock of the  Company  reserved  and
available  for  distribution  pursuant to options and awards  granted  hereunder
shall not exceed,  in the aggregate,  2,000,000 shares of the authorized  common
stock,  $0.01 par value,  per share, of the Company (the  "Shares"),  subject to
adjustment described below.

     Shares which may be acquired  under the Plan may be either  authorized  but
unissued  Shares or Shares of issued stock held in the  Company's  treasury,  or
both, at the discretion of the Company. Whenever any outstanding option or award
or portion thereof expires, is canceled, is forfeited or is otherwise terminated
for any reason without having been exercised or without having fully vested, the
Shares  allocable to the expired,  canceled,  forfeited or otherwise  terminated
portion  of the  option or award may again be the  subject  of options or awards
granted hereunder.

     In the event of any stock dividend, stock split, combination or exchange of
Shares,  recapitalization  or  other  change  in the  capital  structure  of the
Company,  corporate  separation  or  division  (including,  but not  limited to,
split-up, split-off, spin-off or distribution to Company shareholders other than
a normal cash dividend),  sale by the Company of all or a substantial portion of
its assets, rights offering, merger, consolidation, reorganization or partial or
complete  liquidation,  or any other  corporate  transaction  or event having an

<PAGE>

effect similar to any of the foregoing,  the aggregate number of Shares reserved
for issuance  under the Plan,  the number and option price of Shares  subject to
outstanding options, the financial  performance goals contained in a Performance
Share award,  the number of Shares subject to a Performance  Share award and any
other  characteristics  or terms  of the  options  and  awards  as the  Board of
Directors (as hereinafter defined) or the Committee (as hereinafter defined), as
the case may be, shall deem necessary or  appropriate  to reflect  equitably the
effects  of such  changes  to the  holders  of  options  and  awards,  shall  be
appropriately substituted for new shares or adjusted, as determined by the Board
of  Directors  or the  Committee,  as  the  case  may  be,  in  its  discretion.
Notwithstanding  the  foregoing,  (i) each such  adjustment  with  respect to an
Incentive  Option shall comply with the rules of Section 424(a) of the Code, and
(ii) in no event shall any  adjustment  be made which would render any Incentive
Option granted  hereunder  other than an incentive  stock option for purposes of
Section 422 of the Code without the consent of the grantee.

     III. ADMINISTRATION

     The Compensation Committee (the "Committee"),  or the Board of Directors of
the Company (the "Board of Directors") if there is no Committee,  will have sole
and exclusive  authority to administer the Plan. The Committee  shall consist of
no fewer than two (2) members of the Board of Directors, each of whom shall be a
"non-employee  Director"  within the meaning of Rule 16b-3 or any successor rule
or regulation ("Rule 16b-3")  promulgated  under the Securities  Exchange Act of
1934, as amended (the "Exchange  Act").  The Committee shall administer the Plan
so as to comply at all times with Rule  16b-3.  A majority of the members of the
Committee shall constitute a quorum, and the act of a majority of the members of
the Committee shall be the act of the Committee. Any member of the Committee may
be removed at any time, either with or without cause, by resolution adopted by a
majority of the Board of Directors,  and any vacancy on the Committee may at any
time be filled by resolution adopted by a majority of the Board of Directors.

     Subject to the express  provisions  of the Plan,  the Board of Directors or
the Committee, as the case may be, shall have authority,  in its discretion,  to
(i) select  employees  of the  Company and its  subsidiaries  as  recipients  of
options or awards; (ii) determine the number and type of options or awards to be
granted;  (iii) determine the terms and conditions,  not  inconsistent  with the
terms hereof,  of any options or awards  granted;  (iv) adopt,  alter and repeal
such  administrative  rules,  guidelines and practices  governing the Plan as it
shall, from time to time, deem advisable; (v) interpret the terms and provisions
of the Plan and any option or award granted and any agreements relating thereto;
and (vi) otherwise supervise the administration of the Plan.

     The  determination of the Board of Directors or the Committee,  as the case
may be, on matters referred to in this Article III shall be conclusive.

     The Board of  Directors  or the  Committee,  as the case may be, may employ
such legal  counsel,  consultants  and agents as it may deem  desirable  for the
administration  of the Plan and may rely upon any opinion received from any such
counsel or consultant and any  computation  received from any such consultant or
agent.  Expenses  incurred by the Board of  Directors  or the  Committee  in the
engagement of such counsel, consultant or agent shall he paid by the Company. No
member or former member of the  Committee or of the Board of Directors  shall be
liable for any action or  determination  made in good faith with  respect to the
Plan or any option or award granted hereunder.

2
<PAGE>

     The Company  shall  indemnify  each member of the Board of Directors or the
Committee,  as the case may be, for all costs and  expenses  and,  to the extent
permitted by applicable law, any liability incurred in connection with defending
against,  responding to, negotiation for the settlement of, or otherwise dealing
with any claim,  cause of action or dispute  of any kind  arising in  connection
with  any  actions  in  administering  the  Plan or in  authorizing  or  denying
authorization to any transaction hereunder

     IV.  ELIGIBILITY

     Options  and  Performance  Share  awards  may be  granted  only to  certain
salaried  officers  and other  salaried  key  employees  of the  Company and its
subsidiaries  who are not  members of the  Committee;  provided,  that no person
shall be  eligible  for any award if the  granting  of such award to such person
would prevent the satisfaction by the Plan of the general  exemptive  conditions
of Rule 16b-3.  In no event may any eligible  person be granted or awarded stock
options and Performance  Shares  covering,  in the aggregate,  more than 300,000
Shares  (subject to  adjustment  as described in Article II above) in any fiscal
year of the Company.

     V.   STOCK OPTIONS

     1.  General.  Options may be granted  alone or in addition to other  awards
granted under the Plan. Any options granted under the Plan shall be in such form
as the Board of Directors or the Committee, as the case may be, may from time to
time approve and the  provisions  of the option grants need not be the same with
respect to each optionee. Options granted under the Plan may be either Incentive
Options or NQSOs.  The Board of Directors or the Committee,  as the case may be,
may grant to any optionee Incentive Options, NOSOs or both types of options.

     Options  granted under the Plan shall be subject to the following terms and
conditions  and  shall  contain  such   additional   terms  and  conditions  not
inconsistent  with the  terms of the  Plan,  as the  Board of  Directors  or the
Committee,  as the case may be,  deems  appropriate.  Each option grant shall be
evidenced  by an  agreement  executed  on behalf of the  Company  by an  officer
designated by the Committee and accepted by the optionee.  Such agreement  shall
describe  the options  and state that such  options are subject to all the terms
and  provisions of the Plan and shall  contain such other terms and  provisions,
consistent  with the Plan,  as the Board of Directors or the  Committee,  as the
case may be, may approve.

     2. Exercise Price and Payment. The price per Share under any option granted
hereunder  shall be such amount as the Board of Directors or the  Committee,  as
the case may be, shall determine,  provided,  however, that such price shall not
be less than one hundred  percent  (100%) of the fair market value of the Shares
subject to such option,  as determined  below, at the date the option is granted
(110% in the case of an Incentive  Option granted to any person who, at the time
the option is granted,  owns stock of the Company or any subsidiary or parent of
the Company  possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of any  subsidiary  or parent of
the Company (a "10% Shareholder")).

3
<PAGE>

     Except with respect to options ("Effective Date Options") granted effective
upon the  consummation  of the IPO (as hereinafter  defined),  if the Shares are
listed on a national  securities  exchange in the United  States on the date any
option is  granted,  the fair  market  value per Share shall be deemed to be the
average of the high and low sale price on such national  securities  exchange in
the  United  States on the date upon  which the  option is  granted,  but if the
Shares are not traded on such date, or such national  securities exchange is not
open for  business on such date,  the fair  market  value per Share shall be the
average of the high and low sale price  determined  as of the closest  preceding
date on which such  exchange  shall have been open for  business  and the Shares
were  traded.  If the  Shares are  listed on more than one  national  securities
exchange in the United States on the date any such option is granted,  the Board
of  Directors  or the  Committee,  as the case  may be,  shall  determine  which
national  securities  exchange shall be used for the purpose of determining  the
fair  market  value per  Share.  If the  Shares  are not  listed  on a  national
securities exchange but are listed on the Nasdaq National Market ("Nasdaq"), the
fair  market  value per share  shall be deemed to be the average of the high and
low sale  prices on the date upon which the option is  granted  as  reported  by
Nasdaq  or, if the  Shares are not traded on such date or Nasdaq is not open for
business on such date,  the fair market  value per Share shall be the average of
the high and low sale price determined as of the closest preceding date on which
Nasdaq shall have reported the Shares.  With respect to Effective  Date Options,
the fair market value per Share shall be equal to the public  offering  price of
the  Shares,  as such  price is set forth on the  cover of the final  prospectus
related to the initial public offering of Shares (the "IPO").

     For purposes of this Plan, the  determination  by the Board of Directors or
the Committee,  as the case may be, of the fair market value of a Share shall be
conclusive.

     3. Term of Options and  Limitations  on the Right of Exercise.  The term of
each option will be for such period as the Board of Directors or the  Committee,
as the case may be, shall determine, provided that, except as otherwise provided
herein,  in no event may any option granted  hereunder be exercisable  more than
ten (10) years from the date of grant of such option  (five years in the case of
an  Incentive  Option  granted to a 10%  Shareholder).  Each option shall become
exercisable in such  installments  and at such times as may be designated by the
Board of  Directors or the  Committee,  as the case may be, and set forth in the
agreement  related  to the  grant  of  options.  To the  extent  not  exercised,
installments  shall  accumulate and be exercisable,  in whole or in part, at any
time after becoming exercisable, but not later than the date the option expires.
Stock options may provide for acceleration of exercisability in the event of the
death, disability or retirement of the optionee.

     The Board of Directors or the Committee, as the case may be, shall have the
right to limit,  restrict or prohibit,  in whole or in part,  from time to time,
conditionally  or  unconditionally,   rights  to  exercise  any  option  granted
hereunder.

4
<PAGE>

     To the  extent  that an  option  is not  exercised  within  the  period  of
exercisability  specified  therein,  it shall expire as to the then  unexercised
part.

     4. Exercise of Options.  Options  granted under the Plan shall be exercised
by the optionee as to all or part of the Shares covered thereby by the giving of
written  notice of the exercise  thereof to the  Secretary of the Company at the
principal business office of the Company,  specifying the number of Shares to be
purchased,  accompanied  by payment  therefor  made to the  Company for the full
purchase price of such Shares. The date of actual receipt by the Company of such
notice  shall be deemed the date of exercise  of the option with  respect to the
Shares being purchased.

     Upon the exercise of an option granted  hereunder,  the Company shall cause
the  purchased  Shares to be issued  only when it shall have  received  the full
purchase price for the Shares in cash; provided,  however, that in lieu of cash,
the holder of an option may, to the extent permitted by applicable law, exercise
an option in whole or in part, by delivering to the Company  unrestricted Shares
(in proper form for transfer and accompanied by all requisite stock transfer tax
stamps or cash in lieu thereof)  owned by such holder having a fair market value
equal to the cash exercise price  applicable to that portion of the option being
exercised.  The fair market value of the Shares so delivered shall be determined
as of the date immediately  preceding the date on which the option is exercised,
or as may be required in order to comply with or to conform to the  requirements
of any  applicable  laws or  regulations.  For purposes of this  paragraph,  the
provisions of Article V, Paragraph 2 hereof relating to the fair market value of
Shares shall apply in all respects.

     Notwithstanding  the foregoing,  the Company,  in its sole discretion,  may
establish cashless exercise procedures whereby an option holder,  subject to the
requirements  of Rule 16b-3,  Regulation T, federal  income tax laws,  and other
federal,  state and local tax and  securities  laws, can exercise an option or a
portion  thereof  without  making a direct  payment of the  option  price to the
Company,  including a program  whereby  option shares would be sold on behalf of
and at the request of an option  holder by a designated  broker and the exercise
price would be satisfied  out of the sale proceeds and delivered to the Company.
If the Company so elects to establish a cashless exercise  program,  the Company
shall  determine,  in  its  sole  discretion,   and  from  time  to  time,  such
administrative  procedures  and  policies  as  it  deems  appropriate  and  such
procedures and policies shall be binding on any option holder wishing to utilize
the cashless exercise program.

     5.  Nontransferability  of Options.  An Incentive Option granted  hereunder
shall not be transferable,  whether by operation of law or otherwise, other than
by will or the  laws of  descent  and  distribution,  and any  Incentive  Option
granted hereunder shall be exercisable,  during the lifetime of the holder, only
by such holder. Except as otherwise provided in the applicable option agreement,
a NQSO granted hereunder shall not be transferable,  whether by operation of law
or otherwise,  other than by will or the laws of descent and  distribution,  and
any NQSO  granted  hereunder  shall be  exercisable,  during the lifetime of the
holder,  only by such holder. The option of any person to acquire Shares and all
his rights thereunder shall terminate immediately if the holder: (a) attempts to
or does sell, assign, transfer,  pledge, hypothecate or otherwise dispose of the
option or any rights  thereunder to any other person except as permitted  above;
or (b) becomes  insolvent or bankrupt or becomes  involved in any manner so that
the option or any rights  thereunder  becomes subject to being taken from him to
satisfy his debts or liabilities.

5
<PAGE>

     6.  Termination  of  Employment.  Except as set forth in Article VII,  upon
termination of employment of any option holder, any option previously granted to
such option holder,  unless otherwise specified by the Board of Directors or the
Committee,  as the case may be, shall, to the extent not theretofore  exercised,
terminate and become null and void, provided that:

          (a) if the option  holder shall die while in the employ of the Company
     or any  subsidiary  of the  Company,  and at a time when such  employee was
     entitled  to  exercise  an  option as herein  provided,  his  estate or the
     legatees or  distributees  of his estate or of the option,  as the case may
     be, of such option holder,  may,  within one (1) year following the date of
     death,  but not beyond that time and in no event later than the  expiration
     date of the option,  exercise  such option,  to the extent not  theretofore
     exercised,  in  respect  of any or all of such  number of Shares  which the
     option holder was entitled to purchase; and

          (b) if the  employment  of any option holder to whom such option shall
     have  been  granted  shall  terminate  by  reason  of the  option  holder's
     retirement  on or after he  reaches  the age of 60 years in such  manner as
     would entitle him to receive full Social Security  benefits if he were then
     65 years of age, or  disability  (as  described in Section  22(e)(3) of the
     Code),  and while such  employee is  entitled  to  exercise  such option as
     herein provided,  such option holder shall have the right to purchase under
     the option the number of Shares,  if any, which he was entitled to purchase
     at the time of such termination,  at any time up to and including three (3)
     months after the date of such  termination  of  employment,  but not beyond
     that  time and in no event  shall an  option be  exercised  later  than the
     expiration date of the option.

     In no event shall any person be entitled to exercise  any option  after the
expiration of the period of exercisability of such option as specified therein.

     Except as otherwise  determined by the Board of Directors or the Committee,
as the case may be,  and other  than as set  forth  above,  if an option  holder
voluntarily  terminates  his or her  employment,  or is  discharged,  any option
granted  hereunder shall be canceled and the option holder shall have no further
rights  to  exercise  any such  option  and all of the  option  holder's  rights
thereunder  shall  terminate as of the  effective  date of such  termination  of
employment.

     If  an  option   granted   hereunder   shall  be  exercised  by  the  legal
representative  of a  deceased  option  holder or former  option  holder or by a
person who acquired an option granted  hereunder by bequest or inheritance or by
reason of the death of any option holder or former option holder, written notice
of  such  exercise   shall  be  accompanied  by  a  certified  copy  of  letters
testamentary or equivalent  proof of the right of such legal  representative  or
other person to exercise such option.

     For the purposes of the Plan, an employment relationship shall be deemed to
exist  between  an  individual  and  a  corporation  if,  at  the  time  of  the
determination, the individual was an "employee" of such corporation for purposes
of Section 422(a) of the Code.

6
<PAGE>

     A termination  of employment  shall not be deemed to occur by reason of (i)
the transfer of an employee  from  employment  by the Company to employment by a
subsidiary of the Company or (ii) the transfer of an employee from employment by
a  subsidiary  of the  Company  to  employment  by  the  Company  or by  another
subsidiary of the Company.

     7. Maximum  Allotment of Incentive  Options.  If the aggregate  fair market
value of Shares with respect to which Incentive  Options are exercisable for the
first time by an employee during any calendar year (under all stock option plans
of the  Company  and  any  parent  or any  subsidiary  of the  Company)  exceeds
$100,000,  any options  which  otherwise  qualify as Incentive  Options,  to the
extent of the excess, will be treated as NQSOs.

     VI.  PERFORMANCE SHARE AWARDS

     1. General. Performance Share awards may be granted alone or in addition to
any other awards granted under the Plan.  The  provisions of  Performance  Share
awards need not be the same with respect to each  recipient.  Performance  Share
awards granted under the Plan shall be in such form as the Board of Directors or
the Committee,  as the case may be, may from time to time approve. Each grant of
a Performance Share award shall be evidenced by an agreement  executed on behalf
of the  Company  by an  officer  designated  by the  Board of  Directors  or the
Committee,  as the case may be, and) accepted by the  recipient.  Such agreement
shall describe the Performance  Share award and state that such award is subject
to all the terms and  provisions  of the Plan and shall contain such other terms
and  provisions,  consistent  with the Plan,  as the Board of  Directors  or the
Committee, as the case may be, may approve. Each Performance Share awarded under
the Plan shall  entitle the  grantee to receive  one Share upon  vesting of such
Performance Share.

     2.  Restrictions.  Each  Performance  Share  award  shall vest upon (A) the
passage of time and/or (B) the attainment by the Company of specified  financial
performance   objectives.   Company  financial  performance  objectives  may  be
expressed in terms of (i) earnings per Share,  (ii) pre-tax  profits  (either on
the Company or  business  unit  level),  (iii) net  earnings or net worth,  (iv)
return on equity or assets,  (v) any  combination of the foregoing,  or (vi) any
other standard or standards deemed  appropriate by the Board of Directors or the
Committee,  as the case may be,  at the time the  award is  granted.  Such  time
periods (the "Performance  Period") and financial performance goals shall be set
by the  Board of  Directors  or the  Committee,  as the case may be, in its sole
discretion.

     Performance  Share awards shall become vested in a recipient upon the lapse
of the  Performance  Period,  if any,  and/or the  attainment of the  associated
financial performance goals set forth in the agreement between the recipient and
the Company.  Performance  Share awards shall vest in such  installments  and at
such times as may be designated by the Board of Directors or the  Committee,  as
the case may be, and set forth in the  agreement  related to the granting of the
Performance Share awards. The agreement  evidencing the Performance Share awards
may provide for acceleration of vesting in the event of the death, disability or
retirement of the recipient

7
<PAGE>

     3.  Stock  Certificate.  No  stock  certificates  shall  be  issued  to the
recipient  with  respect  to  Performance  Share  awards  until such time as the
Performance Share awards vest.

     4.  Treatment of Dividends.  If any ordinary cash dividends are declared or
paid on  Shares,  the  record  date of which is prior to the  forfeiture  or the
vesting of Performance Share awards,  the holder of the Performance Share awards
shall be  entitled  to  receive  an amount  equal to the amount of the per Share
dividend  declared for each Performance  Share.  Such dividends shall be paid to
such recipients at the same time and in the same manner as dividends are paid to
stockholders of the Company.

     5.  Nontransferability.  Subject  to the  provisions  of this  Plan and the
applicable  agreement,  during the period when the  Performance  Shares have not
vested, the recipient shall not be permitted to sell, transfer,  pledge,  assign
or otherwise encumber Performance Shares awarded under the Plan.

     6. Shareholder  Rights.  The recipient shall have no rights with respect to
the  Performance  Shares or any Shares  related  thereto until they have vested,
including no right to vote the Performance Shares or such Shares, other than the
right to receive dividends as set forth in the Plan.

     7.  Termination  of  Employment.  Subject to the  provisions of Paragraph 2
above,  all unvested  Performance  Shares shall be forfeited upon termination of
employment.

     VII. CHANGE OF CONTROL

     Notwithstanding anything to the contrary contained herein, upon a Change of
Control (as defined  below) of the Company,  (i) all options  shall  immediately
vest and become exercisable in full during the remaining term thereof, and shall
remain  so,  whether  or not the option  holder to whom such  options  have been
granted  remains an employee of the  Company or its  subsidiaries,  and (ii) the
restrictions  applicable to any or all Performance  Share awards shall lapse and
such awards shall be fully vested.

     A  "Change  of  Control"  shall be  deemed  to have  taken  place  upon the
occurrence of any of the following events:

          (i)  any  person   (which  shall  mean  and  include  an   individual,
     corporation,  partnership,  group,  association or other "person",  as such
     term is used in Sections 13 and 14 of the Exchange  Act) which  theretofore
     beneficially  owned less than 20% of the Shares then outstanding,  acquires
     Shares in a transaction or series of transactions,  not previously approved
     by the  Board  of  Directors,  that  results  in such  person  directly  or
     indirectly owning at least 20% of the Shares then outstanding; or

          (ii) the election or  appointment,  within a twelve (12) month period,
     of persons to the Board who were not  directors  at the  beginning  of such
     twelve (12) month period, whose election or appointment was not approved by
     a majority of those persons who were Board members at the beginning of such
     period, and which newly elected or appointed Board members shall constitute
     a majority of the Board.

8
<PAGE>

     Notwithstanding anything herein to the contrary, no Change of Control (only
with  respect to the  particular  option  holder or award  grantee  referred  to
therein  in the case of (A)) shall be deemed to have  occurred  by virtue of any
event which results from the acquisition, directly or indirectly, of 20% or more
of the  outstanding  Shares  by (A)  the  option  holder  or  Performance  Share
recipient  or  a  person  including  the  option  holder  or  Performance  Share
recipient, (B) the Company, (C) a subsidiary of the Company, or (D) any savings,
pension or other employee benefit plan of the Company or of a subsidiary, or any
entity holding securities of the Company recognized,  appointed,  or established
by the Company or by a subsidiary for or pursuant to the terms of such plan.

     VIII. PURCHASE FOR INVESTMENT

     Except as  hereafter  provided,  the Company may require the  recipient  of
Shares pursuant to an option or award granted  hereunder,  upon receipt thereof,
to execute and deliver to the Company a written statement,  in form satisfactory
to the Company, in which such holder represents and warrants that such holder is
purchasing or acquiring  the Shares  acquired  thereunder  for such holder's own
account,  for investment  only and not with a view to the resale or distribution
thereof,  and agrees that any subsequent  offer for sale or sale or distribution
of any of such Shares shall be made only  pursuant to either (a) a  Registration
Statement on an  appropriate  form under the  Securities Act of 1933, as amended
(the "Act"),  which  Registration  Statement has become effective and is current
with regard to the Shares  being  offered or sold,  or (b) a specific  exemption
from the  registration  requirements  of the Act, but in claiming such exemption
the holder shall,  prior to any offer for sale or sale of such Shares,  obtain a
prior  favorable  written  opinion,  in form and substance  satisfactory  to the
Company, from counsel for or approved by the Company, as to the applicability of
such  exemption  thereto.  The  foregoing  restriction  shall  not  apply to (i)
issuances by the Company so long as the Shares being issued are registered under
the Act and a prospectus in respect  thereof is current or (ii)  reofferings  of
Shares by  affiliates  of the Company  (as defined in Rule 405 or any  successor
rule or regulation  promulgated under the Act) if the Shares being reoffered are
registered under the Act and a prospectus in respect thereof is current.

     IX.  ISSUANCE OF CERTIFICATES; LEGENDS; PAYMENT OF EXPENSES

     The Company may endorse  such legend or legends upon the  certificates  for
Shares issued  pursuant to a grant  hereunder and may issue such "stop transfer"
instructions  to its  transfer  agent  in  respect  of such  Shares  as,  in its
discretion,  it  determines  to be  necessary  or  appropriate  to (i) prevent a
violation of, or to perfect an exemption from, the registration  requirements of
the Act, (ii) implement the provisions of the Plan and any agreement between the
Company and the optionee or grantee with respect to such Shares, or (iii) permit
the Company to determine  the  occurrence  of a  disqualifying  disposition,  as
described in Section 421(b) of the Code, of Shares  transferred upon exercise of
an Incentive Option granted under the Plan.

     The  Company  shall pay all issue or  transfer  taxes  with  respect to the
issuance  or  transfer  of  Shares  upon  exercise  of an  option  or  grant  of
Performance Share awards, as well as all fees and expenses  necessarily incurred
by the Company in  connection  with such  issuance or transfer,  except fees and
expenses which may be  necessitated  by the filing or amending of a Registration
Statement under the Act, which fees and expenses shall be borne by the recipient
of the Shares unless such  Registration  Statement has been filed by the Company
for its own corporate purposes (and the Company so states).

9
<PAGE>

     All Shares issued as provided herein shall be fully paid and non-assessable
to the extent permitted by law.

     X.   WITHHOLDING TAXES

     An employee  exercising an NQSO or acquiring Shares pursuant to the vesting
of  Performance  Shares may elect to have a specified  percentage  of his shares
withheld by the Company in order to satisfy tax  obligations.  Any such election
shall be made pursuant to a written  notice signed by the employee.  The Company
may require an  employee  exercising  an NQSO or  disposing  of Shares  acquired
pursuant to the exercise of an Incentive  Option in a disqualifying  disposition
(within the meaning of Section 421(b) of the Code) or acquiring  Shares pursuant
to  Performance  Share awards to reimburse the Company for any taxes required by
any  government to be withheld or otherwise  deducted and paid by the Company in
respect of the issuance or disposition of Shares.  In lieu thereof,  the Company
shall  have the right to  withhold  the amount of such taxes from any other sums
due or to become  due from the  Company  to the  employee  upon  such  terms and
conditions as the Board of Directors or the Committee, as the case may be, shall
prescribe.  Notwithstanding the foregoing, the Committee may, by the adoption of
rules or otherwise, modify the provisions of this Article X or impose such other
restrictions  or limitations as may be necessary to ensure that the  withholding
transactions  described above will be exempt transactions under Section 16(b) of
the Exchange Act.

     With respect to withholding required hereunder,  an optionee or holder of a
Performance  Share  award may  elect,  subject to the  approval  of the Board of
Directors  or the  Committee,  as the case may be, to  satisfy  the  withholding
requirement, in whole or in part, by having the Company withhold Shares having a
fair market value (as determined under the provisions of Article V, Paragraph 2)
on the date the tax is to be determined equal to the minimum statutory total tax
which  could  be  imposed  on the  transaction.  All  such  elections  shall  be
irrevocable,  made in writing,  signed by the  optionee or holder,  and shall be
subject to any  restrictions  or limitations  that the Board of Directors or the
Committee, as the case may be, in its sole discretion, deems appropriate.

     If an optionee makes a disposition, within the meaning of Section 424(c) of
the Code and regulations promulgated  thereunder,  of any Share or Shares issued
to such  optionee  pursuant to the  exercise of an Incentive  Option  within the
two-year period  commencing on the day after the date of the grant or within the
one-year  period  commencing on the day after the date of transfer of such Share
or Shares to the optionee pursuant to such exercise,  the optionee shall, within
ten (10) days of such  disposition,  notify the Company thereof,  by delivery of
written notice to the Company at its principal executive office.

10
<PAGE>

     XI.  DEFERRAL

     The Board of Directors or the Committee,  as the case may be, may permit an
optionee  or holder of  Performance  Share  awards  to defer  such  individual's
receipt of Shares  that would  otherwise  be due to such  optionee  or holder by
virtue of the exercise of an option or the lapse of restrictions with respect to
Performance  Share  awards.  If  any  such  deferral  election  is  required  or
permitted,  the Board of Directors or the Committee,  as the case may be, shall,
in its sole discretion, establish rules and procedures for such deferrals.

     XII. LISTING OF SHARES AND RELATED MATTERS

     If at any time the Board of Directors or the Committee, as the case may be,
shall   determine  in  its  discretion   that  the  listing,   registration   or
qualification  of the Shares  covered by the Plan upon any  national  securities
exchange  or under any state or federal  law or the  consent or  approval of any
governmental regulatory body, is necessary or desirable as a condition of, or in
connection  with, the sale or purchase of Shares under the Plan, no Shares shall
be issued unless and until such listing, registration, qualification, consent or
approval shall have been effected or obtained,  or otherwise  provided for, free
of any conditions not acceptable to the Board of Directors or the Committee,  as
the case may be.

     XIII. AMENDMENT OF THE PLAN

     The Board of Directors or the Committee, as the case may be, may, from time
to time, amend the Plan,  provided that no amendment shall be made,  without the
approval of the  stockholders  of the Company,  that will (i) increase the total
number of Shares  which may be issued  under the Plan  (other  than an  increase
resulting  from an  adjustment  provided  for in  Article  II,  (ii)  modify the
provisions of the Plan relating to eligibility,  (iii)  materially  increase the
benefits  accruing to  participants  under the Plan,  or (iv) extend the maximum
period of the Plan. The Board of Directors or the Committee, as the case may be,
shall be authorized to amend the Plan and the awards granted hereunder to permit
the Incentive  Options  granted  hereunder to qualify as incentive stock options
within the meaning of Section 422 of the Code and to comply with Rule 16b-3. The
rights and obligations under any option or award granted before amendment of the
Plan or any unexercised  portion of such option shall not be adversely  affected
by amendment of the Plan or the option  without the consent of the holder of the
option or the award.

     XIV. TERMINATION OR SUSPENSION OF THE PLAN

     The Board of  Directors  or the  Committee,  as the case may be, may at any
time suspend or terminate the Plan. The Plan, unless sooner terminated by action
of the Board of Directors or the Committee,  as the case may be, shall terminate
as provided  in Article  XVII.  An option or award may not be granted  while the
Plan is suspended or after it is terminated.  Rights and  obligations  under any
option or award  granted  while the Plan is in effect  shall not be  altered  or
impaired by suspension or  termination  of the Plan,  except upon the consent of
the  person to whom the option or award was  granted.  The power of the Board of
Directors or the  Committee,  as the case may be, to construe and administer any
options and awards  granted prior to the  termination  or suspension of the Plan
under Article III  nevertheless  shall continue after such termination or during
such suspension.

11
<PAGE>

     XV.  GOVERNING LAW

     The Plan,  such  options  and awards as may be granted  thereunder  and all
related  matters  shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware.

     XVI. PARTIAL INVALIDITY

     The invalidity or illegality of any provision herein shall not be deemed to
affect the validity of any other provision.

     XVII. EFFECTIVE DATE, DURATION OF THE PLAN

     The Plan  shall  become  effective  as of  February  28,  1996,  subject to
approval by the Company's  stockholders,  and shall remain in effect, subject to
the  provisions of Article XIV,  until all Shares  subject to the Plan have been
purchased or acquired according to the Plan's provisions.  However,  in no event
may any  options or  Performance  Share  awards be granted  under the Plan on or
after February 28, 2006.

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]